News & market updates

Sri Lanka's central bank cut the mandatory conversion period for exporters' foreign-currency receipts from 90 days to 30 days, requiring conversion by the 10th of the following month. The rule is intended to generate predictable monthly dollar inflows to banks to ease FX shortages and help stabilise the rupee, while tightening exporters' working-capital flexibility.

CBSL's new 'Repatriation of Export Proceeds into Sri Lanka Rules No.2 of 2026' requires exporters to convert all residual foreign exchange proceeds on or before the 10th day of the month following receipt, shortening the previous three-month window; the rule takes effect after Parliamentary approval and preserves limited authorized uses and a 10% cap for investment in government FX debt.

Sumathi Information Technologies (SIT), a Sumathi Holdings subsidiary, was named Sri Lanka’s only HPE Gold Networking Partner for 2026, reinforcing its position as a leading enterprise IT system integrator. The tie-up enhances SIT’s ability to support banks, telecoms and government with secure, scalable network solutions.

Mastercard appointed Sandun Hapugoda as Group Country Manager for Sri Lanka, Maldives, Bangladesh, Nepal and Bhutan and promoted Mahesha Amarasuriya to Country Manager for Sri Lanka. The changes aim to integrate operations across the five markets to boost tourism, cross-border trade and digital payments.

Sysco LABS hosted 'Product Nexus', a forum where product and business-analysis professionals discussed how AI is reshaping product discovery, design and delivery and emphasized the role of product thinking in driving enterprise innovation and decision-making.

Colombo market rebounded as the ASPI rose 0.67% to 21,547.17 with net foreign inflows of Rs. 22.6 million. Gains were led by selected blue-chip counters and heavy turnover in capital goods and food & beverage names, with notable moves in DIAL, BREW, CCS, ABAN and JKH.

Team Akura, four final-year SLIIT students, won the 2026 OneEarth AI Tool Building Challenge with a mobile multimodal platform to teach Sinhala to children aged 3–6. The adaptive app combines handwriting guidance, pronunciation assessment, gesture-based numeracy and emotion-aware learning.

Sri Lanka's BOI and Japanese partners held the 4th working-level Japan–Sri Lanka Committee on Business Environment on 2 June 2026 in Colombo to review and resolve investor concerns and strengthen FDI ties. The session stressed accountability and priorities such as technology transfer, green industry, manufacturing and tourism.

Fitch cut its forecast for global growth in 2026 by 0.2 percentage points to 2.4% as an oil shock from the US‑Iran conflict and a prolonged Strait of Hormuz closure lifts energy prices (Brent now seen at $87/bbl for 2026). The agency said a tech investment boom cushions activity and central banks are likely to hold rates this year amid higher inflation risks.

Asian markets plunged on Monday as a tech-led sell-off and a rise in oil prices sparked volatility — South Korea's Kospi briefly halted trading after an almost 9% intraday fall and closed 8.3% lower. US indexes partly recovered amid investor concern that higher US interest rates and energy-driven inflation could persist.

The Committee on Public Finance approved a five-year tax exemption for new telecommunications towers that become operational from 1 January 2026. It also approved HS code changes, removed the textile import cess while imposing 18% VAT from 1 April 2026, exempted certain payment receipts from stamp duty, rejected telecom relief on unpaid customer bills and ordered a probe into online casinos allegedly misusing the State emblem.

The IRD has begun Phase II of Sri Lanka's Digital Invoicing System, expanding the platform to VAT-registered businesses after Phase I onboarded more than 340 companies; technical documentation has been shared with 27 export-oriented firms and 170 manufacturers, and Phase III POS integration is planned by year-end.

Colombo Stock Exchange's ASPI rose 0.67% to 21,547, led by gains in Dialog Axiata (up 6.80% to LKR44.00) and Sampath Bank (up 0.72% to LKR139.75). Market turnover was LKR2.16 billion, with capital goods leading turnover at LKR791.2 million.

SLT-MOBITEL Enterprise signed a reseller partnership with Starlink to offer Starlink’s LEO satellite internet to enterprises and SMEs in Sri Lanka. The service aims to provide high-speed, low-latency connectivity and satellite-based redundancy for remote, disaster-affected, or mission-critical operations.

Kishore Reddy was re-elected president of the Indian CEO Forum at its AGM, where the Forum reaffirmed commitment to deepen India–Sri Lanka economic cooperation and urged upgrading the FTA to boost investment in infrastructure, tourism, IT, logistics and services.

Colombo Stock Exchange ASPI rose 0.83% to 21,581.80 midday, led by gains in Dialog, Hayleys, Colombo Fort Land & Building and Browns Investments; Commercial Bank slipped and Hela Apparel faces a trading suspension effective June 18 unless compliance is rectified by June 16.

Effectz.AI implemented large-scale AI solutions at Akbar Brothers Group, integrating systems into accounts payable, VAT reconciliation and shipping workflows to improve compliance, cash-flow management and operational accuracy within core business processes.

The Ceylon Chamber will hold the 26th Sri Lanka Economic and Investment Summit on 12–13 October, focused on economic growth, competitiveness, investment and structural reforms. Sessions will cover trade and regional integration, energy security, digital transformation and healthcare.

Dialog Axiata PLC has signed an agreement with Realty Management Services Ltd to outsource soft facility management at its head office and other Colombo locations, the first time Dialog has outsourced these services. Dialog says the move aims to streamline internal processes, improve service quality and allow greater focus on its core operations.

Celeste has appointed veteran corporate leader Roshanie J Moraes and is transitioning to a strengthened corporate governance structure to scale its lifestyle and quick-commerce business and expand digital offerings.

Opposition Leader Sajith Premadasa urged deeper Sri Lanka–India economic integration to boost trade and investment, highlighting UPI payment integration and proposed energy connectivity. He encouraged entrepreneurs and investors to pursue expansion and adapt to technological change.

Cabinet approved 77 Businesses of Strategic Importance for the Colombo Port City SEZ, including three Primary BSIs (Prime Melwa, Marina Hotel Holdings, Home Lands); land/development costs are ~Rs125bn (incl. ~US$262m) and Secondary BSIs are projected to bring ~US$364m and ~10,000 jobs over five years.

Fitch cut its 2026 global growth forecast by 0.2pp to 2.4% and raised its 2026 Brent crude assumption to USD87/bbl (from USD70/bbl) due to an oil shock from the US–Iran war. Strong IT-related investment is partly cushioning the hit, while central banks’ policy paths have shifted with rates expected to hold this year and cuts delayed until 2027 in some cases.

MO Marketplace, a Sri Lankan e-commerce app live since June 2024, combines escrow-protected payments, managed island-wide delivery and a flat 10% commission, and has 45,000 downloads with 14,000 registered users. The platform plans AI listing tools and video-led selling by mid-2026.

The Ceylon Chamber of Commerce will hold the 26th Sri Lanka Economic and Investment Summit on 12–13 October 2026. The Summit will focus on economic growth, investment, trade, fiscal and structural reforms, energy security and sustainability, healthcare, and digital transformation.

The Ceylon Chamber of Commerce will hold the 26th Sri Lanka Economic and Investment Summit on Oct 12-13 to focus on pressing national priorities including economic growth, investment, trade, fiscal and structural reforms, energy security, healthcare and digital transformation.

Mogo Media Academy held its inaugural graduation ceremony on 4 June 2026, with 115 students graduating (73 from Diploma programs in Animation, Game Development, Concept Art and VFX; 42 from a Certificate in Professional Training in Radio Presentation). Many graduates have already secured employment locally and internationally, reflecting the academy's industry-focused training.

Sri Lanka said it will deepen cooperation with France and the EU as AFD marks 20 years in the country, seeking expanded collaboration on sustainable development including green energy, urban and water infrastructure, digital transformation and maritime cooperation.

SLCERT warned of a rise in AI-generated deepfake videos used to promote investment scams, reporting 360 cyber-related financial fraud complaints so far this year. The agency said fake videos featuring the President, Prime Minister and other public figures link to fraudulent sites that steal money and personal data.

China and Sri Lanka have deepened joint law-enforcement cooperation to crack down on cross-border online gambling and telecom fraud, with Sri Lankan authorities dismantling several centres and arresting and deporting suspects. The countries warned organised criminal networks displaced from parts of East and Southeast Asia are seeking to expand into Sri Lanka.