News & market updates

Sri Lanka's GDP grew 5.4% in Q3 2025. Agriculture rose 3.6%, manufacturing 8.1% and services 3.5%, with insurance up 18%, financial services 13.2%, accommodation/food 9.3% and IT services 8.5%; central bank stability supported activity despite a weakening rupee.

Government has disbursed over Rs. 13 billion for relief, recovery and reconstruction after Cyclone Ditwah. Starlink satellite units have arrived to boost connectivity in affected areas and the Treasury is coordinating funds and data-driven resource allocation.

Digital Mobility Solutions Lanka PLC (PickMe) has been selected as the subject company for the CFA Institute Research Challenge Sri Lanka 2025–2026, with local finals scheduled for February 2026. Twenty-seven university teams will prepare equity research reports on the company, with the winner advancing to the sub-regional round.

HUTCH maintained and rapidly restored its network during Cyclone Ditwah, provided free calls, SMS and data to subscribers for nearly three weeks and contributed Rs. 60 million to the Rebuild Sri Lanka Fund.

SLIIT's ICAC 2025 concluded on Dec 9-10 in Sri Jayawardenepura Kotte, selecting 116 papers from 462 submissions and featuring global keynote speakers, plus pre- and post-conference workshops on AI, quantum and related computing topics.

Sysco LABS won 'ICT Exporter of the Year' for the fourth consecutive year and 'Innovative Export Service of the Year' for its SAGE AI platform at the Presidential Export Awards 2024/25. The awards were presented by the Prime Minister at BMICH on 11 December.

Sri Lanka won 19 awards at the APICTA 2025 ICT Awards in Kaohsiung, including five category wins and a People’s Choice award, ranking second among participating economies. Winners spanned university student projects and private ICT firms across commercial, public-sector and consumer categories.

IFC's South Asia director urged Sri Lanka to rebrand as a green, outward-looking, export-driven investment destination and fix policy predictability. IFC has about $270m in long-term Sri Lanka exposure and is pursuing opportunities in tourism, digital services, agribusiness, renewables, manufacturing, healthcare, ports and finance.

Sri Lanka launched the US-backed GeoAI for Disaster Resilience initiative to train 20 government officials and 125 university students over one year in AI and GIS to strengthen early warning systems, emergency response and long-term planning. The program will deliver hazard mapping, drone data analysis and predictive models to improve inter-agency coordination and disaster preparedness.

Prime Minister Harini Amarasuriya said the government will strengthen exporters by streamlining trade facilitation, customs procedures and investment approvals and improving export facilities. She made the remarks at the 27th Presidential Export Awards, where 107 awards were presented and cyclone damage recovery was discussed.

Kapruka Holdings (KPHL) reported a 77% YoY improvement in operating performance for the quarter ended 30 Sep 2025, with 12% revenue growth and a 19% rise in gross profit as its Partner Central platform and cross-border initiatives drive scalable, asset-light expansion and USD revenue growth.

Disney is investing $1 billion in OpenAI and will license characters from its Star Wars, Pixar and Marvel franchises for OpenAI's Sora AI video generator under a three-year partnership, with character-generated videos expected to begin early next year.

SLT‑MOBITEL won Best Integrated Report – Telecommunications Sector (State) and received a Certificate of Compliance at the CMA Excellence in Integrated Reporting Awards 2025, recognising its integrated reporting, ESG integration and stakeholder-focused disclosures.

Amazon and Microsoft pledged a combined $52.5bn to invest in India — Amazon $35bn by 2030 and Microsoft $17.5bn — to expand AI-driven digitisation, cloud and data-centre infrastructure and support semiconductor and export growth. Microsoft will open a hyperscale cloud region in Hyderabad by mid-2026.

Janashakthi Life is the title sponsor of the Janashakthi Life – ICA International Half-Marathon 2025 in Colombo, which is sold out with over 2,000 participants and a Rs.5,700,000 prize pool. Other sponsors include Dialog and Lanka IOC, and proceeds will support ICA charitable initiatives including organ donation awareness.

Curtin University Colombo will launch a Bachelor of Science in Data Science (specialising in AI) and a one‑year Master of Artificial Intelligence commencing February 2026, with a 25% introductory scholarship for Year‑1. The programs use Curtin’s international curriculum and offer global transfer/options across its campuses.

Hikvision Sri Lanka held the Hikvision Skill Quest Grand Final at Hilton Colombo Residences, naming Amila Amarashinha the national Grand Winner after advanced technical challenges. The event underscores Hikvision's ongoing nationwide training and capacity-building efforts for security and AIoT technicians.

Sophos launched an Authorized Training Center in Colombo with partner Sinetcom, officially opened on 28 October 2025 and now open for registration. The facility will deliver official Sophos training and certifications covering firewall, endpoint and cloud security for IT professionals.

Sampath Bank has partnered with Digital Mobility Solutions Lanka PLC (PickMe) to integrate Visa’s CyberSource internet payment gateway, enabling secure card payments across PickMe rides and delivery services.

Dialog Axiata PLC has fully restored its network after Cyclone Ditwah (2,200 of 6,000 sites were affected) and will invest USD 250 million over the next three years to add about 800 new sites and strengthen climate-resilient infrastructure.

China’s State Council released a white paper titled "China’s Arms Control, Disarmament, and Nonproliferation in the New Era" outlining its arms-control policies and proposals for UN-led governance, with guidance on emerging fields such as outer space, cyberspace and AI.

Google Maps, in partnership with the Road Development Authority, has begun updating Sri Lanka’s road network data covering about 12,000 km and introduced six condition-alert types (e.g., lane closures, construction notices) as a pilot through Dec 31. The updates aim to improve route planning, reduce travel delays and congestion; users are encouraged to check the Google Maps app.

ChildFund Sri Lanka mobilized LKR 15 million in Phase 1 emergency aid after catastrophic floods displaced over 1.1 million people and killed 355. The response focuses on child protection, psychosocial support, education continuity, food security and WASH, with thousands of children impacted or unreachable.

President Anura Kumara Dissanayake told Newsweek Sri Lanka is seeking market access, climate finance and investment to support recovery after Cyclone Ditwah while introducing rules-based investor safeguards (single-window approvals, Investment Protection Act) and overhauling disaster-management systems.

DC Group became the first Sri Lankan agency to win Gold for Digital Innovation Agency of the Year South Asia (and Rest of South Asia) at the Campaign Agency of the Year Awards 2025, underscoring the rise of Sri Lankan independent digital agencies and its regional expansion.

Binance has secured FSRA approval in ADGM to operate its global platform Binance.com under a comprehensive regulatory framework via three ADGM entities (exchange, clearing house, broker-dealer), with regulated activities starting Jan 5, 2026.

IFC South Asia director Imad Fakhoury urged Sri Lanka to swiftly implement the Secured Transactions Act and key elements of the Economic Transformation Act to mobilise private capital and support a push toward 7% annual GDP growth. He highlighted renewable energy, logistics, export industries, digital services, specialised manufacturing, agribusiness and tourism as priority sectors and said about $11bn will be needed by 2030 for climate commitments.

The EDB now expects 2025 export earnings of $17–17.5bn, short of the $18.2bn target, and is aiming for $20bn in 2026 while launching a National Export Development Plan targeting $36bn by 2030. The plan (to be presented Jan 2026) prioritises diversification into ICT/BPM, logistics, electronics, food & beverages and spices, plus tariff reform, a National Single Window and FTA reviews.

The Sri Lanka–Russia Business Council held its 22nd AGM highlighting export opportunities in tea, rubber, spices and fisheries and renewed focus on promoting tourism with Russia remaining a top inbound market. The Council also flagged plans on trade settlement, SME access, tech transfer, renewables, logistics and education.

Unity Plaza (On'ally Holdings PLC) unveiled Sri Lanka's largest outdoor triple-faced LED digital screen, completing the building's redevelopment and creating a high-visibility digital landmark visible from Galle Road, Wellawatta and Station Road.