News & market updates

The Sri Lanka-USA Business Council will host 'The IP Trade Corridor' breakfast forum on 22 July 2026 in Colombo to discuss strengthening the US–Sri Lanka economic partnership through intellectual property protection for exporters, manufacturers and IT/creative firms.

Government plans to invest Rs. 382 billion in the education sector over 2027–2031 and will prioritise greater funding for vocational education in the 2027 Budget. The 2026 education allocation was Rs.303 billion (Rs.160b general, Rs.122b higher, Rs.20b vocational); officials also noted a proposed Digital Transformation Project and school rehabilitation works.

Asian stocks fell after a major selloff in semiconductor and AI-related stocks, with Japan's Nikkei plunging about 6% to below 65,000 and China's Shanghai Composite and Hong Kong's HSI also sliding. US equity futures pointed to further losses and the yen weakened toward 162.5 per dollar.

Colombo's ASPI fell 1.7% this week while turnover hit a 65-week low of about Rs. 722.64 million; top drags on the index included John Keells (JKH), PKME and NDB. Banking led turnover (notably Sampath Bank) and activity was concentrated in capital goods, food & beverage and energy names.

Asian markets plunged on July 17 as a global technology-led selloff drove Japan and Taiwan down as much as 6% and pushed the Nikkei into correction territory (over 10% below its June 25 high). Market watchers cited rising yields, profit-taking in AI/semiconductor names and unwind of leveraged positions.

HNB General Insurance appointed Lakshman Silva as Non-Executive/Nominee Director and Sandra De Zoysa as Independent/Non-Executive Director to its board. The appointments are intended to strengthen governance and drive digital/CX transformation as the insurer scales its platforms and customer service architecture.

The Wireless Intelligence and Innovation (WIIN) Institute of Technology was launched at TRACE Expert City to conduct research and industry training across telecommunications, energy, construction, FinTech and healthcare, including AI/ML programmes, in collaboration with University of Oulu and IIT Madras.

Sri Lanka stocks closed lower as the ASPI fell 0.20% to 21,405.41 and market turnover hit a 52-week low of Rs 722.6m. Banks led turnover at Rs 184.3m; Commercial Bank, RIL Property, Melstacorp and People's Leasing were among gainers while John Keells and Digital Mobility were among laggards, and oil prices rose on Gulf tensions.

TikTok will launch an in-app AI literacy hub in Sri Lanka and expand measures to label and detect AI-generated content, including enhanced spam detection and joining the C2PA Steering Committee. The company has committed over US$4 million to the program and has labeled 3+ billion videos to date.

Miwayz launched on July 12 with over 25,000 pre-registered drivers and passengers and announced strategic partnerships with Dialog Axiata (Dialog Touch payment integration and fuel vouchers) and TVS, plus a 0% commission driver model and passenger discounts.

NASSCOM launched its Disha Mentorship Program in Sri Lanka — its first international expansion — to mentor 48 Sri Lankan technology SMEs through structured guidance from industry leaders. The program aims to deepen India–Sri Lanka tech cooperation and support exports, jobs and digital transformation.

Colombo bourse snapped a three-day decline as the ASPI rose 0.14% to 21,447.57 with turnover near Rs.1.5bn and foreign net selling of Rs.26.9m; gains were led by DIAL, HAYC, CFIN, JKH and CTHR.

Port City Colombo, a $15 billion SEZ, is placing India at the centre of its growth plan and aims to double annual Indian tourist arrivals to about 1.2 million by 2030. The development will add new attractions, convention facilities, duty-free retail and target Indian IT/GCCs as business tenants.

Sri Lanka aims to build a 200,000-strong digitally skilled workforce by 2030 and to grow a USD 15 billion digital economy. The article argues that human-capital investment and government–academia–industry collaboration are essential for AI to become a competitive advantage.

Colombo Stock Exchange closed higher as the ASPI rose 0.14% (29.77 pts) to 21,447.57 and the S&P SL20 gained 0.29% to 6,006.07, with market turnover Rs 1.49bn and banks leading turnover at Rs 74.9m. Bukit Darah declared a first interim dividend of Rs 5.73 per share, entitlement July 27, 2026.

BrandRadar (Roar Global) released "The State of AI Visibility in Sri Lanka 2026", a three-month study of 198 brands across six industries showing editorial authority and third-party citations strongly predict AI visibility. The report finds Toyota and BYD scored above 89 across platforms while some brands (e.g., Ceylinco General Insurance) show large visibility variance between AI systems.

The National Chamber of Exporters renewed an MoU with Ernst & Young to expand support for Sri Lankan exporters on compliance, supply‑chain traceability, sustainability and digital transformation. The partnership will deliver workshops and advisory programmes to help exporters meet US/EU requirements as Sri Lanka pursues a US$36bn export target by 2030.

Sampath Jayasundara has been appointed SLASSCOM Chairman for 2026/27; he currently serves as CEO of hSenid Business Solutions PLC (HBS.N0000). He will prioritise AI-ready workforce development, curriculum reform and entrepreneurship to boost Sri Lanka's knowledge and innovation exports.

Colombo's ASPI fell 0.03% to 21,417.80, extending a third straight day of losses on profit taking and net foreign outflows of Rs.36.7m. Banking led turnover (27%) while Haycarb, Chevron Lubricants, John Keells and Hayleys were among top contributors.

Sampath Jayasundara, CEO of hSenid Business Solutions PLC, was elected Chairman of SLASSCOM for 2026/27 and will prioritise AI upskilling, entrepreneurship and product-led growth to help scale Sri Lanka's knowledge and innovation exports toward a $5bn target.

Sri Lanka held the inaugural Development Partner Working Group on Digital Transformation on 13 July to align institutional frameworks and human-capacity building for national digital public services. The session, co-chaired by the Deputy Minister of Digital Economy and the UN Resident Coordinator, prioritized coordination with international partners and public-sector upskilling.

Asian stocks rallied after U.S. CPI fell 0.4% in June and annual core inflation eased to 2.6%, cutting rate-hike odds and sending two-year Treasury yields down 11bp to 4.19%. Oil steadied around $85.80/bbl and China's Q2 GDP slowed to 4.3%.

Outgoing Swedish Ambassador Jan Thesleff said Sri Lanka's improving policy stability is restoring international investor confidence and named renewable energy, ICT, apparel, healthcare and food processing as key growth sectors; a Swedish business delegation will visit in January 2027.

Logical, a Sri Lankan-founded AI startup, was accepted into Y Combinator and raised over Rs. 150 million in initial funding. The company is building a proactive desktop AI copilot that transfers context across apps to help knowledge workers take action with fewer prompts.

SLIIT Business School published an international study introducing a new digitalisation index covering 71 countries (2010–2022) that classifies nations as Digital Pioneers, Adapters, or Followers. The research finds digital competitiveness depends on innovation, human capital, cybersecurity, R&D and institutional readiness, not just technology adoption.

Sri Lanka stocks closed flat as the ASPI rose 0.01% to 21,426.43, with banks leading turnover at 327.4 million rupees. Haycarb, John Keells and Ceylon Cold Stores were top gainers while HNB, Central Finance and Commercial Bank were top decliners; Digital Mobility Solutions disclosed ESOP allotments and its shares closed down 0.30%.

Colombo Stock Exchange rose as the ASPI gained 0.39% (83.87 pts) to 21,508.86, with banks leading turnover at Rs 41.8 million. Dilmah Ceylon Tea Company proposed a first and final dividend of Rs 25 per share for the year ended March 31.

Outgoing Swedish Ambassador Jan Thesleff said he is optimistic about Sri Lanka's recovery and rising investor confidence, noting about 80 Swedish companies operate in Sri Lanka. He highlighted opportunities in ICT, apparel exports, renewable energy, healthcare and tourism, and cited Port City progress and the need for direct flights.

SLIIT Business School study finds many Sri Lankan shoppers still prefer cash-on-delivery due to security, privacy and payment concerns, creating a digital trust gap that may hinder e-commerce growth. The study urges stronger payment security, data protection, authentication and multi-stakeholder collaboration.

Global markets fell sharply as Gulf tensions and Iran's claim to have closed the Strait of Hormuz drove Brent crude up 4.3% to $79.31/bbl, lifting bond yields and reviving inflation and interest-rate tightening concerns.