News & market updates

CBSL Governor Nandalal Weerasinghe told Parliament the Sri Lankan rupee weakened 8% vs USD between end-2025 and 9 June 2026 and defended a flexible exchange rate under the FIT framework as a shock absorber, citing higher imports, lower tourist inflows, speculation and financial outflows.

The rupee opened stronger, with the USD/LKR spot at Rs.333.00/334.50 (versus Friday’s 335.50/336.00) after the Central Bank cut the period for exporters to convert proceeds to 30 days from 90, earlier pushing the rate to Rs.332.25/333.00.

Shehara De Silva represented Sri Lanka in the EY Entrepreneurial Winning Women Class of 2026 at the Asia‑Pacific conference in Seoul (18–20 May), joining over 100 participants and 23 selected entrepreneurs; she is Managing Director of the McLarens Group. The three‑day event included sessions on AI transformation, global expansion and capital-raising.

Pussalla Agri Ventures was awarded EU Organic and USDA Organic certifications for its premium Ceylon cinnamon (awarded on the 11th). The company says the certifications, alongside SL GAP and GMP accreditations, will help expand access to premium EU and US export markets.

Finagle Lanka held its Annual Sales Awards on 29 May, recognising 26 sales executives and 45 distribution representatives with awards, cash prizes and opportunities for local and overseas travel for top sales performance.

Sierra Cables PLC reported FY2025/26 revenue of LKR 16 billion and net profit of LKR 2.7 billion, up 73% and 194% year‑on‑year respectively. Export revenue rose 345% to LKR 5.0 billion (31% of group revenue) with expansion into the US market.

World Bank cut its global growth forecast to 2.5% for 2026, warned higher energy and fertiliser prices will raise inflation, and is making $50–60bn available immediately (scalable to $80–100bn over 15 months) to support vulnerable countries.

Parliament’s Committee on Public Finance flagged weaknesses in Sri Lanka’s external sector statistics, saying tourism earnings are hard to measure and that informal forex flows and unauthorised foreign payment gateways are blind spots. CBSL said premiums have narrowed, invited money-transfer operators to register and said investigations into illegal payment gateway use are under way.

Sri Lanka aims to raise annual cinnamon export earnings to $300m from about $260m, according to a Cinnamon Development Department roadmap. Officials say yields could increase from ~250kg to 400kg per acre with better practices and flagged competition from cassia, low-value markets, weak R&D and branding.

Secondary bond market ended the week bullish as yields fell sharply across the curve after improved risk sentiment following reports of a potential US‑Iran peace deal. Weekly T‑bill yields rose (91-day to 10.09%), while Thursday's bond auction raised Rs.92.55bn (61.7% of offer) with mixed maturity outcomes.

The Sri Lanka–Thailand Business Council marks its 25th anniversary with a celebration on 19 June at the Kingsbury Hotel and a 25-member delegation from the Board of Trade Thailand in attendance. The council highlights opportunities for trade and investment across tourism, IT/digital, renewable energy and healthcare.

Commercial Bank of Ceylon launched 'ComBank GIG+', a specialised account for freelancers and digital earners to receive foreign currency earnings (including PayPal-linked withdrawals) in USD, EUR, GBP, AUD or LKR. The product includes first-year fee waivers and preferential FX rates to support access to credit and other services.

The rupee ended the week firmer, closing at Rs.335.50/336.00 after the Central Bank cut the period for exporters to convert proceeds to 30 days from 90 to boost FX supply. It had strengthened to Rs.332.25/333.00 midweek after the move but gave up part of those gains before finishing the week firmer than early-week lows.

Sri Lanka will launch the National Export Development Plan (NEDP) 2026–2030 targeting $36 billion in export revenue by 2030, developed by the Export Development Board with ADB technical assistance. The plan sets horizontal enablers (trade facilitation, trade finance, supply chain, ESG) and eight priority verticals including electronics, digital services, processed foods, auto components, rubber, minerals, marine and spices.

World Bank says Middle East conflict will slow global growth to 2.5% in 2026 (the lowest since COVID-19) and is ready to provide up to $100 billion to affected countries over 15 months. It warns higher energy prices (Brent ~ $94/bbl in 2026), rising inflation and borrowing costs, and downside risks that could cut growth to 1.3% if disruptions worsen.

Sri Lanka will launch the National Export Development Plan 2026–2030 on 16 June, aiming to lift export revenues to $36 billion by 2030. The EDB, with ADB support, outlines two pillars and eight priority sectors including Auto Components, Minerals, Rubber, Marine, Spices, Digital Products, Electrical & Electronic Components, and Processed Food.

Fitch revised its 2026 global sovereign sector outlook to 'deteriorating' from 'neutral', citing spillovers from the US‑Iran war that will weaken GDP, raise inflation and push up bond yields. Fitch said Greater China is the only region upgraded to 'neutral' due to strong exports and lower energy exposure.

The rupee weakened to Rs. 335/337.50 in the interbank spot market after giving up part of Wednesday's gains (Wednesday close: Rs. 332.25/330). The midweek rebound followed the Central Bank tightening rules for exporters, cutting the conversion window to 30 days from 90.

Disaster Management Centre warns Sri Lanka may need to purify and distribute seawater if a strong El Niño triggers prolonged drought, risking reservoirs, agriculture and hydropower output. Authorities are reviewing reservoir management, cultivation schedules and electricity generation contingency plans.

SAARC CCI President Chandi Raj Dhakal met Yunnan Governor Wang Yubo in Kunming to push for expanded trade, investment and connectivity between South Asia and Yunnan, highlighting opportunities in infrastructure, tourism, logistics, digital industries, renewable energy, agriculture and manufacturing.

CEAT Kelani was named Best Tyre Manufacturer in the 'Component Manufacturer' category at the inaugural Automobile Industry Awards. The company supplies OE tyres for over 90% of locally assembled vehicles, sells over 1.2 million tyres annually and exports about 20% of its output.

EDB organized Sri Lanka’s participation at Posidonia 2026 in Athens (1–5 June 2026); Colombo Dockyard Plc was one of seven Sri Lankan companies at the Sri Lanka pavilion showcasing ship repair, shipbuilding and marine services, attracting international buyers and potential business leads.

Hela Apparel Holdings faces trading suspension from June 18 unless it rectifies a non-compliance after an auditor issued a disclaimer on its financials for the year ended March 31, 2025; the company has until June 16 to remedy the issue. Separately, Hela confirmed an $8m divestment of its brand business ($6m upfront, $2m earn-out) but expects only $484,000 residual cash after heavy adjustments.

Sri Lanka will launch the National Export Development Plan 2026–2030 in Colombo on 16 June 2026, targeting USD 36 billion in export revenues by 2030. The plan sets two pillars (Horizontals and Verticals) and names eight priority sectors including Digital Products, Electrical & Electronic Components, Auto Components, Rubber, Minerals, Marine, Spices, and Processed Food & Beverages.

The United States became the world's top oil exporter, shipping about 10.5 million barrels per day in May, surpassing Russia (7.0m bpd) and Saudi Arabia (5.9m bpd). The shift is driven by high U.S. shale output, releases from strategic reserves and disruptions to Saudi and Russian flows.

The India–Sri Lanka Binational Bridge and Tunnel proposal — a ~23 km link estimated to cost US$3.6–5.19bn — could lift tourism by 50–70% and cut some transport costs by up to 50%, reshaping trade, logistics and connectivity. Sri Lanka has paused advancement over technical, environmental and sovereignty concerns.

The CBSL cut the mandatory conversion period for export proceeds from 90 days to 30 days, and the rupee strengthened to about Rs. 332.25/333.00 from Rs. 337.00/337.75. The move is intended to accelerate repatriation of export earnings and boost foreign-exchange liquidity to stabilise the market.

T-Bill yields rose for the fourth consecutive week—91-day 10.09%, 182-day 10.27% and 364-day 10.16%, the highest since late Sept 2024. The rupee appreciated after CBSL cut exporters' FX conversion time to 30 days; the auction accepted Rs.71.744b of Rs.140b (51.25%) ahead of a Rs.150b bond auction.

Commercial Bank of Ceylon (COMB.N0000) launched 'ComBank GIG+' — a specialised account for freelancers and digital earners to receive foreign currency payments (USD, EUR, GBP, AUD). It supports PayPal-linked withdrawals, offers first-year fee waivers and preferential FX rates, and aims to formalise foreign income for access to savings, credit and investment services.

An ILCCI forum focused on strengthening India–Sri Lanka investment ties, with speakers urging stable policy, credible economic management and secure supply chains to attract further Indian investment.