News & market updates

The U.S. Trade Representative will apply a 10% tariff on imports from Sri Lanka under Section 301. The Exporters Association of Sri Lanka welcomed the outcome as preserving exporters' competitiveness—particularly in apparel—and urged pursuit of a comprehensive bilateral trade arrangement with the U.S.

The US labour-related tariff on Sri Lankan exports has been reduced from 12.5% to 10%, a move the Ceylon Chamber says will relieve exporters. The Chamber welcomed the outcome and urged continued dialogue to secure longer-term market access stability.

Dividend · Rs 0.27 · XD Aug 5, 2026

First Interim dividend of LKR 0.27/share; XD 2026-08-05; record 2026-08-06; payable 2026-08-24; FY 2026/27

Dividend · Rs 1.08 · XD Aug 5, 2026

First Interim dividend of LKR 1.08/share; XD 2026-08-05; record 2026-08-06; payable 2026-08-24; FY 2026/27

Sri Lanka's Finance Ministry said the US reduced the proposed additional Section 301 tariff on Sri Lankan goods to 10% from 12.5%, improving exporters' competitiveness, particularly for apparel. The ministry noted overall apparel duties still average about 26.5% and the US is over 20% of exports.

SEC, CSE and CA Sri Lanka signed an MoU to implement XBRL-based reporting for companies listed on the Colombo Stock Exchange, targeting rollout in the latter part of 2026. The CSE has procured and customised the XBRL platform and is completing UAT while a joint committee finalises the taxonomy and implementation framework.

USTR finalized Section 301 results placing Sri Lanka on a 10% US tariff for goods produced with forced labour, matching key competitors (Bangladesh, Pakistan, India, Cambodia) and preserving apparel export competitiveness. JAAF thanked the President and government for securing the parity.

Softlogic Life Insurance PLC completed the acquisition of a 60% controlling stake in Bangladesh's Diamond Life Insurance for approximately $1.9 million. The deal finalises the company's entry into the Bangladesh life insurance market following a June 18 purchase agreement disclosure.

Sri Lanka's rupee was flat at 336.20/30 to the US dollar while government bond yields edged slightly higher; key quotes: 15.12.2029 at 11.20/30, 01.08.2030 at 11.60/63, 15.10.2030 at 11.62/68 and 15.12.2032 at 12.05/10 percent.

The US has imposed a 10% Section 301 tariff on Sri Lankan goods under a forced-labor import ban, raising effective apparel tariffs to about 26.5% and rubber product duties to roughly 12–15%. The US remained Sri Lanka's top export destination, with US$1,436.85m of exports in H1 2026 (~20.3%).

Sri Lanka sold Rs14,000 million of Treasury bills on tap at average rates of 9.95%, 10.24% and 10.20%, bringing this week's total T-bill sales to Rs154 billion. Market subscription for the tap sale was Rs84,810 million.

Oil headed for weekly gains after Houthi attacks on Red Sea tankers and Kazakhstan output cuts; Brent at $99.97 (-0.72%) on course for a 13.5% weekly rise and WTI $91.49 (-0.76%) up about 10.9% this week. The incidents raise risks to the Bab el-Mandeb route and Kazakh exports via the Black Sea.

The U.S. will impose new 'forced labor' tariffs of 10% or 12.5% on imports from 60 trading partners, including Sri Lanka, replacing an expiring temporary 10% tariff; the duties take effect as the temporary levy expires, with goods in transit exempt until July 28.

The CBSL's FIU warned from 2021 that advance import payments were being used for trade-based money laundering, preceding CID findings that about $715m was transferred overseas via fraudulent import transactions (2023–26). Officials cited limited Customs digital records and weak bank compliance and said tougher beneficial ownership, importer registration and multi-agency coordination measures are being introduced.

Opposition MP Dr. Harsha de Silva warned that new import control regulations requiring importer registration and extra bank checks will burden legitimate businesses and may not fix enforcement gaps that allowed about $715m in fraudulent advance import remittances to leave Sri Lanka.

LOLC Finance (LOFC.N0000) will repurchase up to 2,299,122,556 ordinary shares at Rs.7 each (maximum Rs.16.09bn) under a board-approved buyback. The repurchase equals seven shares for every 90 held, record/opening/closing dates are to be announced; public float is ~3.69%.

Secondary bond market yields remained broadly steady, with maturities trading between about 10.05% (15.12.26) and 11.53%-11.55% (01.07.30). The money market had a net liquidity surplus of Rs.136.54bn (Rs.129.04bn at SDFR 8.25%), and USD/LKR closed at Rs.336.15/336.25 on $104.35m volume.

Niterra Co. Ltd. (NGK) prompted a Colombo Crime Division raid in Horana that seized a large volume of counterfeit NGK spark plugs; the suspect pleaded guilty, was fined Rs. 250,000 and the seized products were ordered destroyed.

Beruwala Resorts PLC proposes a Rs. 398 million rights issue (318,429,225 shares at Rs. 1.25) to fund refurbishment of The Palms Beruwala and meet working capital needs. The issue is subject to CSE in-principle approval, listing approval and shareholder approval at an EGM; Colombo Fort Hotels holds a 66.25% stake.

Ceylon Investment PLC proposes to repurchase up to 1,800,014 ordinary shares at Rs.203.33 each for a total of Rs.365,996,846.62, with the offer expected to run 2–23 Sep subject to regulatory concurrence. The Board approved the buyback, signed a Certificate of Solvency and says its Articles permit the repurchase without shareholder approval.

Overseas Realty (OSEA.N0000) reported Group PBT of Rs. 4,767 million and Group revenue of Rs. 6,775 million for the six months to 30 June 2026. Fair value gains were Rs. 1,091m (down from Rs. 2,331m), occupancy and rental improvements drove stronger recurring revenue, NAV per share Rs.54.67 and EPS Rs.3.60.

Colombo Stock Exchange ASPI fell 0.13% to 21,172.74 with market turnover of Rs 2.45 billion, led by retailing at Rs 1.036 billion. Melstacorp and Carson Cumberbatch were among positive contributors while HNB, Ceylinco Insurance and Ceylon Grain Elevators were top negatives.

Nutmeg at ITC Ratnadipa is offering a Friendship Day cake collection of four cakes (500g/1kg) priced LKR 3,000–8,000, available 24 July–1 August 2026; Club Culinaire Sri Lanka members receive a 15% discount.

MullenLowe Group Sri Lanka was named Sri Lanka's highest-ranked agency on the Effie Index 2025, placing in the Global Top 100 and APAC Top 20 with 124 points as an individual office (221 combined across six verticals).

Diesel & Motor Engineering (DIMO) held a five-day Mega Fiesta in Kurunegala that brought together over 400 Tata commercial vehicle owners for free bumper-to-bumper inspections, technical consultations and up to 50% discounts on Tata genuine parts. The event also offered fluid top-ups, finance/insurance displays and a CSR eye-check benefiting 235 people.