News & market updates

Swinburne University of Technology Australia sent a delegation of academics to Sri Lanka to brief students on global opportunities and evolving education across business, health sciences, engineering and IT. They stressed adaptability, industry integration, digital/AI skills, sustainability and renewable-focused training.

John Keells Properties' Vauxhall DSTRCT sold over 200 apartments within two weeks of launch. The Colombo project is a 60-storey residential tower of 749 apartments on about 1.5 acres.

Sterling Steels (Pvt) Ltd won a Merit Award at the Sri Lanka Institute of Architects Annual Product Awards 2026 in the Zinc-Aluminium Coated Profile Steel Sheet category. The award highlights its product with Heat Reflectance Technology and the company's emphasis on quality and sustainable construction materials.

Cabinet cleared the Ceylon Electricity Board to develop the Maha Oya pumped-storage hydro project at Rs243.09 billion. The project will store excess renewable energy to improve grid stability, reduce reliance on peak thermal generation and will be funded under the Public Debt Management Act No.33 of 2024.

Cabinet approved Rs. 243.09 billion in funding for the Maha Oya Pumped Storage Hydropower Plant to be implemented by the Ceylon Electricity Board under the Public Debt Management Act. The two‑phase project aims to provide large-scale energy storage to balance renewable generation and stabilize supply at peak demand.

Construction PMI (Total Activity Index) was 70.3 in February 2026, indicating continued expansion in construction activity though at a slower pace than the prior month. New orders and employment rose while suppliers' delivery times lengthened due to import delays; firms cite rising input-cost and Middle East conflict risks.

WindForce Plc will issue up to 40 million listed green bonds to raise Rs4 billion. The company said details on tenure and interest rates will follow and noted a recent award to build a 10 MW/40 MWh BESS project costing Rs1.73 billion (80:20 debt-to-equity).

YWCA Bangkok and Thai Beverage Public Company Limited donated about Rs5 million (≈$26,000) to Sri Lanka’s Humanitarian Priorities Plan to support post-cyclone reconstruction; funds were handed to Sri Lanka’s Ambassador in Bangkok.

Cabinet approved procurement of 300 MW of battery energy storage systems (BESS), moved up to 2028–29 to stabilise renewable integration. 250 MW will come from 25 standalone 10 MW/40 MWh BOO units tied to the CEB distribution network, and 50 MW will be batteries integrated with existing solar via competitive bidding.

The Cabinet approved imposing legal measures to prevent the export of scrap metal (including iron, copper and aluminium) to protect local manufacturers and address shortages of locally sourced metal raw materials.

Hambantota International Port Group will invest USD 108 million in new quay cranes, RTGs and trailers to expand capacity to about 2 million TEUs and enable handling of the world’s largest container vessels. The upgrade aims to boost efficiency and move operations toward electrified, more sustainable handling.

Asian Paints Causeway, in collaboration with Renner Italy, launched Aqlac Natural Dark Shades and introduced Renner's water-based wood coatings at a Lotus Tower event in Colombo, showcasing durable, low-emission wood finishes to dealers and industry leaders in Sri Lanka.

The Colombo Port City Economic Commission and BOI told the Committee on Public Finance they are courting Gulf-linked investment—targeting BPOs and disaster-recovery operations—with about Rs.10.5bn of government utility spending to the Port City boundary. They said 70 pending applications were approved after January 2026 Act amendments and Cabinet approved a two-year extension allowing Port City businesses to operate outside the zone.

JAT Holdings Plc has entered Australian cabinetry manufacturing by securing a fully operational Perth facility and has generated over Rs. 100 million (AUD 503,000) in revenue since commencing. The Form Cabinetry operation complements its SEAFORM premium offering and targets residential cabinetry across multiple price points.

Krane, a San Francisco–based AI construction supply-chain startup founded by Sri Lankan-born Eshan Jayamanne, raised $9 million in a round led by Glasswing Ventures and Link Ventures. The platform uses specialized AI agents to manage procurement, submittals and deliveries and supports over $15 billion in active projects across the U.S. and Canada.

JAT Holdings PLC has established a local cabinetry manufacturing facility in Perth (operations commenced July 2025) and has generated over LKR 100 million in revenue since inception; this complements its SEAFORM premium offering, which has produced over LKR 350 million to date.

Blue Arc Manufacturing and the BOI signed an agreement to establish Sri Lanka's first containerised substation assembly factory to manufacture and export containerised substations, skid substations and switch rooms for Australian mining, tunnelling and construction sectors. Units will be assembled and tested to international standards and the company plans to expand into markets including solar and hydro.

Galle City Center opens tomorrow: a 135,000 sq ft, nine-storey complex featuring six floors of premium retail and a four-star, 35-room hotel with rooftop banquet and restaurant. The development is expected to boost retail and tourism activity in the Southern Province.

INSEE Sanstha Cement was crowned the People’s Housing & Construction Brand of the Year at the SLIM Kantar People’s Awards 2026 for the 15th consecutive year. The brand also highlighted sustainability credentials including Environmental Product Declarations, a 5‑Star Green Label and the NCPC EcoLabel.

Home Lands has commenced construction of Canterbury Crest Resort Apartments, the final phase of Canterbury Golf City featuring 96 apartments. The resort-style development offers two- and three-bedroom units with amenities and is located about 20 minutes from Colombo.

Blue Arc Manufacturing and the BOI signed an agreement to establish Sri Lanka’s first containerized substation assembly factory to manufacture and export skid and containerized substations. Units will be assembled and IEC-tested in Sri Lanka for Australian mining, tunneling and construction projects, using local labour and modular, IoT-capable designs.

ADB pledged an additional $100m in budget support to help Sri Lanka mitigate economic shocks from the West Asia conflict, raising its planned 2026 support to $480m. It is also fast-tracking a $200m emergency loan for cyclone reconstruction and backing port, transport and logistics projects while scaling annual programs to over $1bn.

Sri Lanka's services exports rose 14.68% to $334.9m in Feb 2026, driven by a 36.66% increase in ICT/BPM earnings to $153.62m while construction services fell 8.10% to $6.35m. Total goods and services exports were $1,401.78 billion, up 4.22%.

ADB will provide $100m in additional budget support, raising its planned 2026 budget support for Sri Lanka to $480m; it is also fast-tracking a $200m emergency loan and scaling its annual program to over $1bn to back infrastructure, reforms and human capital.

Lanka Realty Investments PLC (ASCO.N0000) will sell a 51% stake in subsidiary Lanka Realty Developments Ltd to group unit Lee Hedges PLC (SHAW.N0000) for Rs.1,610,334,180, with at least Rs.800m earmarked to partly settle a Rs.1,453.5m related-party loan. The transaction is subject to Lee Hedges shareholder approval and is expected to realise a disposal gain and improve liquidity for Lanka Realty.

SLIC donated Rs. 10 million to the ‘Rebuild Sri Lanka’ Fund to assist families affected by the Ditwah cyclone, handing the contribution to the Secretary to the Treasury on 16 March 2026 to support relief and recovery efforts.

Prime Group's 'YOLO' residential development received BOI approval and a $52.5 million investment agreement. The 13-acre Makola Kiribathgoda project comprises 476 apartments across 46 buildings, with units from Rs.35 million and a 1% monthly, interest-free payment plan.

Central Bank Governor Nandalal Weerasinghe warned IMF programme conditions may change significantly at the upcoming fifth/sixth reviews as IMF staff visit Colombo Mar 26–Apr 9, citing Cyclone Ditwah and a >35% jump in energy prices that raised reconstruction costs and inflationary pressure. Completion of the combined reviews would unlock about US$700m in IMF tranches.

ADB will provide $100 million in additional budget support to Sri Lanka, raising its planned 2026 budget support to $480 million. ADB is also fast-tracking a $200 million emergency assistance loan to restore transport networks and irrigation, and plans to scale up its program to over $1 billion to support infrastructure and reforms.

Middle East war and near-closure of the Strait of Hormuz have caused port congestion that left hundreds of used cars (including luxury models) stranded or delayed into Sri Lanka, forcing diversions, offloads at alternative ports and higher freight and storage costs for exporters.