News & market updates

Sysco won Newsweek’s 2026 AI Impact Award (AI Brand and Retail – Best Outcomes) for its Sysco Agentic Ecosystem (SAGE), an enterprise AI platform being scaled to improve supply chain, sales, e-commerce and back-office operations.

IBCSL will lead a national business delegation to the 4th China‑South Asia Standardisation Cooperation Conference in Chengdu from 8–10 July. The forum aims to harmonise product, service and technical standards with China to reduce non‑tariff barriers and certification costs for Sri Lankan exporters in tea, apparel, gems & jewellery, rubber and IT services.

The EDB and NMRA met with Sri Lankan pharmaceutical manufacturers to tackle export barriers, prioritizing delays in product registration and aligning regulatory processes with international benchmarks to boost pharmaceutical exports; EDB noted pharma is key to the USD 36bn export target by 2030.

CSSL says Sri Lanka's ICT exports have grown to become the country's third-largest export sector, surpassing tea. The society called for a human-centric digital transformation with stronger skills, infrastructure, research and policy support to sustain export growth and broaden national participation.

LOLC Holdings PLC reported a 49% increase in results from operating activities to Rs.71.5 billion for FY2026. Gross income rose 28% to Rs.430.3 billion, with the financial services segment contributing Rs.51.7 billion and strong gains across manufacturing, plantations and insurance.

CIC Holdings PLC reported FY26 profit after tax of Rs. 8.25 billion, up 24.50% YoY, on consolidated revenue of Rs. 91.75 billion (10.16% YoY) and EPS of Rs. 3.64. Crop Solutions contributed ~40.8% of revenue while Agri Produce faced weather-related losses from Cyclone Ditwah, with Health & Personal Care and Livestock Solutions showing strong growth.

Sri Lanka's Export Development Board plans to expand and decentralize testing and certification facilities island-wide to ease exporters' bottlenecks, proposing modernization of provincial labs, greater use of underutilized facilities, public–private partnerships and digital certification.

Oil prices rose after Israeli troops expanded operations into Lebanon, with WTI up 2.88% to $89.88/bbl and Brent up 2.43% to $93.33/bbl; the escalation raises supply-risk upside even as weak Chinese factory activity dampens demand prospects.

The Export Development Board (EDB) will expand testing and certification facilities islandwide to address centralization in Colombo and boost export competitiveness. Plans include modernizing provincial government labs, maximizing underused facilities, public–private partnerships, and digitising the certification process.

LOLC Holdings PLC reported a 49% rise in results from operating activities to Rs. 71.5 billion for the year ended 31 March 2026, with gross income up 28% to Rs. 430.3 billion. Financial services (Rs. 51.7bn), stronger manufacturing/trading and a return to profitability in plantations underpinned the performance.

Sri Lanka's current account slipped into a $532.4m deficit in April, erasing the Q1 surplus and leaving a $0.9m deficit for Jan–Apr, driven by a sharply widened trade gap (imports +45.7% YoY) and weaker tourism amid higher fuel spending; reserves stood at ~$6.8b and IMF review released about $695m.

Sunshine Holdings reported consolidated FY26 revenue of Rs.65.9 billion, up 11.2% YoY. PAT was Rs.5.0 billion (down 2.5% YoY) as NMRA pricing cuts weighed on healthcare margins, and the group acquired a majority stake in Joint Agri Products Ceylon Ltd to bolster exports.

Sri Lanka intends to apply to retain GSP+ privileges to maintain and expand preferential EU market access, EDB Chairman Mangala Wijesinghe said. He added GSP+ has been very beneficial, there is untapped export potential in Europe, and political leaders have given positive signals.

Ceylon Chamber welcomed IMF approval of the combined 5th and 6th EFF reviews, unlocking about $695m in financing, and urged continued reforms to preserve macro stability amid external pressures from the Middle East. It called for a digital fuel QR system, clearer policy communication, and accelerated reforms to boost competitiveness in trade, tourism, logistics and digitalisation.

EU Ambassador Carmen Moreno urged Sri Lanka to reapply for the EU's next GSP+, saying duty-free access boosted exports but fell short of driving industrialisation and calling for reforms and investment to boost competitiveness. Sri Lanka plans a National Export Development Plan targeting $36bn in exports by 2030.

Pink Eagle Holdings (Pvt) Ltd is expanding its diversified group globally across tea exports, logistics, food manufacturing, hospitality and digital retail, highlighting Continental Tea's ADRA Ceylon 10th anniversary and launches such as the Avanti freight app and Pink Panda marketplace.

Sri Lanka's current account moved into a deficit in April 2026, driven by a wider trade gap from higher fuel (US$886m in April) and vehicle imports and weaker tourist earnings; the Jan–Apr trade deficit rose to US$3.7bn from US$2.3bn a year earlier. Gross official reserves were about US$6.8bn and the rupee had depreciated 5.4% YTD by end‑May.

Hayleys PLC reported FY2025/26 revenue of Rs.585.02 bn (up 19%) and consolidated Profit Before Tax of Rs.38.04 bn (up 4%). Consumer & Retail revenue rose 44% to Rs.156.74 bn, Q4 revenue grew 29%, the group completed a Rs.9 bn rights issue and Fitch affirmed a 'AAA (lka)' rating.

Sunshine Holdings (SUN) reported FY26 consolidated revenue of LKR 65.9bn, up 11.2% YoY, while PAT fell 2.5% to LKR 5.0bn and EBIT margins eased amid healthcare pricing pressure. The Group cited NMRA pricing cuts, acquired a majority stake in JAPC, and saw Watawala's palm oil revenue rise 23.6%.

The Ceylon Chamber of Commerce welcomed IMF approval of Sri Lanka’s 5th and 6th reviews, unlocking about USD 695 million under the EFF, and urged continued engagement and structural reforms to preserve macro stability, support investor confidence and address exchange-rate and energy pressures.

FTZMA met the BOI to press for extending VAT exemptions/zero-rating to indirect/deemed exporters to avoid 18% VAT on locally sourced raw materials. They also raised diesel price disparity between CPC and LIOC, proposed fuel sheds, and noted BOI will retain import/export services while recruiting staff.

United Motors Lanka PLC reported a Group profit of Rs. 3.61 billion for FY26, up from Rs. 73 million a year earlier. The recovery followed the lifting of the vehicle import ban, with Group revenue rising to Rs. 52.36 billion and strong after-sales and trailer exports supporting results.

The National Chamber of Exporters is pressing for a clear timeline as Sri Lanka's accession to the Madrid Protocol remains in the legislative phase, with the Legal Draftsman's Department finalising required statutory amendments and NIPO set to prepare an Action Plan once the draft is submitted. Joining the Madrid system would let exporters seek international trademark protection via a single application, lowering costs for sectors like tea, apparel, spices, gems, IT services and processed foods.

German business and government officials at the Sri Lankan‑German Business Forum 2026 said Germany views Sri Lanka as a strategic Indo‑Pacific partner and urged faster reforms and policy consistency to unlock investment in logistics, renewable energy, infrastructure and tourism.

SLPA expects up to $2 billion of port-sector investment over the next 1–3 years as Colombo Port faces a capacity crunch; the ECT next year will raise Colombo capacity to 14m TEUs and Hambantota will add 2m TEUs. SLPA also plans EOIs for a 14-acre logistics hub and PPP projects including WCT II, Colombo North Port and marina/tourism developments.

ICT/BPM export earnings reached about $581.7m in Jan–Apr 2026, surpassing tea export earnings of $451.58m in the same period. FITIS said the milestone reflects years of ecosystem development and supports Sri Lanka’s $15bn Digital Economy Vision to 2030.

The IRD issued revised guidelines (Gazette No. 2481/17 dated 26 Mar 2026), effective retrospectively from 1 Oct 2025, changing VAT Risk-Based Refund taxpayer classifications and using five-year data and prior audit findings; more taxpayers may be classed high-risk and face pre-audits that can delay refunds beyond the 45-day window.

Ceylon Chamber of Commerce welcomed IMF approval of the 5th and 6th EFF reviews, enabling Sri Lanka to access about USD 695 million, and urged continued reform momentum to preserve macroeconomic stability amid external pressures. It reiterated measures including optimizing the fuel QR digital platform, clearer policy communication, and accelerating reforms in trade, tourism, logistics and digitalisation.

The Board of Investment launched the 'Ready to Invest' digital platform showcasing 30 pre-structured, shovel-ready projects across eight priority sectors to attract international capital. BOI says USD 1.9bn of approved projects are ready to break ground, with a further USD 1.4bn in the pipeline.

United Motors Lanka PLC reported a FY2025/26 Group profit of Rs. 3.61 billion and Company profit of Rs. 2.20 billion, up sharply from Rs. 73m and Rs. 338m respectively, driven by a recovery in vehicle sales after the lifting of the import ban and growth in after-sales and trailer exports.