News & market updates

The Sri Lanka Banks' Association submitted 2026 budget proposals to Deputy Minister Anil Fernando urging targeted credit guarantees, accelerated tax deductibility for impairments, SME digitisation, a national cloud and incentives for green lending and tax-free green/PPP bonds. Proposals also cover VAT/TIN rules, fintech incentives and funding for tea replanting.

Export associations warn that abolishing the SVAT regime on 1 October could withhold about $80m (≈8% of export earnings) monthly in VAT refunds, creating a severe cash-flow squeeze if refunds exceed the legal 45-day window (and may stretch beyond 100 days). They urge a phased rollout and fully tested e-invoicing/refund systems before removal.

The Sri Lanka Banks' Association submitted a comprehensive package of proposals to the 2026 Budget seeking banking-sector reforms — including tax relief, targeted credit guarantees, SME formalisation, digital infrastructure, and green finance measures — to support economic recovery.

Dilmah Ceylon Tea Company (CTEA.N0000) and Dialog Axiata (DIAL.N0000) executives represented Sri Lanka at the UN Global Compact Private Sector Forum in New York on 22 September to discuss mobilising private capital for the SDGs. The forum emphasised sustainable finance across food systems, energy, digital access and climate, noting a global SDG financing gap of over $4 trillion.

Exporters have urged the Sri Lankan government to delay the planned October 1 removal of the SVAT voucher-based refund system until a fully functional e-invoicing and digital refund mechanism is in place, warning the change could lock Rs25–50bn monthly. They say paying VAT upfront would tie up working capital and hurt tea, apparel and small-holder agriculture exporters.

Rights issue · 1:4 at Rs 9.00 · XD Sep 17, 2025

The Sri Lanka Banks' Association submitted a wide-ranging set of proposals to the Finance Ministry for the 2026 Budget, urging tax reform, targeted credit guarantees, SME formalisation, digital infrastructure, green finance and PPPs to support economic recovery.

Sri Lanka's tea export earnings reached $1.2 billion in Jan-Aug 2025, the highest since 2014, as exports rose 7% to 174.5 Mnkg and FOB value reached $5.88/kg. Value-added exports grew to 58% of shipments and exports to Libya rose 198% YoY.

Dilmah Ceylon Tea Company and Dialog Axiata joined the 2025 UN Global Compact Private Sector Forum in New York to mobilize private finance for the SDGs. The Forum highlighted a >USD4tn SDG financing gap and prioritized transitions in food systems, energy, digital access, and climate resilience.

Kandurata Umbrella Industries unveiled a Two Folding 'tea plucking backpack' umbrella at Industry Expo 2025, offering an alternative to traditional cane baskets for tea pluckers; the firm resumed production on Aug 29 after its Gampola factory fire.

Sri Lanka's export earnings totalled US$11,554.32 mn in Jan–Aug 2025, up 6.61% y/y, with August exports at US$1,607.58 mn (+2.57% y/y). Merchandise rose 6.89% (US$9,092.85 mn) and services 5.57% (US$2,461.46 mn); tea and coconut products showed strong gains while apparel was largely flat.

Dilmah Ceylon Tea (CTEA.N0000) Chairman/CEO Dilhan C. Fernando and Dialog Axiata (DIAL.N0000) Executive Director/Group CEO Supun Weerasinghe represented Network Sri Lanka at the 2025 UN Private Sector Forum in New York, joining 50 global CEOs to discuss mobilising private capital for sustainable, inclusive growth.

Kelani Valley Plantations PLC (KVAL.N0000) appointed Senaka Alawattegama as Director/Chief Executive Officer, effective 1 August. He brings over 40 years' plantation experience, was also named a director of several group companies and will work with Dr. Roshan Rajadurai to strengthen KVPL's market presence.

Dilmah Ceylon Tea Company PLC and Dialog Axiata PLC executives will represent Sri Lanka at the 2025 UN Private Sector Forum in New York on 22 September to discuss mobilizing private finance for sustainable, inclusive growth. Dilhan C. Fernando (Dilmah) and Supun Weerasinghe (Dialog) are named delegates.

Talawakelle Tea Estates Plc (TPL.N0000) appointed Nishantha Abeysinghe as Director/Chief Executive Officer, effective 1 August 2025. Abeysinghe, with 36 years in the plantation sector, was also named director of several Hayleys Group private companies including TTEL hydro power units.

New Media Solutions won five awards at SLIM DIGIS 2.5, led by multiple wins for the 'My Zesta Story' campaign and honors for Daintee and Softlogic Life's 'Siduhath Upatha' campaign. The recognition highlights the agency's strength in digital and cross-media marketing.

Kelani Valley Plantations PLC (KVAL.N0000) has appointed Senaka Alawattegama as Director/Chief Executive Officer effective 1 August 2025. He brings over 40 years' plantation experience and industry leadership aimed at strengthening KVPL's market presence and sustainability credentials.

Tea Exporters Association said at its 26th AGM that Ceylon Tea aims to reach 400 million kg and USD 2.5 billion in export revenue by 2030 and projects 2025 exports of 270 million kg and revenues over USD 1.5 billion. Officials stressed boosting smallholder yields, replanting and value‑addition through branding and packaging.

Plantation Minister K V Samantha Viddyarathna said fertilizer will be released to tea growers under a new mechanism within two weeks allowing them to obtain fertilizer from any place they wish. He also urged plantation companies to rehabilitate abandoned tea and rubber areas or face reallocation, and a pilot project to boost coconut production has been launched in Kalutara.

Sri Lanka's tea production in August fell to 19.68 Mnkg, down 1.66 Mnkg (7.77% YoY), while cumulative Jan–Aug output rose to 176.82 Mnkg, up 4.34 Mnkg (2.51% YoY).

France's development agency AFD has begun talks with Sri Lanka to re-engage stalled projects after a bilateral debt restructuring that converted $138m of arrears and left about $478m of French loans. Discussions cover restarting or cancelling priority projects including renewable energy, tea support and bank on-lending.

The Planters’ Association warned the Government’s decision to permit spice imports under an "approved enterprise" framework risks diluting the "Pure Ceylon" brand, enabling smuggling/adulteration, introducing pests and harming farmers, recalling the 2016 pepper crisis. It urged reversal and stronger support for local production and phytosanitary oversight.

Talawakelle Tea Estates (TPL.N0000) has appointed Anura Weerakoon as a Non-Executive Director. He brings 40 years of plantations experience, including prior roles at Kelani Valley Plantations and Malwatte Valley Plantations.

Kelani Valley Plantations appointed Milinda Hewagama as a Non-Executive Director. Hewagama is Group CFO of Hayleys PLC and also serves on the boards of The Kingsbury, Hayleys Leisure, Talawakelle Tea Estates and Haycarb.

Government targets $6.5 billion in export earnings from four crops by 2030: tea $2.5bn, coconut $1.5bn, rubber $2bn and cinnamon $0.5bn. The minister said a QR-code system for fertiliser distribution will be introduced and investor inflows into the sector are gradually increasing.

Industry and Entrepreneurship Development Minister Sunil Handunneththi said the government will liquidate 33 non-functional state-owned enterprises to reduce the taxpayer burden and promote private sector-led growth. The Finance Ministry's Special Liquidation Unit will oversee a two-phase process with wind-ups and possible amalgamations.

Sri Lanka and the Philippines concluded the third round of political consultations in Colombo, agreeing to expand cooperation in agriculture (notably coconut and plantation industries), labour, trade and fisheries ahead of their 65th diplomatic anniversary in 2026.

Sri Lanka's Embassy in Bangkok held 'Ceylon Tea – Finest Evening' on 1 September to promote Ceylon Tea, trade and tourism in Thailand; the Sri Lanka Tea Board and nine exporters (including Dilmah, Basilur, Stassen) showcased teas to Thai importers, hoteliers and retailers.

Paddy and coconut production rose in July while fish, tea and rubber production fell. The central bank cited a Department of Agriculture forecast of 2.2 million mt for the 2025 Yala (up 11.7% y/y) and a 2025 paddy forecast of 4.8 million mt (up 2.7%).