News & market updates

Colombo Stock Exchange ASPI rose 1.65% (335.95 pts) to 20,754.04, led by capital goods and banking. Colombo Dockyard jumped 8.74% and Access Engineering rose 4.46%; Ambeon Holdings announced a 1-for-4 share subdivision and Ceylon Land & Equity reported transfer of 241m rights.

Sri Lanka's economy expanded 5.0% in 2025, with GDP at constant prices rising to Rs. 13,128,577 million. Industry led growth at 7.8% while services grew 3.3% and agriculture 1.4%; authorities cited easing interest rates, a relatively stable exchange rate and stronger construction, manufacturing, financial services, IT and tourism activity.

Sri Lanka's economy expanded 5.0% in 2025, with Q4 growth slowing to 4.8% (from 5.4% in Q3). Industry led the expansion (7.8%) driven by construction, mining and manufacturing, while services grew 3.3% and agriculture 1.4%.

The Cabinet approved plans to secure $620 million from the ADB across five sub-programs to support trade, MSME finance, water and sanitation, resilience and agricultural value-chain financing. The package is policy-based lending aligned with Sri Lanka’s IMF EFF reforms and includes a $220m MSME finance component.

Cabinet approved a Rs. 2,269.18 million contract to the JSL & Fentons JV (Jyoti Structure Ltd and Hayleys Fentons) to construct a 28 km 220kV double-circuit transmission line for the Mullikulam Wind Power Transmission Project, strengthening grid connectivity and renewable integration.

CBSL said banking gross loans rose 21.4% y/y and finance company lending rose 51.9% at end-2025, with Stage 3 loan ratios falling to 9.7% (banks) and 6.1% (finance companies). Liquidity and capital buffers eased but remained above regulatory minima; ASPI gained 41.9% and the rupee depreciated 5.6%.

Colombo West International Terminal (CWIT) handled one million TEUs in its first year, the fastest any Port of Colombo terminal has reached that mark. CWIT — a roughly $800m joint project involving Adani Ports, John Keells Holdings and the Sri Lanka Ports Authority — is a fully automated deep‑water terminal with about 3.2m TEU annual capacity.

Central Bank reports credit expanded sharply in 2025: banking gross loans rose 21.4% y/y and finance companies' gross loans rose 51.9% y/y. Asset quality improved (stage‑3 loans down), liquidity and CAR moderated but stayed above regulatory minima; ASPI +41.9%, rupee −5.6%.

Capital Trust Properties Chairperson and CEO Minoli Wickramasinghe was honoured with an 'Outstanding Contribution to the Real Estate Industry' recognition at the UK House of Commons. The company reported strong growth, expects a positive outlook for 2026, and noted sector rental yields rising from around 3% pre-COVID to nearly 8%.

The Committee on Public Finance approved a Gazette amending Colombo Port City development regulations, easing building-height limits and expanding land for electrical operations; government infrastructure spending is Rs. 9.9bn so far, expected to reach Rs. 10.5bn by 2027. The changes aim to streamline approvals (single-window), recover costs via rent (100% from state land, 1% from developer land), require construction financing in foreign exchange, and warn unauthorised local developers.

The Urban Development Authority launched the 'Mother Lanka' digital platform to boost public participation and transparency in urban planning, accessible at motherlanka.uda.lk. The multilingual platform lets stakeholders view projects and regulations, submit feedback for real-time review, and emphasizes data protection.

John Keells Properties unveiled Vauxhall DSTRCT, a 60-storey residential tower in Colombo, and sold over 100 apartments by launch day. The development offers one- to four-bedroom units with lifestyle amenities and upgraded smart-technology features, located on Vauxhall Street (Colombo 2).

LOLC Securities' Investor Forum said a sovereign credit rating upgrade could attract foreign inflows as CSE market capitalisation rose to about Rs.7.6 trillion (from Rs.2.9 trillion in 2022). The forum highlighted stabilised macro fundamentals, recovering exports and tourism, and sectoral opportunities in finance, construction and export-oriented industries.

Mazagon Dock Shipbuilders acquired 201,565,500 shares (51.00% stake) in Colombo Dockyard PLC. The mandatory offer at Rs40 expired with no takers; Mazagon bought 9.27% from Onomichi and appointed three directors to the board.

A policy brief warns the SLTDA’s plan to lease 3,000 acres for tourism could repeat Kalpitiya’s experience of stalled resort projects and idle land after 15 years. The study cites severe infrastructure shortfalls (water meets only 54% of demand, ~3.5m litres/day deficit), weak EIAs, governance gaps and community conflict undermining investability.

US President Donald Trump announced a $300 billion plan with Reliance Industries to build a refinery at the Port of Brownsville, Texas. The project is billed to process about 1.2 billion barrels of US shale oil and produce ~50 billion gallons of refined products amid heightened oil-market volatility.

Sampath Bank (SAMP.N0000) has partnered with Apartner to digitise condominium payments, integrating Visa’s Cybersource with Sampath’s API Manager to enable real-time payments, instant settlements and automated reconciliations for apartment communities.

John Keells Properties unveiled Vauxhall DSTRCT, a 60-storey residential tower in Colombo, and sold over 100 apartments on launch day. The development on Vauxhall Street (Colombo 02) offers one- to four-bedroom units with smart-technology features and lifestyle amenities.

TMC Colombo will host a seminar on "Condominium Properties – Issues and Concerns" on 24 March 2026 to discuss condominium ownership, property management, construction and legal issues, including implications for financial institutions accepting condominiums as securities.

ADB will provide more than $1 billion annually to Sri Lanka from 2026–2029 to support macroeconomic stability, private-sector growth, education, resilient infrastructure and a major digital transformation program. The bank is fast-tracking emergency assistance for Cyclone Ditwah recovery and will support Sri Lanka's RCEP accession.

Asia Securities convened 150+ investors and corporate leaders at the Sri Lanka Investor Conference 2026 to present a constructive capital-market outlook, with speakers citing roughly 4% GDP growth prospects for 2026. Panels highlighted construction, banking/finance, consumer and digital sectors as key growth drivers and projected strong corporate earnings expansion.

ADB will provide more than $1 billion annually to Sri Lanka from 2026–2029 and is fast-tracking an emergency assistance loan to help rebuild after Cyclone Ditwah. Funding will target macro stability, private-sector growth, digital transformation and resilient infrastructure, and support RCEP accession.

President Trump announced a 168,000 bpd refinery to be built at Brownsville backed by India’s Reliance, which signed a binding 20-year offtake; America First Refining said it plans to break ground in Q2.

ACP Asset Management launched the first Sri Lanka-focused UCITS fund, seeded with $10m and expecting a further $25m within 30 days, targeting $100m AUM in 6–12 months. The fund will invest in Sri Lankan equities, sovereign eurobonds and liquid treasury instruments and aims to draw foreign capital into sectors including banking, construction, F&B and tourism.

The Sri Lanka Export Development Board has opened applications for Sri Lanka Expo 2026 (18–21 June at BMICH), offering 650 booths and opportunities to meet over 1,500 global buyers; applications close 31 March 2026. Sectors covered include industrial and agro-industrial products and services such as ICT, tourism, renewable energy and healthcare.

Embilipitiya Stores expanded its factory from 100,000 sq ft to 145,000 sq ft (a 45% increase), raising monthly bathroom set production from 3,500 to 5,000 units. The group also manufactures construction materials and plans further domestic and international expansion.

Kerner Haus Global Solutions appointed Damitha Jayawardana as Acting CEO effective 6 March 2026. He was previously CFO and has over 20 years' finance and BPO/KPO operational experience, with expertise in portfolio development and cost controls.

Sierra Cables PLC won two major 2025 NCE Export Awards — Gold in the Large Category (Electronic & Electrical Products) and Best Sri Lankan Brand Exporter. The company highlights its unique UL 44 certification (only Sri Lankan cable maker certified) and expanded international footprint enabling access to regulated markets including the US.

National Development Bank PLC (NDB) partnered with Home Lands at the Property Investment Roadshow 2026 and introduced a specialised home loan package offering up to 120% financing (100% of property value plus 20% for furnishing/remodeling). The event also launched about 1,000 resort apartments and NDB provided on-site relationship officers and flexible repayment options.

Embilipitiya Stores Tool & Ceramic Manufacturing (Pvt) Ltd, an Eagle Group affiliate, opened its first Eagle Bath Ware ceramic sanitary ware and tile showroom in Embilipitiya offering bathroom suites, tiles, mortars, putty and accessories with warranties up to 25 years. The group plans to open additional showrooms islandwide.