News & market updates

Sunshine Holdings (SUN) reported consolidated revenue of LKR 15.9 billion in 1QFY26, up 11.6% YoY, and PAT of LKR 1.7 billion (+20.6% YoY). Healthcare drove performance (54.2% of revenue) while consumer and agribusiness (represented by Watawala) also posted YoY gains.

Sri Lanka and Türkiye held the 3rd JCETC on 24 July, agreeing to deepen cooperation across trade, investment and tech, with bilateral trade reaching $257 million in 2024. The meeting noted a 78% rise in Turkish tourist arrivals and targeted sectors for investment including renewable energy, ICT, food processing and medical devices.

Anverally and Sons secured ISO/IEC 17025 accreditation for its in-house laboratory, valid until March 2029, covering chemical and biological testing for teas, beverages and water. The SLAB-audited, IAF/ILAC-endorsed accreditation supports international acceptance of test results and the company plans to offer third-party testing in future.

Colombo market extended its positive streak to nine days as the ASPI rose about 34 points (0.17%) on turnover of Rs.5.28 billion. Key contributors included MELS, SEYB, CTC, ACL and SAMP; ACL rose Rs.6.50 while Access Engineering fell 30 cents, and foreigners were net sellers of Rs.36.2m.

Sri Lanka Apparel Exporters Association hosted a forum to brief apparel, tea and rubber exporters on the EU Corporate Sustainability Due Diligence Directive (CSDDD), urging compliance to retain access to EU markets; implementation has been extended to 2028.

SLAEA hosted a high-level forum on July 9 to discuss the EU Corporate Sustainability Due Diligence Directive (CSDDD) and its implications for Sri Lanka's export sectors, notably apparel, tea and rubber; the EU timeline has been extended to 2028, underscoring the need for traceability and supply‑chain due diligence.

Sri Lanka was ranked the Most Beautiful Island in the World for 2025 by travel site Big 7 Travel. The list, compiled from editorial input and social popularity, highlights Sri Lanka's beaches, tea plantations and wildlife, a recognition that may boost tourism demand.

The Sri Lanka Apparel Exporters Association hosted a July 9 forum in Colombo on the EU Corporate Sustainability Due Diligence Directive (CSDDD), highlighting implications for apparel, tea and rubber exporters and noting the CSDDD implementation timeline has been extended to 2028.

Colombo Stock Exchange sustained an upward trend as the ASPI rose 0.07% and turnover climbed to Rs. 7.59 billion. The banking sector contributed 38% of turnover, while gains in ACL, Melstacorp, Hayleys and Central Finance and active trading in Sierra Cables and Access Engineering underpinned the session; John Keells weakened.

Sri Lanka's average coconut price rose 18.1% at a weekly auction to 149,468.77 rupees per 1,000 nuts on July 24; nuts offered and sold increased and coconut-based export earnings rose 59.62% in June 2025, aiding merchandise exports.

Sri Lanka's merchandise exports rose 6.85% to $1,150.73m in June 2025, driven by higher tea, coconut-based products and apparel exports while seafood, spices and rubber fell. Exports for Jan–Jun 2025 rose 5.86% to $6,504.72m.

Sri Lanka Planters' Association warned that proposed US tariffs (rising to 30%) will make Sri Lankan tea and rubber non-competitive, causing suspended orders (225,970 kg worth $3.14m) and disrupted cash flows; the association seeks temporary relief and market diversification.

The Planters’ Association warns the US will impose a 30% tariff on Sri Lankan tea and rubber exports from August 1, risking significant export disruption, suspended orders (225,970 kg worth USD 3.14m) and serious harm to plantation and rubber-sector livelihoods.

Planters’ Association warns a 30% US tariff on Sri Lankan tea and rubber, effective 1 August, will threaten exports and livelihoods. The US imported 6.4m kg of Ceylon tea ($45m) in 2024 and Sri Lanka ships about $330m of rubber to the US; PA urges government relief and temporary support measures.

The Sri Lanka–Pakistan Business Council held its 33rd AGM and elected Wasantha de Silva as president for 2025/26, with a committee that includes representatives from John Keells Holdings (JKH) and Aitken Spence (SPEN). The council urged boosting tea exports to Pakistan and expanding trade and tourism under the FTA.

Import and Export Control Department earned Rs. 3.7 billion in 2024, a 13% YoY rise driven by issuance of 17,010 import/export licences. The largest volumes were for mobile phones and communication devices, with increased licences also for chemicals, fertilisers, maize, cashews and tea leaves.

Registrations are open for the Sri Lanka Economic and Investment Summit 2025, to be held 2–3 December at the Shangri-La Colombo with an enhanced investment focus under the theme 'Gateway to Growth'. The summit will bring together policymakers, investors and private sector leaders to discuss fiscal and structural reforms and spotlight opportunities in tourism, agribusiness, manufacturing, renewable energy, logistics, financial services and technology.

Wasantha de Silva of DMW Ventures was elected president of the Sri Lanka–Pakistan Business Council. The new committee includes Malithi Rajapaksha from John Keells Holdings and Chandana Jirasinha from Aitken Spence, and Pakistan's High Commissioner urged increased Sri Lankan tea exports and investment/tourism ties.

The National Chamber will host an exclusive bilateral trade and investment session with Vietnam’s Ambassador Trinh Thi Tam on 30 July (2:30–4:30pm) in Colombo to explore Vietnam’s trade policies and investment opportunities. Major Sri Lankan exports to Vietnam cited include animal feed, apparel, tea and rubber, while imports include apparel, machinery, textiles and iron/steel.

Sri Lanka's tea exports reached 126.8 Mnkg in H1 2025, up 6% YoY, generating about $743m — the highest first-half earnings since 2014; June exports rose 11% YoY to 23 Mnkg, with value-added products lifting the average FOB to $5.87/kg.

Asia Siyaka reports June tea output fell 6.3% YoY to 21.69 Mnkg, but cumulative Jan–Jun production rose 6.1% YoY to 135.74 Mnkg, driven by gains in Low, High and Medium Growns and early July signs of recovery.

National Chamber will host a July 30 forum with Vietnam's ambassador to promote trade diversification and bilateral investment, highlighting opportunities for Sri Lankan exporters (tea, apparel, rubber, fish, gloves, textiles) and imports from Vietnam.

Sri Lanka will hold another round of tariff talks this week aiming to reduce a 30% US tariff ahead of an Aug 1 deadline. The discussions affect exporters such as apparel, rubber and tea and follow approvals to import US wheat and other agricultural commodities.

Tea Traders' Association urged the government to strictly enforce laws against factories producing low-quality tea that use lower-grade leaves and other cost-cutting practices, warning this undermines Ceylon tea's reputation. Officials also discussed boosting productivity, market development and creating a formal tea data system.

Average coconut auction prices rose 9.4% to 126,537.80 rupees per 1,000 nuts at the July 17 weekly auction; nuts offered and sold roughly halved week-on-week. Local wholesale, farmgate, copra and coconut oil price ranges were reported, and China and Maldives launched a coconut pest-control initiative.

Secretary to the President Dr. Nandika Sanath Kumanayake chaired a high-level meeting to review tea industry challenges and prioritize improving quality, productivity, market diversification and smallholder replanting and capacity building. The Plantation Ministry will propose a formal data system and officials were directed to provide solutions; traders urged stricter enforcement against quality-compromising factories.

CoPF approved a Rs.3 per kg licence fee on tea exports to be credited to the Sri Lanka Tea Board's capital fund for replantation, revival of abandoned estates and factory upgrades. The committee also cleared Bills of Exchange amendments to allow criminal penalties for fraudulent cheques and approved a pilot AI platform to modernise Hansard and committee minutes.

Demodera Estate in Uva spans 1,109.25 hectares with nearly half under tea and produces over 1.2 million kg of made tea annually; since 2021 it has been managed by Browns Plantations PLC. The estate uses hydro (750 units/day), renewables and sustainable practices, won 2024 factory awards and supports local employment and tourism.

The President’s Secretary met with tea industry stakeholders to address quality, productivity, replanting and new export market opportunities. Officials also discussed capacity building for smallholders, a formal data system and stricter enforcement against low-quality factories.

The Committee on Public Finance approved regulations under the Tea (Tax and control of export) Act to charge a Rs. 3 per kg licence fee to be credited to the Sri Lanka Tea Board capital fund for tea industry development. Officials said the funds will support replanting, reviving abandoned estates and improving factory efficiency; the committee also discussed Bills of Exchange amendments and piloted a secure AI Hansard system.