News & market updates

Multiple plantation companies (Agarapatana, Elpitiya, Talawakelle, Hatton, Watawala, Kegalle, Kelani Valley, Maskeliya, Namunukula, Kahawatte and Balangoda) are running scholarship programs supporting hundreds of students; Elpitiya alone funds 100 university and 80 A/L students at a cost exceeding LKR 12.4m.

President Anura Kumara Disanayake said Sri Lanka has negotiated a cut in the proposed US reciprocal tariff from 44% to 30% and will continue talks to seek further concessions. He urged a coordinated export strategy and diversification at a high-level meeting with export sector stakeholders.

President Anura Kumara Disanayake said negotiations with the United States reduced a planned reciprocal tariff from 44% to 30% and that talks will continue to seek further concessions; he made the remarks at a meeting with export-sector stakeholders on diversification and market access.

France and Sri Lanka recorded €540m in bilateral trade and $485m of French investment in 2024; France pledged support for the Colombo Port Safety Project, maritime cooperation, boosting tourism (French arrivals ~100,000) and GI protection for Ceylon tea.

The Seafood Exporters’ Association said the US tariff cut from 44% to 30% still leaves Sri Lankan seafood uncompetitive versus regional rivals; Sri Lankan seafood exports to the US account for over 25% (100% for pasteurised crab meat). SEASL urged the government to negotiate further reductions before 1 August 2025.

Agarapatana Plantations PLC is scaling mechanized tea harvesting—boosting plucking per worker by 50–60%, cutting plucking costs by ~Rs 50/kg (around a 20–25% reduction in operating costs) and targeting 30% acreage mechanized by end of next year. The company has invested ~Rs 75m in 451 machines and raised tech spend to Rs 200m in 2023/24, improving productivity, worker incomes and profitability.

The National Water Supply and Drainage Board urged consumers to conserve drinking water due to extreme dry weather and rapidly falling source levels, warning of limited supply and possible low pressure in highland areas. It asked the public to avoid non-essential uses and directed queries to hotline 1939.

DFCC Bank held a financial-awareness session for 28 line managers from Wikiliya Tea Factory to promote its value-chain financing solutions and tailored MSME loan products for smallholder tea growers. The program, organised with Wikiliya and New Hopewell Tea Factories, aims to expand grassroots access to finance in the tea export value chain.

DFCC Bank held an awareness session for 28 line managers from Wikiliya Tea Factory to promote its value-chain financing and tailored MSME loan products for smallholder tea growers. Organised with Wikiliya and New Hopewell finance teams, the outreach aims to expand grassroots access to finance in the tea export sector.

Dilmah Ceylon Tea Company PLC celebrated its 40th anniversary with a 'Future of Tea' event at Sydney Opera House on 19 June 2025. The event showcased Dilmah's 85 Reserve and Watte Single Garden Teas and highlighted tea's health and gastronomy benefits; the author also chairs Kahawatte Plantations PLC.

Dividend · Rs 20.00 · XD Aug 1, 2025

First And Final dividend of LKR 20/share; XD 2025-08-01; record 2025-08-03; payable 2025-08-21; FY 2024/25

Kahawatte Plantations PLC (KAHA.N0000) reports a transformation across 16 estates (12,356 ha), delivering over Rs.4m monthly energy savings and a Rs.120m solar project (70% grant-funded), obtaining GlobalGAP cinnamon certification, securing top tea auction prices and pursuing ERP, drone forecasting and agroforestry initiatives.

The National Chamber of Commerce hosted a bilateral trade and investment session with UAE Ambassador Khaled Nasser Al Ameri on 1 July to boost Sri Lanka–UAE trade, highlighting opportunities for tea exports and tourism and the formation of a UAE–Sri Lanka Joint Business Council. The Council will invite businesses to join for networking, market access and joint-venture opportunities.

Conrad Dias (Director, LOLC Holdings; Chairman, LOLC Finance) and other leaders at CIPM's HR conference said AI-driven digital transformation is essential, citing WEF data that digitally mature organisations deliver 45% higher revenue growth. Panelists highlighted benefits for plantations and urged AI governance and workforce upskilling.

Sri Lanka's Export Development Board met Turkey's Ambassador on 12 June to discuss strengthening bilateral trade and cooperation across sectors including tea, textile & apparel, gems, agriculture, rubber, ICT and air cargo connections. They agreed to share trade opportunities and collaborate on upcoming events.

Agarapatana Plantations' Diyagama West Estate produces over one million kilograms of made tea annually and is modernizing its factory into Sri Lanka's first fully automated upcountry Rotorvane unit. The estate, a Lankem Developments subsidiary, also runs a historic hydro power unit, holds sustainability certifications and supplies Dimbula teas to export markets.

LKIIRSS convened an emergency roundtable with government agencies and private firms to assess how Middle East tensions could disrupt Sri Lanka's fuel imports, shipping routes, foreign employment and tourism.

Dividend · Rs 1.00 · XD Jul 9, 2025

First Interim dividend of LKR 1/share; XD 2025-07-09; record 2025-07-10; payable 2025-07-29; FY ending 31st March 2026

Sri Lanka's Export Development Board met with Türkiye's ambassador to discuss boosting trade and investment across sectors including textiles, gems, agriculture (tea, rubber), ICT and transport/logistics, and potential air cargo links between Turkish Cargo and SriLankan Airlines.

Sri Lanka Export Development Board met Turkey's Ambassador Semih Lütfü Turgut on 12 June 2025 and agreed to share trade opportunities and collaborate on upcoming events to deepen bilateral trade. Discussions covered tea, textiles, gems, agriculture, rubber, ICT and potential air cargo links.

At the CIPM HR Conference on 3 June, industry leaders including LOLC and Dialog Axiata said AI-driven digital transformation is essential for productivity, urging contextual adoption, HR-led AI literacy and strong governance while noting benefits for plantations.

The National Chamber will host a bilateral trade and investment session with UAE Ambassador Khaled Nasser Al Ameri on 1 July to explore Sri Lanka–UAE trade and investment opportunities. The forum will highlight key sectors and major exports/imports such as tea, garments, petroleum products and electrical/electronic goods.

Sri Lanka's merchandise exports rose 1.7% in May 2025 to $1,028.52m, led by a 33% surge in coconut exports and a 14.5% rise in tea. Apparel fell marginally and rubber exports dropped 9.3%, while exports in the first five months were up 5.46% to $5,344.27m.

Sri Lanka's total exports (merchandise + services) reached US$6,933.35m in Jan–May 2025, up 7.14% year-on-year. Services exports rose 13.2% (led by ICT/BPM and transport & logistics) while tea, coconut products, spices and several manufactured exports posted strong gains.

Pussalla Meat Producers invested Rs. 300 million to enter value-added organic Ceylon cinnamon production and will open a processing facility on July 3 at Kosgama. It plans exports to Gulf countries from August 2025 with a USD 1m forex target for 2025 and aims for USD 5m by end-2026 pending EU approvals.

CFA Society Sri Lanka held the Capital Market Awards 2025 on 24 June; Sunshine Holdings won Gold for Best Investor Relations (Mid-to-Large), hSenid Business Solutions won Best Investor Relations (Small Cap), Talawakelle Tea Estates won Silver for Best Sustainability Reporting, and Dialog Axiata and Commercial Bank shared Bronze. Capital Alliance was a Gold sponsor and Hatton National Bank served as Banking Partner.

The Embassy of Sri Lanka in Washington D.C. hosted a tourism promotional reception on 13 June 2025 targeting US nationals, featuring cultural performances, a photographic exhibition of attractions, live cooking, and Ceylon tea samplings sponsored by Basilur and QTrade.

Cabinet approved forming a ministerial Sub-Committee chaired by Foreign Affairs, Foreign Employment and Tourism Minister Vijitha Herath, plus a Technical Committee of ministry secretaries, to monitor and advise on economic risks from the Middle East crisis, focusing on remittances, oil, exports and tourism.

Ceylon Chamber will host a business interaction on 26 June with a 13-member delegation from Yunnan to discuss agriculture, food processing, tea and trade/investment opportunities. The forum is timed amid ongoing Sri Lanka–China FTA talks and aims to tap rising Chinese demand for natural, high-quality imports.