News & market updates

Unisys integrated Sri Lanka-based Fits Cargo into its Cargo Portal Services, expanding global air freight route options and booking capabilities for freight forwarders and adding Expedite All's US ground network for last-mile delivery. CPS serves more than 33,000 freight forwarding users, enabling pricing, booking and tracking in one portal.

Shermans Logistics (an Esna–McLarens JV) and India’s Glottis signed a Memorandum of Understanding in Colombo to collaborate on logistics, renewable-energy logistics, project cargo, 3PL and potential JVs to expand India–Sri Lanka trade flows.

Mila Fashion Ltd. said it has not ceased operations and is conducting a temporary operational consolidation at its Welioya facility, reassigning affected employees to affiliated group companies with continued salary payments. The company said measures comply with labour law and include transport, accommodation, meals and orientation support.

BOI says potential German investors will visit Sri Lanka for the German Business Forum (GBF) 2026 in Colombo on May 27–29. The event targets boosting FDI into export sectors (textiles, apparel, rubber) and areas like logistics, precision engineering and renewable energy.

US dollar rose above Rs.320 today, mid-rate at Rs.320.45 (buy Rs.317.26, sell Rs.324.87); CBSL reports the rupee has depreciated about 2.9% against the USD as of April 30, 2026.

The Cabinet designated six firms as Businesses of Strategic Importance under the Colombo Port City Economic Commission, expected to attract $14.6m in FDI over five years and create about 650 jobs. The firms will operate across IT, logistics, consultancy, public utilities, infrastructure and maritime technology and receive incentives under the law.

FTZMA urged the PUCSL to operationalise power wheeling under Section 13 of the Electricity Act and publish the regulatory framework and wheeling-charge methodology within 90 days to allow industry to buy renewable power via the grid, reduce fuel imports and save foreign exchange.

The Sri Lankan rupee weakened to about 321.00/30 per USD (one-week forward 321.60/90) while government bond yields fell (e.g. 01.07.2028 quoted 9.65/70%). The ASPI rose 0.75% to 22,909 and TT rates showed USD at 317.50/324.50.

China has retooled its Belt and Road Initiative, with deals linked to the programme reaching a record $213 billion in 2025. The revamp emphasizes smaller projects, greater equity stakes (about 40% by 2025) and 'soft connectivity' to export standards, services and digital systems abroad.

Sri Lanka and Türkiye held their second political consultations in Ankara on May 5, focusing on defence and security cooperation and exploring expanded investments and joint ventures in pharmaceuticals, renewable energy, tourism, logistics and technology. They also discussed connectivity, maritime cooperation and education links.

The Ceylon Chamber of Commerce will host a one-day Mineral Sands Technical Conference on 17 June at the Galle Face Hotel, Colombo, in partnership with Mineral Technologies Australia, to discuss exploration-to-market development, ESG, and investment readiness for Sri Lanka's mineral sands sector.

The Sri Lanka Export Development Board and the Karachi Chamber of Commerce and Industry met on 6 May 2026 in Colombo to discuss expanding bilateral trade and greater use of the 2005 Sri Lanka–Pakistan Free Trade Agreement. Both sides endorsed stronger private-sector collaboration and improved trade facilitation.

Sri Lanka's Ministry of Energy and Board of Investment issued an RFI for green hydrogen and green ammonia project proposals, with submissions due 5 June 2026. The move supports the National Hydrogen Roadmap targeting 70% renewable power by 2030 and USD 1bn annual green energy exports by 2030.

The US dollar selling rate in Sri Lanka climbed above Rs.324 to Rs.324.03 (buying Rs.316.40, spot Rs.319.78), and the rupee has depreciated 2.9% against the dollar year-to-date to April 30, 2026.

Cabinet approved the Sri Lanka National Export Development Plan 2026-2030, targeting $36 billion in export earnings by 2030. The plan was prepared by the Export Development Board with ADB technical assistance to guide and monitor export competitiveness.

Sri Lanka and the Maldives pledged deeper economic cooperation at the Maldives–Sri Lanka Business Forum in Colombo, with Maldives announcing investment‑friendly reforms and leaders urging expansion of bilateral trade (US$137m in 2025), tourism, infrastructure and sector partnerships.

The IMF omitted Sri Lanka’s 2026 GDP projection from its April 2026 World Economic Outlook, signaling a fragile recovery linked to incomplete debt restructuring, governance failures and banking-sector issues, Ganeshan Wignaraja said.

Hambantota International Port hosted senior representatives from CMA CGM and Evergreen to discuss potential new container services as carriers reassess routes amid Middle East instability. HIP has expanded container yard capacity and handling equipment, but no formal service announcements have been made.

The Iran war-driven energy crisis led the Asian Development Bank to cut growth for developing Asia to 4.7% this year and 4.8% in 2027 and raise its inflation forecast to 5.2% for this year. Governments are using subsidies, duty cuts, reserves and export curbs to shield consumers while several regional currencies have weakened.

Sri Lanka's Ambassador met Suez Governor Hani Rashad on 19 April to discuss boosting trade and investment ties and proposed cooperation in the maritime sector, including joint ventures to manufacture boats and fishing vessels and invited a Suez investor delegation to Sri Lanka Expo 2026. The Governor expressed strong support, citing Suez's strategic Red Sea/Suez Canal location.

DFCC Bank PLC has partnered with the National Chamber of Commerce of Sri Lanka to support SME growth by offering export-oriented workshops, financial literacy, business advisory services and market access through the From Sri Lanka platform.

First Capital says listed plantation firms AGAL, KGAL, KOTA and HOPL are well positioned to benefit from rising rubber prices as rubber makes up about 15%+ of their revenue. Dipped Products and exporters may also gain from higher rubber prices and rupee depreciation, while Kelani Tyres could face margin pressure.

Sri Lanka's current account surplus fell 43.9% YoY to $531.5m in 1Q2026. The decline was driven by a sharply wider trade deficit (up 122% YoY), weaker services/tourism inflows with March surplus collapsing 90.7% YoY to $44.6m, and a 74.7% surge in fuel import costs.

Sri Lanka Ports Authority posted group PAT of Rs. 42.8bn for FY2025, up 12.1% YoY, with group revenue rising 9.7% to Rs. 81.8bn. Port of Colombo throughput increased to 8.3m TEUs driven by a CWIT ramp-up, while SLPA-operated terminals and SAGT saw declines and CICT was broadly unchanged.

Dipped Products PLC launched 'DPL EasyPay', a digitised procurement system connecting 4,500+ latex farmers and 40+ agents, enabling 50% instant payments at collection and saving ~6,200 man-hours monthly. The offline-capable platform adds QR traceability, biometric validation and SAP integration and is shortlisted for a digital impact award.

AHC Group signed an MoU with the Asia Africa Chamber of Commerce and Industry to attract investment into agriculture, tourism, real estate, mining and trade and to generate employment in Sri Lanka. AHC highlighted its vermicompost programme, a 1,000-acre seed paddy initiative and will co-host a major international business conference in August.

Planters’ Association warned the West Asia/Strait of Hormuz crisis threatens about 45% of Sri Lanka’s tea exports (≈US$680m) and called for urgent measures to secure fertiliser stocks, provide working capital for smallholders and diversify export markets.

Planters’ Association urged urgent action to stabilise tea production and costs, noting 45% of exports (~$680m of $1.5bn) go to Middle Eastern markets and wages rose to Rs1,750/day from 1 Jan 2026. It warned fertiliser supply risks could jeopardise the 2026 300m kg target and called for fertiliser security, working capital for smallholders and market diversification.

Sri Lanka Customs exceeded its April revenue target, collecting Rs. 186.5 billion, and is accelerating digitalisation to automate workflows, reduce corruption and speed container clearance to support trade facilitation and revenue collection.

Sri Lanka's current account posted a Q1 cumulative surplus of USD 531m, even as the merchandise trade deficit widened to USD 2.3bn driven by a 74.7% jump in fuel import spending. Tourist arrivals fell 19.8% and services surplus dropped 42.4% while remittances rose 26.5% to about USD 2.3bn; gross official reserves were USD 7.0bn and the rupee was down 2.9% YTD by end-April.