News & market updates

The Palm Oil Industry Association said expanding local palm oil cultivation could cut import expenditure — Sri Lanka spent about Rs. 140,022 million on palm oil imports in 2025. POIA and industry experts (including Watawala Plantations) argued that 8,000 hectares identified for cultivation could boost domestic production, reduce FX pressure and support rural employment.

Sri Lanka's rupee closed at 319.75/320.00 to the US dollar, slipping below 320 as inflation reached the central bank's 5% target; the central bank intervened around 319.50 and conducted repo operations while bond yields remained broadly steady.

Watawala Plantations and regional plantation companies are preparing to expand palm oil cultivation if the seven-year ban is lifted after a Plantations Ministry expert committee found no basis for the environmental or health concerns. Industry says private investors had committed about Rs.500m to expand 8,000 ha before the ban.

Hela Apparel Holdings said its subsidiary Hela Brands (Mauritius) sold its entire stake in UK-based Focus Brands Ltd. to Emerald Investments for $8 million, a transaction completed after shareholder approval. The buyers intend to continue manufacturing and design operations to maintain export continuity and jobs.

DFCC Bank PLC has partnered with the National Chamber of Commerce of Sri Lanka to support SMEs with export-oriented workshops, financial literacy, business advisory services and market access via the From Sri Lanka (FSL) platform.

Geographical Indications (GI) could unlock higher export earnings for Sri Lanka's tea, spices and other agricultural products by enabling premium pricing and niche market access. The article urges targeted GI reforms — a dedicated NIPO GI unit, national GI logo, better enforcement and traceability — to capture this value.

Macktiles Lanka (Pvt.) Ltd opened a new showroom at 236, Main Road, Attidiya, Dehiwala on April 24, 2026. The outlet showcases new 4×2, Batik, Junior and Green ranges, highlights tech-driven services and notes ISO 14001:2015 environmental accreditation.

Ambassador Sisira Senavirathne met Alexandria Chamber of Commerce chairman Ahmed El-Wakeel on 05 April 2026 to discuss boosting bilateral trade and investment and invited the chamber to send a delegation to Sri Lanka Expo 2026 to explore business partnerships.

Hela Apparel Holdings sold its shares in UK-based Focus Brands to two Emerald Investments shareholders for $8 million, and the transaction is complete with consideration paid. The company said proceeds form part of a debt-restructuring plan to settle creditors.

Emerald Clothing Ltd. has stepped in to operate select Hela Clothing factories (Thihariya, Palapathwala) and UK/US design units to maintain manufacturing and selected deliveries, supporting several thousand jobs as Hela faces liquidity and legal issues.

An ADB fact-finding mission met the Sri Lanka Export Development Board on 27 April 2026 to review progress on the National Export Development Plan 2026–2030 and agree next steps, including Cabinet approval, ADB technical assistance, a PMU and a high-level steering committee.

Emerald Clothing has stepped in to run selected Hela Clothing operations, keeping manufacturing at Thihariya and Palapathwala operating, supporting several thousand jobs and maintaining export customer deliveries to stabilize Sri Lanka’s apparel export base.

Rising energy costs from the Iran war are widening economic strain across emerging markets, prompting tighter monetary policy and fiscal pressure; the IMF cut growth for emerging and developing economies to 3.9% from 4.2%, with countries like Sri Lanka, Egypt and Pakistan highlighted as vulnerable.

CEAT Kelani Holdings launched the GRIPP X5 and ZOOM X5 premium motorcycle and scooter tyre ranges for Sri Lanka, engineered for higher mileage, safety and improved wet/dry performance and launched in four key sizes covering many popular two-wheelers.

Sri Lanka's apparel exports fell 8% in Q1 2026 year-on-year, worsening from a 3% decline in January to 11% in February and March. The sector cites higher operating costs—fuel and electricity adding nearly USD 3m monthly—and calls for energy reform, GSP+ renewal, U.S. engagement and expanded India access.

Ten Sri Lanka ICT companies generated an estimated USD 2.0 million in future business prospects and over 300 leads at Japan IT Week Spring 2026, the Export Development Board said. The EDB, with JICA and the Sri Lanka embassy, facilitated briefings, site visits and networking to boost Sri Lanka–Japan ICT collaboration.

Deloitte Sri Lanka urged IT and knowledge-sector firms to treat transfer pricing as a strategic tool, aligning intercompany pricing with value creation amid regulatory shifts and the IRD's APA framework. It recommended robust FAR/DEMPE documentation and use of APAs to reduce audit risk.

Sri Lanka showcased premium Ceylon Tea at the 20th Beijing International Tea and Tea Ceremony Exhibition (Apr 17–20, 2026), with four Sri Lankan tea companies participating to promote Ceylon Tea and engage international buyers in the Chinese market.

A delegation of 10 Sri Lankan ICT companies, supported by the Export Development Board, JICA and the Sri Lankan Embassy, completed participation at Japan IT Week Spring 2026, generating 300+ leads, 100+ business meetings and potential future business estimated at over USD 2.0 million. The program included briefings, site visits and targeted B2B matchmaking to support market entry into Japan.

Deloitte told SLASSCOM members that Sri Lanka’s Knowledge & Innovation (IT) sector must strengthen transfer pricing policies and documentation as scrutiny rises following the Inland Revenue’s January 2025 APA framework and the transition away from tax holidays, to ensure arm’s-length outcomes and support export earnings.

The Asian Development Bank estimates Sri Lanka has about $6 billion of unrealised export capacity — exports could rise 47% if gaps are addressed — and says weak export growth has widened the trade deficit and pressured the rupee ahead of rising external debt repayments. Usable reserves cover roughly three months of goods imports, limiting the Central Bank's ability to defend the currency.

Hambantota International Port handled MSC Marie Leslie from 11–15 April, recording a record single-vessel throughput of 13,260 TEUs (7,968 container moves). The milestone underscores HIP's growing capacity and role as an alternative regional transhipment hub.

UNDP warns more than 30 million people could be pushed back into poverty from the economic fallout of the Iran war, driven by disruptions to fuel and fertiliser supplies and blocked shipping through the Strait of Hormuz. It said fertiliser shortages have already reduced agricultural productivity and food insecurity will peak in a few months.

Sri Lanka’s Minister of Agriculture K.D. Lal Kantha reaffirmed the country’s active engagement at the FAO Regional Conference (APRC38), prioritizing stronger domestic production, reduced import dependency, agricultural modernization through digital governance and water management, and export-oriented villages.

Sri Lanka–Korea Business Council hosted a "Doing business with South Korea" session outlining export and investment opportunities for Sri Lankan firms and guidance on using APTA and compliance requirements. Speakers included the Korean Ambassador and KOTRA officials who urged tariff reform, FTA use and RCEP consideration.

Pride Rock Partners hosted a session at the World Aroma Ingredients Congress & Expo 2026 in Mumbai, showcasing Sri Lanka's role and opportunities in the global fragrance and flavours value chain and highlighting essential oil production, technologies and export prospects.

Bank of Ceylon presented its 2025 Annual Report reporting profit before tax of Rs. 120.8 billion and tax remittances of about Rs. 77 billion, while highlighting financial inclusion (BOC Connect Agent Banking), support for exporters/MSMEs and plans for digital transformation.

Hyundai Motor will roll out 20 new models in China over the next five years, aiming to double annual sales to 500,000 vehicles. It launched the China-specific electric IONIQ V and is expanding partnerships with autonomous-driving developer Momenta and battery maker CATL.

Hambantota International Port handled MSC Marie Leslie from 11–15 April 2026, recording 7,968 container moves (13,260 TEUs) — the highest single-vessel throughput at HIP to date. The result surpasses prior MSC calls and highlights HIP's growing container handling capacity as a regional transhipment hub.