News & market updates

Shippers’ Academy Colombo CEO Rohan Masakorala said Sri Lanka's protectionist policies are restricting growth and keeping annual exports around $12 billion; he urged liberalising shipping ownership, fast-tracking FTAs, developing free zones and upgrading education/technology to boost exports.

The National Chamber of Exporters urged a national push to retain the EU's GSP+ facility, noting it allows duty-free export of over 6,000 products and is critical for apparel, tea, rubber, processed foods, seafood and ICT as Sri Lanka works to recover economically.

Sri Lanka promoted Ceylon tea, coconut products and drinking water at the Food & Hotel Asia (FHA) expo in Singapore from 8–11 April, with four Sri Lankan firms participating and the High Commissioner and trade minister attending and facilitating B2B meetings.

The Cabinet approved conducting an Economic Census in two stages, with agricultural activities to be surveyed in 2025 and non-agricultural activities in 2026. The Department of Census and Statistics last ran the census in 2013–14 and plans to update those data.

Cabinet approved a comprehensive legislative overhaul to amend key plantation Acts and introduce new laws in 2025, including a Plantation Management Act, to modernise the tea, rubber and coconut sectors. Amendments target statutes such as the Tea, Rubber and Coconut Estates (Control of Fragmentation) Act and aim to strengthen institutional capacity, land management and support for smallholders.

Sri Lanka's Department of Census and Statistics will conduct an economic census in 2025–26, covering agricultural activities in 2025 and non-agricultural activities in 2026; the last census was in 2013/14.

Chinese Ambassador Qi Zhenhong warned that US reciprocal tariffs could reduce Sri Lanka's garment export values by up to 20%, threatening tens of thousands of jobs. He said exports including rubber, plastics, tea and gems would be hit, cutting foreign exchange, risking rupee depreciation and higher inflation.

Colombo Bourse closed the week higher, with the ASPI up ~2% and finishing at 15,742 after a 126-point gain on Friday. Market gains were led by LOLC, RCL, NDB, SUN and MELS, with Friday turnover at Rs.2.4bn (Capital Goods, Food & Beverage and Diversified Financials leading) while foreigners were net sellers (Rs.103.6m).

Horana Plantations PLC's Neuchatel Estate (902 ha) has diversified into rubber, oil palm (124 ha), coconut and cinnamon, adopted digital weighing and secured EU Deforestation Regulation certification. The estate also runs community welfare, beekeeping and soil- and water-conservation initiatives that generate additional income.

Asia Siyaka Commodities (ASIY.N0000) said Q1 tea export dollar earnings rose 5% YoY to $370.9m, an 11-year high. Export volume was 63.2m kg (FOB $5.87/kg) and a stronger rupee reduced rupee earnings to Rs.109.9bn.

TSHDA and Solidaridad, with Regenagri, Control Union and Nucleus Foundation, held a two-day Regenagri standards workshop on 23–24 April in Kandy training 50+ tea extension officers and smallholders to promote regenerative practices and certification across Sri Lanka's smallholder tea sector.

Ceylon Capital Management bought 23 million shares in Browns Investments PLC, acquiring an additional 19 million at Rs.6.80–7.30 (~Rs.134m) to raise its holding to 23m shares (0.17% stake), placing CCM among Browns' top 15 shareholders.

Sri Lanka's exports in Q1 2025 rose 5.87% to over $4.2bn, with March totals above $1.5bn (up 6.24% YoY). Merchandise exports reached $3.3bn (up 4.61%) and services $887m (up 10.88%), led by apparel, coconut products, spices, ICT/BPM and transport/logistics.

Sri Lanka merchandise exports rose 5.87% YoY in March to US$1,215.9m, with total exports (merchandise + services) at US$1,507.9m. Apparel (+11.73% to US$495.95m), tea (+11.19% to US$138.83m), coconut products (+27.24% to US$100.66m) and spices (+146.26% to US$42.11m) led gains; rubber (-5% to US$93.08m) and gems (-11.57% to US$29.96m) declined.

Sri Lanka's exports reached US$4,212.13M in Jan–Mar 2025, up 5.87% y/y. Services exports rose 10.88% and key sectors including apparel, tea, coconut and spices recorded strong gains.

CIC Agri Produce Export (part of CIC Holdings) showcased Sri Lankan rice and Ceylon Tea Land promoted teas at World Food Poland (8–10 Apr), seeking buyers and new trade connections.

The Embassy of Sri Lanka in Amman held the Sri Lankan Food Fair-2025 on 11 April 2025 to showcase authentic Sri Lankan cuisine (with main dishes and ingredients imported from Sri Lanka) and promote Sri Lanka as a travel destination; the event drew over 300 visitors.

Asia Siyaka Commodities reported Sri Lanka's March tea crop rose 25% to 24.4m kg and Q1 production reached 61.7m kg, up 6.2% year‑on‑year and at a three‑year high.

Tea Exporters Association warned US reciprocal tariffs — temporarily set at 10% for 90 days — could hit Sri Lanka's tea exports to the US, which were 6.4m kg ($45m) in 2024 and 65% value‑added. Confirmed orders of 225,970 kg (~$3.14m) were suspended but port shipments are being cleared after buyers paid the duty.

The Department of Commerce held a 1 April webinar on business opportunities in the UK and Ireland with 100+ participants; 2024 exports to the UK exceeded $900m and trade with Ireland is nearing $100m. The session covered market opportunities, challenges and preferential schemes including the UK's DCTS and EU GSP+.

Sri Lanka inaugurated its pavilion at Expo 2025 Osaka, showcasing Ceylon tea, coconut products, spices, Ayurveda, handicrafts and ICT to promote tourism, exports and investment over the six-month event.

Sri Lanka's tea exports face risk after US reciprocal tariffs, with 225,970 kg (USD 3.14m) of confirmed orders suspended and 296,016 kg (USD 3.24m) at sea as of 11 Apr 2025. A temporary 90‑day measure sets duty at 10% and buyers are clearing shipments, but exporters warn reversion to higher rates (Sri Lanka had been charged 44%) could shift demand to competitors and endanger the USD 1.5bn export target.

The Export Development Board held a stakeholder consultation to tackle the impact of a new 44% reciprocal US tariff on Sri Lankan exports. Stakeholders flagged apparel, rubber, coconut, spices, gems & jewellery, tea and ornamental fish as vulnerable and proposed diplomatic negotiation, IMF engagement, market diversification and short-term support measures.

Sri Lanka's production of paddy, fish, coconut, tea and rubber fell in Jan–Feb 2025, with Maha paddy forecast at 2.61 million tonnes (down 4.2% y/y), tea down 22.0% in February and coconut down 31.6%, the central bank said.

Udapussellawa Plantations (UDPL.N0000) has made a mandatory offer to acquire the remaining 62.41% (18,723,161 shares) of Tea Smallholder Factories (TSML.N0000) at LKR35.00 per share. A detailed mandatory offer document will be sent to shareholders within 35 days.

ANNOUNCEMENT UNDER THE COMPANY TAKE-OVERS AND MERGERS CODE 1995 (AS AMENDED IN 2003) AND GAZETTED IN THE GAZETTE EXTRAORDINARY NO. 875/9 DATED 16TH JUNE 1995 AND AMENDED BY GAZETTE NO. 1299/6 DATED 29TH JULY 2003-MANDATORY OFFER BY UDAPUSSELLAWA PLANTATIONS PLC (TO PURCHASE 18,723,161 (62.41%) ORDINARY VOTING SHARES OF TEA SMALLHOLDER FACTORIES PLC

ANNOUNCEMENT UNDER THE COMPANY TAKE-OVERS AND MERGERS CODE 1995 (AS AMENDED IN 2003) AND GAZETTED IN THE GAZETTE EXTRAORDINARY NO. 875/9 DATED 16TH JUNE 1995 AND AMENDED BY GAZETTE NO. 1299/6 DATED 29TH JULY 2003 - MANDATORY OFFER BY UDAPUSSELLAWA PLANTATIONS PLC (TO PURCHASE 18,723,161 (62.41%) ORDINARY VOTING SHARES OF TEA SMALLHOLDER FACTORIES PLC

Hayleys PLC opened the new Kiruwanaganga Tea Factory (managed by Talawakelle Tea Estates PLC) after a LKR 780 million investment; the facility has 14,000 kg/day capacity, is ranked No.1 Low-grown by CTTA and holds multiple sustainability certifications.