News & market updates

Standard Chartered says Sri Lanka's sovereign ratings outlook is likely to shift from Stable to Positive as debt-to-GDP falls below 100% by 2027. It expects external debt service under $3bn in 2026, reserves around $7.5bn by end-2026 and policy rates to stay on hold.

The private sector minimum monthly wage has been raised to Rs. 30,000 from Rs. 27,000 (an increase of Rs. 3,000) effective 1 January. The change, under the National Minimum Wage (Amendment) Act, requires employers to base statutory payments (EPF, ETF, overtime, gratuity, maternity, leave) on the revised wage and disallows counting most allowances toward the minimum; employees can lodge complaints with the Labour Department for non-compliance.

Sampath Bank commenced restoration of Dewagiriya Wewa in Melsiripura — its ninth tank restoration of 2025 under the ‘Wewata Jeewayak’ programme. The work will dredge sludge, rehabilitate the bund and clear channels to restore irrigation and community water supply for nearby farming villages.

Standard Chartered forecasts Sri Lanka GDP growth of 3.5% in 2026 (from 4.5% in 2025), expects policy rates to remain unchanged and the rupee near 315 USD/LKR by end-2026; it warns of risks from cyclone damage, limited fiscal space and strained external financing.

Colombo Stock Exchange closed flat with the ASPI down 0.02% at 23,623.74 as speculative interest in Colombo Dockyard drove turnover. Colombo Dockyard listed 323,365,158 new ordinary voting shares after its rights issue; top contributors included Hayleys, Dockyard, ACL Cables, Commercial Bank and Nations Trust Bank.

The Government of Sri Lanka will divest its 100% stake in Canwill (parent of Sinolanka and Helanco) via the Ministry of Finance, with Deloitte Touche Tohmatsu India as transaction advisor; Expressions of Interest are due 16 Feb 2026 at 14:00 SLT. Sinolanka is a 47-storey oceanfront development with 458 rooms and 100 serviced apartments on 2.32 acres; the superstructure is complete and remaining work will be completed by the investor.

Colombo bourse opened the week down: ASPI fell 0.44% to 23,627.87 with foreign investors net sellers of ~Rs.697.9m and turnover ~Rs.4.7bn. Top negatives included DOCK, COMB, NTB, SAMP and SPEN, while ACL, Tokyo Cement, DIAL and REEF saw notable turnover/interest.

The Central Bank says the Port of Colombo is expected to nearly double throughput capacity to 15 million TEUs by end-2026 but warned geography alone won’t secure its transhipment role. Container volumes reached 6.92m TEUs in Jan–Oct 2025 (+7.1% YoY) and CBSL urged modernisation, digitalisation, automation and private investment.

A CSF study reviewing 250 EIA reports (1991–2025) finds major inconsistencies and gaps in how social impacts are assessed and communicated, weakening EIAs' role in decision‑making and public accountability. The report urges clearer ToRs, better methods and more accessible reporting to bolster investor confidence and reduce project risks.

The Baladaksha Mawatha flyover, a 340-metre by 11-metre structure costing Rs. 3.2 billion, was opened to the public today. Constructed by the RDA with government funding under the Sustainable Road Development Programme, it is the third flyover completed to reduce Colombo traffic congestion.

A liquidator has invited offers to invest in or buy the Krrish Building mixed-use project in Colombo, valued at $712m with about $85m of work completed; proposals including finance credentials are due by 28 February.

Royal Ceramics Lanka PLC (RCL.N0000) opened a 4,730 sq ft Rocell Concept Centre in Kandy showcasing its full range of tiles, bathware and accessories. The showroom features large-format slabs, outdoor tiles and Hansgrohe fixtures to help customers and designers visualise complete living spaces.

Icon V Talpe, a 17-level twin-tower oceanfront development by Odiliya Group in Talpe near Galle, comprises 227 fully furnished sea-facing apartments and has attracted strong interest from overseas Sri Lankans and international investors, with many units already sold or reserved.

First Capital Holdings PLC will host its 12th Investor Symposium on 22 January 2026 at Cinnamon Life Colombo, focusing on Sri Lanka’s economic outlook and investment strategies. The event will feature a presentation by First Capital research heads and a panel including sector leaders discussing tourism, construction and FMCG trends.

Marlbo Trading has added Teledyne FLIR thermal imaging cameras to its product portfolio to provide advanced inspection and safety solutions for buildings, industry and emergency services.

First Capital Holdings (CFVF.N0000) will host its 12th Investor Symposium on 22 January 2026 at Cinnamon Life Colombo, presenting the Economic and Investment Outlook for 2026. The event, which will be live-streamed, features a panel of industry leaders including JAT.N0000.

CBSL signals a likely hold on policy rates in early 2026 and aims to return inflation to the 5% target by H2 2026. Liquidity will be managed via targeted operations and SRR tightening, which may lift short-term rates while anchoring long-term yields and supporting consumer, construction and banking earnings recovery.

President Anura Kumara Dissanayake launched the 2026 National Housing Program in Jaffna, targeting 31,218 families nationwide and allocating Rs.2 million per house for 800 war-displaced families in Jaffna with Rs.300,000 cheques distributed at the launch. The program covers 2,500 war-displaced families in the North and East and pledges to resolve displaced housing during his term.

Cabinet approved calling for expressions of interest to find investors to develop selected areas of the Pelwatte Sugar Factory into tourist attractions under a PPP; the Pelwatte factory is owned by Lanka Sugar Company Ltd.

Outgoing US Ambassador Julie Chung said she deepened economic ties and security cooperation during her nearly four-year tenure, supporting Sri Lanka through its economic crisis and expressing confidence the US–Sri Lanka partnership will expand across trade, investment and strategic cooperation.

Hayleys PLC (via Hayleys Fentons / HayWind One Limited) has begun construction of a 50 MW wind farm in Mannar to supply electricity to the national grid under a PPA with the Ceylon Electricity Board. The project is expected to save about Rs.4.7 billion in annual fuel costs and offset ~186,300 tonnes of CO2.

An IMF staff team will visit Sri Lanka from January 22–28, 2026 to assess damage from Cyclone Ditwah and its economic impact; the mission's findings will inform discussions on resuming the IMF Extended Fund Facility and shaping recovery support.

An IMF team will visit Sri Lanka from Jan 22–28 to assess Cyclone Ditwah damage and to help restart the IMF Extended Fund Facility program. The IMF initially estimates the cyclone will reduce GDP by about 0.2%.

An IMF team will visit Sri Lanka from 22–28 Jan to assess Cyclone Ditwah damage and its implications for the paused EFF program after the IMF approved $206m in emergency RFI financing. IMF staff say the shock could widen the current-account deficit by ~$700m and lift 2026 average inflation to 5.4%.

Hayleys PLC launched construction of the 50 MW Hayleys Fentons wind project in Mannar, expected to generate 207 million kWh/year at a tariff of $0.0465 per unit and due for completion in March 2027.

UNDP found 95% of communities in 22 districts reported infrastructure damage from Cyclone Ditwah and urged inclusive recovery financing as the government announced LKR 95 billion support for MSMEs (including 3% concessional loans). The assessment said 93% reported livelihoods affected and noted shortages of construction materials, skilled labour and funding.

HDFC Bank appointed Sujeewa Ranawaka to its Board as a Non-Executive, Non-Independent Director. Ranawaka is a chartered civil engineer with over 30 years' experience in housing, coastal resource management and public-sector engineering.

JAT Holdings PLC certified more than 800 painters with NVQ Level 3 at its 6th Pintharu Abhiman Convocation, funding assessments and compressing testing into a three-day model. Surveys show 90% report increased confidence, 76% improved living standards and one in five have started businesses.