News & market updates

Sri Lanka aims to build a 200,000-strong digitally skilled workforce by 2030 and to grow a USD 15 billion digital economy. The article argues that human-capital investment and government–academia–industry collaboration are essential for AI to become a competitive advantage.

Colombo Municipal Council cut the Entertainment Tax — including local concerts from 12% to 7% — under the CMC's 2026 budget (Gazette issued) to support the creative industry. The mayor urged event organisers to pass savings to consumers by lowering ticket prices.

Oil prices slipped as traders took profits and assessed U.S. strikes on Iran and the risk of supply disruptions via the Strait of Hormuz; Brent was $84.95/bbl and WTI $79.45/bbl. Markets remain wary that further disruption to exports could push prices materially higher.

PMI: Manufacturing at 53.0 and Services at 58.5 in June 2026, indicating continued expansion in both sectors. Manufacturing growth slowed with production led by food & beverages and firms citing labour shortages and longer supplier delivery times; services expansion was driven by financial/professional services and insurance, with tourism expected to boost activity.

Sri Lanka's rupee was quoted at 336.30/45 to the US dollar in the spot market, and dealers said bond yields were broadly steady, with maturities from 2029–2034 quoted around 11.10%–12.10%.

Government launched the nationwide 'Ceylon Tea Village' program to transform smallholder tea production and lift annual output to 400m kg and tea export earnings to $2.5bn by 2030, starting with 144 tea villages. The program includes nurseries, mechanisation, insurance, pensions, concessional finance, value‑addition and links to tourism.

Weekly Treasury bill auction sold the full Rs.120 billion offered as weighted average yields fell (91-day 10.13%, 182-day 10.27%, 364-day 10.20%). Secondary bond yields edged higher on Middle East tensions; net liquidity surplus was Rs.147.19bn and USD/LKR closed at 336.30/336.40.

THASL CEO Priantha Fernando urges Sri Lanka to pivot from mass tourism to high-value experiential travel—targeting India and China—and backs a revised 2026 target of about 2.5 million arrivals and $3.5 billion in earnings. He calls for stronger destination marketing, MICE/wellness/sports focus, digital integration and restored airline capacity.

Vietjet Air held high-level talks with the Civil Aviation Authority of Sri Lanka to prepare for the airline's upcoming launch and to strengthen aviation connectivity between Sri Lanka and Vietnam.

June tea production rose 4% YoY to 22.5 MnKg, but first-half output was 131.8 MnKg, weighed down by extreme weather, Cyclone Ditwah and rising fertiliser costs. The industry is urging a targeted fertiliser subsidy for smallholders ahead of expected El Niño.

Treasury has authorised government institutions to reprice or extend eligible public procurement contracts to reflect higher fuel, freight and material costs, with measures applied retrospectively and effective until 30 September 2026. The Circular targets construction works (using CIDA price-adjustment formulas) and permits use of PPIs, freight/shipping indices or documented cost evidence for other procurements.

Sri Lanka's Manufacturing PMI was 53 in June and the Services PMI 58.5, indicating continued expansion while manufacturing slowed from May; outlook for both sectors remains positive but downside risks persist from the Middle East conflict and global uncertainties.

Bandaranaike International Airport handled 4,748,481 passenger movements in the first six months of 2026. The airport also recorded 30,659 aircraft movements, 424,856 transit passengers and 1.14 million tourist arrivals (down 1.8% year‑on‑year).

CSE ended marginally higher as the ASPI rose 29.77 points to 21,447.57 and the S&P SL20 gained 16.37 points to 6,004.99. Market turnover was Rs. 1.48 billion, led by E.B. Creasy & Company PLC (Rs. 410m) and ACL Cables PLC (Rs. 114m).

DMS Software Engineering implemented its DMS-IMAGO cheque imaging and truncation platform at HSBC Sri Lanka, digitizing cheque clearing to improve processing accuracy, reduce operational risk and shorten turnaround times.

Colombo Stock Exchange closed higher as the ASPI rose 0.14% (29.77 pts) to 21,447.57 and the S&P SL20 gained 0.29% to 6,006.07, with market turnover Rs 1.49bn and banks leading turnover at Rs 74.9m. Bukit Darah declared a first interim dividend of Rs 5.73 per share, entitlement July 27, 2026.

Citi Sri Lanka partnered with ChildFund Sri Lanka on Global Community Day 2026 to refurbish Mawela Kanishta Vidyalaya in Wadduwa, carrying out classroom painting, murals, sanitary repairs and donating a clean-water system.

Ceylon Energy launched Apollo Energy, a Delaware-based investment platform to connect investors to high-yield energy and infrastructure projects, and hosted Energize 2026, a forum on industrial developments and technologies shaping the energy sector. Apollo Energy aims to widen investor access to renewable projects across Sri Lanka and the region.

Citrus Leisure (REEF.N0000) has partnered with RateGain to deploy the UNO Direct Stack across its hotel portfolio to boost direct bookings, improve conversion and increase direct revenue.

Ather, via distributor Evolution Auto, showcased the Ather 450X at the Colombo EV Motor Show 2026, drawing strong customer interest. The company introduced two new features for Sri Lanka — Infinite Cruise and Magic Twist — highlighting connected tech and battery/chassis design to boost premium EV adoption.

Lion Brewery (LION.N0000) has deployed Sri Lanka's first long-haul electric prime mover in its outbound supply chain, supplied by Ceyconnect (a Ceyline Group subsidiary). Ceyconnect plans to expand the electric fleet over time as part of Lion's cleaner-energy and sustainability efforts.

HNB PLC awarded an HNB Visa Club Infinite cardholder a fully paid experience for two to the FIFA World Cup 2026 Final, selected via a raffle among cardholders who met the promotion's minimum spend requirement.

David Pieris Group launched a five-day Social Empowerment Drive in Batticaloa from 15–19 July 2026, featuring a trade fair and community programmes on entrepreneurship, skills training, road safety, sports and scholarships. The event showcased group businesses and used a David Pieris Solar battery backup for power resilience.

NovaNest Properties launched Rainbow Apartments in Ratmalana, a new residential development with multiple amenities and a full-time medical centre backed by Nawaloka Hospitals PLC, including a 24-hour ambulance service.

HNB General Insurance appointed Lakshman Silva as Non-Executive/Nominee Director and Sandra De Zoysa as Independent/Non-Executive Director to its board to strengthen its digital platforms and customer experience initiatives.

CAHM students won multiple top prizes at the 31st National Bartenders Competition and Dainties 2026, with Anurasi Chandrasoma winning the Hotel School Category and the Cocktail VTA and CAHM sweeping the top three places in the Cocktail VTA. Dishala Gunawardhana won the Mocktail VTA and students also placed in culinary categories.

LANKATILES announced a strategic partnership with the Geoffrey Bawa Trust to support the Trust's DesignTalk platform, the Annual Geoffrey Bawa Memorial Lecture and other architecture knowledge-sharing initiatives.

NIBM launched the Best Innovative Business Model Awards (BIBMA) 2026 on 14 July to recognise organisations, offering 30 awards across four categories with applications closing 15 September 2026. Evaluation uses the Business Model Canvas integrated with the UN SDGs and shortlisted firms will be notified by 15 November 2026.

Colombo Stock Exchange traded higher Thursday morning, with the ASPI up 29.70 points (0.14%) to 21,447.50 and market turnover of LKR 229 million, led by banks (LKR 74.9 million). Lanka Realty Investments received LKR 1.05 billion from Lee Hedges for the final balance on its 51% stake sale, and Asia Asset Finance announced a LKR 0.70 fixed non‑cumulative preference dividend per share.