News & market updates

Cyclone Ditwah has inflicted widespread damage in Sri Lanka, with reconstruction costs estimated up to US$7 billion and GDP growth seen slowing to about 3% in 2026. Business confidence fell (BCI down from 189 to 164) and the government has sought US$200m in IMF emergency aid.

Colombo Coffee Company was fully acquired by Akbar Brothers after a year in which it won multiple management and ESG awards, launched the RUSH RTD range and claimed a 95% HORECA market share. The company also expanded export presence at international trade fairs and partnered with local institutions to promote Sri Lankan coffee.

George Steuart & Company joined a CWEIC delegation to Nigeria and Kenya to explore trade and expansion opportunities across tea, pharmaceuticals, FMCG, digital trade and other sectors. The visit included the Manufacturing Africa CEO Forum, KIAC meeting, an Equity Group roadshow and meetings with Lagos officials and industry partners.

EDB’s National Packaging Centre hosted an EU food labelling legislation workshop for over 110 exporters, providing guidance on EU market requirements and mandatory labelling components. The workshop covered allergen and nutrition labelling, ingredient and quantity marking, energy/%RI calculations and implementation of compliant labels.

Velona marks its 85th anniversary and is launching Venus by Velona, a super‑premium sanitary napkin range. The company is also running flood‑relief CSR distributions and preparing a digital education series on learning and behavioural differences for parents.

Colombo Stock Exchange opened mixed: ASPI rose 0.29% to 22,132.33 while the S&P SL20 slipped 0.06% to 6,037.79 on turnover of about Rs. 3.7bn and net foreign outflows of Rs. 200.5m. Colombo Dockyard, DFCC and Richard Pieris led gains while John Keells and Commercial Bank fell.

Colombo Dockyard and banking shares lifted the CSE All Share Price Index 0.29%, with the ASPI closing at 22,132.33 and Colombo Dockyard the top gainer at 171.75 rupees. Market turnover fell to 3.7 billion rupees and the exchange recorded a net foreign outflow of 200.46 million rupees led by John Keells.

S&P Global says global credit conditions should remain resilient into 2026, supported by steady growth, easing interest rates and investor demand, but warns of uneven sector outlooks and risks from potential overinvestment in AI-driven data centres. It forecasts 3.2% global growth and a US speculative-grade default rate easing to 4% by Sept 2026.

Ceylon Cold Stores PLC (CCS) won the Winner Award at the Sri Lanka National Quality Awards 2023 in the Large Manufacturing category, presented by SLSI on 11 November 2025.

EDB's National Packaging Centre held an EU food labelling legislation workshop for over 110 exporters, providing guidance on mandatory labelling (product descriptions, ingredients, allergens, nutrition, quantity marking) and practical energy/%RI calculations to help exporters produce compliant labels.

Round Table Sri Lanka mounted rapid relief after Cyclone Ditwah, distributing 10,000+ food parcels, 1,000+ ration packs, coordinating 100 rescues and airlifting dry rations to inaccessible areas with partner support.

Gree Airtech Pvt Ltd opened a GREE flagship store at No. 378, Araliya Gardens, Nawala on 22 December 2025. The agent also launched two new AC models — the Joywind floor-standing inverter for large spaces and the Clivia with AI-driven climate optimisation, UV sterilisation and multiple smart controls.

Sri Lanka Christmas cake inflation rose 4.4% in 2025 amid rupee depreciation, with the cost of 11 key ingredients up to 15,180 rupees from 14,744 in 2024. The rupee fell to 306.30/USD over 12 months and Colombo CPI rose 2.1% to November 2025 amid central bank exchange-rate interventions.

The Cabinet approved seven new Industry Consultancy Committees covering indigenous medicine, confectionery, traditional handicrafts, chicken-related industries, ornamental fish and seaweed, creative crafts and event management to strengthen policy coordination and industry participation. Each committee will have up to 25 members from state bodies, industry and academia.

Lion Brewery (Ceylon) PLC led flood-response efforts in Biyagama—supporting evacuations, delivering food, clean water and supplies, and clearing debris after water levels rose to nearly 10 feet (~3 m). The company is pursuing a permanent community stronghold on higher ground to boost future flood resilience.

The Jaffna International Trade Fair will return 23–25 January 2026 at Muttraweli Ground, featuring 400+ stalls; last year the event attracted 78,452 visitors and 5,000 invited business delegates.

FAO reports Cyclone Ditwah damaged about 106,000 hectares of paddy—roughly 20% of 2026 Maha sowings—and affected over 2.2 million people. The cyclone also caused fisheries losses estimated at LKR 20.5–21.5 billion and heavy livestock and vegetable crop damage across multiple districts.

Chinese Dragon Café opened its 10th outlet in Galle at 45, Colombo Rd, Kaluwella, about 300m from the railway station. The long-established brand (since 1942) has outlets across key urban areas and also sells bottled chilli paste in supermarkets.

IMF warns Cyclone Ditwah could destroy 2.5–5% of GDP, widen the balance-of-payments gap by about $700m and push average inflation to 5.4% in 2026, above the CBSL 5% limit. Agriculture and tourism are hardest hit while reconstruction may support construction but raises external and debt risks.

EDB Chairman says Sri Lanka is on track to surpass $17.0bn in export revenue in 2025 after goods and services earned $15.77bn in Jan–Nov, up 5.8% YoY. Apparel reached $4.82bn (4.9% YoY), tea exceeded $1.4bn (7.4% YoY) and services were $3.35bn (3.6% YoY).

Commercial Bank of Ceylon committed over Rs.125 million to Cyclone Ditwah recovery, including a Rs.110 million donation to the Rebuild Sri Lanka Fund. The bank also donated dry rations to 5,000+ families, provided business recovery assistance, sponsored a disaster-risk data portal revamp and supported school clean-ups and supplies.

George Steuart & Company joined a CWEIC delegation to Nigeria and Kenya in late 2025 to explore trade and expansion opportunities across tea, pharmaceuticals, FMCG, travel and digital trade, with Kenya highlighted as a gateway to over 500 million consumers. Meetings included Manufacturing Africa CEO Forum, KIAC, an Equity Group roadshow and discussions with Lagos officials and industry groups.

Hatton National Bank acted as the official banking partner for the 11th Siddhalepa Kekulu Punchi Siththaru art competition, with top 100 winners each receiving an HNB passbook with an initial deposit alongside cash prizes and gift packages.

Ceylon Cold Stores PLC (CCS) launched Elephant House Ice Cream in Australia on 4 December 2025 and began local manufacture in Melbourne to support wider availability. This is the first time CCS has produced the product outside Sri Lanka, in partnership with Millennium Imports, with plans to expand distribution and flavours.

The National Initiative for the Commercialisation of Research and Development (NIRDC) awarded over LKR 227 million to nine projects selected in Q1, with Bank of Ceylon providing funds under MoUs and disbursements tied to project KPIs. Projects span AI, energy supercapacitors, tea and cinnamon processing, coconut oil testing, kitul beverages, export knitting and soil microbial inputs.

LOLC Holdings launched the 'Obai Mamai Ape Ratai' initiative, committing over Rs. 400 million to a three-phase Cyclone Ditwah relief programme to distribute family super packs, renovate 200 schools and rebuild destroyed schools.

Cargills Group donated Rs. 100 million to the Rebuilding Sri Lanka National Fund. It also provided essential food supplies and dry rations worth over Rs. 45 million to more than 20,000 families and is supporting farmers, distributors and small local businesses in recovery.

Pyramid Wilmar donated Rs. 50 million to the Presidential Secretariat to support flood and landslide relief and humanitarian efforts following Cyclone Ditwah.

Sri Lanka's NCPI inflation fell to 2.4% in November 2025 from 2.7% in October 2025. Food inflation eased to 3.6% (from 4.1%), non-food inflation remained at 1.5%, and the NCPI index was 207.2, down 0.3 points month-on-month.

Sri Lanka's exports for Jan–Nov 2025 reached US$15,776.36 Mn, up 5.8% y/y, with November 2025 exports at US$1,364.52 Mn (+5.56% y/y). Merchandise exports rose 6.41% to US$12,417.98 Mn and services 3.62% to US$3,358.35 Mn; coconut products, processed foods and selected electronics showed strong gains while apparel and tea recorded modest increases.