News & market updates

Export Development Board will fast-track a government-backed priority program to ensure over 4,500 exporters (apparel, tea, spices and others) receive fuel stocks without delay amid escalating fuel shortages. The Ministry of Industry and Entrepreneurship is collecting exporter data and urged firms to submit information immediately.

The APSEZ–John Keells–Sri Lanka Ports Authority Colombo West International Terminal (CWIT) handled one million TEUs in its first year after opening in April 2025. CWIT is a fully automated deep-water terminal with about 3.2m TEU annual capacity and a 1,400m quay.

EDB Chairman Mangala Wijesinghe announced a government-backed fast-track programme to prioritise fuel supply for exporters, aiming to protect operations of over 4,500 exporters (apparel, tea, spices) amid fuel shortages. The Ministry is collecting exporters' data and urging immediate submissions.

Nations Trust Bank (NTB) has partnered with the National Chamber of Exporters to support Sri Lankan exporters through networking, knowledge-sharing, recognition and business enablement programmes. NTB will combine its financial and digital banking solutions to help exporters access finance, markets and advisory support.

President Dissanayake said about 30 private firms have been given temporary licences to import fuel in US dollars to directly supply exporters and the tourism sector; he added LP gas, fertiliser and grain stocks are sufficient and delayed crude shipments (two of 90,000t) are expected soon, averting a crisis.

The Cabinet approved plans to secure $620 million from the ADB across five sub-programs to support trade, MSME finance, water and sanitation, resilience and agricultural value-chain financing. The package is policy-based lending aligned with Sri Lanka’s IMF EFF reforms and includes a $220m MSME finance component.

The Central Bank of Sri Lanka urged the Government to continue fiscal consolidation and strengthen external buffers, warning rising global risks — geopolitical tensions, commodity price volatility and adverse weather — could threaten macro-financial stability. The warning was issued with the release of the Financial Sector Performance 2025 report.

Andre Fernando, Group Managing Director of MAC Group, assumed duties as Chairman of the Sri Lanka Logistics and Freight Forwarders Association (SLFFA) effective March 6, 2026. He cited the impact of the Middle East conflict on trade and urged industry modernization and adoption of digital logistics technologies.

JAAF chairman Felix Fernando says Sri Lanka's apparel exports were just over US$5.0bn in 2025 and urges a deliberate strategy to reach US$8bn through geographic diversification, higher-value positioning, trade facilitation, digital integration and a stronger investment climate.

SLAMERP marked its 40th anniversary as Sri Lanka's rubber products sector reached USD 1 billion in export revenue and remains the country's third-largest export contributor. The association said it will focus on innovation, sustainability and export market expansion in collaboration with the EDB and government.

ICCSL has partnered with BIMT Campus to launch the Japan Executive Immersion (JEI) Programme in May 2026, an eight-day executive learning trip offering guided visits to firms including Subaru and Yamato Haneda Chronogate to teach Kaizen and Lean practices to Sri Lankan executives.

Colombo West International Terminal (CWIT) handled one million TEUs in its first year, the fastest any Port of Colombo terminal has reached that mark. CWIT — a roughly $800m joint project involving Adani Ports, John Keells Holdings and the Sri Lanka Ports Authority — is a fully automated deep‑water terminal with about 3.2m TEU annual capacity.

The Export Development Board (EDB), in partnership with Verité Research, held a trade-data training for women-led exporters in Kandy under its Women Entrepreneurship Development Program. The session taught participants to use trade-data platforms and analytical tools to identify markets and export opportunities.

Sri Lanka will allow private firms to import and sell fuel in US dollars for the export and tourism sectors to ease shortages; about 30 businesses have registered and can begin supplying fuel from tomorrow.

Central Bank said Sri Lanka must sustain fiscal consolidation and bolster external buffers to safeguard macrofinancial stability, noting private‑sector credit rose and public‑sector exposure fell in 2025. It warned the widened credit‑to‑GDP gap and external shocks (Middle East conflict, commodity volatility, Cyclone Ditwah) could weaken credit quality.

India is negotiating six FTAs with Australia, Sri Lanka, Peru, Chile, the Eurasian Economic Union and Israel to expand market access, with talks at various stages and multiple negotiation rounds held since 2015–2026.

Hayleys Fibre PLC appointed Ruwan Rajapakse as Managing Director effective 1 April 2026, succeeding Rajeeve Goonetilleke who retires on 31 March 2026. Rajapakse has over 30 years' experience, most recently as Global Chief Production Officer at the Jiffy Group and previously held senior roles within the Hayleys Group.

The Ceylon Chamber urged the government to temporarily limit non-essential foreign currency outflows and allow licensed bunkering firms to procure fuel independently, potentially in foreign currency, to protect exports and tourism amid the Middle East crisis. It also recommended prioritising IMF tranche continuity, dynamic fuel pricing, faster fuel and fertiliser procurement, and measures to support tourism and trade efficiency.

Sri Lanka's manufacturing PMI rose to 56.8 in February from 56.1 in January, signalling continued expansion. CBSL said firms pre-emptively stocked amid concerns over supply pressures from unrest in the Middle East and suppliers' delivery times lengthened.

Sri Lanka's Manufacturing PMI was 56.8 in February 2026, indicating continued expansion, while the Services PMI was 54.4, also signaling expansion compared with the previous month.

SLAMERP celebrated its 40th anniversary as Sri Lanka's rubber products sector reached $1 billion in export revenue and remains the country's third-largest export contributor.

The EDB and Verité Research ran a training programme, “Leveraging Trade Data for Export Success,” for women‑led exporters in Kandy on 20 Feb 2026 as part of the EDB’s Women Entrepreneurship Development Programme. Sessions taught use of trade‑data platforms, market analysis, product‑market matching and export strategy.

Ceylon Chamber urged the Government to adopt measures to safeguard economic stability, prioritising continuation of the IMF programme and timely tranches. It recommended fuel measures (dynamic pricing, QR system, faster procurement), securing fertilizer and aviation fuel, prioritising FX for critical imports, and bolstering tourism, exporters and port clearance.

Arutha Research warns the Middle East war risks Sri Lanka’s energy, food, exports and remittances — the UAE supplies about 38% of petroleum imports and CPC says fuel stocks cover roughly one month. Middle Eastern markets buy $852m (≈7%) of exports and Gulf countries provide about 38% of remittance inflows.

MAS will relocate manufacturing operations from its Thurulie facility after severe damage from Cyclone Ditwah, shifting orders to nearby MAS plants. Over 500 employees have taken temporary placements and management is working with the remaining 1,600 staff, offering a three-month relocation salary incentive and compensation where transfers are not possible.

CA Sri Lanka held a forum warning that prolonged Middle East instability could spike oil prices and disrupt remittances, tourism and tea exports, raising inflation, exchange-rate volatility and risks to the banking/financial sector.

LOLC Securities' Investor Forum said a sovereign credit rating upgrade could attract foreign inflows as CSE market capitalisation rose to about Rs.7.6 trillion (from Rs.2.9 trillion in 2022). The forum highlighted stabilised macro fundamentals, recovering exports and tourism, and sectoral opportunities in finance, construction and export-oriented industries.

Oil prices have surged (Brent and WTI up more than 40% this month) as U.S.-Israeli strikes on Iran and threats to Kharg Island have put Gulf export facilities at risk and closed the Strait of Hormuz. The IEA says global supply could fall ~8m bpd in March and agreed a 400m-barrel release.

President Anura Kumara Dissanayake convened the Committee on Economic Surveillance to review the economic fallout from the Middle East conflict and warned Sri Lanka can guarantee uninterrupted fuel supplies for only about two months under current conditions. The committee examined rising oil prices, maritime supply-chain disruptions and trade risks and discussed urgent measures to stabilise domestic markets.

India's cabinet loosened FDI rules to allow investments from land-bordering countries in selected manufacturing sectors, permitting up to 10% stakes without prior approval and expedited reviews within 60 days. The changes target electronic components, capital goods and solar/renewable components while keeping Indian ownership control.