News & market updates

Sri Lankan exporters are being urged to prepare for new EU sustainability rules — EmpCo, PPWR and EUDR — with compliance timelines from Aug–Dec 2026 and penalties up to €2m or 4% of turnover. The measures target sectors including tea, food/agriculture, apparel, rubber, plastics, fisheries and tourism; Peterson Solutions is offering guidance and a free ESG webinar on 29 July 2026.

Ambeon Capital PLC will raise up to Rs.4.0 billion via a Rights Issue of up to 100 million shares at Rs.32 (up to Rs.3.2bn) and a contingent private placement of up to 25 million shares at Rs.32 (up to Rs.800m). Proceeds are intended to reduce gearing and fund new equity investments; both offers require CSE and shareholder approvals.

The Consumer Affairs Authority has made SLSI certification mandatory for all single-use sanitary towels (SLS 1732 and SLS 1748) sold in Sri Lanka, effective 8 October 2026; imports must also pass SLSI import inspection and approval.

Egg prices rise from today to Rs.41 (white) and Rs.42 (red) after the All Ceylon Egg Producers Association said maize import suspensions and feed shortages — and use of poor alternative ingredients — have cut egg production by 20–30% and led to poultry deaths.

CSE indices fell sharply — ASPI down 197.31 points to 21,208.10 and S&P SL20 down 56.46 to 5,943.22 — despite turnover rising to Rs.2.63bn. Turnover was driven by crossings in CT Holdings (Rs.561m), Cargills (Rs.544.95m) and Lanka Milk Foods (Rs.232m), while price losses in Dialog, Commercial Bank, John Keells and Carson Cumberbatch led the ASPI decline.

The Body Shop Sri Lanka launched a Mid-Season Sale offering up to 50% off select skincare, bodycare, haircare, makeup and fragrance items until 31 July 2026. The promotion runs across all outlets including the brand’s shop at Odel Alexandra Place and online.

Sweden's ambassador reaffirmed plans to bring a Swedish trade delegation to Sri Lanka Expo 2027 (14–17 Jan 2027) to connect Swedish buyers with Sri Lankan exporters, highlighting opportunities in cinnamon, coconut products, gems & jewellery, apparel and ICT.

The Lanka India Business Association will host the 'India Calling' forum on Aug 6 at the Taj Samudra, Colombo to bridge commercial gaps and unlock bilateral trade and investment corridors with India. Speakers including Montek Singh Ahluwalia and C. Raja Mohan will address regulatory friction, consumer behaviour and practical ways to reduce trade barriers.

The Sri Lanka Institute of Directors will host the Sri Lanka Corporate Director Summit 2026 on 22 July at Cinnamon Grand Colombo focused on governance, reputation and sustainable leadership. Keynote speaker Vivek Sharma will discuss reputation risk and panels include Nestlé Lanka's MD and Commercial Bank of Ceylon Chairman Sharhan Muhseen.

Odel founder Otara Gunewardene will be a keynote speaker at the BNI Sri Lanka National Conference on 24 July at Cinnamon Lakeside Colombo. The event will also feature Zoho director Rajendran Dandapani and aims to connect SMEs through networking and leadership sessions.

Colombo's ASPI fell 1.7% this week while turnover hit a 65-week low of about Rs. 722.64 million; top drags on the index included John Keells (JKH), PKME and NDB. Banking led turnover (notably Sampath Bank) and activity was concentrated in capital goods, food & beverage and energy names.

The Cauldron marks its ninth anniversary and will scale beyond its cafés by expanding Ground Theory Coffee Roasters and developing an artisan baking division for retail and wholesale customers.

The EDB launched two sector-specific export handbooks in Sinhala and Tamil to help women-led SMEs in textiles, apparel, accessories, footwear, handicrafts and processed agrifood/spices access the UK market under the Developing Countries Trading Scheme (DCTS), which offers duty-free access on ~92% of product lines. Developed with the ITC and the British High Commission, the guides aim to improve export readiness and inclusion ahead of the National Export Development Plan 2026–2029.

Sri Lanka's manufacturing PMI fell to 53.0 in June from 56.6 in May, indicating continued but slower expansion. New Orders were at the neutral 50.0, production was driven by food & beverages, employment remained near neutral, inventories rose and suppliers' delivery times lengthened amid global uncertainties and labour shortages.

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 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.

Sri Lanka's cabinet approved a new national livestock policy to replace the two-decade-old framework, prioritising private sector-led, market-oriented competitive production. The policy also emphasises sustainable, environmentally friendly development and targeted support for small-scale farmers.

Outgoing Swedish Ambassador Jan Thesleff said Sri Lanka's improving policy stability is restoring international investor confidence and named renewable energy, ICT, apparel, healthcare and food processing as key growth sectors; a Swedish business delegation will visit in January 2027.

Government lost over Rs.25 billion in potential cigarette tax revenue since 2025 after the tax share fell to 67% (below the WHO's 75% benchmark), with over Rs.8 billion lost in the first six months of 2026, Verité Research said; Verité launched a Cigarette Tax Leakage Tracker on PublicFinance.LK.

Sri Lanka stocks closed flat as the ASPI rose 0.01% to 21,426.43, with banks leading turnover at 327.4 million rupees. Haycarb, John Keells and Ceylon Cold Stores were top gainers while HNB, Central Finance and Commercial Bank were top decliners; Digital Mobility Solutions disclosed ESOP allotments and its shares closed down 0.30%.

Samaposha (CBL) will be the title sponsor of the Provincial School Games for a 10th consecutive year; the 2026 Games begin 21 July across seven provinces with over 35,000 athletes from 3,500 schools competing in 70 events. The sponsorship is part of its 'Dinana Daruwo' child development and Govi Paula local sourcing initiatives.

Ritzbury Roccoa (CBL Foods International) is running a promotion until 20 Aug 2026 offering a Lionel Messi-signed 2026 Argentina jersey and a Cristiano Ronaldo-signed Portugal jersey as top prizes; entry requires purchasing a Ritzbury Roccoa chocolate and scanning the QR code. The campaign also includes 300 giveaway prizes (10 winners daily for 30 days).

The ASPI fell 1.07% (233.18 points) to 21,532.38 as investors sold amid renewed Middle East conflict concerns. Market turnover was over Rs 1bn, foreign investors were net sellers of about Rs 56mn, with banks and food & beverage sectors leading activity.

Emirates is offering a seasonal strawberry menu on Dubai–UK flights from 13–31 July with strawberry desserts across all cabin classes. Emirates SkyCargo has transported more than 230 tonnes of British strawberries to the UAE since March 2026, partly sourced from Bustanica vertical farm.

A 31-member Indian SME delegation from the Federation of Indian Export Organisations held B2B networking sessions with Sri Lankan businesses at the Ceylon Chamber (8–10 July 2026) to explore trade, sourcing and partnership opportunities across pharmaceuticals, engineering, apparel, food/agriculture and infrastructure.

Signature opened its 11th showroom in Gampaha at 128/1 Colombo Road, expanding its retail footprint in Sri Lanka. The store offers menswear, womenswear, kidswear, accessories and leather goods, and Signature supports wholesale through 300+ dealers and a mobile ordering app.

Hemas Holdings' consumer brands Baby Cheramy and Clogard were named among Sri Lanka's Favourite Product Brands in the PepperCube T25 survey (based on 12,000 annual unprompted responses for May 2025–Apr 2026).

Colombo Stock Exchange ASPI fell 0.27% to 21,473.27 at midday, while the S&P SL20 was down 0.04% to 6,019.55. BPPL Holdings said subsidiary Beira Brush will acquire Ravi Industries' customer base and the "Ravi" trademark for a minimum 300 million rupees payable over five years tied to revenue.

Keells supermarkets (John Keells Group) will accept Dialog Pay at its 150 stores nationwide, enabling scan-and-pay transactions and offering complimentary Dialog data rewards on eligible payments.