News & market updates

Three correspondent banks in the US, UAE and Vietnam rejected a fraudulent $1.3m government debt payment before scammers' revised instructions enabled part of a $2.5m Treasury phishing fraud to succeed, MPs heard. The Central Bank said it alerted the Treasury each time but had no statutory duty to file suspicious-transaction reports; the committee is probing payment governance and the PDMO handover.

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.

The National System Operator has launched an international tender for a 250 MW/1000 MWh standalone BESS, to be delivered as 25 x 10 MW/40 MWh blocks under 15-year BOO contracts; proposals are due 14 August 2026. The tender aims to improve renewable integration and support the government's 70% renewable-by-2030 and net-zero-by-2050 targets.

Government set a 2027 primary expenditure ceiling of Rs.5.064 trillion (12.9% of GDP) and projects the budget deficit will narrow to 4.5% of GDP in 2027, targeting a primary surplus of 2.6% of GDP from 2027 onwards.

Commercial Bank will open subscriptions on 16 July for up to Rs.20bn of Basel III-compliant subordinated debentures and Sampath Bank will open on 17 July for up to Rs.10bn of Basel III-compliant Tier-2 green bonds. Commercial Bank offers 5/7/10-year series at 13.00–13.25%; Sampath offers 5- and 7-year series at 13% and 13.25%.

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.

C.W. Mackie PLC appointed Asoka Piyadigama as an Executive Director effective 1 August 2026. He currently serves as an Independent Non-Executive Director of York Arcade Holdings and Acme Printing and Packaging and sits on committees within the CFLB Group.

The Cabinet approved a five-year National Policy (2026–2030) to prevent money laundering, counter terrorist financing and combat financing of WMD proliferation. The policy follows the Central Bank FIU's 2024–25 national risk assessment aligned with FATF standards and aims to strengthen coordination and preventive measures.

Serendib Hotels PLC appointed banking veteran Janakan Selvaratnam as an Independent Director. He has 25 years at Citibank Sri Lanka, consults to Sampath Bank's Board Credit Committee, and serves on the boards of Eden Hotel Lanka and Palm Garden Hotels.

BPPL Holdings (via subsidiary Beira Brush) will acquire Ravi Industries' customer base, 'Ravi' trademark and related IP under a business transfer agreement with minimum consideration of Rs.300 million payable over five years linked to revenue. The company says the deal will create synergies and position Beira Brush among the largest industrial brushware manufacturers in Asia.

Cabinet approved a €924,063 German grant to fund a program promoting energy-efficient, climate-resilient buildings in Sri Lanka, to be implemented by GIZ with the Energy Ministry and the Sustainable Energy Authority.

Government banned imports of goods produced using forced labour effective 10 July, requiring importers to certify goods are free of forced labour to strengthen compliance and reduce the risk of higher U.S. tariffs (USTR had proposed an additional 12.5% on Sri Lankan exports). The move targets protection of apparel exports to the US, Sri Lanka's largest market (~$3bn annually).

Logical, a Sri Lankan-founded AI startup, was accepted into Y Combinator and raised over Rs. 150 million in initial funding. The company is building a proactive desktop AI copilot that transfers context across apps to help knowledge workers take action with fewer prompts.

Cabinet approved loan and grant agreements securing a $35m ADB loan plus grants of over €15.4m and $5.5m to fund a grid-based rooftop solar and virtual net metering project. The project aims to improve integration of rooftop solar into the national grid and boost small- and medium-scale renewables.

Colombo market fell to a three-month low as the ASPI slipped 0.50% (107.39 pts) to 21,424.99 and the S&P SL20 dropped 0.37% (22.04 pts) to 6,000.15. Foreign investors were net sellers of Rs.126.9m; main negative contributors included Carson, Melstacorp, Vallibel One and John Keells, while Lanka IOC, Ceylon Cold Stores and Dipped Products led turnover.

SLIIT Business School published an international study introducing a new digitalisation index covering 71 countries (2010–2022) that classifies nations as Digital Pioneers, Adapters, or Followers. The research finds digital competitiveness depends on innovation, human capital, cybersecurity, R&D and institutional readiness, not just technology adoption.

A three-night luxury destination wedding for 600 guests at Cinnamon Bentota Beach showcased Sri Lanka's capacity to host international high-end weddings. The event highlighted economic opportunities for hospitality, event production, catering, transport and other local service providers.

FitsAir renewed its partnership with the Lanka Premier League as the Official Airline Partner for the 2026 season. The tie-up is intended to support tourism by attracting international players, travelling fans and global broadcast audiences.

NÜWA at City of Dreams Sri Lanka celebrates its first anniversary and has been awarded a Five-Star Classification by the Sri Lanka Tourism Development Authority, marking the 113-room hotel as a flagship luxury property in Colombo.

LOLC Holdings PLC held a strategic engagement with the National Bank of Rwanda to support financial inclusion and expand LOLC Unguka Finance's growth in Rwanda, including cooperation on MSME development and green finance initiatives.

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.

Ceylon Chamber of Commerce will host a BCCS 2026 seminar on July 30 at 2pm at the Ceylon Chamber Auditorium to guide businesses on the updated ESG reporting framework and submission requirements. The session will cover stakeholder engagement, materiality, ESG strategy, targets and performance tracking.

DIMO, with the Tata Group and ChildFund, launched the 'Hope in a Backpack' programme supplying educational kits to disaster-affected schoolchildren in Sri Lanka, reaching a 27,000-student milestone across Kandy, Nuwara Eliya, Badulla and Kegalle.

Ceylinco Life hosted over 1,000 policyholders and family members at Pearl Bay under its 'Family Savari' loyalty promotion, providing complimentary entry, meals and transport (including accommodation for long-distance attendees).

Haycarb PLC will invest USD 18 million in a BOI-approved expansion to scale production of high-performance activated carbon for energy-storage applications (HCE 400). HCE 400, which won the Presidential Export Award, is being validated by international customers for silicon–carbon anodes and supercapacitors.

Emirates has completed retrofits on 100 aircraft (47 A380s, 53 Boeing 777s) since November 2022 as part of the largest-known airline retrofit programme. The US$5 billion initiative — now past the halfway point toward 219 aircraft — has added 3,800+ Premium Economy seats and will roll out 4K seatback screens and new Safran Z400 seats from Oct 2026.

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).

Colombo Stock Exchange rose as the ASPI gained 0.39% (83.87 pts) to 21,508.86, with banks leading turnover at Rs 41.8 million. Dilmah Ceylon Tea Company proposed a first and final dividend of Rs 25 per share for the year ended March 31.

SheTrades Sri Lanka Hub (EDB with ITC and the British High Commission) launched two Sinhala and Tamil export handbooks for textiles/apparel and processed agrifood/spices to boost women entrepreneurs and SMEs' UK export readiness, noting the UK's DCTS offers duty-free access on about 92% of product lines. The handbooks are available on the EDB SheTrades portal.