News & market updates

Uga has opened its sixth property, Uga Halloowella, a six-suite heritage boutique hotel on a 252-acre tea estate in Hatton offering dining, activities and access to central tea-country attractions.

Sri Lanka's tea production rose 2.4% YoY to 262.15 million kilos in 2024. Medium-grown tea led gains (+12.5%), high-grown fell 5%, and Asia Siyaka forecasts production could exceed 275 million kilos in 2025 if conditions remain stable.

Sri Lanka's weekly coconut auction was postponed this week due to a shortage of coconuts. Coconuts are retailing at 185–190 rupees each, and the first auction of the year saw prices rise 18.3% to 129,699 rupees per 1,000 nuts.

Planters’ Association welcomed the postponement of SVAT abolition to 1 April 2025 and urged retention until a proper replacement is agreed. It warned removal could cost smallholders about Rs.24 billion annually, worsen cash-flow due to upfront 18% export VAT and delayed refunds, and further depress tea production.

ASPI closed up 0.26% at 16,257.31 as the Colombo bourse ended higher despite a net foreign outflow of 221 million rupees. Banks and consumer names drew interest; top foreign selling hit John Keells while DFCC, Dipped Products, Hemas and Commercial Bank were among top contributors.

The Government has postponed abolition of the SVAT system to April 1, 2025; the Planters’ Association welcomed the delay and urged SVAT be retained until a robust alternative is agreed. The PA warned removal could cost smallholders about Rs.24 billion annually and highlighted cash-flow strains from delayed VAT refunds.

Sri Lanka and China agreed to fast-track a comprehensive free trade agreement aiming for an early conclusion after a six-year pause over three disputed clauses. China committed to support Sri Lankan exporters, including tea and gems, and expand cooperation in logistics, green development and the digital economy.

CBSL reported domestic sugar production rose 109.8% y/y and rubber rose 38.0% in October, while fish fell 13.0%, tea 7.5% and coconut 24.0%. Spice export earnings increased and the paddy Yala production forecast is up 11.4% year-on-year.

China and Sri Lanka signed 15 cooperation documents to boost investment and economic cooperation, including aligning Belt and Road projects with Sri Lanka's 2030 digital economy blueprint; specifics were not disclosed. Colombo still needs direct agreements with China EXIM Bank and CDB to finalise debt rework for the IMF.

Sri Lanka's Export Development Board met Malta's High Commissioner to discuss strengthening bilateral trade, with Malta expressing interest in sourcing Sri Lankan rubber and other high-quality exports and exploring collaboration in hospitality, IT, boat building and manufacturing.

Vietnam’s Ambassador met Hayleys PLC to discuss expanding economic cooperation and potential joint ventures in agriculture, plantations, transport, logistics and power; annual bilateral trade is around US$300m.

Bogawantalawa Tea Estates PLC (BOPL.N0000) won the North American Sustainability Tea Award (NASTA) for its 'Climate Positive journey' at the 2024 North American Tea Conference. The company highlighted its Climate Positive certification and offering of Uncompensated Climate Positive Teas certified for 100% renewable energy.

Asoka Hettigoda was re-elected President of the Sri Lanka Germany Business Council for 2024–25. The AGM highlighted Germany’s support for Sri Lanka’s economic recovery, noting $888m of Sri Lankan exports to Germany in 2022 and 121,000 German visitors by November 2024.

The Appropriation Bill for 2025 sets total government expenditure at Rs. 4,616 billion for Jan 1–Dec 31, 2025. Major allocations include Finance recurring Rs.484b/capital Rs.229b, Health recurring Rs.412b/capital Rs.95b, and Transport capital Rs.421b.

The Sri Lanka Economic Summit session 'Transforming Productivity in Agriculture' will explore strategies to boost agricultural productivity and aims to raise agri-based exports from 20% to 30% by 2030. Panelists include representatives from CIC Holdings and LOLC, with a moderator from Diesel & Motor Engineering.

The Sri Lanka–Germany Business Council held its 25th AGM and re‑elected Asoka Hettigoda as President. The German ambassador reaffirmed Germany’s support for Sri Lanka’s economic recovery and skills migration, noting $888m of Sri Lankan exports to Germany in 2022 and 121,000 German visitors by Nov 2024.

Swisstek (Ceylon) PLC appointed Mohan Ratnayake and Dinesh Mendis as Independent Non-Executive Directors. Ratnayake is a CIMA fellow with experience in tea exports, telecom and motor industries and holds directorships including ACL Plastics; Mendis has 30+ years' experience including a long tenure at Aitken Spence and roles in fintech and logistics.

The 3rd South Asia Agri Forum will take place 15-16 Jan 2025 in Colombo, bringing over 100 leaders and experts to discuss strengthening regional cooperation, food security and boosting agri-trade across grains, rice, sugar, pulses, spices, horticulture, fisheries and plantations.

National Tea Sales Average (NSA) for 2024 closed at Rs. 1,225.17 (US$4.08), up YoY by Rs. 53.88 and $0.49, with High, Medium and Low Grown teas all recording YoY gains and Low Grown contributing the highest average at $4.34.

Colombo Stock Exchange fell with the ASPI down 1.06% (170.82 pts) to 15,878.60 and the S&P SL20 down 1.10% to 4,806.63 on turnover of 8.5 billion rupees. There was a net foreign inflow of 188 million rupees; top positive contributors included Browns Investments, Watawala Plantations, Lion Brewery, Hayleys and Hemas.

Lakbima Plantation Pvt. Ltd. was honoured in the Plantation category at the Swarnasinghe National Awards for exceptional performance and entrepreneurship. The company cultivates agarwood, cinnamon, chili and ginger using sustainable practices, exports these products and offers cultivation-on-customer-land investment options.

Sri Lanka coconut prices rose 18.32% to an average of 129,699 rupees per 1,000 nuts at the Jan 2 weekly auction, a record high. The auction had been skipped for a month due to lack of nuts; highest price 130,000 and retail prices 174–190 rupees per nut.

Aitken Spence PLC appointed Dr. Ravi Fernando, Peter Englisch and Christian J. Sevilla as Independent Non-Executive Directors. Dr Ravi Fernando currently sits on the boards of several Sri Lankan listed firms, including Dilmah Ceylon Tea, Melstacorp, Distilleries, Madulsima, Balangoda and Elpitiya.

Colombo Stock Market opened 2025 strongly as the ASPI rose 2.5% (404 pts) to top 16,000 on Rs.12.8bn turnover and net foreign inflow of Rs.88.6m, led by blue-chips and banking names such as JKH, Browns Investments, Aitken Spence, Sampath Bank and Hemas.

Hunas Holdings (HUNA.N0000) has sold its 90% stake in Rainforest Tea Factory Ltd for Rs.1.215 billion (Rs.256m cash plus ~Rs.960m in debt transferred), with completion expected by 31 January. The company says the divestment will strengthen its balance sheet and sharpen focus on the leisure sector.