News & market updates

Mahindra India donated Rs. 100 million to the 'Rebuilding Sri Lanka' Fund to support recovery and reconstruction after recent natural disasters; the contribution was handed over at the Labour Ministry.

Asriel Marketing Ltd donated Rs. 5 million to the Government’s ‘Rebuilding Sri Lanka’ Fund to assist communities affected by the Ditwah cyclone; the contribution was handed at the Presidential Secretariat by chairman Shiran Peiris and company executives.

World Bank estimates Cyclone Ditwah caused US$4.1 billion in direct physical damage in Sri Lanka, about 4% of GDP. Infrastructure losses were US$1.735bn (42% of damages), residential US$985m, and agriculture US$814m, with Kandy hardest hit (US$689m).

World Bank's GRADE estimates Cyclone Ditwah caused US$4.1 billion in direct physical damage in Sri Lanka (about 4% of GDP). Infrastructure accounted for US$1.735bn, agriculture US$814m and residential US$985m; the World Bank has mobilized up to US$120m for recovery.

Vidullanka PLC (VLL.N0000) was named the lowest-cost bidder on Dec 19, 2025 for the EPC contract to expand and upgrade a 100 kW mini hydropower facility at Buca Village, Fiji; the formal contract award is pending and the company disclosed this to the Colombo Stock Exchange.

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.

ADB approved a $3 million grant to pilot four modern pipe distribution network (PDN) systems to irrigate 877 hectares and support 943 farming households in Sri Lanka’s Northwestern and Uva provinces.

New owners have committed over Rs. 600 million for safety, operational and aesthetic upgrades at the Altair Colombo apartment and retail complex after Blackstone India's acquisition of its parent, with TWC providing strategic oversight. Blue-chip firms including John Keells and Hayleys are using Altair to showcase products.

Donor agencies have committed $350 million to Sri Lanka for cyclone recovery. The IMF approved $206 million via its Rapid Financing Instrument and the World Bank activated $120 million, and officials say about $500 million more is expected for 2026.

A group of 120 economists, including Joseph Stiglitz, urged suspension of Sri Lanka's external sovereign debt payments and a new restructuring after Cyclone Ditwah, saying last year's $9bn debt deal and limited fiscal space are overwhelmed by reconstruction needs. Sri Lanka has requested a $200m IMF emergency loan.

Leading academics, including Joseph Stiglitz, called for Sri Lanka to suspend external sovereign debt payments and seek a new, deeper restructuring after Cyclone Ditwah, arguing the IMF's 17% NPV relief under the EFF is insufficient. The cyclone displaced ~1.4m people and left nearly 800 dead or missing, heightening fiscal and debt sustainability risks noted by the IMF.

M.G. Hemachandra has been appointed Chairman of the Urban Development Authority (UDA). He is a development expert and former Senior Specialist and Chief of Loan Projects at JICA in Sri Lanka, with extensive experience in development policy, project design, procurement and governance.

IMF and officials say Cyclone Ditwah will likely cause a temporary GDP hit in 2026, probably concentrated in one quarter, with reconstruction expected to partly offset the output loss but push short-term inflation and widen the current account. Some distilleries were reported flooded, hurting production and revenues.

Sri Lanka will spend about 1,000 billion rupees (around US$3.5bn) on Ditwah relief and recovery over three years, the Deputy Treasury Secretary said. The package includes ~Rs75bn in Dec 2025, Rs500bn approved for 2026 and Rs300–350bn for 2027–28 (with ~Rs400bn for livelihood support), and will breach the 13% of GDP primary spending limit in 2025 by about 1.4%.

Parliament approved an uncontested Rs. 500 billion 2026 supplementary estimate for post‑Ditwah relief and recovery, allocating Rs.100bn for housing, Rs.250bn for infrastructure repairs and Rs.150bn for livelihoods. Officials said the spending breaches the PFM Act primary‑expenditure 13% of GDP ceiling by about 1.5% but is allowed for disasters and CoPF approved after examining implementation.

IMF Executive Board approved SDR150.5m (about $206m) in emergency RFI financing for Sri Lanka to address cyclone-related balance-of-payments and fiscal pressures; the EFF fifth review is deferred and discussions will resume in early 2026.

Sri Lanka and the ADB signed a $3.00m grant (plus $1.63m government counterpart) to fund pilot climate-resilient pipe irrigation schemes covering about 877 hectares in the Dry Zone, with implementation scheduled for 2026–2029 to boost water efficiency and food security.

The Technocity (Pvt) Ltd committed Rs.50 million to Cyclone Ditwah relief to assist affected families and schools. The package includes Rs.20m cash for rebuilding and Rs.30m in ICT equipment — 50 interactive smart boards, laptops and printers — with the cheque handed to the Prime Minister on 15 Dec 2025.

Treasury says Cyclone Ditwa relief donations rose to Rs. 4,286 million (Rs. 4,263m in rupee deposits; US$13.86m equivalent), with foreign-currency donations over US$6m. Multilateral institutions are considering additional assistance for rebuilding.

IMF Executive Board approved SDR150.5m (about US$206m) in emergency RFI financing for Sri Lanka to address urgent balance-of-payments and fiscal pressures from Cyclone Ditwah. The Fifth Review under the IMF's EFF has been deferred and discussions will resume in early 2026.

IMF approved US$206 million in emergency RFI financing for Sri Lanka to address urgent balance-of-payments and fiscal needs from Cyclone Ditwah and preserve macroeconomic stability. The Fifth Review under the EFF is deferred and an IMF mission will visit in early 2026 to resume discussions.

Sri Lanka will use a Rs1,202 billion Treasury cash buffer for cyclone relief and recovery and seek parliamentary approval for an additional Rs500 billion in 2026. Allocations include Rs250bn for infrastructure, Rs150bn for business recovery and Rs100bn for relief/housing, and the government expects an extra $500m from IMF/WB/ADB to limit exchange-rate and inflation impact.

WindForce PLC (WIND.N0000) commissioned a 432.2 kWp rooftop solar PV project at Joy Island, Maldives on 13 Dec 2025 under an EPC contract costing US$321,000.

The Government of Sri Lanka and ADB signed a grant agreement mobilizing USD 3.00m from JFPR plus USD 1.63m counterpart funding for a Transforming Irrigation Systems for Improved Food Security Project to implement four pilot pipe distribution networks covering ~877 hectares from 2026–2029.

The Civil Appellate High Court on 11 Dec 2025 refused leave to appeal and interim enjoining orders, allowing Home Lands to continue construction of the BOI-approved Pentara Residencies in Thummulla. The project is backed by Hatton National Bank PLC, which provided large-scale funding for land acquisition.

SJB MP S.M. Marikkar criticised the Government's Rs. 500 billion Supplementary Estimate for post-Ditwah recovery, saying the RDA alone needs Rs. 190 b and the CEB Rs. 50 b and that unofficial infrastructure damages may exceed Rs. 900 b.

Civil Appellate High Court refused injunctions, clearing Home Lands’ Rs.30–35bn BOI-approved Pentara Residences project to proceed. The project is backed by Hatton National Bank (HNB.N0000), includes a record Rs.4.5bn land purchase, and has required statutory and environmental approvals.

Allianz SE will donate €200,000 to support Sri Lanka flood relief—€100,000 to the Sri Lanka Red Cross and €100,000 for post-disaster recovery and climate-resilience work via Allianz Insurance Lanka and local partners—part of a €600,000 Southeast Asia relief package.