News & market updates

Sri Lankan developers won multiple titles at the 2025 PropertyGuru Asia Property Awards: Home Lands Group was named Best Developer and Best Lifestyle Developer, and its Santorini, Bayfonte and Pentara projects won top condo and waterfront awards.

Regen Renewables completed a 450 kW solar PV project across 47 Colombo District sites, generating about 594,000 kWh/year, cutting approximately 445 tonnes of CO2 and offsetting Rs.37.15 million in annual electricity costs.

Airport and Aviation Services (Sri Lanka) Ltd (AASL) posted a profit of Rs. 19.06 billion in 2025, up Rs. 5.02 billion year-on-year. Officials reviewed operational performance, post-disaster recovery and short-term terminal upgrades, with further development plans slated for 2026.

HNB PLC contributed Rs. 100 million to the Rebuilding Sri Lanka Fund to support recovery from Cyclone Ditwah. The bank also distributed over 2,500 relief and nutrition packages and provided assistance to affected employees.

The European Union allocated Euro 2.35 million in humanitarian aid to Sri Lanka (Euro 500,000 via IFRC; Euro 1.85 million via ECHO partners) and delivered 83 tonnes of in-kind relief by air after Tropical Cyclone Ditwah. The EU also activated Copernicus mapping and Italy provided structural engineers to support recovery.

ADB launched a $40 million emergency Trade and Supply Chain Finance Program facility to help Sri Lanka import food, medicines and relief supplies after Cyclone Ditwah. The funds, backed by Munich Re and Swiss Re, will be channeled through six partner banks for rapid delivery.

Government will convene an international donor conference in January to mobilise funding for post-Cyclone Ditwah recovery; preliminary damage estimates are $6–7 billion and the Rebuilding Sri Lanka Fund has received over Rs.4.06 billion so far.

China's NPC Standing Committee Vice Chairman Wang Dongming pledged full support to Sri Lanka's recovery from Cyclone Ditwah, and Sri Lanka requested Chinese technical assistance to restore and reconstruct its damaged railway network.

The Securities and Exchange Commission is discussing infrastructure bonds with the Finance Ministry to mobilise long-term funding for post-Cyclone Ditwah reconstruction, saying restoring railway tracks alone could cost around Rs. 200 billion. It also plans SOE listings on the CSE and regulated digital-asset products to deepen the market and boost retail participation.

Sri Lanka will spend Rs115 billion on slope protection for major roads damaged by Cyclone Ditwah; total repair and improvement costs are estimated at Rs190 billion and the government is seeking Rs500 billion for relief and recovery (Rs250 billion for infrastructure).

A Sri Lankan construction services delegation visited Mumbai 25–28 Nov 2025, holding about 350 engagements and securing business collaborations with Indian partners. Ten Sri Lankan firms in construction, engineering, interior design and property development participated in an EDB-led programme with the Sri Lanka Consulate and Indian industry bodies.

Home Lands was crowned "Best Developer, Sri Lanka" for a third consecutive year and also won "Best Lifestyle Developer, Asia" at the PropertyGuru Asia Property Awards 2025. The group has delivered over 3,400 residential units and has about 2,300 units currently under construction.

Commercial Bank of Ceylon signed an MoU with Overseas Realty to offer tailored home loans covering up to 100% of the purchase price for buyers of Mireka Seascape. Mireka Seascape is a 168-unit beachfront residential development in Dodanduwa.

International Construction Consortium has launched ICC Durra Dry Wall Partitions, a lightweight, modular, eco-friendly dry wall system offering sound insulation, fire resistance, faster installation and lower labour costs for residential, commercial and institutional projects.

Sri Lanka forecasts GDP growth of more than 5% in 2026, driven by post-Cyclone Ditwah reconstruction and planned capital spending. The government cited incoming donor/IMF support and said a $3.4bn Sinopec refinery deal is near finalisation to help spur investment.

IMF Executive Board will review Sri Lanka’s request for SDR 150.5m (about USD 200m) under the Rapid Financing Instrument on Dec 19, 2025, to meet immediate balance-of-payments needs after Cyclone Ditwah; approval would provide rapid emergency financing for recovery and rebuilding.

Government will hold a special Parliament sitting on 18–19 Dec to seek approval for a Rs. 500 billion 2026 supplementary estimate to fund disaster relief, infrastructure rebuilding and housing after Cyclone Ditwah. Nearly Rs.16 billion has been disbursed so far under the Rs.25,000 allowance program, reaching about 50% of affected households, with initial payments expected to be completed within a week.

The Cabinet approved raising the cost estimate for the Lower Malwathu Oya Multi-Purpose Development Project to Rs.47.18 billion and extended the completion date to 31 December 2030. Implementation will be locally funded and the project aims to expand irrigation across about 30,000 acres, add hydropower and improve drinking water.

Sri Lanka's cabinet approved resumption of the Lower Malwathu Oya hydro project, with the estimated cost rising 106.02% from Rs22.9bn in July 2019 to Rs47.18bn in Dec 2025. The increase reflects about a 74% rupee depreciation and broader inflation and monetary policy effects.

Colombo Stock Exchange closed 0.02% lower as the ASPI slipped to 22,329.69, with banks and capital-goods names dragging the market. LOLC Finance filed to list Rs 15bn of debentures; turnover rose to Rs 3.3bn and net foreign outflow was Rs 130.44m.

Kristall Spaces Lanka unveiled All-Suite Resort Talpe Heights, a 56-unit BOI-approved luxury oceanfront apartment project at Dalawella Beach with prices from LKR 50 million and projected investor returns of 13–20% p.a. Units are fully furnished, will be managed by All-Suite Resorts, and form part of a multi-project tourism-focused expansion.

Sri Lanka signed a $200 million loan agreement with the Asian Development Bank to fund the Mahaweli Water Security Investment Program (MWSIP) Stage 2. The project will partly finance completion of canal and tunnel irrigation works (about 7km tunnel, ~68km of canals) and distribution networks to boost agricultural productivity and climate resilience in the North Central Province.

World Bank Group will make up to $120 million available by repurposing existing project funds to support Sri Lanka's recovery from Cyclone Ditwah, restoring healthcare, water, education, agriculture and infrastructure. The IFC will also provide advisory support and targeted investments to bolster agriculture, manufacturing, logistics and MSMEs.

Sri Lanka will move a Rs500 billion supplementary estimate into next year’s budget to fund reconstruction after Cyclone Ditwah, which left over 800 dead or missing, damaged roads (RDA estimates Rs190bn) and destroyed 108,000 ha of paddy. The World Bank will repurpose $120m and the IMF has pledged $200m in fast-disbursing support.

ASPI fell 0.95% (213.49 pts) to 22,294.77, erasing Rs. 52.9bn of market value; top negative contributors were DOCK, CINS, COMB, CFIN and DFCC.

World Bank is providing $120mn to Sri Lanka by repurposing existing project funds to support cyclone recovery. The emergency support will restore health care, water, education, agriculture and connectivity, and IFC will offer advisory support and investments to agriculture, manufacturing and logistics while a GRADE assessment seeks further financing.

World Bank is making up to US$120 million in emergency support available to Sri Lanka by repurposing funds after Cyclone Ditwah. The support will restore essential services (health care, water, education, agriculture, connectivity) and the IFC will provide advisory and investments to help private-sector recovery (agriculture, manufacturing, logistics, MSMEs).

Sri Lanka's GDP grew 5.4% in Q3 2025. Agriculture rose 3.6%, manufacturing 8.1% and services 3.5%, with insurance up 18%, financial services 13.2%, accommodation/food 9.3% and IT services 8.5%; central bank stability supported activity despite a weakening rupee.

Sri Lanka's economy grew 5.4% year-on-year in Q3 2025 to Rs. 3,325.6 billion (2015 prices). Industrial activity rose 8.1%, agriculture 3.6% and services 3.5%, supported by higher tourist arrivals, domestic credit expansion and stronger construction, manufacturing and services.