News & market updates

ADB upgraded Sri Lanka’s GDP growth forecasts for 2025–26, citing robust private-sector credit growth, stronger industry and services performance, and planned infrastructure investment. The report flagged Cyclone Ditwah risks and revised inflation forecasts downward.

Government has disbursed over Rs. 13 billion for relief, recovery and reconstruction after Cyclone Ditwah. Starlink satellite units have arrived to boost connectivity in affected areas and the Treasury is coordinating funds and data-driven resource allocation.

Sri Lanka's Jan–Oct 2025 budget deficit fell 57% YoY to Rs. 455.77 billion while the primary surplus rose 96% to Rs. 1.63 trillion. The government seeks supplementary estimates totalling Rs. 550 billion for post‑Ditwah relief and is pursuing additional IMF financing.

John Keells Properties has launched sales for Phase 4, the final phase of the VIMAN Ja-Ela residential development. Phase 4 offers two- and three-bedroom homes with amenities and over 60% of the development reserved for open areas and shared facilities.

Groundworth (PVT) Ltd received Special Recognition for Land Investments at the Asia Property Guru Awards 2025, highlighting its position in Sri Lanka’s real estate sector.

JAT Holdings PLC completed the 3rd edition of its JAT Pintharu Abhiman painter development programme, registering over 3,400 painters across eight regions. The initiative featured technical training, product demonstrations and a Professional Painter Development session to upskill the painter community.

Melwa ran a specialized workshop in Jaffna for over 100 masons and welders on proper use of steel reinforcement bars and GI pipes; attendees received certificates and tool kits, and selected participants were offered NVQ Level 3 training with financial assistance.

Parliament will meet on Dec 18 to consider a supplementary estimate of about 500 billion rupees for Cyclone Ditwah recovery. President Anura Dissanayake said the supplementary estimate will be brought into the 2026 budget.

Vidullanka PLC and WindForce PLC were awarded contracts by the Cabinet to build and operate two 50 MW wind power stations (100 MW total) for the Mullikulum Wind Power Project under 20-year BOO arrangements, advancing Sri Lanka's renewable energy targets.

Cabinet approved re-tendering a prime Perahera Mawatha (Kollupitiya) land parcel for a 99-year lease, inviting fresh international competitive proposals after the previous investor failed to meet obligations. The UDA will seek hotel or commercial mixed-development bids (up to 50% residential) to secure a credible developer for the high-value Colombo site.

Dividend · Rs 1.00 · XD Dec 23, 2025

First Interim dividend of LKR 1/share; XD 2025-12-23; record 2025-12-23; payable 2026-01-13; FY ending 31st March 2026

ADB approved a $200 million loan for the Mahaweli Water Security Investment Program Stage 2 to complete North Central Province Canal works and boost water and food security in North Central Sri Lanka. The project will benefit over 35,600 farming households, irrigate about 14,912 ha of paddy and mobilize additional cofinancing.

UN warns the world is not prepared for escalating climate disasters and urges Sri Lanka to rebuild climate-resilient infrastructure and avoid resettlement in high-risk flood zones, warning the country will face stiff competition for international aid.

ADB approved a $200m loan for the Mahaweli Water Security Investment Program Stage 2 to complete the North Central Province Canal, aiming to irrigate about 14,912 ha and benefit more than 35,600 farming households through improved irrigation, crop diversification and commercial agriculture support.

China Harbour Engineering Company (South Asia & Southeast Asia) completed emergency clearing of the A5 highway from 4–10 Dec, reopening the route after Cyclone Ditwah. The operation deployed 24 land-clearing machines and 36 workers in coordination with the Sri Lanka Army and the RDA.

Sri Lanka's cabinet approved seeking a US$200m ADB loan for stage two of the Mahaweli Water Security Investment Program, a US$536.5m project to irrigate about 17,500 hectares and provide drinking water to around 175,000 families.

Cabinet approved awarding two 50MW Mullikulum wind projects, one to Vidullanka PLC and one to WindForce PLC. The awards are part of the 100MW Mullikulum Wind Power Park bidding process and support the government's push to 70% renewable energy by 2030.

After 86,488 houses were damaged by Cyclone Ditwah, the government launched a housing programme offering up to LKR 5m for land and LKR 5m for construction for those in unsafe areas, and up to LKR 2.5m for rebuilding. The article draws lessons from the 2004 tsunami programme on beneficiary identification, ownership documentation, donor coordination and land-selection to inform the Ditwah recovery.

MillenniumIT ESP developed a free information system, with Microsoft providing technical support, to collect data on businesses and properties damaged by Cyclone Ditwah for the Department of National Planning's Rebuilding Sri Lanka programme. Teams will gather data via divisional secretariats and several countries and international institutions have pledged financial and material assistance.

INSEE Lanka donated 20,000 INSEE Sanstha cement bags to help rebuild homes damaged by Cyclonic Storm Ditwah; the donation was handed over at Parliament and will be distributed via District Secretaries in Puttalam, Kurunegala, Kandy, Matale and Badulla.

Colombo Dockyard said the SEC approved Onomichi Dockyard to sell its entire shareholding to Mazagon Dock Shipbuilders after the company's rights issue, subject to a mandatory offer; DOCK closed at LKR234.25 (up LKR17.25). Speculative interest in construction-related stocks (eg. ACL, Swisstek) lifted the ASPI 0.16% and S&P SL20 0.18%.

MIT provided a free information system and Microsoft technical support to Sri Lanka's Department of National Planning to collect digital data on business and property damage from Cyclone Ditwah for the 'Rebuilding Sri Lanka' fund. Multiple countries and multilateral institutions have pledged financial and material aid.

Finance Ministry Secretary Dr. Harshana Suriyapperuma says Rs. 1,893 million has been received for the 'Rebuilding Sri Lanka' initiative and that insurance companies have begun compensating losses from Cyclone Ditwah, with minor damage payouts already underway and larger claims to follow after verification.

Colombo stock market rose for a third straight session, gaining Rs.119.7 billion as the ASPI climbed 1.76% to 22,422.43; capital goods and materials led turnover, with JKH down to Rs.20.90 while DOCK, SIRA and AEL advanced.

Speculative trading in Colombo Dockyard lifted the Colombo Stock Exchange—ASPI rose 1.90% to 22,452.22 while Colombo Dockyard gained 43 rupees to 217. Momentum spread into banks and construction, with higher turnover of 6.2 billion rupees and several active stocks advancing.

Rs. 1,893 million in local and foreign contributions has been secured for the 'Rebuilding Sri Lanka' programme; the Insurance Regulatory Commission convened insurers and companies have begun prompt compensation for minor Cyclone Ditwah damage, with larger claims paid after verification.

Google Maps, in partnership with the Road Development Authority, has begun updating Sri Lanka’s road network data covering about 12,000 km and introduced six condition-alert types (e.g., lane closures, construction notices) as a pilot through Dec 31. The updates aim to improve route planning, reduce travel delays and congestion; users are encouraged to check the Google Maps app.

Sri Lanka secured a $30 million IDA (World Bank) loan to fund the Secure, Affordable, and Sustainable Energy for Sri Lanka Project to expand and modernise grid capacity and accelerate renewable energy. The $60m project has a first-phase $30m loan (to be on‑lent to the Ceylon Electricity Board) and a proposed World Bank payment guarantee to scale private investment.

Sri Lanka has borrowed US$30 million from the World Bank to strengthen the electricity grid and enable greater renewable energy integration; the funds will be on‑lent to the Ceylon Electricity Board as part of a US$60m project supporting the government's 70% renewables-by-2030 target.