News & market updates

The European Commission demanded the United States adhere to last year's EU‑US trade deal and accept no tariff increases beyond the agreed 15% ceiling after the US imposed temporary tariffs of 10% then raised them to 15% following a Supreme Court ruling.

CBL Group has acquired PT Tri Jaya Tangguh Indonesia, a large-scale coconut processing facility, in a transaction exceeding USD 25 million. The deal expands CBL’s manufacturing footprint in Indonesia to increase capacity, supply-chain resilience and its global coconut milk export capability.

Sri Lanka will promote tourism at ITB Berlin (3–5 Mar 2026) with an SLTPB delegation including 72 local companies and SriLankan Airlines to boost German arrivals, develop business partnerships and showcase Sri Lankan products.

MAS Holdings will repurpose its Methliya facility for knitting, dyeing and finishing and cease garment manufacturing there, reallocating production to other MAS factories. Employees are offered transfers (including overseas), a three-month relocation salary incentive or compensation above statutory requirements, and the company says the transition complies with labour laws.

EDB ran a training program for potential exporters and SMEs on Incoterms, risk management and competitiveness; Chairman Mangala Wijesinghe said a five-year National Export Development Plan is being drafted and noted SME direct export contribution is under 5%. The workshop covered order negotiation, packaging, pricing, buyer trust and international payment methods.

Sysco LABS MD Thushera Kawdawatta delivered the keynote at BCS Sri Lanka Chapter’s Tech Leaders Connect ’26, urging Sri Lanka to scale engineering talent and export 'intellect' to become a global cognitive superpower. Sysco LABS was also a Strategic Partner for the event held in Colombo.

India's DTDC Express Ltd. has partnered with Sri Lanka's Prompt Xpress International to launch a new customer contact point in Sri Lanka to expand its logistics footprint and reinforce the India–Sri Lanka trade lane. Prompt Xpress operates 98 branches and highlights ICT-driven services.

MAS Holdings will cease garment manufacturing at its Methliya plant and convert the facility to fabric production (knitting, dyeing and finishing), affecting about 2,200 employees. Garment capacity will be moved to other MAS plants; employees are offered transfers, a three-month incentive, or compensation above statutory requirements.

President Trump said he will raise a temporary global tariff on U.S. imports from 10% to 15% under Section 122, effective immediately; the tariffs last 150 days and require congressional approval to extend and may face legal and political challenges.

President Trump imposed a new 10% tariff on most U.S. imports for 150 days after the Supreme Court ruled he lacked unilateral authority to set broad tariffs. The Court also struck down earlier tariffs, putting about $175bn collected into question and raising global trade uncertainty.

US Supreme Court ruled 6-3 that President Trump unlawfully imposed sweeping tariffs, finding they exceeded federal law; the court did not decide what should happen to more than $130 billion in tariffs already collected.

Rajendra Theagarajah’s Cinnamon Global has deployed around $5m into growth-stage enterprises in Sri Lanka’s Northern Province, with typical tickets of $25k–$50k and a largest investment of $700k. The patient-capital fund targets agriculture value-add, aquaculture, ICT and logistics and has a $500k program for heritage rice using data-driven agronomy.

Sri Lanka tea production in January 2026 was 20.68 M/kg, down 0.78 M/kg or 3.63% year‑on‑year. Low Grown output fell 7.32% to 12.32 M/kg while High and Medium Grown rose; 2025 tea export earnings were $1.51bn (up 6%).

IMF Managing Director Kristalina Georgieva met private sector leaders who urged that SMEs be mainstreamed into national sector and export policies, stressing SMEs' central role in jobs, exports and inclusive growth and calling for a sharper export diversification strategy.

Green Cabin partnered with Michelin-selected Frangipaani (The Olive Tree Group) to present a two-night “Coast to Coast” 4-hands dinner in Kuala Lumpur on 7–8 February. The event showcased Sri Lankan coastal flavours and aimed to raise Green Cabin’s profile in ASEAN fine-dining and export markets.

President Anura Kumara Dissanayake met Indian Prime Minister Narendra Modi in New Delhi and held bilateral talks to strengthen Indo–Sri Lanka economic, trade and cultural cooperation. The President also thanked Modi for special assistance after Cyclone Ditwah and attended the AI Impact 2026 Summit.

Dongfeng Trucks launched in Sri Lanka on Feb 17 through a partnership with Euro Motors (a subsidiary of Euro Holdings), introducing a range of commercial vehicles for logistics, construction, garments and other sectors. Euro Motors will provide island‑wide service and spare parts support to customers.

The Chamber of Lankan Entrepreneurs (COYLE) hosted a five-day G20 Young Entrepreneurs’ Alliance Leadership Assembly in Colombo and handed the G20 YEA Communiqué to Foreign Minister Vijitha Herath. Delegates from nine countries discussed policy recommendations on inclusive growth, digital transformation, startup support and toured Colombo Port City as a potential SEZ.

EDB, the Sri Lanka Embassy in Riyadh and the Saudi Food and Drug Authority held a webinar on Saudi export registration procedures for over 90 Sri Lankan exporters; Saudi was the 23rd export destination at $137.85m in 2025 (+13.3% vs 2024). The session covered registration, facility approval, inspection and clearance processes for poultry, fisheries, processed foods, frozen produce, beverages and herbal products and included a technical Q&A with SFDA officials.

BITUMIX (Private) Limited marked its 25th anniversary, highlighting its role as a leading bitumen supplier and a vertical of Wardena Venture Holdings in Sri Lanka's infrastructure sector. The company noted resilience through price and FX pressures and reaffirmed commitments to sustainable infrastructure and exploring export opportunities.

The Embassy of Sri Lanka in Riyadh and the Saudi Food and Drug Authority held a virtual workshop on 10 February 2026 to guide more than 80 Sri Lankan food and beverage exporters on Saudi regulatory procedures and export requirements. The session covered fisheries, poultry, processed foods, fruits and vegetables, beverages and herbal products.

International Distillers Limited (IDL) won the CIPM Great HR Quiz 2026 on their debut appearance, beating 74 other teams and also taking the Food, Beverage and Distillery category. The victory highlights IDL’s HR capabilities and complements its profile as Sri Lanka’s largest local spirits manufacturer with growing exports.

Hayleys Fentons won the Gold Award in the Electronic & Electrical Products (Medium Category) at the National Chamber of Exporters 2025 Export Awards, driven by export performance of Hayleys Solar's internationally certified renewable energy systems.

The Sri Lanka Export Development Board ran a Market Exposure and Capacity Building Programme alongside BIOFACH 2026 (9–14 Feb 2026) to prepare Sri Lankan SMEs in spices, coconut, dehydrated fruits and coffee for EU market access; activities included workshops, certification guidance, factory and supermarket visits and B2B matchmaking with EU importers.

CBL Group acquired PT Tri Jaya Tangguh Indonesia, a large-scale coconut processing facility, in a transaction exceeding $25 million to increase capacity, diversify geographic risk and strengthen its global coconut milk export position.

Bitumix Ltd marks its 25th anniversary, highlighting its growth into a leading road construction materials supplier and its role as a key vertical of Wardena Venture Holdings while pursuing sustainable infrastructure and export opportunities.

The Export Development Board will host the Southern Province Regional Exporters’ Networking Forum on 24 February in Matara to identify exporters' challenges and explore growth opportunities; Industry and Entrepreneurship Development Minister Sunil Handunneththi will preside and government officials will attend. Exporters from Galle, Matara, Hambantota and Monaragala are expected to participate and the EDB's Southern Province office is collecting concerns and proposals in advance.

IMF Managing Director Kristalina Georgieva said Sri Lanka has made "tremendous progress" with macro stability restored, inflation sharply down and growth returning. She urged sustained reforms, stronger FX reserves and prudent fiscal policy, noted over $200m in IMF emergency aid and that debt restructuring is nearing completion.

JETRO Executive VP Okumura said JETRO aims to position Sri Lanka as an export hub linking India, the Middle East and Africa and will send a Japanese business delegation to Sri Lanka next month. She cited political stability, improving macro conditions and port infrastructure as drivers, noting interest across manufacturing, logistics, agri/food processing, electronics and mineral supply links.