News & market updates

ChildFund Sri Lanka mobilized LKR 15 million in Phase 1 emergency aid after catastrophic floods displaced over 1.1 million people and killed 355. The response focuses on child protection, psychosocial support, education continuity, food security and WASH, with thousands of children impacted or unreachable.

Colombo Stock Exchange regained nearly 40% of last week's Rs. 424 billion loss as the ASPI rose 2.04% (439.46 pts) to 22,034.32. Top contributors included DOCK, CINS, COMB, SAMP and ACL, with turnover around Rs. 3.88 billion.

Cyclone Ditwah could push Sri Lanka’s rebuilding bill to as much as $7 billion and is expected to slow growth to about 3% in 2026 after killing 635 people and affecting roughly 10% of the population. The cyclone wrecked infrastructure and key crops, cutting tea output by 3–4 million kg in December and destroying some 575,000 hectares of paddy.

UNDP reports Cyclone Ditwah inundated 1.1 million hectares (20% of Sri Lanka) and triggered 1,200 landslides, flooding about 720,000 buildings and impacting over 16,000 km of roads, 278 km of railway and 480 bridges. UNDP warned Sri Lanka cannot shoulder more debt for rebuilding and called for international financing.

President Anura Kumara Dissanayake said reconstruction of key roads and bridges under the Road Development Authority after Cyclone Ditwah is estimated to cost Rs190 billion. About Rs40 billion could come from existing allocations, leaving Rs150 billion to be found; Nuwara Eliya repairs include Rs14 billion for badly damaged roads.

Finance Ministry issued a circular to pay up to Rs5 million to households, businesses and people rebuilding after landslides, Rs400,000 to fishing boats, one-time Rs25,000/50,000 cleanup grants and monthly rent of Rs25,000–50,000 for three months to March 2026.

President Anura Kumara Dissanayake told Newsweek Sri Lanka is seeking market access, climate finance and investment to support recovery after Cyclone Ditwah while introducing rules-based investor safeguards (single-window approvals, Investment Protection Act) and overhauling disaster-management systems.

CHEC Port City Colombo has secured about $1.3bn in foreign investment and says it is ready for business, expecting an additional $600–850m from talks over the next 3–4 years. Port City negotiated a fiscal package with the government and IMF (10–15 year tax holiday, duty-free construction imports) and offers full capital mobility with 16 designated currencies.

Colombo Stock Exchange rose 2.04% as retail buying boosted construction and major bank shares, with the ASPI at 22,034.32. Top contributors included Colombo Dockyard, Ceylinco Holdings, Commercial Bank, Sampath Bank and ACL Cables, and Access Engineering was active.

Canary Wharf Holdings announced Colombo Gateway One, a 34-storey commercial tower in Port City Colombo with 28 floors of Grade A office space, floors priced from USD 3.5m and a projected rental yield of 7.3%. The announcement drew strong investor interest and highlighted SEZ regulatory clarity from the Colombo Port City Economic Commission.

Lulu Group chairman Yusuff Ali donated Rs. 32 million to Sri Lanka's national relief and recovery fund for Cyclone Ditwah; UAE missions are also sending containers and air cargo. The cyclone has killed 635 people, 192 are missing and about 1.76 million people have been affected, with thousands of homes damaged or destroyed.

Moody’s says cyclone Ditwah will stymie Sri Lanka’s post-default fiscal consolidation as the government faces additional spending to repair widespread infrastructure damage. The storm severely hit roads, bridges, rail and power, disrupting supply chains and hitting tourism, agriculture and manufacturing.

Government issued Budget Circular No.08/2025 setting a wide Ditwah relief package including Rs.25,000 cleaning grants, housing aid up to Rs.5,000,000, crop/livestock compensation and SME/fishing support. Treasury will seek Rs.50bn supplementary for 2025, Rs.500bn for 2026 and has requested $200m SDRs from the IMF.

CBSL Governor Dr. P. Nandalal Weerasinghe said post-Ditwah reconstruction must not derail reform momentum and that monetary, fiscal and external stability will be maintained. He warned of only a brief inflation uptick and limited balance-of-payments impact, and urged trade, labour and productivity reforms (including RCEP linkage).

Three Sinha Industries won multiple honors at the Western Province Entrepreneur Awards 2025, including Runner-Up in the Industry/Manufacturing – Large Category; MD M.A. Manjula Ariyakumara received Best Entrepreneur of the Year (Bronze) and Best Entrepreneur – Financial Performance awards.

The ASPI rebounded 0.45% to 21,594.86 on Monday as investor interest in diversified financials, capital goods and construction stocks pushed the market higher. Several stocks rose (AEL, ACL, DOCK, SAMP, HHL) and Abans Finance (AFSL) announced a debenture sale to raise up to LKR 1.5bn.

Unity Plaza (On'ally Holdings PLC) unveiled Sri Lanka's largest outdoor triple-faced LED digital screen, completing the building's redevelopment and creating a high-visibility digital landmark visible from Galle Road, Wellawatta and Station Road.

Unity Plaza unveiled Sri Lanka's largest outdoor triple-faced LED digital screen on 3 December, completing its multi-year redevelopment and positioning the building as a leading IT hub. The installation, delivered with supplier Charming and Co. and On'ally's internal team, aims to reshape the digital out-of-home market.

Sri Lanka's Road Development Authority reopened all major roads after Cyclone Ditwah and the Kandy–Colombo road is open to daytime traffic from Dec 5. The cyclone had blocked 256 major roads in 298 places and damaged 40 bridges; 252 locations were cleared by Dec 5.

Parliament approved the third reading of Budget 2026 with 158 MPs in favour, one against and two abstaining, concluding the legislature's budget proceedings; Parliament will reconvene on 6 January 2026.

Severe weather has killed 607 people and affected over 2.08 million across 25 districts, with 4,164 houses fully damaged and 67,505 partially damaged; 1,211 safety centres are sheltering 152,537 people.

Sri Lanka has requested SDR 150.5 million (about $200 million) from the IMF under the Rapid Financing Instrument for emergency assistance after Cyclone Ditwah, a request now under consideration by the IMF Executive Board. The IMF said it remains engaged to support recovery and rebuilding.

Government will provide Rs. 5 million for each home destroyed by Ditwa cyclone-related flooding or landslides. State land will be offered to rebuild (or an additional Rs. 5 million if land is unavailable), and households with structural damage may receive up to Rs. 2.5 million, with an initial Rs. 25,000 already paid.

Tourism Deputy Minister Prof. Ruwan Ranasinghe said Sri Lanka's tourism sector is fully back to normal after Cyclone Ditwah, with major attractions open, transport links restored and no foreign visitors harmed. He added that roads, sites and the airport are operating while relief and repairs continue.

President Anura Kumara Dissanayake announced a Rs.72.2 billion relief package over 25 days for Cyclone Ditwah victims, including Rs.25,000 cleaning grants, Rs.50,000 kitchen grants, monthly housing payments, per-hectare farm/livestock/fishing grants and compensation up to Rs.5,000,000.

President Anura Kumara Dissanayake said the government will seek a Rs500 billion supplementary estimate for Cyclone Ditwah spending in 2026 and a Rs50 billion supplementary for 2025. The government plans about Rs72 billion for 2025 recovery and increased compensation for households and farmers.

The IMF is considering Sri Lanka's request for SDR 150.5 million (about US$200m) under the Rapid Financing Instrument to support recovery after Cyclone Ditwah. The request is under consideration and subject to approval by the IMF Executive Board.

Sri Lanka has requested about US$200m (SDR 150.5m) from the IMF under the Rapid Financing Instrument to support recovery and rebuilding after Cyclone Ditwah; the request is under consideration by the IMF Executive Board. The country faces a $216m IMF repayment in 2026 and has seen rapid rupee depreciation and weaker reserve accumulation.

Transport and Highways Ministry reported 247 km of A- and B-grade roads damaged and 40 bridges destroyed by adverse weather; 81 road sections remain closed while 175 of 256 damaged sections have been reopened to traffic.

IMF has assured continued support for Sri Lanka after the cyclone and is closely engaging with authorities as a rapid post-disaster damage assessment proceeds; the Staff‑Level Agreement on the Fifth Review under the EFF remains on track ahead of a December 15 Board meeting. IMF staff are exploring additional support options pending assessment results.