News & market updates

A 31-member FIEO-led Indian business delegation visited Sri Lanka (8–10 July 2026) to explore trade and B2B partnerships across pharmaceuticals, engineering, apparel, food/agriculture and infrastructure. Bilateral merchandise trade reached about $7.2bn in 2025–26 and Sri Lanka's exports to India rose nearly 160% over five years.

Arcasia Investment & Trading and ATX Partners bought 1,880,693,010 shares (50.16%) of Industrial Asphalts at LKR0.40 per share and will make a voluntary offer for the remaining shares, subject to regulatory approval. The stock last traded at LKR0.70.

Colombo West International Terminal received two ship-to-shore electric cranes and seven cantilever rail-mounted gantry cranes as part of its Phase 2 expansion to boost capacity and automation. CWIT — a ~USD800m PPP including John Keells Holdings — handled 1 million TEUs in its first year.

Mediterranean Shipping Co. (MSC) is in talks to acquire a significant stake in Hambantota International Port (CMPort 85%, SLPA 15%) and has begun switching transshipment calls to Hambantota. The port's box capacity is set to double to 2 million TEUs by year-end after recent investment.

Colombo Port City Economic Commission will invite RFPs for an international university, hospital and school as it shifts from real estate to building institutional foundations; the Commission permits transactions in 14 foreign currencies under a dollarised regime and flags IT talent shortages constraining investment.

The Parliamentary Committee on Public Finance approved a Customs Ordinance resolution and two EDB orders to implement a National Tariff Policy that will reset import duty bands to 0%, 10%, 20% and 30% from 1 April 2026. The reforms include cutting effective ceramic-tile import taxes to 20% by 2029, phasing out para-tariffs by 2029, and updating trade data to support export growth.

President Anura Kumara Dissanayake said the 2027 Budget will prioritise strengthening public healthcare and reducing private treatment costs. Measures include recommencing 26 suspended hospital projects (48 projects now under way), new primary-care 'Arogya Suwa Seva Centres', technology upgrades for state hospitals, ambulance improvements, digital health systems and pharma procurement reforms.

Colombo market fell for an eighth session as ASPI dropped 0.60% (130.78 pts) to 21,697.72 amid renewed Middle East tensions, with turnover over Rs.1.4bn and foreign net outflow of Rs.91.7m. Declines were led by Commercial Bank, Melstacorp, Hayleys and John Keells, while capital goods, food & beverage and banking drove turnover.

Prime Lands Residencies PLC pre-launched 'The Prime Colombo', a 39-floor residential development on Baseline Road with two- and three-bedroom units from LKR 45 million and construction targeted for completion in October 2030. The developer cites estimated rental yields above 6% and flexible payment plans.

Lanka Aluminium Industries PLC hosted a full-day factory visit in Ekala with the Sri Lanka Institute of Architects as part of its 'Specification Writing for Architects' programme to raise awareness of aluminium extrusion products and solutions.

Hirdaramani Apparel and the University of Moratuwa launched a three-year research collaboration to convert textile waste into durable, lightweight sustainable ceiling panels aimed at commercial scalability and circular-economy goals.

Hayleys PLC's subsidiary Hayleys Aventura commissioned Sri Lanka's first outdoor automated rotary parking system. The system rotates platforms to retrieve vehicles within a maximum of 2.5 minutes and complements the firm's portfolio of automated parking solutions for urban developments.

Government and stakeholders launched immediate and long-term plans to clean and beautify Colombo's Beira Lake, including an immediate seawater flushing sponsored by Nahil Wijesuriya and longer-term restoration funded in the Government Budget. The measures are intended to protect tourism, public health and the urban environment.

The Committee on Public Finance approved submitting to Parliament a Customs Ordinance resolution and two Export Development Act orders to implement a National Tariff Policy that restructures import duties into four bands (0%, 10%, 20%, 30%) from 1 April 2026 and reduces ceramic-tile taxes to 20% by 2029. The reforms aim to simplify tariffs, phase out para-tariffs by 2029 and support the EDB’s target to double exports from US$18bn to US$36bn over five years.

UAE investors make up 19% of foreign investor interest in Port City Colombo, with Singapore, China and the UK at 13% each, while South Asian investors—notably India—remain underrepresented; officials see this as a key growth opportunity. The development is an SEZ offering single-window approvals, unrestricted foreign ownership, multi-currency transactions and fiscal incentives.

Arcasia Investment & Trading Ltd and ATX Partners have entered binding agreements to acquire a 50.16% controlling stake (1.88 billion shares) in Industrial Asphalts, triggering a Mandatory Offer; the offer price and terms will be announced after SEC approval.

President Anura Kumara Dissanayake pledged the largest-ever Budget allocation for drinking water projects in the 2027 Budget. He reviewed 2026 project progress, urged consolidation of overlapping institutions, and instructed expedited resettlement and low-income housing support, citing Kandy North, Greater Colombo wastewater, Ambatale and Anuradhapura North projects.

Access Solar and Access Real Estate have named javelin thrower Rumesh Tharanga as their corporate brand ambassador in a sponsorship running through the 2028 Olympic Games. The partnership will provide financial and logistical support for Tharanga and his coach and is presented as part of the Access Group's commitment to sports development.

The 14th World Construction Symposium and Sustainability Awards Scheme 2026 will be held at the Hilton Colombo on 10–11 July, attracting over 100 research paper submissions and industry participants. The events will showcase innovation and honour achievements across Sri Lanka's construction sector.

Arcasia Investment & Trading and ATX Partners will acquire a 50.16% controlling stake (1,880,693,010 shares) in Industrial Asphalts (ASPH.N0000), triggering a mandatory offer for the remaining ordinary voting shares; offer terms await SEC approval.

Industrial Asphalts sold 1,800,693,010 shares (48.03% control) to Arcasia Investment & Trading and ATX Partners (agreement dated July 7); trading was halted and the stock last traded at 50 cents.

Tal Lanka Hotels Plc (TAJ.N0000) will raise Rs.1,871,429,980 via a rights issue of 66,836,785 new shares at Rs.28 each to repay/pre-pay loans, finance refurbishment of the Taj Samudra, settle vendor dues and meet corporate requirements. The issue is subject to Colombo Stock Exchange and shareholder approvals.

Prime Group was named 'Best of the Best Brand in the Real Estate Industry', 'Most Loved Corporate Brand' and 'Most Loved Service Brand' by LMD. The company says it has secured over 400 reservations for the Prime Marina project and is expanding digital sales and AI-powered customer engagement.

Exhibitor registration for Sri Lanka Expo 2027 is open until 31 July 2026. The expo runs 14–17 Jan 2027 at BMICH with 650 booths across 25 sectors and offers opportunities to meet over 1,500 global buyers.

Ceylinco Life has commenced construction of its 36th company-owned branch in Kirindiwela, a 3,440 sq ft eco-friendly building planned to operate on a 100% self-sufficient solar system. The branch will use local prefabricated technology and include rainwater harvesting, an STP and energy-efficient systems.

The Price Index for New Condominiums in Colombo rose 18.5% year-on-year to 284.4 in Q1 2026. Sales volume fell 15.2% YoY even as luxury unit market share (>Rs75m) jumped to 29% and completed-project inventory is nearly exhausted (98% sold).

JAT Holdings (JAT.N0000) has broken ground on the Rs. 4 billion JAT Astera Residencies in Thalawathugoda, a 12-storey project of 104 apartments and six penthouses, with piling work started by Sincon Piling.

Colombo Stock Exchange midday: ASPI down 0.17% (37.22 pts) to 22,043.43 and S&P SL20 down 0.15% to 6,157.85. Capital goods led turnover (LKR 46.2m of LKR 216.8m); notable gainers HNB, RCL, SPEN, SDB, NHL and decliners GREG, MELS, JKH, CARS, LOLC.

Ceylinco Life has begun building its 36th company-owned eco-friendly branch in Kirindiwela, a 3,440 sq ft facility planned to run on 100% solar power. The branch will use local prefabricated technology and include rainwater harvesting and wastewater recycling facilities.

The Sri Lanka Export Development Board has kept online exhibitor registration for Sri Lanka Expo 2027 open until 31 July 2026. The expo will run 14–17 January 2027 at BMICH with 650 booths and opportunities to meet over 1,500 global buyers across 25 sectors.