News & market updates

L B Finance PLC (LFIN.N0000) topped K Seeds Investments' Category 1 ranking of finance companies for Q4 FY25/26 (Jan–Mar 2026), scoring highest across ten equally weighted KPIs. The firm achieved this position despite late-quarter oil-driven fuel-price shocks and rising inflation that pressured peers' margins and loan repayment capacity.

CIPM convened a roundtable of 30 stakeholders to address Sri Lanka's widening skills gap, noting shortages across IT, tourism, construction, manufacturing and healthcare and recommending industry-academia partnerships, vocational reforms and upskilling initiatives.

The government launched 'Badhu Shakthi 2026' National Tax Week, a year-long initiative to boost state revenue and voluntary tax compliance with a countrywide awareness campaign (National Tax Week observed 6–10 July). Officials said higher tax revenue is being used to finance infrastructure and disaster relief, citing Rs.500 billion for Cyclone Ditwah response.

HayWind One (Hayleys Fentons), part of Hayleys PLC, has received all ten turbines for the 50MW Mannar Wind Farm, moving the project into peak construction and installation with energisation targeted by December 2026. Once operational it will add 50MW to the grid and is projected to save ~LKR 100 billion in imported fuel costs over 20 years.

Colombo Port City plans to use the SEZ as a regulatory sandbox to trial labour market reforms, arguing rigid employment laws deter entrepreneurship. Since Jan 2025 the Commission has executed leases for four parcels, with six developments under construction (~$500m) and 185 licensed businesses employing ~15,000.

Citrus Leisure PLC reopened Citrus Waskaduwa (after a one-month refurbishment) and Citrus Hikkaduwa (after a two-month refurbishment) on 1 July 2026. The properties feature refreshed rooms, upgraded facilities and infrastructure, staff service training, and the group plans AI-driven digital enhancements for guest experiences.

Sri Lanka and China EXIM Bank aim to sign an amended financing agreement for the Central Expressway Project (Section I, Kadawatha–Mirigama) by end‑August 2026, subject to internal approvals. The talks also covered broader development cooperation and priority sectors including tourism, logistics, energy and IT.

The government borrowed Rs.1.96 trillion in 2025, well below the Rs.4 trillion statutory ceiling, raising Rs.2.4 trillion via domestic Treasury Bond issuances while securing $1.23 billion in new foreign loan commitments and receiving $1.78 billion in disbursements.

INFRACON 2026 opened at BMICH in Colombo and runs through Sunday; the exhibition brings regional exhibitors in HVAC-R, power & energy (including green energy), safe water management and building materials to promote trade, investment and technology in Sri Lanka's infrastructure and construction sectors.

Hikkaduwa Beach Resorts PLC and Waskaduwa Beach Resorts PLC completed refurbishments and reopened their Citrus hotels: Citrus Hikkaduwa resumed operations on 1 July and Citrus Waskaduwa on 2 July.

China EXIM Bank Vice President Yang Dongning met Sri Lanka's Deputy Minister of Finance on 2 July 2026 to review and expedite the amended financing agreement for the Central Expressway Project (CEP-1) Section I, targeting signature before end‑August 2026. They also discussed cooperation to support tourism, value-added manufacturing, logistics, energy, IT and higher-education links.

Softlogic Holdings has raised 2.03 billion rupees of a targeted 10 billion-rupee equity raise and sold Odel's Koswatta land for about 1.5 billion rupees as part of a restructuring after both Softlogic and Odel were placed on the Colombo Stock Exchange Watchlist. Odel restructured 90% of bank facilities, converted a 3.2 billion-rupee intercompany loan to equity and scaled down the Odel Mall project to 6.28 billion rupees.

Advocata CEO Dhananath Fernando urged the government to use its current political mandate to implement structural reforms now — including accelerated SOE restructuring, privately developed industrial zones, customs and trade liberalisation, and land-title and labour reforms — to avoid returning to another IMF program.

CBSL survey: the Price Index for new condominiums in Colombo District rose 18.5% YoY to 284.4 in 1Q 2026 while the Condominium Property Sales Volume Index fell 15.2% YoY. Demand shifted toward higher-priced units, most completed units are sold and 51% of units in ongoing projects are reserved; asking price indices for land, houses and condominiums rose 31.9%, 6.4% and 11% YoY.

Realised FDI reached about $250m in 1H and BOI Director General Dr. Sulakshana Jayawardena outlined a reform agenda including a digital single-window approval platform targeted this year, an Investment Protection Act, and land and skills reforms to boost investor confidence.

Groundworth is promoting land as a mid-term investment, saying its developed plots have historically appreciated 20–30% a year and can be resold within 1–2 years. The company uses a five-point site selection standard and delivers developed, gated communities and turnkey homes.

Megakem Engineering has inaugurated a dedicated Geotechnical Division to provide end-to-end geotechnical services and products — including site investigations, ground improvement, soil stabilisation and retaining systems — to support Sri Lanka's infrastructure and construction projects.

LANKATILES PLC launched Sri Lanka's first COOL ROOFTOP TILE®, a solar-reflective roof tile with an independently verified Solar Reflectance Index (SRI) above 96. The product, unveiled at a media event, is aimed at reducing rooftop heat gain for residential buildings.

Colombo Stock Exchange closed down as the ASPI fell 0.19% (43.18 points) to 22,178.73 on turnover of Rs.1.54 billion. Asia Asset Finance announced GM and rights timetable and Associated Motor Finance said its merger with L B Finance will become effective by 31 July 2026.

Majestic Electric completed a state-of-the-art, energy-efficient LED facade lighting system for the Bank of Ceylon Head Office, featuring dynamic color-changing effects and customised scenes for national celebrations and events.

Cabinet approved agreements to secure a $450m Indian disaster recovery package (a $350m line of credit — $250m long-term, $100m short-term — plus a $100m grant) to fund Sri Lanka's post-Cyclone Ditwah reconstruction across infrastructure, housing, health, education and water. The government estimates reconstruction needs at $3.5bn.

Cabinet approved a Rs. 617.7 billion recovery program of 1,066 projects to restore infrastructure, livelihoods and essential services damaged by Cyclone Ditwah. It includes 1,028 national projects (Rs. 515.46bn) from 2026 funded via the annual Budget and 38 provincial projects (Rs. 102.22bn), enabled under the Public Finance Management Act No.44 of 2024.

ADB approved $200 million in emergency assistance for Sri Lanka's post-Cyclone Ditwah recovery (a $100m regular loan, $100m concessional loan and a $0.5m technical grant). The project will finance rehabilitation of roads and irrigation, restore smallholder livelihoods and support climate-resilient housing reconstruction.

Melwa partnered with the Institution of Engineers, Sri Lanka to support the WiNE Forum 2026, promoting greater female participation in engineering through sessions for school students, undergraduates and industry leaders.

Government and the Urban Development Authority agreed to accelerate the 'Temple City' project to transform the area around Hunupitiya Gangaramaya Temple and Beira Lake into an international tourism and cultural hub, including a pedestrian walkway, landscaping and enhanced visitor facilities.

ADB approved $200 million in emergency assistance for Sri Lanka's post-Cyclone Ditwah recovery, comprising a $100m regular loan, $100m concessional loan and a $500,000 technical grant to finance reconstruction of roads, irrigation, housing and support for smallholder farmers with climate-resilient measures.

Opposition Leader Sajith Premadasa urged a whole-of-government, science-based National Climate Resilience strategy, warning of a limited window before a likely strong 2026–27 El Niño and proposing anticipatory governance, reservoir/water management, climate-smart agriculture, early warning systems and a disaster intelligence centre.

Around 35–40 investors have expressed interest in partnering with the state to operate Mattala Rajapaksa International Airport, with EOI proposals due by 9 July. The government says MRIA has been renovated and cleared for safe operations; it handled 140,614 passengers in 2025 but has run annual losses of about Rs. 3 billion.