News & market updates

Sri Lanka's PMI–Construction rose to 59.1 in May from 45.7 in April, signalling expansion in construction activity. New Orders climbed to 63.6 and employment expanded, while firms cited skilled‑labour shortages, high material prices and bitumen shortages; sentiment remained positive on a sustained project pipeline.

People's Bank marked its 65th anniversary on 1 July and reports consolidated assets of over Rs. 3.7 t. The bank serves 15.2m customers (4m digital users), operates 745 branches and 300+ SBUs, opened a new head office and pledged Rs.300m to the Rebuilding Sri Lanka Fund.

IMF staff completed a June 24–30 visit, noting inflation rose from 1.6% y/y in Feb to 5.5% y/y in May after energy price increases and that authorities responded with a 100 bps policy rate hike and temporary on-budget relief (fuel, electricity, fertilizer, cash transfers). The IMF said sustaining reforms is critical and the Seventh Review of the EFF will assess program progress in the fall.

Home Lands Group acquired a second ~3-acre land parcel in Port City Colombo's Central Park District adjacent to its prior purchase, expanding its footprint in the development; the acquisition was made as a single-developer investment and signals continued company-led development activity in the district.

Port of Colombo handled 3,702,265 TEUs in the first five months of 2026, a 13.5% YoY increase; vessel arrivals rose 4.7% to 1,726 and transshipment throughput increased 14.0%, supported by infrastructure, digitalisation and capacity investments.

Home Lands Group officially broke ground on Central Park Boulevard in Port City Colombo, commencing construction of an ultra-luxury twin-tower development with completion scheduled within 40 months.

Amana Bank acquired ownership of its corporate office at 353 Galle Road, Colombo 3 from Lee Hedges for Rs. 2.7 billion. The five‑storey, ~50,000 sq ft property on 95 perches had been leased since October 2025 and now provides Amana Bank full ownership.

Dividend · Rs 2.50 · XD Aug 5, 2026

First And Final dividend of LKR 2.5/share; XD 2026-08-05; record 2026-08-05; payable 2026-08-24; FY 2025/26

University of Sri Jayewardenepura and Port City Colombo co-authored and published an international case study, 'Port City Colombo: Catalysing Sri Lanka's Emergence as a Global Investment Hub,' via Nova Publishers. The study examines the project's urban planning, economic, regulatory and sustainability dimensions and is intended as a multidisciplinary teaching and policy resource.

Colombo Stock Exchange ASPI fell 0.45% midday to 22,309.09 with turnover of 951.8 million rupees, utilities contributing 448.6 million. Convenience Foods Lanka authorized an 8.00 rupee first-and-final dividend and Tokyo Cement proposed a 2.50 rupee first-and-final dividend.

University of Sri Jayewardenepura and Port City Colombo co-authored and internationally published an academic case study examining Port City Colombo's urban planning, economic, regulatory and sustainability dimensions and its role in shaping Sri Lanka's long-term investment and development trajectory.

Dilmah Conservation's Grey2Green Initiative will host environmental architect Sunela Jayewardene for a 'Beyond Concrete' masterclass on 2 July 2026 (4–6pm at Genesis) focusing on regenerative, biodiversity-centred urban architecture and traditional design principles.

The Thailand–Sri Lanka forum highlighted the newly enacted SLTFTA and reported bilateral trade rose 48% to $649m in 2025. Officials said the FTA and related measures should expand market access and investment across logistics, manufacturing, tourism, food processing, IT and healthcare.

Three licensed telecom infrastructure providers (EDOTCO Services Lanka, SGH TowerCo and Tantri Trailers) launched the Sri Lanka Digital Infrastructure Forum to promote infrastructure sharing and advance national telecommunications infrastructure. The non-profit forum will engage regulators and policymakers to support network expansion and extend connectivity to underserved areas.

Colombo Stock Exchange ASPI rose 44.99 points (0.20%) to 22,452.03 as gains in Sampath Bank, Central Finance, Colombo Dockyard and others lifted the market; turnover was Rs.349 million. Lee Hedges completed sale of land and premises to Amana Bank for Rs.2.7 billion on June 25, and both stocks traded higher.

Sri Lanka Cricket's Transformation Committee has decided no international cricket stadium will be built in Jaffna due to insufficient funds; the project will be scaled back to a more limited cricket ground while the final scope is reviewed.

The IRD said individuals can sell residential properties tax-free if they have owned the property for at least three years and lived in it for more than two years; it also confirmed gains on sale of personal vehicles are exempt (retrospective to 1 Apr 2024) under the Inland Revenue (Amendment) Act No. 11 of 2026.

The Condominium Developers Association of Sri Lanka re-elected Pinsiri Fernando as chairman at its 12th AGM on 23 June 2026 and appointed an executive committee that includes Roderick David (Overseas Realty), Aelian Gunawardena (JAT Property Group) and Brahmanage Premalal (Prime Lands).

Three Sinha Industries won the Gold Award for “Best Stall with Locally Assembled Products” at the INCO 2026 exhibition. The recognition highlights the company’s focus on local manufacturing, engineering solutions and solar energy products, reinforcing its role in Sri Lanka’s manufacturing and construction sectors.

Tokyo Cement hosted the 'Build Beyond 2026 Summit' to present advancements in cement and concrete technologies focused on low-carbon and sustainable construction. The event featured international and local experts discussing LC3 (Limestone Calcined Clay Cement), low-carbon concretes, high-performance concrete and industry–academia collaboration.

Marriott International and CG Hospitality Global signed an agreement to open three hotels — The Ritz-Carlton Kathmandu, The Westin Kathmandu and JW Marriott Siliguri — adding nearly 450 keys to Marriott's portfolio, with openings anticipated in 2031.

Sri Lanka's total exports for Jan–May 2026 reached US$7,393.39 million (+7.56% YoY), with May exports of US$1,570.64 million (+18.34% YoY). Growth was broad-based across merchandise and services, led by apparel, coconut products, rubber gloves, electrical/electronic components and ICT/BPM, while tea slipped marginally.

Cabinet approved a 'Protecting Eastern Province Lands' committee and a police unit to tackle illegal land acquisitions, unauthorised coastal developments and land reclamation in the Eastern Province; it will reclaim unused Mahaweli lands and plan tourism with coastal safeguards.

Lee Hedges PLC revised payment terms for its Rs.3.16 billion acquisition of Lanka Realty Developments, making an initial Rs.1.1bn payment and deferring Rs.2.06bn payable within six months at AWPLR+1.5%. Vendors transferred their LRD shares on receipt of the initial payment and Lee Hedges will own 100% on completion.

Lee Hedges PLC appointed Archie Warman as Chairman and Afzal Ahamed Marikar and Noel Joseph as Independent Non-Executive Directors after Lanka Realty Investments acquired a 51% stake (and Eighth Wonder 20.48%) at Rs.216 per share in January.

Cabinet approved steps to implement electrification of key railway corridors — Main Line (Maradana–Ragama), Kelani Valley Line (Maradana–Makumbura) and Coastal Line (Maradana–Panadura) — and upgrades to stations at Gampaha, Veyangoda, Mirigama and Polgahawela.