News & market updates

Export Development Board will fast-track a government-backed priority program to ensure over 4,500 exporters (apparel, tea, spices and others) receive fuel stocks without delay amid escalating fuel shortages. The Ministry of Industry and Entrepreneurship is collecting exporter data and urged firms to submit information immediately.

Sri Lanka's economy expanded 5.0% in 2025, with Q4 growth slowing to 4.8% (from 5.4% in Q3). Industry led the expansion (7.8%) driven by construction, mining and manufacturing, while services grew 3.3% and agriculture 1.4%.

Co-operative Insurance Company PLC appointed Haritha Karunanayake as an Independent Non-Executive Director, bringing experience in co-operative administration, the tea industry and rural banking.

Government declared Wednesdays a weekly holiday for public sector employees effective tomorrow (18) to reduce fuel consumption; essential services (healthcare, ports, water, customs) are exempt and four committees will oversee energy and key sectors. Private sector asked to follow where feasible and state events suspended.

Arutha Research warns the Middle East war risks Sri Lanka’s energy, food, exports and remittances — the UAE supplies about 38% of petroleum imports and CPC says fuel stocks cover roughly one month. Middle Eastern markets buy $852m (≈7%) of exports and Gulf countries provide about 38% of remittance inflows.

Agrovista Plantation launched the “One Million Trees for the Motherland by 2030” initiative aiming to plant one million trees by 2030 and has already planted 250,000 trees across Sri Lanka.

CA Sri Lanka held a forum warning that prolonged Middle East instability could spike oil prices and disrupt remittances, tourism and tea exports, raising inflation, exchange-rate volatility and risks to the banking/financial sector.

The President chaired the Committee on Economic Surveillance to address risks from the Middle East conflict, highlighting rising global oil prices, maritime supply-chain disruptions and impacts on international trade and the domestic market. Attendees included the Central Bank Governor, Treasury Secretary and heads of petroleum, ports, export, tea and tourism agencies.

The upcoming National Export Development Plan targets over 10% annual export growth and will expand focus from traditional pillars (apparel, tea, rubber, coconut) into new sectors — automotive components, electrical/electronic products, mineral-based industries, processed food & beverages, spices and gems & jewellery — while diversifying markets toward Africa, Asia and the Middle East.

The EDB convened a high-level meeting with exporters, industry associations and logistics stakeholders to address shipping and supply-chain disruptions to Middle East markets from the regional conflict and to identify coordinated support measures for exporters.

DFCC Bank opened its Head Office for an event titled "When the Wild Speaks, Will We Listen?" focused on Sri Lanka's leopard conservation and said it has partnered with the Wilderness and Wildlife Conservation Trust to support science-based conservation efforts.

The Export Development Board held a high-level meeting with major export sector associations to identify support for exporters facing disruptions to shipments to Middle East markets due to the regional conflict. Participants included tea, spices, fruits & vegetables, food processors, coconut-product associations and shipping/freight forwarders, and issues will be taken to the Export Development Council of Ministers.

Asia Securities convened 150+ investors and corporate leaders at the Sri Lanka Investor Conference 2026 to present a constructive capital-market outlook, with speakers citing roughly 4% GDP growth prospects for 2026. Panels highlighted construction, banking/finance, consumer and digital sectors as key growth drivers and projected strong corporate earnings expansion.

Sri Lanka's Industry and Entrepreneurship Development Ministry and EDB held diplomatic meetings to promote Sri Lanka Expo 2026 (18–21 June 2026 at BMICH) and attract international buyers and investors. The outreach targeted participation across apparel, tea, spices, rubber, ICT services, food & beverages and industrial manufacturing.

Ceylon Chamber of Commerce handed over its historical records (1839–1973) to the National Archives Department. The archive contains correspondence, minutes, reports and ledgers documenting the evolution of trade, tea and rubber auctions, and business-driven infrastructure initiatives.

The Economic Surveillance Committee met at the Presidential Secretariat to discuss urgent measures to stabilise Sri Lanka's economy amid the Middle East conflict, focusing on risks from fuel imports, remittances, trade, tourism and export links.

Cabinet approved a relief package to support replanting of tea, rubber and coconut after extreme weather, offering up to Rs. 500,000/ha for tea, Rs. 400,000/ha for rubber and Rs. 750,000/ha for coconut. Payments will be made based on assessed losses to help restore production and protect export revenues.

The Ceylon Chamber of Commerce handed over its historical records (1839–1973) to the National Archives. The archive includes correspondence, minutes, reports and ledgers documenting the Chamber’s role in developing Sri Lanka’s trade, ports, rail links and export economy.

Sri Lanka is strengthening global trade partnerships to promote Sri Lanka Expo 2026 (18–21 June 2026 at BMICH, Colombo), aiming to attract international buyers and investors across apparel, tea, spices, rubber, ICT services, food & beverages and industrial manufacturing. A high-level EDB and ministry delegation met UK, Indonesian and Korean envoys to boost participation.

The Sri Lanka Export Development Board has opened applications for Sri Lanka Expo 2026 (18–21 June at BMICH), offering 650 booths and opportunities to meet over 1,500 global buyers; applications close 31 March 2026. Sectors covered include industrial and agro-industrial products and services such as ICT, tourism, renewable energy and healthcare.

Sri Lanka's Cabinet approved a relief package to support re-cultivation of export crops, offering up to Rs750,000/ha for coconut, Rs500,000/ha for tea and Rs400,000/ha for rubber. Payments will be provided based on the extent of damaged land and follow earlier relief for paddy, vegetables, fruits and minor export crops.

Sri Lanka Export Development Board has opened applications for Sri Lanka Expo 2026, a four-day international trade exhibition from 18–21 June 2026 at BMICH offering 650 booths and access to over 1,500 global buyers; application deadline is 31 March 2026.

Government will maintain cost-reflective pricing for fuel and electricity despite rising global oil prices, avoiding subsidies that would burden state finances. Officials warned this could cause a short-term inflation spike to around 5–6% and dent export competitiveness (tea exports are exposed to the Middle East).

President says the Central Bank submitted a scenario analysis on the Middle East conflict's economic impact to the government and that the worst-case outcome is unlikely. Authorities are preparing contingency plans affecting tourism, tea exports and port logistics and are seeking Indian support for the tea sector.

Sri Lanka's tea industry may lose USD 10-15 million per week as the Middle East conflict has halted shipments to the region. About 52% of exports go to the Middle East; auction prices fell ~Rs.50/kg overall and ~Rs.75/kg for low-grown tea, and exporters are seeking government support for cash-flow and added freight/insurance costs.

Saliya Pieris warned Sri Lanka faces economic fallout from the Middle East war, citing rising global oil prices and curtailed gas output, FX volatility, potential drops in European and Middle Eastern tourist arrivals, disruptions to tea exports and risks to remittances, and urged early policy responses.

MullenLowe Group Sri Lanka retained Effie Agency of the Year for 2025 (third consecutive), winning 21 accolades including one Gold and three Silver awards; Watawala Tea was among the clients recognised.

Senior bankers at the Association of Professional Bankers convention urged caution, prioritising balance-sheet discipline—liquidity, capital buffers, and managing interest-rate and FX exposure—over rapid expansion. Speakers also highlighted selective growth, risk-adjusted returns, and greater use of digital capability and sustainable debt instruments.

First Capital Research says March 2026 Iran conflict risks could push Brent to $95–110/bbl and raise Sri Lanka's inflation, external deficits and market volatility, complicating monetary policy. It notes shipping diversions may boost Colombo's transshipment role and that equity corrections could offer selective entry points.

Fitch assigned a National Long-Term Rating of 'AAA(lka)' to Hayleys PLC’s proposed unsecured senior redeemable debentures of up to Rs. 7 billion. Fitch said the rating is in line with Hayleys’ national rating but noted subsidiary debt/EBITDA rose to 2.9x in 3QFY26 (vs a 2.5x threshold) and is expected to moderate.