News & market updates

Dilmah Genesis and LSE South Asia Centre convened experts in Colombo who concluded Sri Lanka's recovery needs enterprise support that prioritises relational advice, trust and quality upgrading alongside finance to sustain entrepreneurial resilience. A White Paper with policy suggestions will be prepared for government and published online.

Fitch assigned a 'AAA(lka)' National Long-Term Rating to Hayleys PLC's proposed unsecured senior redeemable debentures of up to LKR7 billion. Fitch noted subsidiary debt-to-consolidated-EBITDA rose to 2.9x in 3QFY26 (limit 2.5x) but expects it to moderate toward 2.5x in FY27, otherwise ratings risk.

MTI Consulting CEO Hilmy Cader warned the Gulf war escalation could stress-test Sri Lanka’s economy by disrupting about 140 scheduled weekly Gulf flights and Gulf airspace. He said this would reduce hotel bookings, disrupt cargo and time-sensitive exports, and affect nearly 1 million Gulf-based workers and roughly US$1.5bn of exports to the Middle East.

A US-Israel strike on Iran and ensuing Strait of Hormuz disruption sent Brent crude up over 7% (above US$90) and led the Ceylon Petroleum Corporation to raise diesel prices (Auto +Rs4, Super +Rs6), threatening Sri Lanka's fuel supplies, tea exports and imports of construction materials.

Sri Lanka Tourism Promotion Bureau will lead a delegation of 72 local companies to ITB Berlin (3–5 Mar 2026) to promote Sri Lanka in Germany, aiming to boost German arrivals and tourism revenue.

Global Biz Connect 2026 will be held in Colombo at Cinnamon Life on 3 March 2026, bringing diplomats, trade bodies, multinationals and investors together to connect Sri Lankan enterprises with international markets. Panels will cover industries including value-added tea, confectionery, hospitality and medical tourism.

Sri Lanka's tea exports in Jan 2026 rose 7% YoY to 20.71m kg, average FOB climbed 5.6% to Rs. 1,821.71/kg and export earnings were about $121.7m (up 8% YoY). Iraq remained the top importer (2.95m kg) while Türkiye surged 118% to 2.36m kg, with gains across all product categories.

The Sri Lanka Export Development Board held a virtual meeting with New Zealand and Sri Lankan high commissions and business representatives to promote Sri Lanka Expo 2026 and boost bilateral trade. Sri Lanka's exports to New Zealand were about USD 31.24m in 2025, led by tea, garments, rubber and edible preparations.

Sri Lanka’s export earnings in January 2026 rose 13.71% y/y to US$ 1,532.6 Mn. Merchandise exports increased 10.66% (US$ 1,165.02 Mn) and services grew 24.59% (US$ 367.55 Mn), with strong gains in tea, coconut products, electrical/electronics and ICT/BPM, while apparel and gems/jewellery fell.

Sri Lanka will promote tourism at ITB Berlin (3–5 Mar 2026) with an SLTPB delegation including 72 local companies and SriLankan Airlines to boost German arrivals, develop business partnerships and showcase Sri Lankan products.

Sri Lanka tea production in January 2026 was 20.68 M/kg, down 0.78 M/kg or 3.63% year‑on‑year. Low Grown output fell 7.32% to 12.32 M/kg while High and Medium Grown rose; 2025 tea export earnings were $1.51bn (up 6%).

The Consulate General of Sri Lanka and the Pudong Shangri-La Shanghai held the first Sri Lankan Food Festival in Shanghai from 9–13 February 2026. The five-day event showcased Sri Lankan dishes and Ceylon tea, attracting celebrities, media and international food lovers.

Hayleys PLC won the Gold Award for Overall Excellence in Corporate Reporting at CA Sri Lanka's TAGS Awards 2025 for the fourth consecutive year, with the Group securing 21 awards including 14 Golds. Several listed firms on the shortlist also won sector awards, including Haycarb, Kelani Valley, Singer, Dipped Products, Alumex, Talawakelle, Horana and Kingsbury.

Lee Hedges PLC (SHAW.N0000) has appointed Mohan Ratnayake as an Independent Non-Executive Director. Ratnayake is a CIMA fellow with experience in tea exports and plantations, chaired the committee for SLT's USD bond issuance, and holds/directs roles at several listed companies.

EU leaders endorsed a 'Buy European Only' policy; Frontier Research says it does not yet directly affect Sri Lanka but could hurt export earnings if GSP+ preferences are diluted. Key vulnerable sectors noted are tea, rubber and apparel, while stricter rules could also affect IT, medical services and electronics ties.

Sri Lanka will participate at BIOFACH 2026 in Nuremberg (10–13 Feb 2026) with a Sri Lanka Country Pavilion organised by the EDB and NOCU, featuring eight certified organic exporters. The pavilion will showcase organic coconut products, spices (including PGI Pure Organic Ceylon Cinnamon), tea and other value-added goods, include SME promotion and live demos, and involve talks with international regulators to strengthen export standards.

The Export Development Board met with Sri Lanka's Honorary Consul to Hong Kong Hung Chiu Wah Derek to strengthen trade ties and promote Sri Lanka Expo 2026, focusing on expanding exports, buyer-seller linkages and boosting Ceylon Tea branding in Hong Kong.

Aitken Spence PLC reported 9M PBT of Rs. 5.6 billion, a 30% increase year‑on‑year, and PAT up 42% to Rs. 3.4 billion for the nine months ended 31 Dec 2025. Tourism drove gains (PBT Rs.2.0b) while Maritime & Freight Logistics contributed Rs.3.3b; plantations, power and services also improved, offset by apparel losses.

Sri Lanka will participate in BIOFACH 2026 (10–13 Feb 2026) in Nuremberg with a Sri Lanka Country Pavilion organized by the EDB and NOCU featuring eight leading organic exporters. The pavilion will showcase certified organic products including PGI Pure Organic Ceylon Cinnamon and Pure Ceylon Tea and include SME promotion and regulatory cooperation to boost organic exports.

HNB MD/CEO Damith Pallewatte highlights HNB’s Sarusara agripreneur programme (15,000 participants to date, 30,000 target) and a 2026–2030 strategic plan. He warns of banking-sector challenges (liquidity, asset quality, digital risk) and urges ecosystem-building across exports, agriculture, tourism and digital services.

FAO Representative urges Sri Lanka to rebuild farming after Cyclone Ditwah with a resilience-focused reform agenda rather than simply repairing damage. Priorities include diversified cropping, build-back-better irrigation and roads, expanded crop insurance and rapid disaster financing, and stronger early-warning-to-action systems.

Sunshine Holdings reported 9MFY26 consolidated revenue up 8.1% to Rs. 48.9bn and EBIT up 1.2% to Rs. 7.5bn, while PAT fell 8.8% to Rs. 4.3bn. Healthcare remained the largest revenue driver but faced margin pressure from new pharma pricing, while agribusiness (Watawala) posted strong palm oil-led gains.

Sunshine Holdings (SUN) reported consolidated 9MFY26 revenue of LKR 48.9bn (+8.1% YoY), Group EBIT of LKR 7.5bn (+1.2% YoY) and PAT of LKR 4.3bn (-8.8% YoY). Healthcare remained the largest contributor with margin pressure from a new pricing mechanism, while Agribusiness (Watawala) delivered strong revenue and margin gains.

Sunshine Foundation for Good, the CSR arm of Sunshine Holdings PLC, distributed stationery vouchers to about 750 schoolchildren in Kelaniya, Kadawatha, Rathmalana, Modara and Mattakkuliya as part of its 2026 education support initiative. The program covered pupils from Grade 1 to Grade 11 at schools near Sunshine's operations and involved the group's leadership and business lines.

EDB met with Hong Kong's Honorary Consul on 6 Feb 2026 to strengthen trade ties and expand buyer-seller linkages, highlighting Ceylon Tea's market potential in Hong Kong. They promoted Sri Lanka Expo 2026 (18–21 June at BMICH) and invited a Hong Kong buyer delegation to boost export opportunities.

Export Development Board hosted a networking session for new and potential tea and coconut exporters, attended by about 100 small and medium exporters. Speakers covered market entry, Coconut Development Authority exporter registration, branding and building international buyer relationships.

Dilhan C. Fernando, Chairman of Dilmah Tea, warns 2026 could be the toughest year for tea growers as discount-driven demand, climate change and inequality force unsustainable practices, threaten livelihoods and food security, and risk long-term declines in tea quality.

Milford Exports Ceylon Ltd. increased its stake in Melstacorp PLC by 1 million shares at Rs.179 each, raising ownership from 42.80% to 42.88%.