News & market updates

Sri Lanka's BOI and Japanese partners held the 4th working-level Japan–Sri Lanka Committee on Business Environment on 2 June 2026 in Colombo to review and resolve investor concerns and strengthen FDI ties. The session stressed accountability and priorities such as technology transfer, green industry, manufacturing and tourism.

ADB President Masato Kanda said the Pan-Asia Power Grid Initiative will mobilize $50 billion by 2035, with ADB providing half, to connect regional power systems, add 20 GW of renewables and 22,000 circuit‑km of transmission, cutting emissions and creating jobs.

Proposed amendments to the National Environment Act before Parliament would introduce penalties for misleading or false EIA/IEE reports and address conflicts of interest in project approvals. CSF's study of 250 EIAs found systemic weaknesses in reporting quality and accessibility, especially on social impacts.

John Keells Properties' Vauxhall DSTRCT in Colombo sold over 300 apartments within the first three months of launch, reflecting strong local and overseas buyer demand for the prime Colombo 02 residential development.

Kishore Reddy was re-elected president of the Indian CEO Forum at its AGM, where the Forum reaffirmed commitment to deepen India–Sri Lanka economic cooperation and urged upgrading the FTA to boost investment in infrastructure, tourism, IT, logistics and services.

Cabinet approved 77 Businesses of Strategic Importance for the Colombo Port City SEZ, including three Primary BSIs (Prime Melwa, Marina Hotel Holdings, Home Lands); land/development costs are ~Rs125bn (incl. ~US$262m) and Secondary BSIs are projected to bring ~US$364m and ~10,000 jobs over five years.

Round Table Sri Lanka reached over 64,800 people with relief, deploying LKR 21 million in hygiene supplies and 18,000 household packs after Cyclone Ditwah caused an estimated US$4.1 billion in damage and displaced millions. The fellowship used corporate-style logistics, airlifts and distribution hubs and is moving into Phase 3 recovery to rebuild rural schools.

Prime Group has entered a strategic partnership with music duo Bathiya & Santhush (BNS) to boost its brand and international profile as it advances projects such as the Prime Melwa Port City marina-front development.

Prime Group and Melwa unveiled the Prime Marina Sales Suite at Port City Colombo, introducing Prime Marina — a waterfront residential development of landmark towers with 1–4 bedroom apartments and penthouses. Design partners named include P&T Singapore, Index Design and Grant Associates.

Prime Marina, a $57.6m joint-venture waterfront development at Port City Colombo, has secured reservations for 337 of 550 units ahead of groundbreaking. Construction is expected to finish within four years, with projected revenue over $250m and creation of around 1,000 direct and 5,000 indirect jobs.

Sri Lanka said it will deepen cooperation with France and the EU as AFD marks 20 years in the country, seeking expanded collaboration on sustainable development including green energy, urban and water infrastructure, digital transformation and maritime cooperation.

Home Lands Group appointed Mahela Jayawardene as Brand Ambassador ahead of the Grand Launch Weekend (12–14 June) for Central Park Boulevard Port City Colombo, billed as Sri Lanka’s largest real estate launch.

Indian High Commissioner Santosh Jha visited an $11m India‑funded hybrid solar-wind-diesel-battery project (≈4.3 MW) on Delft, Analaitivu and Nainativu on 3 June to review progress delivering off‑grid power to the three islands.

Prime and Melwa unveiled the Prime Marina Sales Suite at Port City Colombo, showcasing the Prime Marina waterfront residential development. The project features landmark towers with 1–4 bedroom apartments and penthouses, designed by international firms.

John Keells Holdings' Offices at Cinnamon Life received Sri Lanka’s first GreenRE Gold Certification in the Existing Non-Residential category, recognising the development's sustainability performance and energy-efficiency standards.

Capital Trust Properties renewed its partnership with John Keells Properties to market John Keells' residential developments including Cinnamon Life, TRI-ZEN, Viman and Vauxhall DSTRCT.

JAT Holdings (JAT.N0000) recorded highest-ever annual revenue of Rs. 12.6 billion in FY25/26 and profit before tax rose 5% to Rs. 1.68 billion, with gross profit up 21% to Rs. 4.8 billion. Performance was supported by the acquisition of Mirotone, a 76% increase in binder plant capacity, improved margins, and growth in its EV charging and decorative paints businesses.

JAT Holdings posted record group revenue of Rs. 12.6 billion in FY25/26 (up 9% YoY) with gross profit rising 21% to Rs. 4.8 billion and PBT up 5% to Rs. 1.68 billion, driven by stronger margins, local sales growth and expansion into EV charging and international markets.

HayWind One, part of the Hayleys group, received the first 25 MW (five of ten turbines) for its 50 MW Mannar wind farm at Trincomalee Port; transfers to the Mannar site will continue over the next three months. The project is expected to yield about Rs.100 billion in imported fuel savings over 20 years.

Radisson Hotel Asia Pacific Investments assigned its rights under Galadari Hotels' 2023 hotel development and management agreements to affiliate Radisson Hospitality Belgium BV effective 1 Jan 2025. The Galadari, undergoing renovations funded by a Mashreq Bank loan, will operate as Radisson Blu Hotel Galadari Colombo after completion.

Prime Lands Residencies PLC reported FY2026 profit after tax of Rs. 2.06 billion (up 67% YoY) and declared an interim cash dividend of Rs. 0.80 per share (ex-dividend 09 Jun 2026; payment 26 Jun 2026).

Hayleys' wind arm received the first 25 MW of turbines for the 50 MW Mannar wind farm, with components landing at Trincomalee Port and transfers to the Mannar site to continue over the next three months. The project is expected to deliver about Rs.100 billion in imported fuel savings over 20 years.

The EU urged Sri Lanka to develop a pipeline of bankable infrastructure projects and promoted its Global Gateway financing model—target expanded to €400bn by 2027—to fund ports, logistics, digitalisation and green infrastructure using blended finance and guarantees, stressing project preparation and regulatory predictability.

Cabinet approved a Rs. 1.475 billion '10 Cities Development Program' to modernise and brand 10 towns and boost their economic and tourism appeal, with 217 projects identified. Rs. 500 million was already earmarked in the Budget and the Transport, Highways and Urban Development Ministry will coordinate implementation.

Cabinet approved awarding a $6.04 million contract to India's RS Infraprojects Ltd for Lot A of the Mullikulam Wind Power Transmission Project. Lot A covers the Mullikulam 220/33 kV collection grid substation and two 220 kV cable trays; Lot B was already awarded.

John Keells Holdings renewed a partnership with Capital Trust Properties to market its residential projects, including Cinnamon Life, TRI-ZEN, Viman and Vauxhall DSTRCT. The tie-up is intended to boost market access and buyer confidence for John Keells' residential developments.

John Keells Holdings' development The Offices at Cinnamon Life has been awarded the Gold GreenRE Certification — the first GreenRE rating in Sri Lanka — recognising the project's sustainability, energy efficiency and environmentally conscious design.

Uva Greenlands Estate Ltd (Vella Group) signed a $5.1m BOI agreement to expand 98 Acres Resort & Spa in Ella in a two-phase project over 36 months, expected to create about 150 direct jobs and boost high-end tourism in the Uva region.

Sampath Bank PLC received Central Bank Governing Board approval to open a branch in Port City Colombo’s Business Centre (Building 1), enabling it to offer LKR and designated foreign-currency banking services to residents and non-residents under the CPCEC.