News & market updates

The Sri Lanka Tea Board says it has already submitted the Geographical Indication (GI) application for Ceylon Tea to the EU and that the application is at its final stage of evaluation. It clarifies the domestic GI application will be submitted after EU registration as part of an agreed strategy with NIPO and CIRAD.

ADRA Ceylon is shifting from conventional bulk tea exports to a solutions-provider model offering private-label manufacturing, customised blends, bubble-tea bases and wellness infusions to capture higher-value global markets and support stronger export earnings for Sri Lanka's tea sector.

Talawakelle Tea Estates' Somerset estate sold a single lot for Rs. 3,050/kg in March 2025, the highest price for the region. The estate also generated 3,622,254 kWh from its 1,100 kW hydro plant in FY2025/26 and has introduced digital weighing, cloud monitoring and drone fertiliser use.

The National Intellectual Property Office (NIPO) said Sri Lanka has not yet received an application to register Ceylon Tea as a Geographical Indication (GI). NIPO urged producer bodies to organise for GI registration, noted only Ceylon Cinnamon has GI status, and said Sri Lanka is pursuing accession to the Lisbon Agreement to strengthen recognition.

Hayleys PLC (via Hayleys Plantations) has partnered with UNDP BIOFIN to implement Payment for Ecosystem Services projects across its estates, covering Talawakelle Tea Estates, Horana Plantations and Kelani Valley Plantations. Projects include watershed conservation, biodiversity-restoration with tourism integration and a PES model evaluation.

Hayleys Plantations, partnering with UNDP BIOFIN, is advancing Payment for Ecosystem Services projects at Talawakelle Tea Estates (Great Western, Wattagoda), Horana Plantations' Bambarakelly Estate and Kelani Valley's Halgolla Estate to fund watershed protection, biodiversity restoration and tourism-linked conservation.

President Anura Kumara Dissanayake instructed officials to formulate a program to allocate underutilised State land, with project support, to Sri Lankan migrant workers returning from overseas. He also reviewed 2026 plantation projects, urged completion of 10,000 Malayagam houses, ordered land-agreement reviews and noted improved profitability at six State plantation entities.

Central Bank warns the public against informal plantation and forestry schemes promising monthly payouts or large end returns and urged investors to seek refunds and report non-compliant firms. It also instructed media to verify Central Bank licences before accepting ads that solicit deposits.

Sri Lanka's export earnings rose 7.96% YoY to $9.01bn in Jan–Jun 2026, with June exports at $1.65bn (up 12.5% YoY). Merchandise exports were $7.07bn (up 8.95%) and services $1.93bn (up 4.49%), led by ICT/BPM, EECs, processed foods and coconut products while tea fell 5.69%.

Sri Lanka's merchandise exports rose 15.09% to US$1,314.10mn in June 2026, led by electrical & electronic components (exports up over four-fold), boat building and petroleum products. Cumulative Jan–Jun exports rose 8.95% to US$7,073.31mn, while tea, coconut and apparel exports declined.

Hayleys Plantations launched 'Regenerate', a unified ESG roadmap joining Talawakelle (TPL), Kelani Valley (KVAL) and Horana (HOPL) across 55 estates and ~14,000 ha with 2030 targets including a 42% reduction in Scope 1–3 emissions and 95% renewable-energy reliance. The plan also targets 90% regenerative agriculture, zero deforestation, 100% supplier ESG screening and digital/AI monitoring.

The Colombo Tea Traders' Association held its 132nd AGM on 17 July, re‑electing Lushantha de Silva as chairman and appointing a Board that includes Kelani Valley and Malwatte Valley Plantations. CTTA emphasised value addition, premium branding and sustainable reforms to boost Ceylon Tea exports.

Sri Lanka's total exports reached an estimated US$ 9,012.24 Mn in Jan–Jun 2026, up 8% y/y; merchandise exports were US$ 7,073.31 Mn (+8.95%) and services US$ 1,938.94 Mn (+4.49%). Electrical & electronic components, rubber, food & beverages and spices recorded strong gains in June, while apparel exports fell 11.74% y/y.

World Bank lead economist Dr. Harsha Aturupane warned Sri Lanka must reverse anti-export policies and reconnect with global markets to restore innovation and competitiveness. He cautioned ICT/BPM faces disruption from AI and noted low global value-chain participation (8.1% vs 26% India, 34% Vietnam).

Sri Lankan exporters must prepare for new EU sustainability rules—EmpCo (from 27 Sep 2026), PPWR (from 12 Aug 2026) and EUDR (due diligence from 30 Dec 2026)—which expand scrutiny of claims and supply chains and carry penalties up to €2m or 4% of turnover.

The Planters' Association of Ceylon warns organised theft of high-value crops (pepper, cardamom, cinnamon, vanilla, avocado) is costing the plantation sector millions, eroding export competitiveness and deterring investment. The PA calls for tougher penalties, traceability and verified loss data as producers spend tens of millions on security.

The Planters' Association has urged the Government to curb organised theft of high-value plantation crops, saying losses may run into millions and one RPC is spending ~Rs.20m over three months on security, deterring investment and harming export competitiveness; it calls for tougher penalties and traceability.

Sri Lankan exporters are being urged to prepare for new EU sustainability rules — EmpCo, PPWR and EUDR — with compliance timelines from Aug–Dec 2026 and penalties up to €2m or 4% of turnover. The measures target sectors including tea, food/agriculture, apparel, rubber, plastics, fisheries and tourism; Peterson Solutions is offering guidance and a free ESG webinar on 29 July 2026.

Government launched the nationwide 'Ceylon Tea Village' program to transform smallholder tea production and lift annual output to 400m kg and tea export earnings to $2.5bn by 2030, starting with 144 tea villages. The program includes nurseries, mechanisation, insurance, pensions, concessional finance, value‑addition and links to tourism.

June tea production rose 4% YoY to 22.5 MnKg, but first-half output was 131.8 MnKg, weighed down by extreme weather, Cyclone Ditwah and rising fertiliser costs. The industry is urging a targeted fertiliser subsidy for smallholders ahead of expected El Niño.

Colombo Stock Exchange rose as the ASPI gained 0.39% (83.87 pts) to 21,508.86, with banks leading turnover at Rs 41.8 million. Dilmah Ceylon Tea Company proposed a first and final dividend of Rs 25 per share for the year ended March 31.

The Cabinet approved establishment of a Centralised Zero-Waste Biomass Cinnamon Processing Centre at the University of Ruhuna to be carried out in four phases over 27 months. Jointly implemented by the Science & Technology Ministry, ITI and the university, it aims to support small-scale cultivators in Matara and Galle by lowering processing costs and utilising biomass waste.

Dividend · Rs 25.00 · XD Aug 7, 2026

First And Final dividend of LKR 25/share; XD 2026-08-07; record 2026-08-10; payable 2026-08-28; FY 2025/26

Janathakshan, funded by The Coca‑Cola Foundation, concluded the SWYFT project (Aug 2024–May 2026), establishing five MCPCs, launching Sri Lanka's first hydro-powered MCPC with Thalawakelle Plantation (Hayleys Group), and distributing eight electric three-wheelers and 15 e-bikes.

The Ceylon Chamber of Commerce met Belarusian Ambassador Mikhail Kasko to explore closer private‑sector ties to boost trade in machinery, agriculture and pharmaceuticals and increase exports (apparel, tea, coconut, spices, fresh produce) and tourism via direct air links.

Sri Lanka's ASPI fell 0.60% to 21,697.72 as markets slowed amid escalation in the Middle East and global instability. Seylan Bank, Lanka IOC and Malwatte Valley Plantations were among gainers while Commercial Bank, Melstacorp, Lion Brewery and Hayleys led declines; Vidullanka authorised a first gross dividend of Rs0.20 per share to be dispatched by Aug 7, 2026.

Sri Lanka's ASPI fell 0.49% to 21,720.92 midday; HNB Finance listed 381,667,019 new ordinary voting shares and 80,072,222 non‑voting shares from its rights issue. Malwatte Valley Plantations and Seylan Bank were among gainers while Melstacorp was a top decliner.

Sunshine Holdings (SUN.N0000) held its SUN Awards 2026 and reported consolidated FY26 revenue of Rs. 65.9 billion, up 11.2% YoY. The event presented 169 awards and 119 long-service recognitions across the Group's healthcare, consumer goods and agribusiness businesses.

The National Chamber of Exporters opened applications for the 34th NCE Export Awards, closing Sept 30, 2026, with the awards ceremony on Dec 11 at Shangri‑La Colombo. Ex-Pack Corrugated Cartons PLC is the main sponsor and Dialog Enterprise is the event's digital technology partner.

Hayleys PLC led World Environment Day 2026 activities across its plantation group, with Kelani Valley, Talawakelle and Horana plantations running tree-planting, awareness campaigns and Talawakelle launching the Hill Country Green Force volunteer initiative.