News & market updates

Hela Apparel Holdings (HELA.N0000) has appointed Emerald Investments Ltd to manage its Egypt manufacturing facility under a Management Service Agreement signed 7 June through 31 December 2026, with an option for Emerald to acquire the unit; the move aims to address working capital constraints and maintain production.

Colombo bourse fell with the ASPI down 0.61% to 21,828.50, led by capital goods turnover; Industrial Asphalts jumped 60% after agreeing to sell a 48.03% controlling stake. Hela Apparel’s subsidiary signed a management services agreement amid working capital challenges.

Hela Apparel Holdings' shares were suspended from trading on the Colombo Stock Exchange effective 18 June 2026 after its auditor issued a disclaimer of opinion for the year ended 31 March 2025. The suspension will remain until the company resolves the audit issues.

ASPI jumped 3.43% (743.22 pts) to 22,380.65 as markets rallied on signs of a possible end to the Middle East war, with index-weighted counters SAMP, COMB, JKH, MELS and DIAL among top contributors; turnover exceeded Rs.4bn and foreigners were net buyers (Rs.21.1m).

Hela Apparel Holdings faces trading suspension from June 18 unless it rectifies a non-compliance after an auditor issued a disclaimer on its financials for the year ended March 31, 2025; the company has until June 16 to remedy the issue. Separately, Hela confirmed an $8m divestment of its brand business ($6m upfront, $2m earn-out) but expects only $484,000 residual cash after heavy adjustments.

ASPI fell 0.4% (85.70 pts) to 21,461.47 as selling pressure reversed early gains; turnover was below Rs.1.7bn and foreign investors were net buyers of Rs.55.9m. Major negative contributors were C T Holdings, Melstacorp, Ambeon, Access Engineering and Central Finance, while John Keells, Chevron Lubricants and Commercial Bank were top turnover names.

ASPI fell 1.57% (340.85 pts) to 21,403.28 as the CSE opened in the red amid rising interest rates and Middle East tensions. Turnover was over Rs.2.6bn with foreign net outflows of Rs.54.1m; Melstacorp, Bukit Darah, Sampath and LOLC were key negatives while John Keells and ACL led turnover and HNB rose.

Colombo Stock Exchange ASPI rose 0.83% to 21,581.80 midday, led by gains in Dialog, Hayleys, Colombo Fort Land & Building and Browns Investments; Commercial Bank slipped and Hela Apparel faces a trading suspension effective June 18 unless compliance is rectified by June 16.

Colombo market fell for a second day as ASPI slipped 0.39% to 22,177.65 and the S&P SL20 eased 0.32% to 6,130.65 on turnover of Rs.2.01bn. Notable moves: Ceylon Cold Stores, Haycarb and Pan Asia Banking gained, John Keells was flat, with mixed or retail interest in several other stocks.

Colombo bourse closed lower with the ASPI down 0.21% to 22,695 as investor sentiment remained subdued after the CBSL rate hike; market turnover was over Rs. 1.7 billion.

Colombo posted its biggest monthly gain since July 2025, with the ASPI up 7% and the S&P SL20 up 5.1% in April, with average daily turnover of Rs.3.66bn. Yesterday the indices fell (ASPI -0.38% to 22,550) on losses in John Keells, Sampath and Commercial Bank amid net foreign outflows of Rs.75mn.

Hela Apparel Holdings said its subsidiary Hela Brands (Mauritius) sold its entire stake in UK-based Focus Brands Ltd. to Emerald Investments for $8 million, a transaction completed after shareholder approval. The buyers intend to continue manufacturing and design operations to maintain export continuity and jobs.

Hela Apparel Holdings sold its shares in UK-based Focus Brands to two Emerald Investments shareholders for $8 million, and the transaction is complete with consideration paid. The company said proceeds form part of a debt-restructuring plan to settle creditors.

Hela Apparel has sought shareholder approval to sell Hela Clothing for $9m and up to 100% of Hela Brands for $8m (combined up to $17m) to a strategic investor. Proceeds will be used to partly settle group liabilities and improve liquidity; an EGM is set for 3 April and approvals are required.

Hela Apparel Holdings has called an EGM on 3 February to approve the transfer of up to 65% (65,000 shares) of its overseas subsidiary Hela Brands Ltd to a strategic investor in a deal valued at $12 million. The EGM will be held online at 3:30 p.m.

Hela Apparel Holdings plans to sell up to 65% of Hela Brands Ltd (Mauritius) for US$12 million to help settle creditors as part of a debt restructuring. The company will seek shareholder approval at an EGM on Feb 3 and is pursuing internal restructuring and strategic funding; the Mauritian unit's consolidated net assets are US$26,539,418.

Colombo market rose as the ASPI gained 0.66% (150.67 pts) to 23,014.75, with market value up Rs.58.89 billion and turnover ~Rs.5.8 billion. Top contributors included Commercial Bank, ACL Cables, Dipped Products, Carson Cumberbatch, LOLC and Sampath, and foreigners were net buyers (~Rs.87.8m).

Hela Apparel Holdings says banks have agreed in principle to restructure debt conditional on major shareholders investing a minimum of Rs 682 million and new investors providing about Rs 3–4.4 billion. The restructure would include concessionary interest rates and repayment deferment; the company will seek shareholder approval.