News & market updates

Colombo market rose for a fourth straight session: ASPI +0.16% (36.85 pts) to 22,459.28 and S&P SL20 +0.18% (11.09 pts) to 6,095.15. Turnover was Rs.5.55bn, foreigners were net sellers of Rs.150.5m, and top ASPI contributors were DOCK, CINS, CFIN, HHL and SUN.

Cargills Bank PLC proposed a Rs. 2.5 billion rights issue of 294,200,000 new ordinary voting shares at Rs. 8.50 each (14 new for every 45 held) to boost capital and support lending, subject to CSE, SEC and shareholder approvals. Major shareholders Cargills (Ceylon) PLC and C T Holdings PLC hold 37.09% and 23.62% respectively.

Carmart (Pvt) Ltd handed over the first batch of Leapmotor C10 range-extended EV SUVs to owners in Colombo, officially introducing the C10 to Sri Lanka with a claimed combined range up to 1,150 km (NEDC).

The Shoppes at City of Dreams Sri Lanka opened its 8th Floor, introducing premium retail, festive pop-ups and gifting-focused stores; the 7th Floor now hosts a Denza premium EV showroom, enhancing the mall's high-end retail and lifestyle offerings.

Vegetable demand in Sri Lanka's Nuwara Eliya district slumped after Cyclone Ditwah, with 1,421 hectares damaged and daily shipments falling to 72,000 kg from a normal 150,000 kg, causing initial price spikes then a collapse. Retail pola remained partly closed and tourism was down about 20%, reducing sales.

ChildFund Sri Lanka mobilized LKR 15 million in Phase 1 emergency aid after catastrophic floods displaced over 1.1 million people and killed 355. The response focuses on child protection, psychosocial support, education continuity, food security and WASH, with thousands of children impacted or unreachable.

Cyclone Ditwah destroyed early-stage Maha-season crops, leaving paddy sown on 563,950 ha (vs ~800,000 ha typical) and damaging about 95,799 ha of field crops and 13,463 ha of vegetables. The losses have driven vegetable price spikes (100–350% in some markets) and threaten food security, farmer incomes, and higher import needs into 2026.

Sri Lanka's Export Development Board will host the country's largest-ever B2B pavilion (510 sq m, 61 companies) at Gulfood 2026 in Dubai to showcase coconut products, processed foods, spices, tea and other F&B items. The EDB aims to increase MEASA food exports by US$20–30m by 2027.

Lulu Group chairman Yusuff Ali donated Rs. 32 million to Sri Lanka's national relief and recovery fund for Cyclone Ditwah; UAE missions are also sending containers and air cargo. The cyclone has killed 635 people, 192 are missing and about 1.76 million people have been affected, with thousands of homes damaged or destroyed.

The EDB now expects 2025 export earnings of $17–17.5bn, short of the $18.2bn target, and is aiming for $20bn in 2026 while launching a National Export Development Plan targeting $36bn by 2030. The plan (to be presented Jan 2026) prioritises diversification into ICT/BPM, logistics, electronics, food & beverages and spices, plus tariff reform, a National Single Window and FTA reviews.

Rough Clothing opened its flagship store at Colombo City Centre (Level One, Shop 08), marking its retail flagship launch after 27 years in wholesale and expansion into the UAE and showcasing its full premium apparel range and proprietary fabrics.

Hemas Consumer Brands was named Runner-up in the FMCG and Retail category at The Great HR Awards 2025, organized by the Chartered Institute of Personnel Management in partnership with Mercer.

President Anura Kumara Dissanayake announced a Rs.72.2 billion relief package over 25 days for Cyclone Ditwah victims, including Rs.25,000 cleaning grants, Rs.50,000 kitchen grants, monthly housing payments, per-hectare farm/livestock/fishing grants and compensation up to Rs.5,000,000.

AFC Asia Frontier Fund co-manager Ruchir Desai said Sri Lanka is now one of the fund’s top country picks, having raised allocation since November 2022, citing regained political and economic stability, undervalued equities (market ~11x earnings) and strong bank and consumer earnings.

The UN is leading a Joint Rapid Needs Assessment with Sri Lanka's Disaster Management Centre after Cyclone Ditwah to map flood impacts and coordinate data collection; efforts prioritize food security and agriculture, livelihoods, health and nutrition, water and sanitation, shelter and early recovery.

Cargills (CARG.N0000) dispatched 10,000 dry-ration packs to flood-affected communities under its Heart for the Nation program. The company will soon open the initiative to customers to contribute, using its island-wide store network and logistics to distribute supplies.

Starlink will provide free satellite internet in Sri Lanka to those affected by Cyclone Ditwah, extending free service to new and existing users through December 31, 2025; Singer (Sri Lanka) PLC is the authorised agent.

Multiple countries and international agencies have mobilised extensive humanitarian aid to Sri Lanka after Cyclone Ditwah, with India leading immediate response and major consignments arriving (e.g., US 20,000 polysacks, UAE 1,116 food packets, Australia AUD1m). The UN is coordinating rescue, relief and early recovery efforts.

The EDB, with IFC and the EU, concluded the second ExpoScaleUp pitching event under SLEEI 2025 to boost SME export readiness through training in market research, branding and logistics; selected SMEs will advance to ExpoConnect for market access and international buyer matchmaking.

The Management Club (TMC) announced the Northern Investment Summit for January 2026 to attract local and foreign investment to Sri Lanka’s Northern Province. The summit will spotlight agriculture, fisheries, IT, tourism, retail and energy and has endorsement/support from BOI, EDB, NEDA and other agencies.

Prime Minister Harini Amarasuriya said Sri Lanka will relax certain food import and quarantine controls after Cyclone Ditwah flooded rice paddies and disrupted transport to keep supplies flowing and manage prices. Authorities also plan farmer compensation, fertilizer support and seed/poultry imports.

The Commonwealth Enterprise and Investment Council appealed for support after Cyclone Ditwah, which has killed over 300 people, left hundreds missing and thousands homeless across Sri Lanka. CWEIC said its strategic partners stand ready to assist international recovery efforts.

CBSL said headline CCPI inflation was steady at 2.1% year‑on‑year in November 2025, unchanged from October. Food inflation fell to 3.0% y‑o‑y, core inflation edged up to 2.4%, and month‑on‑month CCPI dropped 0.23%.

Cycle Pure Incense (Suwanda Industries) was recertified as a ZeroCarbon® Manufacturer for 2025, reaffirming its status as Sri Lanka’s only carbon-neutral incense-stick manufacturer. The certification followed an SFG audit that cited the company’s adoption of renewable energy and improved energy-efficiency practices.

Sri Lanka's year-on-year inflation was 2.1% in October 2025, unchanged from September; the Colombo CPI rose 2.16% over 38 months since Sept 2022, and food prices fell 0.6% in October (3.31% deflation since Sept 2022).

Sri Lanka will set up a joint public–private recovery fund to rebuild infrastructure after Cyclone Ditwah and has commissioned the World Bank to carry out a GRADE damage assessment expected within two weeks. A formal disaster declaration has been made to unlock international aid while the government seeks domestic and foreign support.

Sophos reports 58% of retailers with encrypted data paid ransoms and median ransom demands doubled to $2 million in 2025. The report also found 46% of attacks began with unknown security gaps and the share of attacks stopped before encryption reached a five-year high.