Government aims to build coconut and food & beverage exports to USD 3.0bn in two years (USD 2.0bn coconut, USD 1.0bn food & beverage) and pledged incentives, support for value-added production, streamlined raw-material imports and industry establishment in the Northern Province.
Government tabled its Fiscal Strategy Statement for 2027 and defended recent tax amendments, clarifying that digital VAT targets non-resident service providers and that the reduction of the compulsory VAT registration threshold from Rs.60m to Rs.36m has been postponed.
Colombo Crimes Division seized suspected counterfeit Caltex and Delo engine oil from two retailers (SF Marketing in Mawanella and J.W. Auto in Kegalle) during raids on 2 June 2026; the matters are before Mawanella and Kegalle Magistrate’s Courts and the accused were granted Rs. 10 million surety bail. Authorities say counterfeit lubricants risk engine damage, increased emissions and environmental harm, and investigations are ongoing.
Deputy Minister Chathuranga Abeysinghe said Sri Lanka's handloom sector should be repositioned as an 'industry of the future' with untapped export potential, urged greater private investment, and announced government plans to restructure the EDB, Department of Textiles, Laksala and Salusala to support growth.
The Sri Lanka Retailers’ Association held its 9th AGM on 23 June 2026 and elected Infiyaz M. Ali (Director, Healthguard Pharmacy Ltd) as President, with Mahesh Wijewardena (Group CEO, Singer (Sri Lanka) PLC) as Senior Vice President and Kumar De Silva (CEO, SPAR SL) as Vice President. The AGM adopted the 2025/26 annual report and previewed the Sri Lanka Retail Forum 2026.
Consumer Staples (FMCG)Healthcare & PharmaIT & Digital
Barista launched Tap Grab Go, a mobile app that enables order-ahead and islandwide pick-up to speed takeaway service. The app integrates with Barista’s Loyalty Crown program and targets takeaway orders, which the company says make up 21% of transactions with a 9.5-minute average wait.
Sri Lanka Customs exceeded its June revenue target for a sixth consecutive month, collecting 194.1 billion rupees in the first 23 days versus a 184.9 billion target. Stronger enforcement, improved valuation and a rebound in imports have boosted collections and helped fiscal revenues under the IMF program.
Colombo Stock Exchange rose 0.89% as the ASPI gained 198.46 points to 22,407 and the S&P SL20 rose 0.99% to 6,242, with turnover of 2.7 billion rupees. Top positive contributors were Dialog Axiata, John Keells and Hayleys, while Bukit Darah and Colombo Fort Land & Building were top decliners.
IFC will invest up to $10 million in New Anthoney’s Farms Group to scale poultry capacity, targeting exports of 1,936 tonnes annually (a 29% rise from 2024) and creating over 900 jobs. The funding includes up to $5m from GAFSP and aims to benefit ~200 smallholder farmers.
Sri Lanka, led by Trade Minister Wasantha Samarasinghe, participated in the 10th China–South Asia Exposition and 30th Kunming Import Fair (11–16 June 2026), showcasing 100 booths and securing export partnerships including an MoU to promote Sri Lankan beverages in China. Discussions also covered access to Kunming bonded-zone free warehouses to boost supply-chain connectivity.
The Thailand–Sri Lanka Business Forum centred on implementing the Sri Lanka–Thailand FTA to boost trade and investment after bilateral trade reached USD 649m in 2025 (+48% vs 2024). Delegates highlighted opportunities in logistics, manufacturing, food and agriculture, IT, healthcare and tourism and urged streamlined customs and predictable FTA implementation.
Fitch Ratings says US consumer spending growth is slowing as inflation erodes real incomes, with real spending easing to 1.4% qoq annualized in 1Q26 and Fitch forecasting 1.7% growth for 2026. Lower oil prices could ease the squeeze, but falling savings and rising auto and credit-card delinquencies point to uneven spending.
Interest RatesFuel & Energy PricesConsumer Staples (FMCG)
IFC will invest up to $10 million in New Anthony’s Farm Group to expand poultry capacity, retail/franchise reach and value-chain efficiency. The project is expected to create over 900 jobs, benefit ~200 smallholder farmers and raise exports to 1,936 mt annually.
First Capital Research: aggregate earnings of 271 listed companies fell 11.4% YoY in the March 2026 quarter (third straight quarter), but underlying earnings rose 30.1% YoY after adjusting for major one-offs. Food, Beverage & Tobacco dragged the aggregate result while retailing and telecom posted strong gains (e.g. UML, DIAL, SLTL, SINS).
A Cabinet-appointed committee reviewing Sri Lanka’s Free Trade Agreements is expected to submit recommendations in July, and an India Trade Desk has been launched to help Sri Lankan firms tap the Indian market. Bilateral trade reached about $5.8bn in 2025, with Sri Lankan exports to India over $1bn and imports $4.3bn.
Headline NCPI inflation rose to 5.4% YoY in May from 4.7% in April, the third consecutive monthly increase. Rises were driven by higher petrol and LP gas prices and increases in several food items (vegetables, fish, onions), while rice, eggs and sugar eased; core inflation edged to 4.5%.
Interest RatesFuel & Energy PricesConsumer Staples (FMCG)Tourism
Uber launched Uber Eats and Uber Rides in Ratnapura, enabling food and grocery delivery plus multi-vehicle ride-hailing across the district. The expansion provides local merchants, delivery partners and drivers with new customer access and earning opportunities.
Colombo Stock Exchange was flat in Wednesday intraday trading: ASPI down 0.02% at 22,252.79, S&P SL20 at 6,193.16 and turnover Rs 406 million, with materials leading turnover at Rs 88.6 million. Diesel & Motor Engineering declared a final dividend of Rs 40 per share; SANASA Life plans to raise up to Rs 500 million via Tier II debentures.
Dilmah Ceylon Tea Co chairman backed the National Export Development Plan to raise exports to $36bn by 2030, urging a shift to premium, quality-focused exports rather than competing on volume. He called for investment in testing, traceability and trade deals; CEAT Kelani urged policy consistency and supply-chain fixes.
The Sri Lanka Export Development Board ran a Technical Exposure and Capacity Building Program alongside THAIFEX–ANUGA ASIA 2026 (24–31 May) in Bangkok, taking 11 export-ready Sri Lankan food & beverage SMEs to gain market, packaging and marketing insights and meet Thai industry bodies.
Sri Lanka used the 10th China–South Asia Expo in Kunming to boost market access, with Yunnan authorities agreeing to provide a 2,000 sq m free warehouse in Kunming for Sri Lankan exporters to store and distribute goods via Chinese e-commerce. The pavilion highlighted tea, spices, coconut products, processed foods, handicrafts and tourism services amid rising participation and trade growth with China.
Seylan Bank PLC has partnered with Sathosa Motors PLC to offer a dedicated leasing facility for ISUZU commercial and passenger vehicles, with 24-hour fast-track approvals, up to seven-year payment terms, competitive interest rates and vehicle discounts (LKR100,000 on trucks; LKR200,000 on double cabs) plus service/spare-parts benefits.
Interest Rates
Ada Derana·Jun 23, 2026·Promotional / marketing·SINSPositive
Singer Sri Lanka PLC opened the first HONOR Experience Store in Sri Lanka at One Galle Face Mall under its exclusive partnership with HONOR. HONOR, partnered with Singer since April 2023, has become the number-one smartphone brand in Sri Lanka and the store showcases its flagship devices and accessories.
IT & Digital
Ada Derana·Jun 23, 2026·Promotional / marketing·DIMOPositive
DIMO (Diesel & Motor Engineering PLC) concluded the 32nd MercedesTrophy Sri Lanka 2026 in Nuwara Eliya (5–7 June), celebrating Mercedes‑Benz's 140th anniversary and reinforcing customer engagement through golf, luxury hospitality and driving experiences.
BeWAXed Sri Lanka is expanding into India with new branches due to open across multiple major metropolitan cities in the coming weeks. The specialized waxing chain, founded by Durga Kenny in 2013, also markets its Goddess Cosmetics line and offers a mobile app for appointments.
Colombo Stock Exchange trended up, with the ASPI rising 0.27% (61.12 pts) to 22,314.64 on turnover of Rs.609.9m, led by capital goods (Rs.241.2m). Lee Hedges announced revised payment terms for its Rs.3.15bn acquisition of Lanka Realty Developments (Rs.1.1bn paid, Rs.2.057bn due within six months plus interest).