News & market updates

US State Department's 2025 Investment Climate Statement says stalled SOE privatisations—notably the Ceylon Electricity Board—rigid labour rules and limits on foreign participation are weighing on Sri Lanka’s investment outlook. It warns high costs and opaque procurement threaten the government's $5bn FDI target for 2025.

Digital Economy Deputy Minister Eng. Eranga Weeraratne unveiled Sri Lanka’s national AI vision at the National AI Expo 2025 and said the government will launch a dedicated startup funding program in January 2026 and a Defence Cybersecurity Operations Centre. He outlined a four-pillar strategy (human capital, innovation ecosystems, inclusivity, ethical/safe AI) to integrate AI across industries including healthcare and tourism.

Speakers at a webinar said Sri Lanka lacks local GPU clusters, forcing AI startups to rely on public hyperscalers and raising costs; they urged investment in GPU infrastructure, data governance and AI up-skilling, noting opportunities in banking, GovTech, agriculture and education.

Grand Leisure Care & Wellness Resort has opened in Negombo, offering resort-style retirement living with a 40% grand-opening discount. The facility provides 24/7 medical care, personalized wellness and rehabilitation services, and full-board packages starting at Rs. 110,000/month.

Vision Care supported Janadhipathi Balika Vidyalaya with hockey development, gifts and an eye-screening toolkit, and held a felicitation after the school's hockey team won the Girls' Gold Medal at the All-Island School Games.

Yaden Laboratories participated in Tecnosalud 2025 in Lima (10–12 Sep), showcasing its products and production capacity and pursuing export-oriented contract manufacturing opportunities in South America. Peru imports ~90% of medical devices and ~70% of pharmaceuticals, highlighting a large market for exporters.

The inaugural National AI Expo & Conference 2025, organised by the Digital Economy Ministry and SLT-Mobitel, will be held 29–30 Sept at Monarch Imperial, Colombo to showcase AI applications across sectors. The two-day event features 12+ sessions, 25+ speakers, exhibitors and partners including Huawei and Microsoft to promote AI adoption.

The Cabinet approved a revision of the National Policy on Senior Citizens (first introduced in 2006) to respond to demographic shifts, with those aged 60+ projected to reach 24.8% by 2052. The updated framework aims to strengthen protection, care and social inclusion for older Sri Lankans.

The Cabinet approved awarding a $3.98 million contract to India’s M.J. Biopharm Ltd to supply 2.2 million vials of Biphasic Isophane Insulin (Human) 30%/70% following international competitive bidding to ensure uninterrupted access to diabetes medicines.

Bill Gates pledged $912 million to the Global Fund's 2026–2028 replenishment and urged governments to restore or increase health aid to save millions of children's lives by 2045. In Sri Lanka, nonprofit Connect to Care is working with the government and the Gates Foundation to align national priorities with global health initiatives.

AIA Sri Lanka has onboarded over 200 customers into its AIA Exclusive programme, expanding its premium personalised insurance and investment offering. The programme includes dedicated CRMs, annual medical packages, priority telemedicine, hospital privileges and coordinated international in-patient care.

The National Chamber of Commerce of Sri Lanka will host a 31-member All India Chamber of Commerce & Industries delegation for B2B meetings on 26 Sep to explore trade and investment partnerships. Delegates represent sectors including agro-commodities, construction, packaging, renewable energy, healthcare, logistics, IT and food products.

India’s government cut GST rates — staples, life and medical insurance and some medicines are now tax-free, GST on small cars, TVs and air conditioners falls from 28% to 18%, and many goods move to 5%. The measures aim to boost household consumption and help consumer goods and automakers but may cost about $5.4bn in revenue, potentially forcing cuts to infrastructure spending.

The Gates Foundation’s 'Goalkeepers 2025' event returns to New York today during the UN General Assembly, focusing on reversing slipping progress in child health and preventing millions of under-5 deaths under the theme 'We Can't Stop at Almost.'

Government gazetted the 2026 Appropriation Bill, capping outstanding borrowing at Rs. 3.8 trillion and setting total expenditure at Rs. 4.54 trillion. Major allocations include Finance Rs. 634.8bn, Health Rs. 555bn, Defence Rs. 455bn and Education Rs. 301bn; Budget speech on 7 Nov.

Government held pre-Budget talks with pharmaceutical, veterinary, Ayurvedic and cosmetic manufacturers at the Presidential Secretariat; industry presented proposals and the government said it will consider them and may introduce new laws to ensure product quality and standardisation.

Sri Lanka's 2026 Appropriation Bill sets a government borrowing limit of Rs3,800 billion and allocates Rs2,693.5 billion for current spending and Rs1,852 billion for capital expenditure; figures include roll-overs and differ from the formal budget presentation. The bill raises Army current spending to Rs225 billion and assigns the Ministry of Health Rs196 billion (operational) and Rs217 billion (development).

A pre-budget meeting on the 18th at the Presidential Secretariat brought pharmaceutical, veterinary, Ayurvedic and cosmetic manufacturers to discuss sector challenges and budget proposals; Minister Dr. Anil Jayantha Fernando said proposals will be considered and new laws may be introduced to ensure quality standardized products.

Bhutan plans the Gelephu Mindfulness City as a Special Administrative Region to combine spirituality with sustainable economic development, covering up to 1 million acres and targeting tourism, health and wellness, agritech, green energy, digital assets (a gold-backed 'TER') and aviation.

The Cabinet approved a local pharmaceutical procurement package totaling Rs.10.423 billion for 2025, allocating Rs.1.148bn to the SPMC, Rs.4.159bn to SPMC joint-venture manufacturers and Rs.5.116bn to post-purchase private manufacturers. The move aims to bolster domestic drug production, cut import dependence and secure medical supplies.

Vallibel One (parent of the Delmege Group) marks Delmege’s 175th anniversary, highlighting the Group’s diversified operations across consumer goods, interiors, healthcare, shipping, insurance and travel.

ZEISS has launched ZEISS MyoCare lenses in Sri Lanka to slow childhood myopia progression, rolling out the product in partnership with Wickramarachchi Opticians to expand access to advanced paediatric myopia management.

Lanka Hospitals' MD says Bank of Ceylon's on-site branch is a vital enabler of the hospital’s financial operations, handling staff salary disbursements, supplier and patient settlements and daily transactions. Lanka Hospitals also highlights investments in advanced medical technology, JCI/CAP accreditations and an International Patient Centre to curb medical tourism outflows.

The Association of Private Hospitals and Nursing Homes (APHNH) held its first national gathering, 'Beyond Competition – Future Through Partnerships', with over 150 private hospital representatives. The meeting stressed the private sector's role (55% of outpatient care), collaboration with the PHSRC, and launched APHNH's official website.

Beam Hela Osu Lanka rewarded outstanding sales officers with a five-day Thailand incentive tour from Aug 2–6, its first overseas incentive trip. The Ayurvedic product maker, ISO 22000:2018 certified, sells herbal products nationwide via pharmacies and supermarkets.

Slim Pharmaceuticals has appointed Riza Cassim as CEO; he brings over 30 years' multinational pharma experience and will pursue growth via new brands, biosimilars, niche entries, potential acquisitions and digital-health initiatives to expand access and drive double-digit growth.

ASPI fell 0.6% (128 pts) to 20,642 on turnover of Rs.6.5bn, led by Prime Lands Residencies (Rs.1.9bn), Chevron Lubricants and Sierra Cables; banks and blue-chip names including HNB, JKH and DFCC were top negative contributors.

Author urges Sri Lankan policymakers to adopt smart regulation (age limits, product standards, enforcement) for e-cigarettes rather than prohibition to curb black markets and protect youth. Cites PHE's 95% less-harm estimate, Australia’s 1.4M vapers (90% illicit sourcing) and New Zealand’s fall in smoking from 16.4% to 6.8% as evidence.