News & market updates

The EDB held a strategic meeting with 15 newly appointed diplomatic representatives to strengthen Sri Lanka's export capabilities and market penetration. Appointments span Asia, Europe, Africa, the Middle East and the Americas and target exporters of tea, textiles, spices, IT services, pharmaceuticals and value-added manufacturing.

Sri Lanka's Export Development Council of Ministers discussed entering new tariff agreements and other measures to help achieve the government's export target of USD 36 billion by 2030 (from USD 16.17 billion last year). Areas highlighted included gems and jewellery, pharmaceuticals, poultry, tea, spices, electronics, an export hub and Trincomalee Port development.

Government approved 62,314 State sector cadre positions over the past eight months. Recruitment is underway, with Defence allocated 12,433 posts and Media and Health allotted 11,888 positions (including Government Medical Officers), and the move is framed as supporting digitalisation and filling vacancies.

The Ministry of Digital Economy and SLT-MOBITEL will host Sri Lanka's first National AI Expo & Conference on Sept 29–30, 2025 to drive AI adoption across industries, supporting a digital economy growth target from US$3.5bn (2025) to US$15bn by 2030 with AI contributing 10–12%.

The Sri Lankan government approved 62,314 state sector jobs in the last eight months, Cabinet Spokesman Nalinda Jayatissa said. Approvals include 12,433 posts for the Defence Ministry and 11,888 roles for Media and Health, including government medical officers.

Grand Leisure Care and Wellness Resort opened in Negombo as Sri Lanka’s first luxury wellness resort for seniors, offering full-board packages from Rs.95,000/month and up to 40% discount for new residents. The facility provides luxury and shared accommodation, 24/7 medical support, dedicated nursing beds and wellness services.

The EDB held a strategic meeting with 15 newly appointed diplomatic representatives to strengthen Sri Lanka's export capabilities and market penetration across Asia, Europe, Africa, the Middle East and the Americas. Appointments cover ambassadors, high commissioners and consuls in major economic centers to boost exports of tea, textiles, spices, IT services, pharmaceuticals and value-added manufacturing.

Tilak Gunawardena, MAC Holdings' Director of Finance and Group CFO, was appointed President of the Sri Lanka–USA Business Council for 2025/26. He said he will work to strengthen bilateral trade, address potential new U.S. tariffs on Sri Lankan exports, and promote IT/digital, renewable energy and health-tech links.

Companies (Amendment) Act No. 12 of 2025 was enacted, creating a Beneficial Ownership Information (BOI) register with public electronic access to owners' full names, previous names, nationalities, residence, business addresses and extent of ownership. Transparency International Sri Lanka welcomed amendments and urged effective implementation to curb corruption, money‑laundering and tax evasion.

Hemas Holdings PLC (HHL.N0000) posted 1Q FY2026 revenue of Rs.28.5 billion, operating profit of Rs.2.1 billion (up 6.9%) and earnings of Rs.1.2 billion (up 26.1%). Management cited stronger topline, margin expansion and lower finance costs, and noted a Gazette introducing medicine price caps that may affect pharma selling prices.

Hemas Group reported Q1 FY25/26 earnings of Rs. 1.2 billion, up 26.1% year‑on‑year, with revenue of Rs. 28.5 billion and operating profit of Rs. 2.1 billion. Growth was driven by stronger topline, improved gross margins and lower finance costs, with healthcare revenue up 20.2% while consumer brands saw a marginal revenue decline.

Brand Finance published Sri Lanka's 100 Most Valuable Brands for 2025, ranking Bank of Ceylon top with a brand value of Rs.57,411m; Commercial Bank, Dialog and People’s Bank follow the top positions. The list covers firms across banking, telecoms, FMCG, healthcare, hospitality and other sectors.

DB Automation opened a Zebra Experience Center in Bambalapitiya, Colombo, offering an interactive showroom of Zebra Technologies solutions for retail, healthcare, hospitality, logistics and manufacturing. The center provides live demos and trials of queue-free billing, high-speed barcode scanners, patient data management, inspection and automation systems.

Sunshine Holdings (SUN) reported consolidated revenue of LKR 15.9 billion in 1QFY26, up 11.6% YoY, and PAT of LKR 1.7 billion (+20.6% YoY). Healthcare drove performance (54.2% of revenue) while consumer and agribusiness (represented by Watawala) also posted YoY gains.

Colombo CCPI was -0.3% y/y in July 2025, up from -0.6% in June 2025. Food inflation fell to 1.5% (contributing +0.49ppt) while non-food inflation rose to -1.2% (contributing -0.82ppt); housing, electricity and transport were major downward contributors, with education and health rising.

Sri Lanka and Türkiye held the 3rd JCETC on 24 July, agreeing to deepen cooperation across trade, investment and tech, with bilateral trade reaching $257 million in 2024. The meeting noted a 78% rise in Turkish tourist arrivals and targeted sectors for investment including renewable energy, ICT, food processing and medical devices.

The U.S. and South Korea struck a trade deal that sets U.S. tariffs on South Korean imports at 15% and includes South Korean commitments to invest $350 billion in U.S. projects and to buy $100 billion of LNG and other energy products.

Adhitya Ayurveda Colombo marks its second anniversary after serving over 1,000 clients this year, positioning itself as a leading Ayurvedic wellness destination in Colombo. The luxury centre, expanded from Anuradhapura, offers personalized treatments, partners with Momager for postpartum care and plans new therapies.

CA Sri Lanka has committed to fully adopt the IFRS/ISSB Sustainability Disclosure Standards (SLFRS S1 and S2), with phased implementation from January 2025 and mandatory compliance for the first 100 Main Board CSE-listed entities by 2025, expanding to full rollout by 2030.

First Capital Holdings PLC held its Mid-Year Outlook Investor Forum on 17 July, extending its LKR/USD target to 300–310 to December 2025 and setting an ASPI target of 18,000–19,000 for 2025. The forum also forecast mild rupee depreciation to 305–315 in H1 2026, ASPI 21,000–22,000 in 2026, and AWPR easing to 7.5–8.5% before edging up next year.

The U.S. and EU agreed a framework imposing a 15% tariff on most EU goods, halving the threatened rate and averting a broader trans-Atlantic trade war. The deal exempts certain items (including aircraft and some generics), forecasts large EU purchases of U.S. energy and arms, and leaves many details to be negotiated.

Continental Insurance Lanka appointed Dr. Naomal Balasuriya and Dr. K. Thiyagarajah Iraivan to its Board; both bring extensive healthcare, management and governance experience and have prior links to Melstacorp and Distilleries Company of Sri Lanka.

Suwasevana Hospital signed an MoU with the Sri Lanka Army to provide concessionary healthcare benefits including waived admission fees, free OPD consultations, 20% discounts on diagnostics/radiology/room charges, Rs.50,000 off coronary bypass and free ambulance within 10km.

First Capital Holdings PLC held its Mid‑Year Outlook Investor Forum on 17 July 2025, forecasting an LKR/USD target of 300–310 to Dec 2025, ASPI 18,000–19,000 for 2025 (21,000–22,000 in 2026) and AWPR down to 7.5%–8.5% after a likely 25bp cut. The virtual forum drew 900+ registrations, was run in Sinhala, Tamil and English, and featured panelists from Hemas and Access Engineering.

Sri Lanka High Commissioner Dharmapala Weerakkody met DCCI Vice President Md. Salem Sulaiman in Dhaka to follow up on a DCCI business delegation (16–20 June 2025) that yielded more than 450 B2B meetings and identified opportunities in pharmaceuticals, ICT, education, healthcare and tourism. Both sides committed to further collaboration to strengthen bilateral economic cooperation.

Sri Lanka will grant one-year visas to Maldivian citizens from August 1, restoring longer-term visas. The change aims to boost visits including health tourism; Maldives allows visa-free entry to Sri Lankans.

Forte Diagnostics launched Sri Lanka’s first AI-powered medical diagnostics and health data visualisation platform in partnership with India’s Health Vectors. The platform will provide interactive, AI-analysed, visually rich diagnostic reports to patients and clinicians.

Vision Care Hearing Solutions, a subsidiary of Vision Care, opened a new independent Audiology Unit in Panadura (233 Galle – Colombo Road), its sixth specialised audiology centre, offering advanced diagnostics, real ear measurements for hearing-aid fittings, ENT consultations and speech & language therapy.

Sri Lanka's NMRA has issued formulas to set Maximum Retail Prices (MRP) and Maximum Ceiling Prices (MCP) for drugs, with MRPs calculated as CIF + duties/taxes + Supply Chain Total Markup and reviews every six months. The MRP will use the average three‑month USD exchange rate and MCPs will be set using internal/external reference pricing and retail checks.

Sri Lankan Embassy in Berlin held an 'Explore Sri Lanka' tourism promotion on 15 July 2025 targeting German senior citizens to encourage longer stays focused on wellness and Ayurveda; the event drew more than 100 participants.