News & market updates

Sri Lanka–Pakistan Business Council hosted a B2B meeting on 19 Feb 2025 with a 16-company Pakistani pharmaceutical delegation to explore investment, joint ventures and collaborations in Sri Lanka's pharmaceutical sector.

The Embassy and Permanent Mission of Sri Lanka, with Minor Hotels, organised 'Sri Lanka Ayurveda Week' in Bangkok from 10–16 Feb at Anantara Siam Bangkok Hotel. The event showcased traditional Sri Lankan Ayurvedic treatments with consultations led by Dr. Kasun Gunawardena and marked part of the 70th anniversary of diplomatic ties with Thailand.

Suwasevana Hospitals signed an MOU with the National Insurance Trust Fund to provide Agrahara Medical Insurance holders (over 1.5 million public sector employees and families) with waived admission fees, discounts and other benefits. Benefits include free OPD consultations, 10% off lab and radiology, 20% off room charges, a Rs.50,000 discount on CABG and a free ambulance within 10km.

Verified Market Research projects the global tea extract market to grow from USD 4.55 billion in 2024 to USD 8.23 billion by 2031, at a 7.67% CAGR. Growth is driven by rising demand in beverages, cosmetics, pharmaceuticals and nutraceuticals, with Asia-Pacific (including Sri Lanka) leading supply and adoption.

Dentsu Grant Group won 15 awards—the highest tally for a single agency—at the Effie Awards Sri Lanka 2024. The wins (1 Gold, 5 Silver, 7 Bronze, 2 Finalists) spanned sectors including tourism, healthcare, FMCG and construction and highlighted effective marketing and digital storytelling.

The International Institute of Health Sciences (IIHS) launched a Business School to offer master's-level business administration training integrating healthcare and business, aiming to develop leadership, entrepreneurship and industry-ready professionals.

IMF mission urged Maldives to urgently cut spending, tighten monetary policy and better target subsidies to restore debt sustainability and defend the rufiyaa peg. The government has announced a 10% public sector wage cut and tax/import duty hikes, and IMF called for SOE and healthcare reforms.

UNDP warns that cooking with 'dirty fuels' such as firewood raises health risks and was linked to an estimated 3.2 million deaths globally in 2020. The report puts the cost of inaction at $2.4 trillion and says cleaner stoves could prevent 463,000 deaths and save $66 billion/year.

President and Finance Minister Anura Kumara Dissanayake presented the 2025 Budget, raising the minimum basic public sector salary from Rs. 24,250 to Rs. 40,000 (a Rs. 15,750 increase) and pledging higher spending on education, health and public investment while aligning with the IMF program.

Budget 2025 replaces the SVAT scheme with a risk-based refund system and raises the monthly personal tax-free threshold from Rs.100,000 to Rs.150,000 (annual Rs.1.8m). It also taxes certain export services at 15%, applies VAT to digital platforms, restricts input VAT on capital goods, mandates POS use, raises lease stamp duty to 2%, and expands selected exemptions.

Ruhunu Hospital marks its 30th anniversary in February 2025, highlighting expansion to nearly 100 inpatient rooms, 150+ specialized consultants, 30 specialized units, a state-of-the-art MRI, Cath Lab and plans to invest in medical technology and digital healthcare solutions.

Citizens Development Business Finance PLC (CDB) disbursed Sri Lanka's first loan under the National Credit Guarantee Institution (NCGI) scheme to a Welimada farmer to fund a polytunnel and irrigation upgrade. CDB said further NCGI-backed funding over the next three years will target manufacturing, renewable energy, ICT, agriculture, fisheries, healthcare and education.

Christell Luxury Wellness opened Sri Lanka's first Christell Acne Lab, a super-specialty clinic offering a proprietary 5-step 'Pathway to Glow with Confidence' for personalized, evidence-based acne assessment and treatment.

A randomized controlled trial by RemediumOne and University of Kelaniya found daily Ceylon Cinnamon extract reduced fasting blood sugar at 12 weeks in Type 2 diabetes patients; LDL change was not statistically significant and no adverse effects were reported.

Sunshine Holdings (SUN.N0000) reported consolidated 9MFY25 revenue of LKR 45.2 billion, up 6.7% YoY, while profit after tax fell 14.1% to LKR 4.7 billion. Healthcare revenue rose 17.8% to LKR 24.8 billion; agribusiness (including Watawala) revenue fell 7.1% to LKR 6.0 billion and Consumer Brands declined 3.1%.

Lanka Hospitals PLC is being sued in the Colombo District Court for alleged medical negligence after the October 2023 death of a senior banker; the court has ordered certain documents preserved and directed the hospital to file an answer. The company is 51.34% state-owned and its stake is marked for divestment under the government's restructuring plan.

eChannelling PLC will be the Official Digital Healthcare Partner and Bronze Sponsor of Medicare 2025, held Feb 28–Mar 2, 2025 at BMICH, Colombo. The event is organized by Asia Wellness Forum together with Aitken Spence Conventions & Exhibitions.

President Anura Kumara Disanayake met Pakistan PM Muhammad Shehbaz Sharif and former UK PM Tony Blair at the World Governments Summit 2025 to discuss strengthening trade ties, diversifying markets and promoting tourism, and invited UK investment in health, ports and tourism. He emphasised transparent, corruption-free governance.

Cabinet approved recruiting 7,456 employees for 10 State institutions, including 3,519 for the Ministry of Health. Other major allocations include 3,000 for the Ministry of Public Administration, 400 for Education and 179 for Science & Technology.

Adani Group will build two 1,000-bed multi-super-specialty hospitals and medical colleges in Mumbai and Ahmedabad, donating over INR 6,000 Cr and partnering with Mayo Clinic for technical and clinical expertise. Campuses will include medical training, research, AI/digital health integration and step-down care.

Mega Lifesciences marks almost 25 years in Sri Lanka, operating in 33 countries with household wellness products such as Livolin Forte, Calcivita Forte and Enat 400. The company also launched an extension of its Wellness Center presence in Sri Lanka.

Hemas reported interim revenue up 6.4% to Rs 33.2bn and net profit up 36% to Rs 3.02bn (EPS Rs 5.07). The group said rupee appreciation and lower commodity costs have intensified competition in FMCG and stationery while the central bank undershot its inflation target, aiding currency stability.

Premium International celebrated its 20th anniversary, highlighting major healthcare projects including a EUR 25 million blood‑bank upgrade, completion of the German‑Sri Lanka Friendship maternity hospital, and the launch of the Seregen pharmaceutical production facility with George Steuart.

BOI Chairman Arjuna Herath said the Board aims to attract $2 billion in FDI in 2025, with at least $1 billion secured in the first half of the year. He identified hospitality, logistics, renewable energy, technology, agriculture and apparel/textiles as target sectors and prioritized creating an investment-friendly environment over incentives.

Premium International marked its 20th anniversary, highlighting two decades of turnkey healthcare work including a 2007 upgrade of 24 hospitals and a EUR25m project equipping 96 blood banks. It also completed the German‑Sri Lanka Friendship Maternity Hospital, launched the Seregen pharma plant in 2023 and set up the country's first biomedical R&D lab with University of Moratuwa.

President Anura Kumara Disanayake said land disputes in the Northern Province are under review and steps are being taken to expedite return of land to rightful owners. He also pledged to repurpose the Jaffna President’s House, establish three industrial zones (Paranthan, Mankulam, Kankesanthurai), boost tourism and transport, accelerate water projects, and fill about 30,000 state vacancies.

ADIC reports Sri Lanka incurs Rs.241 billion annually (1.5% of GDP) in economic losses from alcohol and tobacco, with alcohol-related health costs of Rs.237 billion in 2022. The survey also cites 15,000–20,000 alcohol-related deaths per year and strong public support for tougher alcohol policies and taxation.

Colours of Courage Trust, with the Ministry of Health and Sri Lanka Army, has resumed construction of the 10-storey Karapitiya Trail Cancer Hospital targeting completion in 2026 and says it needs a further LKR 2.2 billion after spending LKR 750 million to date. The Trust is again accepting donations of cash, construction materials and equipment via its bank account and website.

Asiri Academy of Health Sciences (part of Asiri Health Group) signed an MoU with Sunway University to create an articulation pathway allowing AAHS Foundation graduates to progress into three Sunway undergraduate BSc programs (Nursing, Medical Biotechnology, Psychology). The partnership also signals broader research and business collaboration between Sunway and Asiri Health Group.