News & market updates

Ceylon Chamber warns the US has proposed a 12.5% labour-related tariff on Sri Lankan exports, which could weaken export competitiveness; apparel and tea exports were down 7% and 6% respectively in the first four months of 2026.

JAT Holdings (JAT.N0000) recorded highest-ever annual revenue of Rs. 12.6 billion in FY25/26 and profit before tax rose 5% to Rs. 1.68 billion, with gross profit up 21% to Rs. 4.8 billion. Performance was supported by the acquisition of Mirotone, a 76% increase in binder plant capacity, improved margins, and growth in its EV charging and decorative paints businesses.

Sri Lanka is among 60 countries the U.S. has included for a new import tax over failures to enforce a ban on goods made with forced labour, a move that could hit exporters — the U.S. takes ~22% of Sri Lankan exports, led by garments.

Sri Lanka has been placed in the higher 12.5% tier of a proposed US Section 301 duty regime targeting goods made with forced labour, prompting JAAF to warn of competitiveness risks for apparel exporters versus rivals facing a lower 10% rate. USTR hearings are set for 7 July; written submissions due 6 July.

ASPI fell 0.75% (166.55 pts) to 22,011.10, extending losses to a third session with turnover over Rs.2bn and foreigners net sellers of Rs.410.26mn. Negative contributors included Dialog, Sampath, Ceylon Beverage, Ceylon Cold Stores and Colombo Dockyard; Teejay Lanka, John Keells and Commercial Bank led turnover.

JAT Holdings posted record group revenue of Rs. 12.6 billion in FY25/26 (up 9% YoY) with gross profit rising 21% to Rs. 4.8 billion and PBT up 5% to Rs. 1.68 billion, driven by stronger margins, local sales growth and expansion into EV charging and international markets.

The Ceylon Chamber will host the Sri Lanka Climate Summit 2026 on 9 June in Colombo to focus on business climate readiness, investment readiness and unlocking climate finance. Participants include the Environment Minister, ADB, UN agencies, Commercial Bank CEO and Aitken Spence sustainability leadership.

Pelwatte Dairy commissioned Sri Lanka's largest dairy effluent treatment plant at its Buttala facility, with a base capacity of 250 m³/day and peak capability up to 325 m³/day. The plant meets CEA standards and ISO 14001-aligned practices to support environmental compliance and export market access.

Colombo Stock Exchange will host a free online workshop on 23 June 2026 (1:00–4:30pm) to guide corporates on implementing the ISSB/IFRS Sustainability Disclosure Standards (IFRS S1 and S2). Sri Lanka adopted SLFRS S1/S2 effective 1 Jan 2025, with phased mandatory compliance across listed entities through 2027.

The US has announced new 10–12.5% tariffs on imports from 60 trading partners over forced-labour concerns, a group that accounts for about 99.4% of US imports. The measure follows an investigation finding the countries failed to prohibit or enforce bans on goods made with forced labour.

Cabinet approved Rs. 827 million in lubricating oil contracts for the Sapugaskanda Power Plant, awarding Rs. 392.47m (316,000 litres) to Lanka IOC and Rs. 434.86m (304,000 litres) to Chevron Lubricants to cover 2026/27 operational requirements.

Colombo Stock Exchange dipped midday as the ASPI fell 0.10% to 22,155.45 with market turnover at 981 million rupees; Consumer Durables & Apparel led turnover at 348.1 million rupees. Central Finance, Hemas and Browns gained, while Access Engineering, Ceylon Cold Stores and Sampath Bank were down.

Yasas Hewage assumed duties as Chairman of the Industrial Development Board, bringing nearly two decades of banking, SME and entrepreneurship experience. He has held roles at HSBC and NDB and will support SME initiatives and the proposed Entrepreneurship and Industry Transformation Authority.

Colombo market fell for a second day as ASPI slipped 0.39% to 22,177.65 and the S&P SL20 eased 0.32% to 6,130.65 on turnover of Rs.2.01bn. Notable moves: Ceylon Cold Stores, Haycarb and Pan Asia Banking gained, John Keells was flat, with mixed or retail interest in several other stocks.

Colombo Stock Exchange fell with the ASPI down 0.39% after the Central Bank raised the Overnight Policy Rate by 100 basis points to 8.75%. Kerner Haus Global Solutions (CPRT.N0000) filed a rights issue to raise 420.12 million rupees (10,502,975 shares at Rs.40).

Export Development Board will expand testing and certification facilities islandwide to boost export competitiveness, planning to modernise provincial labs, utilise underused facilities, pursue public–private partnerships and digital certification; next step is mapping exporter needs and provider capacities.

Haycarb PLC signed an agreement with the BOI for an $18.18m expansion of its Energy Storage Carbon manufacturing operations. The company reported FY26 pre-tax earnings of Rs. 5.52bn and post-tax Rs. 4.27bn, is developing a Philippines facility (phase 1 by H1 2027), and its shares rose 3% yesterday.

The IMF completed its combined Fifth and Sixth reviews under Sri Lanka's EFF and released US$695m, bringing total IMF disbursements to US$2.4bn. The IMF cut 2026 growth to 3.0% and warned that higher fuel costs, a sharp drop in tourism and cyclone damage have flipped the current account to a projected 0.5% of GDP deficit.

Yasas Hewage assumed duties as Chairman of the Industrial Development Board on 1 June 2026. He brings nearly 20 years of experience in banking, finance and entrepreneurship and said Sri Lanka's industrial transformation should draw on past strengths while embracing technology, innovation and sustainability.

IBCSL will lead a national business delegation to the 4th China‑South Asia Standardisation Cooperation Conference in Chengdu from 8–10 July. The forum aims to harmonise product, service and technical standards with China to reduce non‑tariff barriers and certification costs for Sri Lankan exporters in tea, apparel, gems & jewellery, rubber and IT services.

INFRACON 2026, a rebranded infrastructure and construction exhibition, will be held 3–5 July at SBMEC Colombo showcasing HVAC-R, Power & Energy, Green Grid, Safe Water and Build Materials with local and international exhibitors to promote B2B deals and industry collaboration.

The EDB and NMRA met with Sri Lankan pharmaceutical manufacturers to tackle export barriers, prioritizing delays in product registration and aligning regulatory processes with international benchmarks to boost pharmaceutical exports; EDB noted pharma is key to the USD 36bn export target by 2030.

Colombo bourse closed lower with the ASPI down 0.21% to 22,695 as investor sentiment remained subdued after the CBSL rate hike; market turnover was over Rs. 1.7 billion.

LOLC Holdings PLC reported a 49% increase in results from operating activities to Rs.71.5 billion for FY2026. Gross income rose 28% to Rs.430.3 billion, with the financial services segment contributing Rs.51.7 billion and strong gains across manufacturing, plantations and insurance.

Sri Lanka's Export Development Board plans to expand and decentralize testing and certification facilities island-wide to ease exporters' bottlenecks, proposing modernization of provincial labs, greater use of underutilized facilities, public–private partnerships and digital certification.

The Export Development Board (EDB) will expand testing and certification facilities islandwide to address centralization in Colombo and boost export competitiveness. Plans include modernizing provincial government labs, maximizing underused facilities, public–private partnerships, and digitising the certification process.

LOLC Holdings PLC reported a 49% rise in results from operating activities to Rs. 71.5 billion for the year ended 31 March 2026, with gross income up 28% to Rs. 430.3 billion. Financial services (Rs. 51.7bn), stronger manufacturing/trading and a return to profitability in plantations underpinned the performance.

Sri Lanka's current account slipped into a $532.4m deficit in April, erasing the Q1 surplus and leaving a $0.9m deficit for Jan–Apr, driven by a sharply widened trade gap (imports +45.7% YoY) and weaker tourism amid higher fuel spending; reserves stood at ~$6.8b and IMF review released about $695m.