News & market updates

Colombo stock market edged down 0.09% to close at 22,899.53 (ASPI down 20.79 pts). Turnover was Rs.2.62bn with foreign investors net selling Rs.116m; top negative contributors included Dialog, Hemas, HNB, LOLC and Colombo Dockyard.

US dollar strengthened to Rs. 323.95 on May 14, with the selling rate rising to Rs. 329.92 — the highest since Dec 28, 2023; the buying rate increased to Rs. 322.28.

Sri Lanka Customs collected Rs. 1.009 trillion by 12 May 2026, exceeding Treasury targets by Rs. 133.45 billion (115% of cumulative target) as stronger enforcement and trade recovery boosted import-related revenues.

Colombo bourse slipped below 23,000 as the ASPI fell 0.41% to 22,920.32 with turnover over Rs.2.8bn and net foreign outflows of Rs.29.5m. Market weakness was blamed on Middle East tensions and weaker Q1 banking earnings; CINS, MELS, BUKI, NDB and DFCC were key negative contributors.

The Sri Lankan government has launched a fresh investor drive for Mattala Rajapaksa International Airport, inviting EOIs for airside operations and landside commercial development across cargo, logistics, MRO, industrial parks, renewable energy and hospitality; EOI documents are available until 8 June with a briefing and site visit scheduled for 22 May.

Cabinet approved a fresh international tender to select a service provider for Sri Lanka’s liquor security stamp system for the next five years, with the current contract due to expire on 1 January 2027. The selected provider will handle security stamp printing and system management under the Excise (Amendment) Act provisions to improve traceability and revenue collection.

Sri Lanka Expo originally planned for 2026 has been postponed to January 14-17, 2027 because of geopolitical uncertainties affecting trade and travel, the Export Development Board said. The event is expected to host about 750 local exporters and 1,500 international participants, and exhibitor registration is extended to July 31, 2026.

Sri Lanka Expo 2026 has been rescheduled to 14–17 January 2027 at BMICH in Colombo. The EDB expects about 750 local exporters and 1,500 international participants and has extended exhibitor registration to 31 July 2026, citing geopolitical uncertainties.

Sri Lanka's Ministry of Ports & Civil Aviation has launched an EOI drive (27 Apr–8 Jun 2026) to attract local and foreign investors to Mattala Rajapaksa International Airport for airside and landside opportunities covering cargo, MRO, logistics, industrial parks, renewable energy and resort/hospitality projects.

Acme Printing and Packaging PLC will cut stated capital by Rs. 1.6 billion — reducing stated capital from Rs. 2.26bn to Rs. 665m — to write off accumulated losses and reduce retained losses to about Rs. 9.2m, subject to shareholder approval at an EGM.

Government will amend the National Environmental Act to introduce pollutant-based (load-based) charging, stricter industrial approvals, legally binding Environmental Management Plans and mandatory pre-project environmental clearances. The changes target manufacturing, energy, construction and chemicals firms and include fines and up to two years' imprisonment for non-compliance.

Sri Lanka will introduce extended producer responsibility in amendments to the Environmental Act, legally requiring producers to collect and recycle a set portion of plastic packaging (example: 40%), with a three-year grace period to build infrastructure and fines for non-compliance.

Mordor Intelligence forecasts the coconut oil market to grow from USD 7.75bn in 2026 to USD 11.05bn by 2031 (CAGR 7.36%). Growth is driven by rising demand in cosmetics/personal care, clean-label cooking oils and pharmaceutical/nutraceutical uses, with Asia-Pacific leading production and government support improving supply.

JAAF says Vietnam's trade strategy lifted apparel exports from about $13bn to ~$45bn in 15 years via 19 FTAs, while Sri Lanka's apparel exports grew from $3.4bn to ~$5.4bn and now earn roughly $5bn annually. JAAF recommends pursuing FTAs plus investment, infrastructure and skills to boost exports.

Colombo Stock Exchange closed marginally higher, ASPI up 0.02% at 23,015.32 with turnover of Rs.3.66 billion. Real estate and transportation led turnover (Rs.495.2m and Rs.485.2m) and Abans Finance listed Rs.1.34bn five-year debentures; its shares rose 3.47%.

Sri Lankan Australian business networks — exemplified by Arjuna (Arj) Samarakoon — are helping connect Australia, Sri Lanka and Southeast Asia, supporting market entry, trade and investment, illustrated by his meeting with Cambodian Prime Minister Hun Manet.

The Sri Lanka Export Development Board has rescheduled Sri Lanka Expo to 14–17 January 2027 at BMICH citing geopolitical uncertainty. The event is expected to host about 750 local exporters and 1,500 international participants across apparel, tea, ICT, pharma, renewable energy and other sectors.

John Keells Holdings chair Krishan Balendra will lead a 19-member Sri Lankan corporate delegation to Mumbai for the India–Sri Lanka Business Forum on 13 May to engage Indian counterparts on trade, investment and partnerships. Sri Lanka and India have also discussed a proposed $450m post-conflict reconstruction package.

The Sri Lankan rupee has depreciated 3.6% against the US dollar year-to-date, with an indicative USD/LKR spot rate of Rs.321.87 (buy Rs.318.03, sell Rs.325.64) as of 8 May 2026 — the weakest level since 16 January 2024.

Sri Lanka's official reserve assets fell $267m to $6.76bn in March, with foreign currency reserves down $295m to $6.54bn; the CBSL was a net seller of dollars in April (net $13m). Predetermined near-term FX obligations total $2.1bn and forward short positions amount to $3.87bn.

Tony Pellé delivered over 6,500 custom leather items — including more than 5,000 pairs of shoes, belts and coasters — for Cinnamon Life staff, all manufactured locally using sustainably sourced leather and plant-based tanning and customized to match staff uniforms and operational needs.

Colombo Stock Exchange closed lower: ASPI -0.23% to 23,011.72 and S&P SL20 -0.30%, with turnover Rs.4.92bn and banks leading at Rs.3.04bn. Movers included Melstacorp, Hemas and CDB up while Ceylinco Insurance, Commercial Bank, DFCC and Colombo Dockyard fell; Laugfs Power commissioned a 2MW mini-hydro and ACME proposed a capital reduction (EGM Jun 11).

RTS Holdings' Hidellana and Avissawella tea factories received Zero Carbon Manufacturing Certification after independently audited measures and offsetting 1,020 tonnes CO₂e to reach net-zero GHG emissions. Carbon credits were sourced from a CDM-certified hydropower project and the audit followed WBCSD/WRI GHG Protocol and ISO 14064-1 standards.

The Ceylon Chamber will lead a senior corporate delegation to Mumbai for the India–Sri Lanka Business Forum on 13 May 2026, with leaders from John Keells, Aitken Spence, Hayleys, Sierra Cables and Vidullanka among participants to engage Indian investors on trade and investment opportunities.

CEAT Kelani Holdings opened a new premium Shop-in-Shop outlet at Olympic Tyre House on Havelock Road, Colombo 6, expanding its premium retail network and offering its full range of tyres and related services in a modern customer-focused setting.

Dynawash hosted Pepsi Lipton CEO Bjorn Bernemann and a senior delegation to view “Tea Dye”, a sustainable apparel dye made from Lipton Ice Tea byproducts, at its Biyagama facility. The collaboration highlights waste reduction and scalable circular manufacturing for global apparel supply chains.

Remarko Bakers and Caterers has entered a strategic partnership with Orzone Mineral Water Exports, with Orzone designated as the official mineral water partner across Remarko's franchise network.

Vietnamese President Tô Lâm called for a new phase of strategic economic cooperation with Sri Lanka, urging direct Colombo–Ho Chi Minh flights and closer ties in logistics, manufacturing, food processing, textiles, tourism and services to boost trade and investment. A Sri Lanka–Vietnam trade and tourism forum was held in Colombo to advance these plans.

Prime Minister Harini Amarasuriya set a bilateral trade target of $1 billion with Vietnam by 2030. She highlighted Sri Lanka's economic recovery (5% real GDP growth in 2025, 2.36m visitor arrivals) and invited Vietnamese investment across manufacturing, tourism, IT and logistics.

Opposition Leader Sajith Premadasa welcomed Vietnamese President Tô Lâm to Parliament, praising Vietnam’s Doi Moi reforms and urging deeper bilateral cooperation in electronics, artificial intelligence and innovation-driven industries to bolster investment and economic ties.