Mahindra by Evolution Auto showcased its electric vehicle lineup (Treo Plus, Zor, ZEO) at the Colombo EV Motor Show 2026, drawing strong interest from passenger operators, delivery firms and fleet owners. The event highlighted running-cost savings, charging convenience and commercial suitability to boost EV adoption in Sri Lanka.
EDB's National Packaging Centre and the Export Agriculture Division ran a workshop on 22 July 2026 for nearly 100 participants on cinnamon packaging and compliance with the EU Packaging and Packaging Waste Regulation (PPWR), fully enforced from 12 Aug 2026. Presenters urged exporters to eliminate PFAS and heavy metals, prepare EU Declarations of Conformity, ensure operator identification and register under EPR schemes.
Colombo bourse traded mixed midday with the ASPI down 0.12% to 21,203.70 and market turnover at Rs200.5mn, led by capital goods (Rs58.5mn). Commercial Bank said its Basel III subordinated debentures will be listed on July 30, 2026; JAT Holdings declared a final dividend of Rs0.72 (ex-div Aug 7, 2026).
The Cabinet approved land allocation to 23 investors across 13 regional industrial estates on 35-year leases for projects totaling over Rs. 2.8 billion, expected to create 870 direct jobs. The moves are part of the Industry and Entrepreneurship Development Ministry's regional industrial estate development programme to build infrastructure and promote balanced industrialisation.
The Colombo market extended its recovery into a second session as the ASPI rose 0.20% to 21,229.14, with turnover above Rs. 2 billion and foreign investors net sellers of over Rs. 1 billion. Top contributors to the rise were Colombo Dockyard, John Keells Holdings, Commercial Bank, ACL Cables and NDB Bank.
The Canadian Chamber of Commerce in Sri Lanka held a "Canada Day Dialogue" to map new pathways for bilateral trade, investment and tourism, noting Canada's CAD 500 billion Indo‑Pacific commitment could create opportunities across energy, technology, manufacturing and tourism. Panelists said Sri Lanka could target roughly $2.4bn in two‑way trade and attract up to about $400m in Canadian investment if structural bottlenecks are removed.
SLAMERP welcomed the USTR decision to apply a 10% tariff to Sri Lanka under Section 301, saying the outcome preserves the competitiveness of Sri Lankan rubber products in the US market. The association credited sustained government engagement for securing the lower rate.
Exporters
Ada Derana·Jul 28, 2026·Regulatory or legalPositive
Sri Lanka's apparel sector must close compliance and utilization gaps ahead of re-applying for the EU's GSP+ under tougher rules effective Jan 1, 2027; the industry's GSP+ utilization is only 49-59%. The World Bank's July 2026 reclassification to upper-middle-income and stricter EU enforcement increase urgency to boost domestic fabric capacity and show demonstrable reforms or risk losing preferences.
SLPMA President Dinesh Athapaththu urged a national policy push to transform Sri Lanka's pharmaceutical manufacturing into a major export industry, calling for a multi-stakeholder task force, faster regulation and investment incentives. He outlined five strategic priorities including quality, innovation, skills collaboration and building a supporting pharma ecosystem.
Colombo Stock Exchange closed higher, the ASPI rose 0.20% (41.92 pts) to 21,229.14 and turnover was Rs 2.02bn with retail leading at Rs 1.04bn. SANASA Life said escrow proceeds were released and invested in government securities, and Odel restarted construction on Zone 1 of its mall with completion expected in 1.5-2 years.
The Consulate General of Sri Lanka in Milan and partners held a Business Forum on 9 July to promote Sri Lanka Expo 2027 and present trade and investment opportunities to the Italian business community. Government speakers highlighted investor-friendly policy reforms and Sri Lanka's manufacturing/export strengths.
Intex-InMac Sri Lanka 2026 will run at BMICH, Colombo from 5-7 August 2026, featuring 250+ exhibitors and an InMac technology showcase of garment machinery, AI-enabled systems and factory automation to drive textile sourcing, exports and manufacturing productivity.
The CSE opened higher with the ASPI up 0.07% at 21,187.22 and the S&P SL20 up 0.10% at 5,948.74; market turnover exceeded Rs.2bn and foreigners were net buyers (Rs.15.7m). John Keells, Hayleys and HNB were key contributors while capital goods and banking led turnover.
Colombo Stock Exchange midday: ASPI rose 0.56% to 21,306.64, led by gains in Colombo Dockyard, Dialog Axiata, Melstacorp, PGP Glass, Commercial Bank and Kelani Cables while Vidullanka fell. R I L Property disclosed public shareholding is 46.1071% after prior miscalculations.
Ada Derana·Jul 27, 2026·Capacity or capex·ALUMPositive
Alumex PLC has deployed four AI and IoT-enabled innovations — including a new AI/IoT extrusion line, Golden Batch extrusion digitisation, a scrap optimisation tool, an AI knowledge hub and IoT energy monitoring — to boost export competitiveness, efficiency and sustainability.
Pelwatte Dairy Industries broke ground on a Greenfield liquid milk manufacturing facility in Kurunegala, scheduled to open in July 2027. The plant will produce plain and flavored fresh milk, expanding Pelwatte from milk powder into liquid dairy to strengthen local supply and support farmers.
SLAMERP welcomed the USTR's decision to apply a 10% U.S. tariff to Sri Lankan rubber products under Section 301, saying it preserves exporters' competitiveness. The rate was reduced from earlier proposed 44%/30%/20% following sustained government engagement with U.S. authorities.
SAIC Motor has delivered 100 million vehicles worldwide, with the IM Motors LS9 Hyper recorded as the 100 millionth vehicle. Evolution Auto (Pvt) Ltd is the authorised IM Motors distributor in Sri Lanka, offering local sales, after-sales service and genuine parts to support the brand.
Pelwatte Dairy Industries has broken ground on a Greenfield liquid-milk manufacturing facility in Kurunegala, slated to open in July 2027. The plant will produce plain and flavoured fresh milk, marking Pelwatte's expansion from milk powder into liquid dairy products to boost local supply.
Colombo Stock Exchange ASPI rose 0.57% (up 120.83 pts) to 21,293.57 at midday, with market turnover LKR 264 million and capital goods leading turnover at LKR 80.9 million. Ceylon Cold Stores reported June-quarter profit of LKR 1.063 billion, down 3% year-on-year.
Asian Paints Causeway launched Royale INFINITY, a premium interior emulsion in Sri Lanka marketed as delivering a finish that is 5x smoother with a 7-year performance warranty. The product targets luxury homeowners and includes 3,000+ shades, advanced stain/mold resistance and low-VOC certifications.
Consumer Staples (FMCG)
Ada Derana·Jul 27, 2026·Promotional / marketing·JATPositive
JAT Holdings PLC has signed an exclusive nationwide partnership to distribute WASHLEX Japanese smart toilets across Sri Lanka's hospitality, residential and commercial sectors. Over 350 units have been installed to date and the brand is already used by several luxury hotels and property developments.
Sri Lanka secured a reduction in the US labour-related tariff on its exports from 12.5% to 10%, preserving tariff parity with key competitors and easing competitive pressure on exporters—notably the apparel industry.
India's assistance to Sri Lanka has exceeded $7.5 billion, including more than $850 million in grants. The aid has supported projects across all 25 districts in infrastructure, housing, health, education, agriculture, renewable energy, railways and industrial development.
The ASPI fell 1.09% (232.67 pts) over the week and the S&P SL20 declined 0.95% (57.12 pts). Declines were led by JKH, HNB, CINS, GRAN and BREW while a large negotiated crossing in UML supported market activity; weekly turnover was Rs.2.45bn and foreigners were net buyers of Rs.1.07bn.
Consumer Staples (FMCG)
EconomyNext·Jul 24, 2026·Regulatory or legalPositive
The US Trade Representative will apply a 10% tariff on imports from Sri Lanka under Section 301. The Exporters Association of Sri Lanka welcomed the rate as lower than earlier proposals, saying it preserves competitiveness—particularly for apparel—by maintaining tariff parity with regional rivals.
Exporters
EconomyNext·Jul 24, 2026·Regulatory or legalPositive
Ceylon Chamber of Commerce welcomed the reduction of the US labour-related tariff on Sri Lankan exports from 12.5% to 10%. The chamber said the cut provides relief to exporters and called for continued dialogue with the US to secure a longer-term framework to reduce uncertainty.
Exporters
Ada Derana·Jul 24, 2026·Regulatory or legalPositive
The U.S. Trade Representative will apply a 10% tariff on imports from Sri Lanka under Section 301. The Exporters Association of Sri Lanka welcomed the outcome as preserving exporters' competitiveness—particularly in apparel—and urged pursuit of a comprehensive bilateral trade arrangement with the U.S.