News & market updates

Sri Lanka's total exports reached an estimated US$ 9,012.24 Mn in Jan–Jun 2026, up 8% y/y; merchandise exports were US$ 7,073.31 Mn (+8.95%) and services US$ 1,938.94 Mn (+4.49%). Electrical & electronic components, rubber, food & beverages and spices recorded strong gains in June, while apparel exports fell 11.74% y/y.

World Bank lead economist Dr. Harsha Aturupane warned Sri Lanka must reverse anti-export policies and reconnect with global markets to restore innovation and competitiveness. He cautioned ICT/BPM faces disruption from AI and noted low global value-chain participation (8.1% vs 26% India, 34% Vietnam).

CA Sri Lanka published a white paper urging urgent tax and investment reforms to boost FDI, proposing measures like a Qualified Domestic Minimum Top-Up Tax, refundable tax credits, targeted spend-based incentives and APA improvements. The paper prioritises tech/digital, renewable energy, export manufacturing and regional HQs and calls for institutional capacity to implement OECD-GMT–aligned reforms.

Hayleys PLC (via Hayleys Agriculture) opened Sri Lanka's first frozen concentrated coconut water manufacturing facility to produce premium concentrated coconut water for export. The investment is aimed at boosting value-added agricultural exports and supporting local coconut growers.

Asian stocks rose, led by a rebound in semiconductor shares as MSCI's Asia-Pacific ex-Japan index gained 1.2% and South Korea's Kospi jumped over 6%. Brent crude nudged to $91.55/bbl and markets are focused on upcoming US earnings and central bank meetings.

Indocopters will install Loft Dynamics' Airbus H125 VR full-motion simulator in India, creating South Asia's first dedicated H125 VR training site and expanding pilot training capacity for operators in Sri Lanka and the region. The simulator supports emergency, high-altitude and mission-specific training.

Sweden will send a trade delegation to Sri Lanka Expo 2027, Ambassador Jan Thesleff confirmed, with preparations underway to bring Swedish buyers and investors to the Colombo event (14–17 Jan 2027). Discussions identified export opportunities in cinnamon, coconut products, gems & jewellery, apparel and IT services for Nordic markets.

Sri Lankan exporters must prepare for new EU sustainability rules—EmpCo (from 27 Sep 2026), PPWR (from 12 Aug 2026) and EUDR (due diligence from 30 Dec 2026)—which expand scrutiny of claims and supply chains and carry penalties up to €2m or 4% of turnover.

ASPI fell 0.92% (197.31 pts) to 21,208.10, its lowest in over three months, with 193 counters down and market turnover at around Rs.2.6bn. DIAL, COMB, RICH, JKH and CARS were the major contributors to the decline.

The Attorney General's Department will institute District Court proceedings to recover Rs.6.221 billion in alleged liquor tax arrears from liquor manufacturers; the Supreme Court has fixed further hearings for 16 November.

Asian stocks rose as hopes of Middle East mediation pulled Brent down to $88.88/bbl from a one-month high, while investors awaited major tech earnings and monitored rising U.S. Treasury yields and interest-rate expectations.

MAS Holdings handed over official podium and performance kits to Team Sri Lanka for the Glasgow 2026 Commonwealth Games, presenting kits for 42 athletes across seven sports at a Colombo press conference on 15 July. The designs, developed with CGA Sri Lanka, are sport-specific and themed "Sacred Giants of Sri Lanka."

Sri Lankan exporters are being urged to prepare for new EU sustainability rules — EmpCo, PPWR and EUDR — with compliance timelines from Aug–Dec 2026 and penalties up to €2m or 4% of turnover. The measures target sectors including tea, food/agriculture, apparel, rubber, plastics, fisheries and tourism; Peterson Solutions is offering guidance and a free ESG webinar on 29 July 2026.

Asian shares slipped as Gulf fighting pushed Brent crude above $90/bbl, stoking inflation fears and increasing the likelihood of earlier Fed rate hikes. Packed tech earnings and AI valuation worries add downside risk to equities while higher yields support fixed income.

The Consumer Affairs Authority has made SLSI certification mandatory for all single-use sanitary towels (SLS 1732 and SLS 1748) sold in Sri Lanka, effective 8 October 2026; imports must also pass SLSI import inspection and approval.

Teejay has committed USD 2.57m to a 7.2 MW rooftop solar array and USD 2.65m to replace coal with certified biomass. Together the projects are expected to cut facility emissions (solar ~13%, biomass ~49%), boost renewables and could meet a 42% Scope 1/2 cut by 2030, possibly by Sept 2026.

AA3 Holdings (Pvt) Ltd opened Sri Lanka's largest ex-stock heavy equipment showroom and a fully equipped workshop in Kiribathgoda, boosting local access to earthmoving, excavation and road-construction machinery. The facility includes an advanced service centre and aims to serve clients across Sri Lanka and the Maldives.

Sweden's ambassador reaffirmed plans to bring a Swedish trade delegation to Sri Lanka Expo 2027 (14–17 Jan 2027) to connect Swedish buyers with Sri Lankan exporters, highlighting opportunities in cinnamon, coconut products, gems & jewellery, apparel and ICT.

Chinese President Xi Jinping set out China's vision for global AI governance at the 2026 World AI Conference, pledging 5,000 AI training opportunities and to enable 30 countries to use the MAZU meteorological warning system over the next five years. He emphasized openness, safety, multilateral cooperation and proposed a World Artificial Intelligence Cooperation Organization.

The Exporters Association of Sri Lanka elected Nalaka Ratnayake as Chairperson at its 29th AGM; the new Executive Committee includes representatives from CIC Holdings, Hayleys, Dipped Products, Hatton National Bank, Sampath Bank and Lion Brewery. Speakers urged faster trade digitalisation, lower export costs and improved logistics to boost competitiveness.

The Sri Lanka-USA Business Council will host 'The IP Trade Corridor' breakfast forum on 22 July 2026 in Colombo to discuss strengthening the US–Sri Lanka economic partnership through intellectual property protection for exporters, manufacturers and IT/creative firms.

The Exporters Association of Sri Lanka urged the government to adopt a transparent, risk-based approach and publish operational guidelines before enforcing new import rules banning goods linked to forced labour, warning unclear procedures could disrupt trade and raise compliance costs.

KPMG says Sri Lanka's credit rebound faces a major test after the Central Bank raised the policy rate by 100 basis points to 8.75%, a move expected to moderate private-sector credit growth. Lower fuel and vehicle imports, resilient remittances and stronger tax revenue are seen supporting a return to a current-account surplus and fiscal consolidation.

Intex and InMac trade shows will be held 5–7 August 2026 at BMICH, Colombo, hosting over 300 international companies to help drive Sri Lanka's apparel export target of $8bn by 2030. The events will showcase fibres, fabrics, garment machinery, automation and seminars on sustainability and digital transformation.

Nojili Group CEO L.A.D. Palitha completed a business development visit to Myanmar (11–17 June 2026) to explore collaboration in gemstones, jewellery, tourism and investment. Meetings in Yangon and participation in the UMTA Travel Fair focused on eco-, cultural- and heritage-tourism and trade partnerships.

Colombo's ASPI fell 1.7% this week while turnover hit a 65-week low of about Rs. 722.64 million; top drags on the index included John Keells (JKH), PKME and NDB. Banking led turnover (notably Sampath Bank) and activity was concentrated in capital goods, food & beverage and energy names.

Sri Lanka gazetted an immediate ban on importing goods wholly or partly produced with forced labour on July 10, 2026, to avert a threatened 12.5% U.S. tariff under Section 301. Exporters—especially apparel, textiles and agricultural producers—now face stricter certification, higher compliance costs and potential supply-chain delays.

The Exporters Association of Sri Lanka urged the government to publish clear, risk‑based operational guidelines and hold stakeholder consultations for newly gazetted regulations banning imports linked to forced labour, warning that unclear procedures could raise compliance costs, delay shipments and disrupt legitimate trade.

The Exporters Association of Sri Lanka urges the government and Customs to publish clear, risk-based implementation guidelines and consult stakeholders for the newly gazetted import ban on goods produced with forced labour to avoid uncertainty, higher costs and shipment delays.