News & market updates

World Bank Country Manager Gevorg Sargsyan said Sri Lanka must strengthen export competitiveness and productivity to sustain its recovery, noting manufacturing value-added per worker is under half of Vietnam and labour productivity fell in 2024. He urged lower business costs, expanded market access and higher‑quality FDI; the Exporters' Association elected new office bearers at its AGM.

The Exporters' Association of Sri Lanka elected Nalaka Ratnayake as Chair at its 29th AGM; the World Bank country manager urged reforms to boost export competitiveness, including lowering business costs, expanding market access and fast-tracking the National Single Window digital trade platform.

Colombo bourse snapped a three-day decline as the ASPI rose 0.14% to 21,447.57 with turnover near Rs.1.5bn and foreign net selling of Rs.26.9m; gains were led by DIAL, HAYC, CFIN, JKH and CTHR.

The EDB launched two sector-specific export handbooks in Sinhala and Tamil to help women-led SMEs in textiles, apparel, accessories, footwear, handicrafts and processed agrifood/spices access the UK market under the Developing Countries Trading Scheme (DCTS), which offers duty-free access on ~92% of product lines. Developed with the ITC and the British High Commission, the guides aim to improve export readiness and inclusion ahead of the National Export Development Plan 2026–2029.

Sri Lanka's manufacturing PMI fell to 53.0 in June from 56.6 in May, indicating continued but slower expansion. New Orders were at the neutral 50.0, production was driven by food & beverages, employment remained near neutral, inventories rose and suppliers' delivery times lengthened amid global uncertainties and labour shortages.

PMI: Manufacturing at 53.0 and Services at 58.5 in June 2026, indicating continued expansion in both sectors. Manufacturing growth slowed with production led by food & beverages and firms citing labour shortages and longer supplier delivery times; services expansion was driven by financial/professional services and insurance, with tourism expected to boost activity.

Sri Lanka's Manufacturing PMI was 53 in June and the Services PMI 58.5, indicating continued expansion while manufacturing slowed from May; outlook for both sectors remains positive but downside risks persist from the Middle East conflict and global uncertainties.

CSE ended marginally higher as the ASPI rose 29.77 points to 21,447.57 and the S&P SL20 gained 16.37 points to 6,004.99. Market turnover was Rs. 1.48 billion, led by E.B. Creasy & Company PLC (Rs. 410m) and ACL Cables PLC (Rs. 114m).

Colombo Stock Exchange closed higher as the ASPI rose 0.14% (29.77 pts) to 21,447.57 and the S&P SL20 gained 0.29% to 6,006.07, with market turnover Rs 1.49bn and banks leading turnover at Rs 74.9m. Bukit Darah declared a first interim dividend of Rs 5.73 per share, entitlement July 27, 2026.

Ather, via distributor Evolution Auto, showcased the Ather 450X at the Colombo EV Motor Show 2026, drawing strong customer interest. The company introduced two new features for Sri Lanka — Infinite Cruise and Magic Twist — highlighting connected tech and battery/chassis design to boost premium EV adoption.

BrandRadar (Roar Global) released "The State of AI Visibility in Sri Lanka 2026", a three-month study of 198 brands across six industries showing editorial authority and third-party citations strongly predict AI visibility. The report finds Toyota and BYD scored above 89 across platforms while some brands (e.g., Ceylinco General Insurance) show large visibility variance between AI systems.

The National Chamber of Exporters renewed an MoU with Ernst & Young to expand support for Sri Lankan exporters on compliance, supply‑chain traceability, sustainability and digital transformation. The partnership will deliver workshops and advisory programmes to help exporters meet US/EU requirements as Sri Lanka pursues a US$36bn export target by 2030.

Colombo's ASPI fell 0.03% to 21,417.80, extending a third straight day of losses on profit taking and net foreign outflows of Rs.36.7m. Banking led turnover (27%) while Haycarb, Chevron Lubricants, John Keells and Hayleys were among top contributors.

Sri Lanka Customs collected 125.2 billion rupees in the first 14 days of July, more than 65% of its 192.4 billion-rupee monthly target and on track to outperform the target for a seventh consecutive month. Stronger enforcement, digital scanning, improved valuation and a rebound in imports have driven collections, boosting Treasury revenue.

Outgoing Swedish Ambassador Jan Thesleff said Sri Lanka's improving policy stability is restoring international investor confidence and named renewable energy, ICT, apparel, healthcare and food processing as key growth sectors; a Swedish business delegation will visit in January 2027.

C.W. Mackie PLC appointed Asoka Piyadigama as an Executive Director effective 1 August 2026. He currently serves as an Independent Non-Executive Director of York Arcade Holdings and Acme Printing and Packaging and sits on committees within the CFLB Group.

BPPL Holdings (via subsidiary Beira Brush) will acquire Ravi Industries' customer base, 'Ravi' trademark and related IP under a business transfer agreement with minimum consideration of Rs.300 million payable over five years linked to revenue. The company says the deal will create synergies and position Beira Brush among the largest industrial brushware manufacturers in Asia.

Government banned imports of goods produced using forced labour effective 10 July, requiring importers to certify goods are free of forced labour to strengthen compliance and reduce the risk of higher U.S. tariffs (USTR had proposed an additional 12.5% on Sri Lankan exports). The move targets protection of apparel exports to the US, Sri Lanka's largest market (~$3bn annually).

Colombo market fell to a three-month low as the ASPI slipped 0.50% (107.39 pts) to 21,424.99 and the S&P SL20 dropped 0.37% (22.04 pts) to 6,000.15. Foreign investors were net sellers of Rs.126.9m; main negative contributors included Carson, Melstacorp, Vallibel One and John Keells, while Lanka IOC, Ceylon Cold Stores and Dipped Products led turnover.

Sri Lanka stocks closed flat as the ASPI rose 0.01% to 21,426.43, with banks leading turnover at 327.4 million rupees. Haycarb, John Keells and Ceylon Cold Stores were top gainers while HNB, Central Finance and Commercial Bank were top decliners; Digital Mobility Solutions disclosed ESOP allotments and its shares closed down 0.30%.

Haycarb PLC will invest USD 18 million in a BOI-approved expansion to scale production of high-performance activated carbon for energy-storage applications (HCE 400). HCE 400, which won the Presidential Export Award, is being validated by international customers for silicon–carbon anodes and supercapacitors.

Ritzbury Roccoa (CBL Foods International) is running a promotion until 20 Aug 2026 offering a Lionel Messi-signed 2026 Argentina jersey and a Cristiano Ronaldo-signed Portugal jersey as top prizes; entry requires purchasing a Ritzbury Roccoa chocolate and scanning the QR code. The campaign also includes 300 giveaway prizes (10 winners daily for 30 days).

Colombo Stock Exchange rose as the ASPI gained 0.39% (83.87 pts) to 21,508.86, with banks leading turnover at Rs 41.8 million. Dilmah Ceylon Tea Company proposed a first and final dividend of Rs 25 per share for the year ended March 31.

SheTrades Sri Lanka Hub (EDB with ITC and the British High Commission) launched two Sinhala and Tamil export handbooks for textiles/apparel and processed agrifood/spices to boost women entrepreneurs and SMEs' UK export readiness, noting the UK's DCTS offers duty-free access on about 92% of product lines. The handbooks are available on the EDB SheTrades portal.

Outgoing Swedish Ambassador Jan Thesleff said he is optimistic about Sri Lanka's recovery and rising investor confidence, noting about 80 Swedish companies operate in Sri Lanka. He highlighted opportunities in ICT, apparel exports, renewable energy, healthcare and tourism, and cited Port City progress and the need for direct flights.

EDB and Expertise France began cooperating on the EU-funded 'Advancing Sustainable Trade between the EU and Sri Lanka' project following a 9 July 2026 meeting to boost sustainable, climate‑resilient access for Sri Lankan exporters to EU markets. The initiative will align trade regulations, support a green transition and enhance SME competitiveness for EU market entry.

BPPL Holdings' Beira Brush will acquire Ravi Industries' customer base and the 'Ravi' trademark under a business transfer agreement with a minimum five-year, performance-linked consideration of Rs. 300,000,000. Payments are annual and tied to revenue, and BPPL plans to integrate production to unlock synergies.

The Free Trade Zone Manufacturers' Association urged the government to operationalise power wheeling, lower industrial energy costs and set up dedicated fuel stations in Katunayake and Biyagama to protect export manufacturing competitiveness. The group also asked for a review of industrial diesel pricing.

The ASPI fell 1.07% (233.18 points) to 21,532.38 as investors sold amid renewed Middle East conflict concerns. Market turnover was over Rs 1bn, foreign investors were net sellers of about Rs 56mn, with banks and food & beverage sectors leading activity.

BPPL Holdings' subsidiary Beira Brush will acquire Ravi Industries' customer base and the 'Ravi' trademark for a minimum of Rs300mn, payable over five years and linked to revenue.