News & market updates

Sri Lanka's ASPI fell 0.10% to 22,157.16 in intraday trade, with turnover at Rs 667 million. Aitken Spence said P Englisch stepped down and M R Mihular was reappointed independent director; the stock was down 25 cents at Rs 150.

Atlas launched Sri Lanka's first SLS-certified water bottle, obtaining SLS certification for a children's plastic water bottle to assure safety, quality and reliability for parents.

Sri Lanka's unemployment rate edged down to 3.7% in Q1 2026 from 3.8% a year earlier, while labour force participation fell to 49.2% from 49.7%. Services accounted for 50.4% of employment, industry 25.9% and agriculture 23.7%, with youth and female unemployment notably higher.

Health Ministry tightened front-of-pack sugar labelling for beverages: red logo now required for >8g sugar/100ml (down from 11g), amber covers 2.5–8g/100ml and green <2.5g/100ml; alternative symbol display options introduced.

The Export Development Board hosted a regional Exporters' Networking Forum in Chillaw to link North Western and North Central provincial exporters with government institutions and address customs, legal and market-access challenges. Attendees held direct talks with Sri Lanka Customs and the Inland Revenue Department to seek practical solutions and strengthen supply chains.

Colombo market extended losses as the ASPI fell 1.03% for the week to 22,178.73 and the S&P SL20 fell 0.85% to 6,194.22. Market turnover topped Rs.1.5bn with foreigners net sellers of Rs.157.9m and notable moves from SAMP, CINS, JKH, RCL (weak) and DIAL, BUKI, CARS, AEL, COMB (positive/active).

Sri Lanka Customs collected 225.2 billion rupees in June 2026, 22% above its target, and first-half revenue rose 29.5% year‑on‑year to 1,373.8 billion rupees. Officials credited stronger enforcement, improved valuation practices, a rebound in import volumes and currency movements for the increase.

China EXIM Bank Vice President Yang Dongning met Sri Lanka's Deputy Minister of Finance on 2 July 2026 to review and expedite the amended financing agreement for the Central Expressway Project (CEP-1) Section I, targeting signature before end‑August 2026. They also discussed cooperation to support tourism, value-added manufacturing, logistics, energy, IT and higher-education links.

The BOI showcases the Eravur Fabric Park as the national benchmark for environmental compliance for BOI-approved industrial zones, citing Jay Jay Mills' advanced ETPs, a centralized wastewater plant, a COD discharge cap of 250 mg/L and modeled safe discharge up to 15,000 m3/day.

Asian stocks rose (MSCI Asia-Pacific ex-Japan up ~1.3%) after a softer-than-expected US jobs report reduced near-term Fed rate-hike odds and regional PMIs showed economic expansion in June.

Advocata CEO Dhananath Fernando urged the government to use its current political mandate to implement structural reforms now — including accelerated SOE restructuring, privately developed industrial zones, customs and trade liberalisation, and land-title and labour reforms — to avoid returning to another IMF program.

Realised FDI reached about $250m in 1H and BOI Director General Dr. Sulakshana Jayawardena outlined a reform agenda including a digital single-window approval platform targeted this year, an Investment Protection Act, and land and skills reforms to boost investor confidence.

Colombo market fell for a third session as the ASPI dropped 0.10% (21.79 pts) to 22,221.91 on heavy foreign net selling of Rs. 774.2 million. Top negative contributors included SPEN, SAMP, DFCC, CTC and CINS while CARG, DIAL, JKH and MELS supported the index; capital goods led turnover (55%).

Beliatta Exim Holdings (Pvt) Ltd won the "Best Emerging Exporter" award at the Global Synergy Awards 2026. The company, which produces a range of Sri Lankan food products and operates an international branch in Japan, has expanded into retail with a mini supermarket in Ratmalana.

LANKATILES PLC launched Sri Lanka's first COOL ROOFTOP TILE®, a solar-reflective roof tile with an independently verified Solar Reflectance Index (SRI) above 96. The product, unveiled at a media event, is aimed at reducing rooftop heat gain for residential buildings.

Colombo Stock Exchange closed down as the ASPI fell 0.19% (43.18 points) to 22,178.73 on turnover of Rs.1.54 billion. Asia Asset Finance announced GM and rights timetable and Associated Motor Finance said its merger with L B Finance will become effective by 31 July 2026.

The Sri Lanka–Germany Business Council held Members' Day where Germany reaffirmed cooperation and highlighted opportunities in logistics, manufacturing, renewable energy, green technologies, digital transformation and tourism. SLGBC also announced a CSR project to support a local school's infrastructure.

GITA, together with the Indo‑Lanka Chamber of Commerce and Industry, has launched an India Trade Desk in Colombo to provide end-to-end, one-to-one advisory and market-entry support for Sri Lankan firms seeking to expand into India. The service targets SMEs and larger firms across textiles, food processing, ICT/BPM, tourism, pharma, logistics, manufacturing and renewable energy.

The Sri Lanka–Germany Business Council held its Members' Day, with Germany reaffirming bilateral partnership and participants highlighting trade and investment opportunities in logistics, manufacturing, renewable energy/green tech, digital transformation and tourism; SLGBC also announced a CSR project and networking initiatives.

The Foundation For A Good Life (TFGL) and Good Life X (GLX) launched an eight-month 'Hyacinthesis' accelerator to develop market-ready handicrafts, fashion and home décor from water hyacinth and onboarded six SMEs. The project is engaging government stakeholders to reform the Water Hyacinth Ordinance of 1909 and explore export opportunities.

The Sri Lanka Export Development Board and Germany's Import Promotion Desk signed an MoU renewing their partnership to strengthen export development and European market access for Sri Lankan export‑oriented SMEs, expanding cooperation on trade promotion, business matchmaking and support for women entrepreneurs.

German Ambassador Felix Neumann urged continued trade facilitation to boost Sri Lanka–Germany ties, highlighting opportunities in logistics, manufacturing, renewable energy, digital transformation and tourism. He delivered the keynote at the Sri Lanka–Germany Business Council Members' Day to promote investment and collaboration.

The World Bank approved $150m in financing (REGROW DPO) to support Sri Lanka's reform agenda to boost investment, competitiveness, high-value exports and jobs. The first of three operations focuses on reducing trade barriers, improving the investment climate, strengthening the financial sector and power competitiveness.

Colombo Stock Exchange closed with the ASPI down 0.06% at 22,229.71 while the S&P SL20 rose 0.05% to 6,209.85; market turnover was Rs.1.52bn and capital goods led turnover at Rs.834.9m. Dialog, Melstacorp and Bukit Darah were positive contributors, Aitken Spence, DFCC Bank and Ceylon Tobacco were top decliners, crossings were recorded in Hemas, Windforce and Printcare, and SANASA Life raised Rs.500m via subordinated debentures to meet regulatory capital requirements.

Atlas launched Sri Lanka's first SLS‑certified water bottle, meeting the new national standard for plastic water bottles; certification followed rigorous SLSI testing to assure safety and quality for children's everyday use.

President Anura Kumara Dissanayake said the government aims to raise economic growth to 7–8% and identified IT and electrical & electronics as key sectors, noting targets of US$5bn in IT exports and US$2bn in electronics. He pledged Rs.2 trillion in capex and outlined measures (Virtual SEZ, data centre, customs Green Channel, incentives) to address import, banking and talent barriers.

Duminda Hulangamuwa was appointed Chairman of the Board of Investment and pledged to restore the agency's authority and turn it into a one-stop shop to boost FDI and accelerate export growth.

Sri Lanka's current account recorded a US$194 million deficit in May 2026, the second consecutive monthly deficit and leaving a US$97 million deficit for January–May. The trade gap widened to US$4.7bn (Jan–May), fuel import spending rose 112% YoY in May, tourist earnings fell 5.1% YoY in May, remittances rose 26% YTD, reserves were US$6.9bn and the rupee was down 7.9% YTD.

Colombo market opened down 0.65% as the ASPI fell 146.53 points to 22,263.28 with turnover over Rs.1.7bn and foreign net outflow of Rs.466.1m; Windforce, CIC and Hayleys were main negative contributors while Windforce, Colombo Dockyard and Sathosa Motors led turnover.