News & market updates

The US dollar selling rate in Sri Lanka climbed above Rs.324 to Rs.324.03 (buying Rs.316.40, spot Rs.319.78), and the rupee has depreciated 2.9% against the dollar year-to-date to April 30, 2026.

Cabinet approved the Sri Lanka National Export Development Plan 2026-2030, targeting $36 billion in export earnings by 2030. The plan was prepared by the Export Development Board with ADB technical assistance to guide and monitor export competitiveness.

ASPI fell 0.49% (110.70 pts) to 22,584.30 as Middle East tensions dented sentiment; turnover was over Rs.2.1bn and foreigners were net sellers of Rs.42m. CINS, CTHR, HHL and SAMP were top negative contributors while COMB, LFIN, PKME, ACL, REEF, GRAN and JKH featured among active names.

CSE All Share Index fell 0.49% (110.70 pts) to 22,584 and the S&P SL20 dropped 0.31% to 6,225 as brokers said Middle East escalation spurred retail selling. Bank counters saw selling, turnover was Rs 2.15bn with crossings in JKH, COMB, LLUB and LFIN, and Colombo Dockyard narrowed its quarterly loss to Rs 428.1m.

Sri Lanka's ASPI fell 101.59 points (0.45%) to 22,593 as the Colombo Stock Exchange trended down. Melstacorp, Ceylon Grain Elevators and Dialog Axiata were top positive contributors while Hayleys and Sampath Bank were among the top negatives; market turnover was Rs.1.5bn and a merchant bank announced a Rs.999.12mn rights issue.

Australia and FAO launched a AUD 2 million (USD 1.4m) 12-month initiative to restore climate-resilient vegetable production in cyclone-hit Nuwara Eliya and Badulla, directly benefiting over 2,400 smallholder farmers. The project will restore seed systems, provide machinery and training, empower women and persons with disabilities, and establish six inclusive nurseries.

Maxtherm Lanka won the Silver Award for Best Energy Efficiency Service Provider at the National Energy Efficiency Awards 2025. Its biomass boiler conversions can cut fuel costs by up to 75% and the company estimates its interventions delivered about $66m in national cost savings and a ~40m kg CO₂ reduction over three years.

First Capital says listed plantation firms AGAL, KGAL, KOTA and HOPL are well positioned to benefit from rising rubber prices as rubber makes up about 15%+ of their revenue. Dipped Products and exporters may also gain from higher rubber prices and rupee depreciation, while Kelani Tyres could face margin pressure.

Sri Lanka has seen four fuel price hikes in five weeks, the latest effective May 3 under a cost-reflective formula tied to higher global crude, driving a sharp rise in inflation and living costs. The CPI jump leaves the Central Bank weighing rate hikes against rupee depreciation risks.

Colombo Stock Exchange closed higher Monday with the ASPI up 0.65% at 22,695.00 and turnover of 4.81 billion rupees, driven by buying in banking counters. Top contributors included NDB, Dialog, Melstacorp and Colombo Dockyard, while Ceylinco Insurance and Windforce were among decliners.

KPMG Sri Lanka Academy will host a webinar on 5 May to explain recent tax reforms — including the Social Security Contribution Levy Act, the VAT (Amendment) Bill, expanded withholding taxes and higher capital gains tax — and their compliance implications for businesses and individuals.

AHC Group signed an MoU with the Asia Africa Chamber of Commerce and Industry to attract investment into agriculture, tourism, real estate, mining and trade and to generate employment in Sri Lanka. AHC highlighted its vermicompost programme, a 1,000-acre seed paddy initiative and will co-host a major international business conference in August.

Planters’ Association warned the West Asia/Strait of Hormuz crisis threatens about 45% of Sri Lanka’s tea exports (≈US$680m) and called for urgent measures to secure fertiliser stocks, provide working capital for smallholders and diversify export markets.

Planters’ Association urged urgent action to stabilise tea production and costs, noting 45% of exports (~$680m of $1.5bn) go to Middle Eastern markets and wages rose to Rs1,750/day from 1 Jan 2026. It warned fertiliser supply risks could jeopardise the 2026 300m kg target and called for fertiliser security, working capital for smallholders and market diversification.

Colombo posted its biggest monthly gain since July 2025, with the ASPI up 7% and the S&P SL20 up 5.1% in April, with average daily turnover of Rs.3.66bn. Yesterday the indices fell (ASPI -0.38% to 22,550) on losses in John Keells, Sampath and Commercial Bank amid net foreign outflows of Rs.75mn.

The Palm Oil Industry Association said expanding local palm oil cultivation could cut import expenditure — Sri Lanka spent about Rs. 140,022 million on palm oil imports in 2025. POIA and industry experts (including Watawala Plantations) argued that 8,000 hectares identified for cultivation could boost domestic production, reduce FX pressure and support rural employment.

Colombo Stock Exchange ASPI fell 0.37% to 22,552.24 midday, with plantations (Watawala, Sunshine, Namunukula among others) leading gains while John Keells, Sampath and Commercial Bank weighed on the index. Market turnover was Rs2bn; Abans Finance completed a debenture issue to raise Rs1.33bn.

Watawala Plantations and regional plantation companies are preparing to expand palm oil cultivation if the seven-year ban is lifted after a Plantations Ministry expert committee found no basis for the environmental or health concerns. Industry says private investors had committed about Rs.500m to expand 8,000 ha before the ban.

Colombo Stock Exchange closed lower with the ASPI down 0.38% to 22,549.53 and market turnover at 3.44 billion rupees; capital goods led turnover (984.6 million). Lion Brewery and Watawala Plantations were top positive contributors while Dialog Axiata, John Keells and Commercial Bank were top negatives; Brent rose above $113.

Geographical Indications (GI) could unlock higher export earnings for Sri Lanka's tea, spices and other agricultural products by enabling premium pricing and niche market access. The article urges targeted GI reforms — a dedicated NIPO GI unit, national GI logo, better enforcement and traceability — to capture this value.

FAO is providing $300,000 in fertilizer vouchers to 3,489 smallholder paddy farmers in Anuradhapura to help restore production ahead of the Yala season. Eligible farmers will receive e-vouchers worth $75–$90 (by plot size) redeemable for Urea, TSP and MOP, plus GAP technical booklets.

FAO launched a USD 300,000 fertilizer voucher programme to provide e-vouchers to 3,489 cyclone-hit smallholder paddy farmers in Anuradhapura ahead of the Yala season. Vouchers (USD 75–90) can be used to buy Urea, TSP and MOP from Agrarian Service Centers and beneficiaries will receive GAP technical booklets.

Sri Lanka showcased premium Ceylon Tea at the 20th Beijing International Tea and Tea Ceremony Exhibition (Apr 17–20, 2026), with four Sri Lankan tea companies participating to promote Ceylon Tea and engage international buyers in the Chinese market.

The Asian Development Bank estimates Sri Lanka has about $6 billion of unrealised export capacity — exports could rise 47% if gaps are addressed — and says weak export growth has widened the trade deficit and pressured the rupee ahead of rising external debt repayments. Usable reserves cover roughly three months of goods imports, limiting the Central Bank's ability to defend the currency.

UNDP warns more than 30 million people could be pushed back into poverty from the economic fallout of the Iran war, driven by disruptions to fuel and fertiliser supplies and blocked shipping through the Strait of Hormuz. It said fertiliser shortages have already reduced agricultural productivity and food insecurity will peak in a few months.

Sri Lanka’s Minister of Agriculture K.D. Lal Kantha reaffirmed the country’s active engagement at the FAO Regional Conference (APRC38), prioritizing stronger domestic production, reduced import dependency, agricultural modernization through digital governance and water management, and export-oriented villages.

Pride Rock Partners hosted a session at the World Aroma Ingredients Congress & Expo 2026 in Mumbai, showcasing Sri Lanka's role and opportunities in the global fragrance and flavours value chain and highlighting essential oil production, technologies and export prospects.

LCIF and the UN World Food Programme are partnering on a US$2m initiative, with WFP Sri Lanka receiving US$1m to support its Home‑Grown School Feeding Programme. LCIF is also running a ~US$400,000 "Protect Child Nutrition" grant providing daily meals to about 5,000 children.

Sri Lanka's cumulative exports for Jan–Mar 2026 reached US$ 4,308.11 million, up 1.59% year-on-year. March exports were US$ 1,467.31 million (down 5.2% YoY but up 9.0% month-on-month), with strength in coconut, processed food, electronics and services while apparel and tea declined.

Fitch warns emerging Asia could face rising food-cost pressure if a prolonged US–Iran war disrupts fertiliser supplies, noting nitrogen urea prices have risen about 50% to roughly USD700/tonne and could cut yields and raise food prices later in 2026. Countries with low stockpiles and import dependence are most exposed.