An 8-member delegation of European tea growers (Netherlands, Portugal, France, Spain, Belgium) visited Sri Lanka from 23–30 March 2026 to strengthen collaboration with the country's artisanal tea sector. The program included visits to plantations, the Sri Lanka Tea Board, Colombo Tea Traders Association and the old Colombo auction site to foster future production, education and trade partnerships.
Sri Lanka will allow private importers to bring up to 1,040 metric tons of Ponni Samba and Kiri/Keeri Samba substitute rice from April 1–30 to address an expected shortage; stocks must be cleared by May 31 and import control licences are exempted.
The Department of Agrarian Development has restricted unmixed urea fertiliser issuance solely to paddy for the 2026 Yala season to preserve national stocks amid the Middle East crisis; distribution will be through Agrarian Service Centres and allocated based on verified cultivated area.
Sri Lanka’s Department of Agrarian Development has introduced a recommendation-based fuel distribution system that bypasses QR code requirements to ensure farmers get fuel for Maha season activities. Quotas are 15L/acre for harvesting and 10L/acre for land preparation, and CPC is developing a separate QR system for large farms.
The war in the Middle East is driving higher energy prices and major supply‑chain disruptions, which are boosting inflation and tightening global financial conditions. Energy importers, food and fertilizer‑dependent agriculture, tourism, manufacturing and banks face the greatest strain.
Interest RatesFuel & Energy PricesTourismExporters
Colombo Stock Exchange eased at midday with the ASPI down 0.33% to 21,022.14 and the S&P SL20 down 0.47% to 5,881.20. Brent futures fell below $110; Sampath Bank, Hayleys and ACL Cables were top decliners while Renuka Agri Foods rose after a filing showed a 10.04% shareholding.
EDB's National Packaging Centre held an awareness workshop on "Packaging strategies for Spices" for over 65 exporters and potential exporters on 19 March 2026 to improve packaging practices and boost export competitiveness.
The Sri Lanka–Benelux Business Council met with the Dutch Ambassador to discuss strengthening private‑sector links and potential collaboration in logistics and port development, renewable energy and maritime services; the Council will share a concept note on priority sectors and engagement initiatives.
A government monitoring committee warned current fuel quotas are insufficient and could trigger price increases for essential goods ahead of the Sinhala and Tamil New Year; five CPC officials will be appointed to assess needs and a QR-code system for fuel issuance will be introduced.
Fuel & Energy PricesConsumer Staples (FMCG)Tourism
Bank of Ceylon launched the BOC Agri Banking Unit to provide specialised financing, concessionary loans and an 'Agri-Power' fixed deposit scheme to mobilise funds for crop, livestock, fisheries, horticulture and agri-tech projects, and to support export-oriented agribusiness.
EDB’s National Packaging Centre held an awareness workshop on "Packaging strategies for Spices" on 19th 2026 with over 65 exporters and potential exporters to boost packaging practices and export readiness. Sessions covered packaging functions, material selection, spice-specific techniques and packaging machinery.
World Bank will provide immediate financial relief and policy support to countries hit by the Middle East conflict as commodity and shipping disruptions push up costs—crude oil ~+40% Feb–Mar, LNG to Asia ~+66%, and nitrogen fertilisers ~+50% in March.
Sri Lanka's export earnings rose 4.22% YoY to $1.4bn in February, with Jan–Feb total exports up 7.56% YoY to $2.89bn (merchandise $1.06bn, services $335m); apparel fell 6.29% YoY to $831.7m in Jan–Feb while ICT/BPM, coconut products and food & beverage exports showed strong gains.
Unemployment fell to 3.8% in 4Q 2025 as employment rose to 8,465,808 while labour force participation eased to 48.8%; the economy grew 4.8% in 4Q and 5% for 2025. Cyclone Ditwah caused an estimated $4.1bn in direct damage and threatened rice and tea output (tea losses up to 35%), affecting hundreds of thousands of workers.
Tea & Plantation CropsConsumer Staples (FMCG)
Ada Derana·Mar 27, 2026·Promotional / marketing·HOPLPositive
Horana Plantations PLC (HOPL.N0000) has established a full-time MBBS-led primary care unit at Gouravila Estate, integrated it into government medicine supply and added transport/ambulance arrangements, improving early diagnosis, referrals and continuity of care for estate workers.
Sri Lanka's merchandise exports rose 1.32% to $1,066.88m in February 2026, driven by coconut products, food & beverages and electrical/electronic components; tea, rubber and apparel exports declined.
Opposition Leader Sajith Premadasa called for immediate suspension of the parate law and a targeted relief package to save MSMEs, warning rising fuel prices and higher borrowing costs threaten about 4.5 million MSME entrepreneurs who contribute around 52% of the economy. He urged structured debt restructuring and direct Treasury support for affected businesses.
Fitch warned a prolonged Iran conflict could lift Brent to an adverse scenario averaging $128/bbl in Q2 2026 and $100/bbl for the year, heightening downside risks to Asia‑Pacific sovereign credit profiles through higher inflation, weaker growth and strained fiscal balances.
Fuel & Energy PricesExportersConsumer Staples (FMCG)
February tea exports fell to 19.92 M/Kgs (down 0.48 M/Kgs YoY), but Jan–Feb shipments rose to 40.63 M/Kgs (up 0.86 M/Kgs) and cumulative FOB increased to Rs. 1,804.08/kg ($5.83), supported by stronger rupee returns even as dollar earnings weakened.
ADB raised Sri Lanka's allocation for this year to $480m (up from $380m) and will promptly release $200m. The Cabinet has approved plans to secure $620m for five sub-programs covering trade/industrial development, MSME finance, water/sanitation rehabilitation, resilience and agricultural value-chain support.
ADB announced a financial support package including fast-disbursing budget support and reactivated trade and supply-chain finance (including for oil imports) to help developing member countries manage economic fallout from the Middle East conflict. The bank will use countercyclical resources and monitor energy, inflation and financial conditions.
Fuel & Energy PricesInterest RatesTourismExporters
President Dissanayake directed the Agriculture Ministry and fertiliser importers to secure urea supplies for the 2026 Yala season; 125,000 mt is needed, stocks fell from 102,000 mt on 1 March to ~68,000 mt by 17 March, and 77,000 mt more have been ordered (21,000 mt due end‑March/early April). He also urged expedited payments to suppliers and discussed storage and credit facilities to maintain buffer stocks.
The Cabinet approved expansion of a concessional loan scheme offering youth loans at a 4% annual rate via state banks, allocating Rs. 500 million in the 2025 Budget and an additional Rs. 750 million in the 2026 Budget to support young entrepreneurs in agriculture and industry.