News & market updates

The Planters’ Association urged a sustainable electricity tariff framework as the CEB has proposed a 13.6% tariff hike for Q2 2026, warning it would raise production costs for tea and rubber processors and hurt export competitiveness. Plantation companies (eg. Talawakelle) are increasingly investing in solar, mini‑hydro and efficiency measures to reduce grid dependence.

Sri Lanka and Brazil agreed to elevate bilateral trade to USD 1 billion by 2030. They also committed to finalise pending MoUs (including on traditional/Ayurvedic medicine), and to sign Dairy Livestock and Sugarcane technical cooperation projects while exploring cooperation in agriculture, ports and tourism.

Fitch warns APAC sovereign credit profiles face heightened downside from a prolonged Iran conflict as higher oil prices and supply disruptions raise inflation, weaken growth and worsen public finances; an adverse scenario assumes Brent at about $128/bbl in 2Q26 and $100/bbl for 2026. Net fossil-fuel importers (e.g. India, Korea, Pakistan, the Philippines, Maldives, Thailand) would be hardest hit, while supply-chain and fertiliser disruptions could amplify inflation and food-security risks.

Indian sugar mills locked in about 100,000 metric tons of export shipments in a week as a record-low rupee and rising global prices restored the economics of overseas sales. Mills have contracted roughly 550,000 tons this season and India raised its export quota to 2 million tons.

New Anthoney’s Farms attended the Healthy Living Expo 2026 for the third consecutive year and marked its 40th anniversary. The farm promoted its antibiotic-free poultry, highlighted an MoU with the University of Peradeniya on sustainable poultry research, and noted its Official Poultry Partner role with MasterChef Sri Lanka.

Gulf escalation and shipping disruptions have hit Sri Lanka's tourism, tea and apparel sectors, pulling the bourse down 12.7% through March 20; plantation and apparel stocks plunged (Namunukula -30.6%, Agalawatte -22%, Teejay Lanka -20.6%) while Sunshine benefits from higher palm oil prices.

Agricultural and Agrarian Insurance Board launched a pig insurance scheme to cover deaths of breeding pigs on registered commercial farms with coverage up to Rs.200,000 per animal for pigs aged 6 months to 4.5 years. Claims cover deaths from accidents and diseases and require adherence to Department of Animal Production and Health biosecurity rules.

Strikes on ammonia plants in Iran have reduced ammonia/urea supply and helped push fertilizer prices about 40% higher in South Asian markets, risking higher rice and other agricultural prices and food-security strains. The article also highlights rodenticides market growth and Chinese space-mouse research.

President Anura Kumara Dissanayake said the government will prioritise the export sector and intervene fully to overcome current challenges, highlighting difficulties in securing fuel supplies. He met leading exporters and industry representatives to discuss measures to minimise the sector's economic impact.

Export Development Board will fast-track a government-backed priority program to ensure over 4,500 exporters (apparel, tea, spices and others) receive fuel stocks without delay amid escalating fuel shortages. The Ministry of Industry and Entrepreneurship is collecting exporter data and urged firms to submit information immediately.

EDB Chairman Mangala Wijesinghe announced a government-backed fast-track programme to prioritise fuel supply for exporters, aiming to protect operations of over 4,500 exporters (apparel, tea, spices) amid fuel shortages. The Ministry is collecting exporters' data and urging immediate submissions.

Sri Lanka's economy grew 4.8% in Q4 2025 and 5.0% for the full year, supported by lower inflation and exchange rate stability. Industry expanded 7.8% in 2025 while agriculture rose 1.4% and services 3.3%, with falling interest rates and some private credit expansion.

Sri Lanka's economy expanded 5.0% in 2025, with GDP at constant prices rising to Rs. 13,128,577 million. Industry led growth at 7.8% while services grew 3.3% and agriculture 1.4%; authorities cited easing interest rates, a relatively stable exchange rate and stronger construction, manufacturing, financial services, IT and tourism activity.

President Dissanayake said about 30 private firms have been given temporary licences to import fuel in US dollars to directly supply exporters and the tourism sector; he added LP gas, fertiliser and grain stocks are sufficient and delayed crude shipments (two of 90,000t) are expected soon, averting a crisis.

Sri Lanka's economy expanded 5.0% in 2025, with Q4 growth slowing to 4.8% (from 5.4% in Q3). Industry led the expansion (7.8%) driven by construction, mining and manufacturing, while services grew 3.3% and agriculture 1.4%.

The Cabinet approved plans to secure $620 million from the ADB across five sub-programs to support trade, MSME finance, water and sanitation, resilience and agricultural value-chain financing. The package is policy-based lending aligned with Sri Lanka’s IMF EFF reforms and includes a $220m MSME finance component.

The Ceylon Chamber urged the government to temporarily limit non-essential foreign currency outflows and allow licensed bunkering firms to procure fuel independently, potentially in foreign currency, to protect exports and tourism amid the Middle East crisis. It also recommended prioritising IMF tranche continuity, dynamic fuel pricing, faster fuel and fertiliser procurement, and measures to support tourism and trade efficiency.

Government declared Wednesdays a weekly holiday for public sector employees effective tomorrow (18) to reduce fuel consumption; essential services (healthcare, ports, water, customs) are exempt and four committees will oversee energy and key sectors. Private sector asked to follow where feasible and state events suspended.

President Anura Kumara Dissanayake said the government will implement energy-management measures, including a QR system for daily fuel allocations, to ensure uninterrupted economic activity and essential services amid disruptions from the Middle East conflict; a committee was tasked to report required fuel allocations by end of today.

Hatch concluded the second cohort of its GoviLab AgriTech Accelerator, supporting 20 startups across 2024–2026 and hosting a demo day on 10 March 2026 to connect agri‑tech firms with partners to scale solutions for smallholder farmers.

Ceylon Chamber urged the Government to adopt measures to safeguard economic stability, prioritising continuation of the IMF programme and timely tranches. It recommended fuel measures (dynamic pricing, QR system, faster procurement), securing fertilizer and aviation fuel, prioritising FX for critical imports, and bolstering tourism, exporters and port clearance.

Arutha Research warns the Middle East war risks Sri Lanka’s energy, food, exports and remittances — the UAE supplies about 38% of petroleum imports and CPC says fuel stocks cover roughly one month. Middle Eastern markets buy $852m (≈7%) of exports and Gulf countries provide about 38% of remittance inflows.

Agrovista Plantation launched the “One Million Trees for the Motherland by 2030” initiative aiming to plant one million trees by 2030 and has already planted 250,000 trees across Sri Lanka.

CA Sri Lanka held a forum warning that prolonged Middle East instability could spike oil prices and disrupt remittances, tourism and tea exports, raising inflation, exchange-rate volatility and risks to the banking/financial sector.

President Anura Kumara Dissanayake met with ministry secretaries to plan maintenance of essential services amid the Middle East conflict, instructing exploration of regional fuel reserves for critical sectors, a feasibility study on remote working, and prompt fixes/streamlining of the digital QR code system.

Profood Propack & Agbiz Knowledge Hub 2026 will be held 21–23 Aug 2026 at BMICH, Colombo, with SLFPA and LECS planning an expanded exhibition focused on food processing, packaging, agriculture and SME support; Cargills Ceylon PLC is listed as a platinum sponsor and Hayleys’ agri unit featured among awardees.

The President chaired the Committee on Economic Surveillance to address risks from the Middle East conflict, highlighting rising global oil prices, maritime supply-chain disruptions and impacts on international trade and the domestic market. Attendees included the Central Bank Governor, Treasury Secretary and heads of petroleum, ports, export, tea and tourism agencies.

The upcoming National Export Development Plan targets over 10% annual export growth and will expand focus from traditional pillars (apparel, tea, rubber, coconut) into new sectors — automotive components, electrical/electronic products, mineral-based industries, processed food & beverages, spices and gems & jewellery — while diversifying markets toward Africa, Asia and the Middle East.

The EDB convened a high-level meeting with exporters, industry associations and logistics stakeholders to address shipping and supply-chain disruptions to Middle East markets from the regional conflict and to identify coordinated support measures for exporters.

The Export Development Board held a high-level meeting with major export sector associations to identify support for exporters facing disruptions to shipments to Middle East markets due to the regional conflict. Participants included tea, spices, fruits & vegetables, food processors, coconut-product associations and shipping/freight forwarders, and issues will be taken to the Export Development Council of Ministers.