News & market updates

ASPI rose 0.03% (7.45 pts) to 23,813.77 while the S&P SL20 slipped 0.02% to 6,617.85; turnover was Rs.8.3 billion and foreigners were net sellers with a reported net outflow of Rs.144.6 billion. Top contributors included HNB, DFCC, UML, RICH and ASCO, with DOCK, HAYL and SFCL dragging the index.

The Northern Province hosted the Northern Investment Summit on 21–22 Jan, where BOI chairman Arjuna Herath announced plans for a four-lane highway, Jaffna airport runway extension, Kankesanthurai port upgrade and three strategic industrial zones to attract investment. The summit highlighted priority sectors including IT, tourism, manufacturing, agriculture and healthcare and called for public–private partnerships and diaspora engagement.

The EDB held an orientation for newly appointed Heads of Sri Lanka Missions to strengthen collaboration on export promotion, market access and to mobilize support for Sri Lanka Expo 2026. Officials reviewed export priorities, market opportunities and the Missions' role in buyer linkages and trade facilitation.

Sri Lanka launched CROPIX, a national digital platform and accompanying frameworks (Agriculture Enterprise Architecture, Interoperability Framework, and Data Sharing Policies) to unify cultivation data and enable data-driven decision-making. The initiative, supported by the FAO and Gates Foundation, aims to modernise agricultural governance, service delivery and climate-risk response.

President Anura Dissanayake called for a national policy and a new statutory Authority to coordinate protection and rebuilding of Sri Lanka's Central Highlands after Cyclone Ditwah. He met ADB, UNDP and officials to design an integrated framework, with calls for a dedicated financial fund.

Government has consolidated MSME financial facilities into a single digital Rs.95 billion framework and the NCGI will issue Rs.7,000 million in credit guarantees in 2026 to unlock about Rs.10,000 million in MSME lending. Sixteen banks, including HDFC, Commercial Bank, NDB, HNB, Sampath, Seylan, DFCC, Nations Trust and Cargills Bank, will participate in channeling concessional and disaster-relief loans.

Sunshine Holdings (SUN.N0000) will acquire a 75% stake (577,320 shares) in Joint Agri Products Ceylon for Rs. 2.698 billion. JAPC processes and exports spices, coconut products and teas (mainly to the EU and US), and Sunshine says the deal expands its consumer and export footprint.

ASPI closed at an all-time high of 23,806.32, up 0.77% (182.58 pts) on turnover above Rs.9.8bn. Gains were led by Hayleys, Colombo Dockyard and Sampath Bank, with the capital goods and banking sectors among the top contributors.

Carson Cumberbatch (CARS.N0000) and Bukit Darah (BUKI.N0000) said their subsidiary Goodhope was notified of a provisional administrative fine of ~IDR 1,826 billion (~$108.4m) linked to Indonesia's palm oil nationalisation. Goodhope is seeking clarification, engaging with authorities and says it has adequate liquidity.

Sri Lanka launched the Agriculture Enterprise Architecture Framework, Agriculture Interoperability Framework, Data Sharing Policies and CROPIX, a national digital platform for crop data and decision-making. The initiative aims to unify registries, enable API-driven data sharing across ministries, and support evidence-based planning, agritech and farmer services.

The Northern Investment Summit 2026 (21–22 Jan) set out plans to transform Sri Lanka’s Northern Province into an investment hub, proposing infrastructure upgrades (a four‑lane highway, Jaffna runway extension, KKS port upgrade) and three industrial zones at KKS, Paranthan and Mankulam.

CBL Group announced the acquisition of PT. Tri Jaya Tangguh Indonesia with an investment of over $25 million to expand its Indonesian coconut processing capacity and exports to Europe and the US. The deal, supported by the IFC, brings a facility with over 800 employees and aims to scale value-added coconut product output.

Dividend · Rs 0.60 · XD Jan 30, 2026

First Interim dividend of LKR 0.6/share; XD 2026-01-30; record 2026-02-01; payable 2026-02-16; FY Ending 31st March, 2026

A Chinese Chamber of Commerce delegation met Sri Lanka's Agriculture Minister proposing use of currently unused state lands for large-scale dairy farms and export-oriented fruit and vegetable cultivation; the minister responded positively and lands from several state agencies may be offered.

The private sector minimum monthly wage has been raised to Rs. 30,000 from Rs. 27,000 (an increase of Rs. 3,000) effective 1 January. The change, under the National Minimum Wage (Amendment) Act, requires employers to base statutory payments (EPF, ETF, overtime, gratuity, maternity, leave) on the revised wage and disallows counting most allowances toward the minimum; employees can lodge complaints with the Labour Department for non-compliance.

CBL Group announced the acquisition of Indonesian coconut processor PT Tri Jaya Tangguh Indonesia for over USD 25 million. The IFC-supported deal aims to boost processing capacity, strengthen supply-chain resilience and expand exports to Europe and the United States.

SLSI revised SLS 1324:2025 for organic agriculture, introducing a mandatory Organic Management Plan, stronger crop/livestock/aquaculture rules and a prohibition on non-soil systems. The update also tightens processing, packaging and labelling, bans GMOs and adds social justice provisions to boost market access and consumer confidence.

Sarvesh Suri was named IFC Regional Vice President for Asia and the Pacific and will lead IFC investment and advisory operations across the region, overseeing work from India to the Pacific Islands on finance, manufacturing, agribusiness, services, infrastructure and natural-resources projects.

Sri Lanka is seeking early disbursement of a proposed $200 million ADB concessional loan to respond to Cyclone Ditwah, with about $100m earmarked for SMEs and $70m for agriculture-based small and medium entrepreneurs and technology.

China and Canada agreed to roll back tariffs: China will cut canola tariffs to 15% from 85% by March 1, while Canada will apply a 6.1% MFN tariff on Chinese electric vehicles and cap eligible EV imports at 49,000 units.

Cabinet approved implementation of the updated National Fisheries and Aquaculture Policy to promote sustainable management of fisheries and aquaculture and equitable distribution of industry benefits. The redrafted policy aligns with the government's Vistas of Prosperity and Splendour framework and incorporates recommendations from the Department of National Planning.

The BRIGHT national survey of 6,850 households (Nov 2024–Mar 2025) found that just before Cyclone Ditwah 27% of households were multidimensionally poor, 33% experienced food insecurity and 42% reported household debt.

ASPI hit a new high at 23,731.60 after Friday's 0.10% rise (22.9 pts) while the S&P SL20 rose 0.28% to 6,560.08; market turnover was Rs.4.73bn with foreign net inflow of Rs.65.3m. Top positive contributors were COMB, DFCC, CTHR, NAMU and COOP, and banking made up 38% of turnover.

Brazil–Asia Chamber of Commerce has shown interest in participating in Sri Lanka Expo 2026 and began talks with Sri Lankan officials to boost trade and investment in tea, cinnamon and Port City projects; bilateral trade is about $150m. Follow-up meetings will involve the Tea Board, Spices and Allied Products Marketing Board, Colombo Port City Economic Commission and the EDB, which highlighted apparel, rubber, IT and machinery sectors.

Sri Lanka's unemployment rate rose to 4.3% in 3Q 2025 from 3.8% in 1Q/2Q as labour force entry—notably by women—outpaced job creation and total employment slipped to 8.10 million. The quarterly contraction was driven largely by agriculture while industry and services saw modest gains; youth unemployment remained high at 19.2% (ages 15–24).

FAO appealed for $16.5m to restore agrifood livelihoods in Sri Lanka after Cyclone Ditwah, noting only $400,000 received (a 97.6% funding gap). The cyclone affected over 2.2 million people, inundated 129,000+ ha of agricultural land and caused major livestock and fisheries losses ahead of the Maha 2025/26 season.

UNDP found 95% of communities in 22 districts reported infrastructure damage from Cyclone Ditwah and urged inclusive recovery financing as the government announced LKR 95 billion support for MSMEs (including 3% concessional loans). The assessment said 93% reported livelihoods affected and noted shortages of construction materials, skilled labour and funding.

Colombo Stock Exchange rose 0.10% to close the ASPI at 23,731.60 on Friday, led by gains in Commercial Bank, DFCC Bank, C T Holdings, Namunukula Plantations and Co-operative Insurance. Market turnover fell to Rs4.7bn from Rs9.2bn, with banks and capital goods among key contributing sectors.