News & market updates

FAO launches a US$16.5mn appeal to support recovery of farming, livestock and fishing communities hit by Cyclone Ditwah in Sri Lanka, targeting 256,000 households (about 1.03 million people) across seven provinces to stabilize livelihoods and safeguard food production.

Permia Sensing, an agtech firm with Sri Lankan operations, won the UAE FoodTech Challenge 2026 and receives $500,000 as one of four winners in a $2m prize package. It uses AI, bioacoustic sensors and drone imaging to monitor coconut and oil palm plantations covering about 10,000 hectares in Sri Lanka and will pilot and scale its tech in the UAE and other markets.

UNDP's assessment found 95% of communities in 22 districts reported damage to homes, roads or other infrastructure after Cyclone Ditwah, highlighting widespread recovery needs. The report flagged shortages of materials, labour and financing and noted the government's LKR95 billion MSME support including a 3% concessional loan scheme.

FAO has appealed for USD 16.5 million to support early recovery of livelihoods and food security after Cyclone Ditwah damaged Sri Lanka's agrifood sector, affecting over 2.2 million people and inundating 129,000+ hectares. Only USD 400,000 has been received so far, leaving a 97.6% funding gap; planned aid includes seeds, livestock support, fisheries repairs and cash assistance.

Arava Ltd. won the Presidential Export Award 2024/25 for Best Exporter – Coconut Substrate Products, recognising its export performance to 46 countries and operations across three manufacturing facilities employing over 800 staff.

The Cabinet approved leasing stage-II underutilised state-owned plantation lands and properties to private investors to boost asset utilisation and productivity, citing assets including Mawarala Watte tea land/factory (40.48 ha) and 1,541 ha at Kondachchi Estate, under several state plantation bodies.

Ceylon tea prices fell over two weeks due to buying disruptions from Iran, though High Growns recovered some losses on the second day. Rupee depreciation supported LKR prices and there was demand from markets like Russia and Dubai.

Dividend · Rs 1.00 · XD Jan 23, 2026

Second Interim dividend of LKR 1/share; XD 2026-01-23; record 2026-01-25; payable 2026-02-12; FY 31st March 2026

US President Trump ordered a 25% tariff on imports to the US from any country doing business with Iran. Sri Lanka tea prices fell steeply in recent auctions after the Iranian rial's collapse; Sri Lanka exports tea to Iran under a food deal but it is unclear if the tariff covers food.

ODI Global and CEPA launched the report 'Sustaining Transformative Growth in Sri Lanka (2025–2030)' on 8 Jan 2026, offering a six-point policy roadmap to lock in macro stability and drive transformative growth through 2025–2030. The study notes renewed growth and lower inflation but high poverty, and highlights priorities including supply-chain integration, factor-market reforms and targeted sector policies with opportunities in tourism, digital, niche manufacturing and agriculture.

Ceylon Grain Elevators PLC has approved a Rs. 3 billion investment to double poultry processing capacity at its Seeduwa plant. The expansion aims to increase value-added product output and efficiency through automation, and is subject to BOI and other government approvals.

Colombo bourse closed the week up 3.45% as the ASPI rose 0.54% yesterday to 23,654.30, with the market gaining about Rs. 264.8 billion in value for the week and daily turnover over Rs. 8.5 billion; top contributors included JKH, COMB, VONE, CARS and NTB.

Sri Lankan exports to Saudi Arabia rose 19% in Jan–Sep 2025 versus the same period in 2024, while total bilateral trade increased 9%. Embassy-led trade promotion, business delegations, product launches (eg Ceylon Biscuits Ltd.) and a new Saudi–Sri Lanka Joint Business Council were cited as drivers.

Colombo Stock Exchange ASPI rose 0.54% on Friday and 3.45% over the week, led by gains in John Keells, Commercial Bank, Vallibel One, Carson Cumberbatch and Nations Trust Bank. Market turnover fell to 8.5 billion rupees and Renuka Agri Foods and Sampath Bank recorded crossings.

Sri Lanka Expo 2026 will feature 750 exporters and an investor forum targeting 1,500 foreign buyers, investors and media to help boost exports to $36bn by 2030. The event (June 18-21) will showcase 24 product/service categories with thematic pavilions including sustainable/green solutions and ICT, and offer discounted travel and accommodation for qualified buyers.

Hayleys Agriculture Holdings was appointed the exclusive Sri Lanka distributor for Evonik Industries AG’s specialty animal nutrition portfolio, giving Hayleys PLC exclusive rights to introduce Evonik products (GUTCARE, SPEOCARE T60, GUANAMINO) to the local poultry industry.

President Anura Kumara Dissanayake said compensation for fully damaged houses and construction of new homes will begin on 9 January in Anuradhapura and Kurunegala. The meeting also addressed crop-damage compensation, a loan scheme for affected SMEs requiring bank engagement, and instructions to expedite agricultural payments and business registration.

The Sri Lankan rupee fell to Rs. 310.02 per USD, its weakest level since February 2024. The currency has depreciated 5.6% in 2025 after the vehicle import ban was lifted, with vehicle imports at $281m in November and $1.7bn in the first 11 months of 2025.

President Anura Kumara Dissanayake ordered officials to develop mechanisms to register unregistered SMEs and to accelerate access to a 3% interest credit scheme for Ditwah-hit businesses. He also instructed housing reconstruction to begin from 9 January and expedited crop compensation payments.

Sri Lanka and the EU signed a €8 million grant to fund an AgriGreen project promoting sustainable agricultural practices and greener value chains in the country's rubber sector. The initiative, led by the Plantation and Community Infrastructure Ministry with the Rubber Development Department and Rubber Research Institute, emphasizes youth and women participation and aims to boost resilience and export integration.

The Tea Research Institute has certified SpectrifyAI’s portable NIR devices for rapid tea moisture testing, reporting over 95% accuracy in under 15 seconds versus the ISO 6-hour oven-dry method. The AI platform also measures total polyphenols and offers supply-chain traceability to boost Sri Lanka’s tea quality and export competitiveness.

Merchant Bank of Sri Lanka & Finance PLC (MBSL) recalibrated the MBSL Midcap Index effective 1 January 2026, setting the midcap market-cap range at Rs. 8.45 billion–Rs. 84.5 billion and selecting 25 constituents. New inclusions include Sierra Cables, Aitken Spence, Vallibel Finance, Lanka IOC, JAT Holdings and Prime Lands; Citizens Development, CIC, Ceylon Grain Elevators, John Keells, Hayleys Fabric, Teejay Lanka and Watawala Plantations were excluded.

Sri Lanka and the EU signed an EUR 8 million grant agreement to launch the AgriGreen Initiative to support sustainable agricultural practices and value-chain improvements in the rubber sector, with emphasis on youth, women and better integration with export markets.

Sri Lanka signed an 8 million euro grant agreement with the EU to support environmentally responsible agricultural practices in the rubber sector under the AgriGreen Initiative. The project, led by the Ministry of Plantation with the Rubber Development Department and Rubber Research Institute, will target youth and women.

USD/LKR spot rate rose above Rs.310 to Rs.310.02 on Jan 7 (CBSL). The CBSL showed dollar buying/selling rates at Rs.306.28/313.81 and said the rupee depreciated 5.6% against the dollar during 2025.

The Cabinet approved a relief package providing pepper, coffee and cardamom farmers up to Rs. 425,000 per hectare for replanting, and the Department of Export Agriculture will supply free seedlings to replace destroyed plantations.

The Cabinet approved a $10m KOICA‑funded WFP project (2025–2029) to improve maize quality and strengthen the Thriposha supply chain, benefiting about 7,500 farmers in Anuradhapura, Moneragala and Badulla.

Colombo market rose for a ninth straight session as the ASPI gained 1.21% to 23,292.91, with market turnover about Rs. 6.6bn; banking counters led activity and top positive contributors included HNB, COMB, JKH, NDB and SAMP.

AgriOne Solutions, a subsidiary of Asiya Siyaka Commodities PLC, has appointed Pasad Weerasekera to its Board of Directors. He brings over 33 years of agri-input industry experience and will work on strategy, execution and long-term value creation for the business.