News & market updates

Adviser Duminda Hulangamuwa said the 2026 Budget aims to restore the private sector as the "engine of growth" by mobilising private capital, offering tax incentives and institutional reforms to boost investment. He highlighted landmark laws (PPP, SOE, Strategic Development Projects, Port City) and a land bank to unlock projects including mining, plantations and wind power.

Selyn Business Development Director Selyna Peiris warned the 2026 Budget's record Rs. 80 billion SME allocation risks being underutilised due to implementation and access gaps. She cited last year's shortfalls: of Rs. 6bn in low‑interest loans only Rs. 458m was disbursed, and Rs. 1bn used of a Rs. 15bn guarantee.

Namunukula Plantations PLC appointed Saman Doranegama as its Acting Chief Executive Officer; he will continue to serve as CEO of Kegalle Plantations PLC.

The EDB organized Sri Lanka’s national pavilion at the 8th CIIE in Shanghai (5–10 Nov 2025), featuring 16 companies across food, tea, gems and consumer goods and drawing strong international buyer interest and new business inquiries.

Sri Lanka will draft a law to protect investors against expropriation and has referred a cabinet-approved concept paper to the Legal Draftsman to prepare a bill. The bill implements a 2026 budget proposal, which also included a wage hike for privatized plantations and a threat not to renew some leases.

President Anura Kumara Dissanayake's 2026 budget frames IMF-linked reforms to stabilise recovery, citing 4.8% growth in H1 2025 and reserves above $6bn while aiming to bring debt below 90% of GDP by 2032. It advances FDI-friendly rules, PPPs, SOE reform, tariff liberalisation and a $15bn digital push, keeps cost-reflective energy pricing and VAT changes, and includes measures that could hurt plantations and small businesses.

The Ceylon Chamber of Commerce said Sri Lanka's 2026 budget maintains policy predictability, fiscal consolidation and disciplined debt management, supporting low inflation, stable interest rates and investor confidence. It urged converting fiscal over-performance into productive public investment (infrastructure, digital services, tourism, energy, health, agriculture) and fast-tracking SOE/PPP and tax-administration reforms.

Prime Minister Dr. Harini Amarasuriya pledged to raise plantation workers' daily wage to Rs.1,750 from January 2026 and set targets to lift made tea production to 400 mnkg and export earnings to $2.5bn by 2030.

IPD Germany and the Sri Lanka Export Development Board ran a one-day workshop to train Sri Lankan SMEs in the natural ingredients sector on costing and pricing for the EU market. Sessions covered cost structures, export pricing, technical data sheets and compliance with EU quality, safety and traceability standards.

The CACCI 39th Annual Conference opened in Colombo, drawing delegates from 28 member nations with sector sessions on SMEs, ICT, tourism and renewable energy. Speakers highlighted regional cooperation and called for a pragmatic trade policy to better connect Sri Lankan businesses to wider markets.

New Anthoney’s Group is investing an additional Rs. 500 million to expand its value-added chicken range and launch the premium Chicken Havens line, targeting a fourfold increase in value-added production capacity within six months. The expansion targets HORECA and retail channels, incorporates European processing technology, and aims to grow exports.

Ceylon Chamber says Budget 2026 reinforces policy predictability and fiscal consolidation but urges faster implementation of reforms to convert fiscal gains into growth. It welcomes 18 of its proposals (e.g., Trade Single Window, PPP framework, digital ID, 5G) and calls for stronger tax administration, SOE/PPP legislation and targeted public investment.

SLYCAN Trust hosted a 'Plant-Based Gastronomy' reception promoting Sri Lanka's plant-based culinary heritage and its role in sustainable tourism, and launched a Compendium identifying ten local high-protein crops to support entrepreneurs and the hospitality sector.

Bogawantalawa Tea Estates PLC's Bogawana estate is the world's first producer of climate-positive tea and targets net removal of 0.40 kg CO₂e per kg of tea by 2025. The estate also uses hydropower/solar, runs reforestation and community projects (Rs.22m water project) and exports to 30+ countries.

The Lanka Coffee Association held its 4th AGM and elected Tharanga Muramudali as Chair; the LCA also ran the Sri Lanka Coffee Festival (1,000+ visitors), held quality training for producers, and launched a commemorative 200th‑year coffee stamp to boost exports and industry standards.

Ceylon Chamber says Budget 2026 reinforces policy stability and urges faster implementation of reforms to meet growth targets. It notes 18 Chamber proposals were adopted — including a Trade National Single Window, PPP framework, digital ID/5G and BIA expansion — and calls for stronger tax administration and fast-tracked SOE/PPP reforms.

Treasury Secretary Harshana Suriyapperuma said removal of para-tariffs and the introduction of a 30% duty band is intended to be revenue-neutral and implementation could begin in Q1 2026. The move aims to harmonize duties, eliminate import CESS/PAL/SCL and better integrate Sri Lanka with global markets.

President Anura Kumara Disanayake presented the 2026 Budget offering measures to attract FDI — including a residence visa for qualifying foreign investors, amendments to investment and port city laws, and a PPP/Investment Protection framework — aiming to boost growth to 7%.

President Anura Kumara Dissanayake presented the 2026 Budget, unveiling investor-friendly reforms including a residence visa for qualifying foreign investors, amendments to FDI laws and a planned Investment Protection Act to boost FDI. The Budget targets 7% medium-term growth and highlights opportunities in exports, IT, tourism, ports, energy and agriculture.

President Anura Kumara Dissanayake said estate worker wages will be raised to 1,750 rupees a day (1,550 rupees basic from Jan 2026 plus a 200-rupee daily government incentive), and the government will allocate 5,000 million rupees for this.

President Anura Dissanayake said a specialist ministerial committee has been appointed to review existing free trade agreements and pursue new ones. He added discussions have begun with several countries and regions to expand FTAs.

Average coconut prices in Sri Lanka fell 5.16% to 122,493.58 rupees per 1,000 nuts at a weekly auction as nuts offered rose to 540,267 and nuts sold to 463,909. Export earnings from coconut-based products rose 72.03% in September 2025 versus September 2024.

Sunshine Holdings PLC reported consolidated revenue of Rs. 32.3 billion in 1H FY26, up 7.4% YoY, and group EBIT rose 18.6% to Rs. 5.5 billion with gross margin expanding to 31.9%. Healthcare remained the largest revenue contributor while Agribusiness (Watawala Plantations) saw revenue up 21.9% and sharply improved margins.

A Vietnam embassy-backed networking event in Colombo brought Sri Lankan and Vietnamese business and trade officials together to explore deeper trade and investment links across manufacturing, agriculture, logistics, tourism and construction, and raised prospects for direct flights and a bilateral FTA.

Sri Lanka and Bangladesh agreed to deepen cooperation on maritime connectivity, trade and green tourism, including a proposal for direct port connectivity between Colombo and Chattogram to cut shipping costs. They also advanced talks on investment in infrastructure, EPZs/SEZs, ICT/tech corridor, pharma registration and renewable energy collaboration.

Sunshine Holdings reported consolidated 1HFY26 revenue of LKR 32.3bn, up 7.4% YoY, and group EBIT rose 18.6% to LKR 5.5bn. Healthcare contributed 53.7% of revenue; agribusiness (Watawala) revenue rose 21.9%, and gross profit margin expanded 153bps to 31.9%.

National Sales Average (NSA) of tea in October fell month-on-month to Rs.1,177.14/kg (USD 3.87) but was up Rs.4.99 year-on-year. Year-to-date NSA is Rs.1,161.99 (down Rs.74.93 vs 2024); tea export earnings rose 17% in September to $137m and to $1.16bn in the first nine months.

President Anura Kumara Dissanayake will present the 2026 Budget (second reading of the Appropriation Bill) to Parliament tomorrow (7 Nov). Debates on the second reading run from 8 Nov with votes and committee stages scheduled through 5 Dec, including the second-reading vote on 14 Nov and the third-reading vote on 5 Dec.

Sri Lanka will unveil its 2026 budget on Friday, with the government balancing IMF-driven fiscal discipline against delivering relief as inflation is projected to return to around 5%. The plan must also address high debt, potential tax changes, pressure for capital (construction) spending and SOE reforms such as at CEB and SriLankan Airlines.

EDB and IPD Germany held a one-day workshop on 29 October 2025 on costing and pricing for Sri Lankan natural-ingredients SMEs to boost competitiveness in the EU market. Sessions covered cost structures, export pricing and preparation of technical data sheets to meet EU quality, safety and traceability standards.