News & market updates

The Exporters Association of Sri Lanka urges the government and Customs to publish clear, risk-based implementation guidelines and consult stakeholders for the newly gazetted import ban on goods produced with forced labour to avoid uncertainty, higher costs and shipment delays.

The Exporters' Association of Sri Lanka elected Nalaka Ratnayake as Chair at its 29th AGM; the World Bank country manager urged reforms to boost export competitiveness, including lowering business costs, expanding market access and fast-tracking the National Single Window digital trade platform.

The EDB launched two sector-specific export handbooks in Sinhala and Tamil to help women-led SMEs in textiles, apparel, accessories, footwear, handicrafts and processed agrifood/spices access the UK market under the Developing Countries Trading Scheme (DCTS), which offers duty-free access on ~92% of product lines. Developed with the ITC and the British High Commission, the guides aim to improve export readiness and inclusion ahead of the National Export Development Plan 2026–2029.

Government launched the nationwide 'Ceylon Tea Village' program to transform smallholder tea production and lift annual output to 400m kg and tea export earnings to $2.5bn by 2030, starting with 144 tea villages. The program includes nurseries, mechanisation, insurance, pensions, concessional finance, value‑addition and links to tourism.

June tea production rose 4% YoY to 22.5 MnKg, but first-half output was 131.8 MnKg, weighed down by extreme weather, Cyclone Ditwah and rising fertiliser costs. The industry is urging a targeted fertiliser subsidy for smallholders ahead of expected El Niño.

Colombo's ASPI fell 0.03% to 21,417.80, extending a third straight day of losses on profit taking and net foreign outflows of Rs.36.7m. Banking led turnover (27%) while Haycarb, Chevron Lubricants, John Keells and Hayleys were among top contributors.

Sri Lanka's cabinet approved a new national livestock policy to replace the two-decade-old framework, prioritising private sector-led, market-oriented competitive production. The policy also emphasises sustainable, environmentally friendly development and targeted support for small-scale farmers.

SheTrades Sri Lanka Hub (EDB with ITC and the British High Commission) launched two Sinhala and Tamil export handbooks for textiles/apparel and processed agrifood/spices to boost women entrepreneurs and SMEs' UK export readiness, noting the UK's DCTS offers duty-free access on about 92% of product lines. The handbooks are available on the EDB SheTrades portal.

The Cabinet approved establishment of a Centralised Zero-Waste Biomass Cinnamon Processing Centre at the University of Ruhuna to be carried out in four phases over 27 months. Jointly implemented by the Science & Technology Ministry, ITI and the university, it aims to support small-scale cultivators in Matara and Galle by lowering processing costs and utilising biomass waste.

Sri Lanka's cabinet approved establishing a centralized zero-waste biomass cinnamon processing centre at the University of Ruhuna, to be implemented over four phases spanning 27 months. The state-led project aims to modernize infrastructure, cut processing costs and commercialize cinnamon biomass to help regional smallholder producers.

Emirates is offering a seasonal strawberry menu on Dubai–UK flights from 13–31 July with strawberry desserts across all cabin classes. Emirates SkyCargo has transported more than 230 tonnes of British strawberries to the UAE since March 2026, partly sourced from Bustanica vertical farm.

A 31-member Indian SME delegation from the Federation of Indian Export Organisations held B2B networking sessions with Sri Lankan businesses at the Ceylon Chamber (8–10 July 2026) to explore trade, sourcing and partnership opportunities across pharmaceuticals, engineering, apparel, food/agriculture and infrastructure.

Janathakshan, funded by The Coca‑Cola Foundation, concluded the SWYFT project (Aug 2024–May 2026), establishing five MCPCs, launching Sri Lanka's first hydro-powered MCPC with Thalawakelle Plantation (Hayleys Group), and distributing eight electric three-wheelers and 15 e-bikes.

EDB, IFC and the EU ran the 7th Provincial ExpoNavigator Program in Batticaloa on 9–10 June 2026 to boost export readiness of nearly 100 Eastern Province SMEs. The two-day event offered awareness sessions, technical consultations and a Business Clinic to identify high-potential enterprises for continued SLEEI support.

The Export Development Board (EDB) will collaborate with Expertise France on an EU-funded project to promote sustainable, climate-resilient and circular trade with the EU, focusing on regulatory alignment, green transition measures and SME support.

The Ceylon Chamber hosted a B2B session (8–10 July 2026) for a 31-member FIEO Indian export delegation to connect Indian SMEs (pharmaceuticals, engineering, apparel, food, infrastructure) with Sri Lankan companies to explore sourcing, market expansion and commercial partnerships.

TWC Capital advised WindForce PLC on an IFC commitment of up to $18m for Sri Lanka's first utility-scale 100 MW solar project, and advised New Anthoney's Farms on a separate $10m IFC financing, totalling up to $28m in development finance.

The Ceylon Chamber of Commerce met Belarusian Ambassador Mikhail Kasko to explore closer private‑sector ties to boost trade in machinery, agriculture and pharmaceuticals and increase exports (apparel, tea, coconut, spices, fresh produce) and tourism via direct air links.

EDB, IFC and the EU ran the 7th Provincial ExpoNavigator Programme in Batticaloa on 9–10 June 2026 to boost export readiness of nearly 100 Eastern Province SMEs. The two-day clinic provided advisory, quality/certification guidance and finance linkages to expand the regional exporter base under SLEEI/NEDP.

ADB lowers developing Asia and Pacific growth to 4.9% for 2026 (from 5.5% in 2025), a 0.2 percentage point downgrade from April due to prolonged energy-market disruptions. It raises regional inflation to 4.3% for this year and warns of risks from tighter financial conditions, supply-chain strains and higher fertilizer/commodity costs.

A 31-member FIEO-led Indian business delegation visited Sri Lanka (8–10 July 2026) to explore trade and B2B partnerships across pharmaceuticals, engineering, apparel, food/agriculture and infrastructure. Bilateral merchandise trade reached about $7.2bn in 2025–26 and Sri Lanka's exports to India rose nearly 160% over five years.

A 31-member delegation led by India's FIEO visited Sri Lanka (July 8–10) to explore new bilateral trade and investment opportunities and formally exchanged an MoU with the National Chamber of Exporters to boost institutional cooperation. Delegates covered pharmaceuticals, engineering, apparel, food/agriculture and infrastructure.

The Paddy Marketing Board will start buying Yala paddy from July 13 at Rs120/kg for Nadu, Rs130/kg for Samba and Rs140/kg for Keeri Samba. Purchases begin in Ampara and Ruhuna (and parts of Mullaitivu and Trincomalee) with wider operations from July 20; the government allocated Rs6bn to the PMB and Rs10bn via concessional state-bank loans to help millers and 143 warehouses will be used.

Colombo market fell for an eighth session as ASPI dropped 0.60% (130.78 pts) to 21,697.72 amid renewed Middle East tensions, with turnover over Rs.1.4bn and foreign net outflow of Rs.91.7m. Declines were led by Commercial Bank, Melstacorp, Hayleys and John Keells, while capital goods, food & beverage and banking drove turnover.

Sri Lanka's ASPI fell 0.60% to 21,697.72 as markets slowed amid escalation in the Middle East and global instability. Seylan Bank, Lanka IOC and Malwatte Valley Plantations were among gainers while Commercial Bank, Melstacorp, Lion Brewery and Hayleys led declines; Vidullanka authorised a first gross dividend of Rs0.20 per share to be dispatched by Aug 7, 2026.

Sri Lanka will begin paddy procurement for the 2026 Yala season from July 15, with the Treasury allocating Rs6 billion and state banks providing Rs10 billion in Odapana loans. The Paddy Marketing Board holds about 120,000 mt, with tenders to release ~60,000 mt and 20,000 mt supplied to Sathosa.

Heads of the IEA, IMF, World Bank and WTO said the war in the Middle East is straining energy, trade and food security and pledged coordinated support and readiness to act. They noted fuel and fertilizer prices have fallen since June but uncertainty and transit strains persist.

Sri Lanka's ASPI fell 0.49% to 21,720.92 midday; HNB Finance listed 381,667,019 new ordinary voting shares and 80,072,222 non‑voting shares from its rights issue. Malwatte Valley Plantations and Seylan Bank were among gainers while Melstacorp was a top decliner.

Colombo Stock Exchange fell for a sixth straight session as the ASPI dropped 0.54% to 21,962.30. Turnover exceeded Rs.1.5bn with foreigners net sellers of Rs.185m; major drags included Melstacorp, John Keells, Carson Cumberbatch and CIC Holdings, while Access Engineering and Chevron Lubricants featured among top contributors.

President Anura Kumara Dissanayake ordered tighter oversight of agricultural spending ahead of the 2027 Budget, directing officials to maximise use of 2026 allocations, expedite delayed foreign-funded projects and promote concessionary loans for young entrepreneurs. He also called for district-level consolidation of irrigation management, mapping of rehabilitation projects and proposals to expand export agriculture and value addition.