News & market updates

The Sri Lanka–Greater Mekong Business Council held its 14th AGM and elected Nimal Ratnayake (Lanka Hospitals) as President for 2025–2026; committee seats went to firms including Aitken Spence Travels and Hayleys Advantis as the council promotes trade, tourism and sectoral collaboration (textiles, tea, IT, healthcare).

National inflation (NCPI) rose to 2.1% in September 2025 from 1.5% in August 2025. Food inflation increased to 3.8% (from 2.9%) and non-food inflation to 0.7% (from 0.4%); the NCPI index is 207.4, up 0.2 points versus August.

Kotagala Plantations (KOTA.N0000) said its rights issue to raise Rs.761.6m (84.6m shares at Rs.9) was oversubscribed with Rs.776.4m in subscriptions. The share closed at Rs.9.80 and NAV per share was Rs.7.48 as at end-June 2025.

Thailand's counselor highlighted the Sri Lanka–Thailand FTA as a milestone, citing opportunities in food, agriculture, tourism, healthcare and IT. The Sri Lanka–Greater Mekong Business Council held its 14th AGM and elected Nimal Ratnayake as President for 2025–2026.

Sri Lanka expects US$1.1bn in foreign direct investment in 2025, with realized investments up 138% year‑on‑year to September and the largest single realized investment of US$229m from Colombo West International Terminal. BOI approved 104 projects totalling US$1,060m Jan–Sept across sectors including solar, manufacturing, property, telecoms and dairy.

Lotus Group opened Sri Lanka’s first export-oriented private tissue culture laboratory in Dalukgolla, Nikaweratiya on 6 August 2025 to produce high-quality, disease-free planting materials (banana, pineapple, orchids, agarwood, aloe vera) for local and export markets.

95 of 662 registered Sri Lanka tea factories were non-operational, leaving 567 operational; the minister said 16 factories were reopened and six closed this year. Reasons given include a factory fire, administrative faults and worker shortages, with district-level counts provided.

Sri Lanka could extend Geographical Indication (GI) protection to king coconuts, cashew and handicrafts following GI certification of Ceylon tea and cinnamon; studies on king coconut and cashew are underway to establish origin and quality standards.

Aitken Spence PLC has partnered with the Sri Lanka Air Force on the “Clean Today – Green Tomorrow” environmental programme, hosting SLAF visits to its hotels and plantations as part of a 5–6 month initiative to promote sustainable practices and support several UN SDGs.

Hayleys bought a 40% stake in Harischandra Mills, a deal that added Rs2.58bn to turnover and sent Harischandra shares up 50% to Rs7,424.50. Maharaja Foods declared a 10 cent dividend and plans a rights issue to raise Rs112.5mn, while Kotagala Plantations said its rights issue was oversubscribed (Rs76.42mn).

Rights issue · 1:4 at Rs 9.00 · XD Sep 17, 2025

Sri Lanka has submitted an application to the European Commission for Geographical Indication (GI) certification for Ceylon Tea after a four-year programme supported by a €1m AFD grant to combat imitation and secure premium export prices. The move aims to protect authenticity and support producers and rural communities.

TRI urged climate-resilient cultivation and Geographical Indication (GI) certification to future-proof Sri Lanka's tea sector, noting production was about 262 million kg to 2024 with a target of 400 million kg. It recommended measures such as cultivar selection, micro-irrigation, intercropping and digital traceability to address climate risks and improve market value.

Tea auction prices plunged about 100 rupees/kg over two weeks as buyers cut purchases after exporters must pay VAT upfront under IMF-driven SVAT changes, raising unsold catalogues from under 800 to c.1,256–1,258. Officials say quick VAT refunds could restore buying but financing costs will be passed to producers.

IPS says Sri Lanka must convert its cyclical post-crisis rebound into structurally driven growth, noting H1 2025 GDP growth of 4.9% and urging reforms in land, labour and trade to boost productivity. It highlights technology and digitalisation as key enablers but flags low computer literacy (39%; 17.9% in the estate sector) and calls for investment in digital access.

IPS urges converting Sri Lanka's cyclical recovery into structurally driven growth through technology infusion, digitalisation and institutional reforms, noting GDP grew 4.9% in H1 2025.

Sri Lanka's paddy production for the 2025 Yala season is forecast at 2.21 million mt (up 11.9% y/y) and 2025 paddy output is forecast 4.96 million mt (up 5.5%); coconut rose 17.8% in August while tea, fish and rubber production declined, the central bank said.

Kenya aims to triple tea export revenue to over $2bn by 2027, supported by China lifting import tariffs and a KSh3.7bn (~$28m) government allocation to modernise tea factories and boost processing and value-added orthodox tea production; tax waivers on packaging for agricultural exports will also lower costs.

Dilmah Ceylon Tea Company Plc was invited to be Patron of the UN Global Compact Network Sri Lanka’s Water & Ocean Stewardship Working Group and reported a 2024/25 direct water footprint of 19,498 m3 (DCTC) with municipal water use down 8% and wastewater discharged down 44% year‑on‑year.

FAO, IFAD and WFP call for partnerships to accelerate digital, climate‑smart and gender‑responsive measures to improve Sri Lanka's food security and smallholder livelihoods. They highlight priorities such as digital market platforms, tank-based irrigation, agri finance, fortified school meals and a national partnership platform.

Sri Lanka's cabinet has made the purchase of brown sugar mandatory for state agencies (military, police, hospitals, prisons) to help dispose of output from state-run Lanka Sugar Limited, which is set to produce 56,000 tonnes this year. The move follows unsold stocks piling up due to higher production costs versus Brazil and value-added tax.

Sri Lanka's average coconut price fell 1.8% to 136,059.65 rupees per 1,000 nuts at the Oct 9 weekly auction; nuts offered rose to 717,319 and nuts sold to 617,850.

President Anura Kumara Dissanayake held a special discussion with plantation company representatives on the proposed increase to estate workers' daily wages to align with recent public/private sector salary hikes and discussed implementation; the government pledged support for developing the plantation sector.

President Anura Kumara Disanayake urged plantation companies to raise estate workers' daily wages and said the government will support the industry to implement the increase. Representatives from major planters, including Kahawatte, Malwatte, Kelani Valley, Balangoda, Browns, Kegalle and Kotagala, took part.

Export Development Board convened the Trade Facilitation Task Force's second networking session on Oct 14 to identify and resolve exporters' operational challenges and streamline trade processes to improve export efficiency.

Sumathi Information Technologies unveiled Sri Lanka’s first DJI Dock 3 and is now an authorised dealer for DJI Enterprise and Agriculture drones, showcasing automated drone uses across public safety, infrastructure inspection, plantation monitoring and environmental surveillance.

President Anura Kumara Disanayake announced plantation workers' daily wage will be raised to Rs. 1,750 by year-end. The remark came at a land-deed distribution under an India-funded housing project that provides Rs. 2.8m per unit, plus Rs. 400,000 from the Sri Lankan government for infrastructure.

Hayleys PLC ranked No.1 in the LMD 100 and reported record FY2024/25 consolidated revenue of Rs.492.2 billion (13% YoY), PBT Rs.35.4 billion (+40%) and PAT Rs.22.5 billion (+52%). Exports were $685m (53% of revenue), 74% of energy from renewables and Fitch retained a 'AAA (lka)' rating.

Colombo market rebounded with the ASPI up 0.35% to 22,174.74 and turnover of Rs.13.3 billion amid upbeat sentiment after the IMF's positive review; the banking sector led turnover (48%) and Commercial Bank, DIMO, Bukit Darah, Carson and Wind were among top contributors.

The Government approved an additional Rs.5 billion for the fertiliser subsidy for the Maha 2025/26 season, raising the allocation from Rs.33.5 billion to about Rs.38.5 billion to cover paddy and other field crops. Approval is subject to the recommendation of the food policy and security committee.