News & market updates

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

The Sri Lanka Export Development Board ran the Sri Lanka Pavilion at Foodex Saudi 2025 (21–24 Sep), where nine Sri Lankan food and beverage firms showcased products to international buyers to expand export and market-entry opportunities in Saudi Arabia. The pavilion featured processed foods, oats, coconut products, spices, fish and poultry and hosted EDB B2B meetings with supermarket representatives and major buyers.

The Sri Lanka Banks' Association submitted a wide-ranging set of proposals to the Finance Ministry for the 2026 Budget, urging tax reform, targeted credit guarantees, SME formalisation, digital infrastructure, green finance and PPPs to support economic recovery.

Sri Lanka's tea export earnings reached $1.2 billion in Jan-Aug 2025, the highest since 2014, as exports rose 7% to 174.5 Mnkg and FOB value reached $5.88/kg. Value-added exports grew to 58% of shipments and exports to Libya rose 198% YoY.

Dilmah Ceylon Tea Company and Dialog Axiata joined the 2025 UN Global Compact Private Sector Forum in New York to mobilize private finance for the SDGs. The Forum highlighted a >USD4tn SDG financing gap and prioritized transitions in food systems, energy, digital access, and climate resilience.

Kandurata Umbrella Industries unveiled a Two Folding 'tea plucking backpack' umbrella at Industry Expo 2025, offering an alternative to traditional cane baskets for tea pluckers; the firm resumed production on Aug 29 after its Gampola factory fire.

Sri Lanka's export earnings totalled US$11,554.32 mn in Jan–Aug 2025, up 6.61% y/y, with August exports at US$1,607.58 mn (+2.57% y/y). Merchandise rose 6.89% (US$9,092.85 mn) and services 5.57% (US$2,461.46 mn); tea and coconut products showed strong gains while apparel was largely flat.

National inflation (NCPI) rose to 1.5% in August 2025 from 0.7% in July 2025. Food inflation increased to 2.9% and the NCPI level for August was 207.2 (down 1.1 index points vs July).

Kelani Valley Plantations PLC (KVAL.N0000) appointed Senaka Alawattegama as Director/Chief Executive Officer, effective 1 August. He brings over 40 years' plantation experience, was also named a director of several group companies and will work with Dr. Roshan Rajadurai to strengthen KVPL's market presence.

DIMO (Diesel & Motor Engineering PLC) ran DIMO Care Camp (Jul 30–Aug 11, 2025) and Mahindra Tractor Service Camps (Aug 7–31, 2025), providing tractor inspections, servicing, spare parts and health clinics across multiple districts ahead of the Maha season.

Talawakelle Tea Estates Plc (TPL.N0000) appointed Nishantha Abeysinghe as Director/Chief Executive Officer, effective 1 August 2025. Abeysinghe, with 36 years in the plantation sector, was also named director of several Hayleys Group private companies including TTEL hydro power units.

Sri Lanka's Export Development Board and Germany's Import Promotion Desk signed a cooperation agreement to promote Sri Lankan digital products and services and natural ingredients/processed foods in Europe. The deal will deliver B2B matchmaking, sourcing missions, trade-fair access and EU-market training to help SMEs meet export and compliance requirements.

Kelani Valley Plantations PLC (KVAL.N0000) has appointed Senaka Alawattegama as Director/Chief Executive Officer effective 1 August 2025. He brings over 40 years' plantation experience and industry leadership aimed at strengthening KVPL's market presence and sustainability credentials.

Tea Exporters Association said at its 26th AGM that Ceylon Tea aims to reach 400 million kg and USD 2.5 billion in export revenue by 2030 and projects 2025 exports of 270 million kg and revenues over USD 1.5 billion. Officials stressed boosting smallholder yields, replanting and value‑addition through branding and packaging.

Plantation Minister K V Samantha Viddyarathna said fertilizer will be released to tea growers under a new mechanism within two weeks allowing them to obtain fertilizer from any place they wish. He also urged plantation companies to rehabilitate abandoned tea and rubber areas or face reallocation, and a pilot project to boost coconut production has been launched in Kalutara.

Sri Lanka's tea production in August fell to 19.68 Mnkg, down 1.66 Mnkg (7.77% YoY), while cumulative Jan–Aug output rose to 176.82 Mnkg, up 4.34 Mnkg (2.51% YoY).

France's development agency AFD has begun talks with Sri Lanka to re-engage stalled projects after a bilateral debt restructuring that converted $138m of arrears and left about $478m of French loans. Discussions cover restarting or cancelling priority projects including renewable energy, tea support and bank on-lending.

Pussalla Agri Ventures opened its first dedicated Ceylon Cinnamon Organic outlet in Narigama, Hikkaduwa. The outlet showcases products made at the company's Kosgama processing facility and aims to boost value-added cinnamon exports and attract travelers.

World Bank VP Johannes Zutt concluded his visit, reaffirming WBG support and citing a prior pledge of over $1 billion plus current programs including a 1 GW renewable energy project ($150m) and a $100m agriculture project. Additional operations are planned in tourism, regional development, digital development and ports/logistics to attract private investment and jobs.

The Planters’ Association warned the Government’s decision to permit spice imports under an "approved enterprise" framework risks diluting the "Pure Ceylon" brand, enabling smuggling/adulteration, introducing pests and harming farmers, recalling the 2016 pepper crisis. It urged reversal and stronger support for local production and phytosanitary oversight.

President Anura Kumara Disanayake asked the World Bank to help showcase Sri Lanka's current corruption-free governance, and the World Bank approved assistance for government programs. The Bank recommended focusing on digitalisation, tourism, agriculture and infrastructure to boost growth and jobs.

Talawakelle Tea Estates (TPL.N0000) has appointed Anura Weerakoon as a Non-Executive Director. He brings 40 years of plantations experience, including prior roles at Kelani Valley Plantations and Malwatte Valley Plantations.

Kelani Valley Plantations appointed Milinda Hewagama as a Non-Executive Director. Hewagama is Group CFO of Hayleys PLC and also serves on the boards of The Kingsbury, Hayleys Leisure, Talawakelle Tea Estates and Haycarb.

The Export Development Board and Germany’s Import Promotion Desk will sign a Cooperation Agreement to expand support for Sri Lanka’s digital products and services while continuing assistance for natural ingredients and processed foods through advisory, matchmaking and trade-fair programmes.

The Sri Lanka–Singapore Business Council elected Janaka Gunasekera (A. Baur & Co.) as President for 2025–26 at its 28th AGM and confirmed a new executive committee. Overseas Realty GM Nirupa Peiris was elected Vice President, Aitken Spence's Jerome Brohier Treasurer, and the committee includes CIC Holdings and Ceylon Grain Elevators.

Japan will give Sri Lanka a 963 million yen (about LKR 1.94 billion) grant to fund dairy industry improvements (463 million yen) and to provide navy surveillance drones and support (500 million yen).

Colombo Stock Exchange closed higher as the ASPI rose 1.30% to 20,619 with turnover of Rs 6.21bn, led by gains in banks and capital goods. Key risers included Commercial Bank, Sampath Bank, HNB, Aitken Spence, DFCC and active trading in Sierra Cables.

Planters' Association warned the government's decision to allow selected companies to import spices under an "approved enterprise" scheme risks diluting the Pure Ceylon brand, enabling smuggling/adulteration and harming farmers and exporters, potentially triggering trade disputes.

World Bank VP Johannes Zutt pledged continued World Bank support to help Sri Lanka implement job-creating reforms and mobilize private capital, following a prior pledge of over US$1 billion. The WBG has backed a 1 GW renewable energy program (US$150m) and a US$100m agriculture project, and plans further operations in tourism, regional development, digital development and ports/logistics.

World Bank VP Johannes Zutt concluded his visit, reaffirming WBG support including a pledge of over US$1 billion for Sri Lanka and partnership on a 1 GW renewable energy program (US$150m) and a US$100m agriculture project. Additional operations are planned in tourism, regional development, digital development and ports/logistics to mobilize private investment and create jobs.