News & market updates

The Institution of Engineers, Sri Lanka (IESL) at NEC 2025 urged engineers to lead Sri Lanka's industrial transformation and presented a report with sectoral recommendations across agriculture and plantations, construction, digital transformation, power and energy, transport, water, and trade.

EUDR takes effect on 30 December 2025; modelling estimates a 5% compliance-driven price rise could cut Sri Lanka's rubber exports to the EU by 7.6% (about USD 24.4m) annually. Sri Lanka is classed low-risk, but smallholder rubber farmers face major digitisation and land-title gaps that risk exclusion from EU markets.

Sri Lanka will borrow $100 million from the World Bank (IDA) to fund the $120 million Integrated Rurban Development and Climate Resilience Project to boost productivity, market access and climate resilience of agri-food producers, implemented by the Ministry of Agriculture and partner agencies.

Sri Lanka has secured USD 100 million from the World Bank's IDA to finance the USD 120 million Integrated Rurban Development and Climate Resilience Project (IRDCRP) to boost productivity, market access and climate resilience of agri-food producers. The project includes USD 3 million in domestic funds and an expected USD 17 million beneficiary contribution and will be implemented by the Ministry of Agriculture and related agencies.

IESL's NEC 2025 urged engineers to lead Sri Lanka’s industrial transformation, with the government as facilitator. Recommendations covered construction (national building code, development fund), digital transformation (Digital Blueprint 2030), renewables/BESS and grid upgrades, agricultural mechanisation, transport and water reforms.

FAO urges Sri Lanka to align its food safety framework with Codex standards to protect consumers and boost agri-food exports, recommending a strengthened National Codex Committee, upgraded laboratories, traceability systems and digital e-certification.

Chrysalis, supported by CARE Germany and international partners, launched Sri Lanka's first Climate Resilience Revolving Fund to provide rapid financial support to MSME consortia in Uva and Central Provinces to strengthen post-disaster recovery and long-term resilience.

People’s Bank and the Agriculture Ministry launched a concessional loan scheme offering up to Rs. 5 million at 4% per annum for young agripreneurs, with a flexible five-year repayment period.

Talawakelle Tea Estates (TPL.N0000), Kelani Valley Plantations (KVAL.N0000) and Horana Plantations (HOPL.N0000) were among Sri Lankan winners at the Commonwealth Business Excellence Awards 2025 in Kuala Lumpur. The ceremony highlighted tea plantation, sustainability and export excellence for the awarded firms.

Sri Lanka approved installing barrier nets in 250 reservoirs to protect fish stocks and boost harvests, after officials said an estimated 20,000–40,000 kg are washed away annually from each reservoir when water is released for agriculture.

Senior Economic Adviser Duminda Hulangamuwa said a State-Owned Enterprises Bill will be tabled this month and a new PPP Act is being readied to boost private participation, and that Port City Colombo has attracted about $1.5 billion in four investments.

The National Chamber of Exporters led a delegation to the Southern Province, linking 25 NCE member exporters with 75+ regional suppliers and producers to develop sourcing, certification and financing pathways. Certifying bodies, partner banks and government agencies joined to provide training, certification support and SME loan options, with plans to replicate the program in other regions.

FAO, with technical support from China, has established a banana tissue-culture planting-materials laboratory in Maha Illuppallama to supply disease-free, high-yield banana plantlets to farmers in North Central, Northern and North Western provinces. The facility is intended to lower transport costs, raise productivity and quality, and improve competitiveness in local and international markets.

Sri Lanka will bring 16,000 acres into coconut cultivation in Jaffna, Mullaitivu and Mannar under the northern coconut triangle project, expanding to 50,000 acres by 2027. The CCCI expects output to rise from 2.7bn nuts (2024) to 2.9bn (2025) and 4.2bn by 2030, targeting USD 2.5bn in exports.

National tea sale average for August 2025 was Rs. 1,182.27/kg, up Rs. 54.67 MoM but down Rs. 6.22 YoY. The Jan–Aug 2025 cumulative average fell to Rs. 1,156.37/kg (down Rs. 93.62 YoY) and all regions posted negative variances amid weak global demand.

Central Industries PLC appointed C.S. Hettiarachchi as Non-Executive Chairman and Thilini Wathsala Weerasinghe and Dushan Virantha as Non-Executive Directors. Weerasinghe and Virantha hold senior roles at Central Finance Company PLC and Hettiarachchi is also a director of Tea Smallholder Factories PLC.

The first coconut seed production unit in Northern Province was inaugurated in Pallai under the President's patronage; the Northern Coconut Triangle Project targets 16,000 acres of coconut cultivation by 2025 and expansion to 40,000 acres by 2027. The initiative is a collaboration between the Coconut Research Institute and Chilaw Plantations Company.

The North Central Provincial Department of Agriculture opened a FAO-supported banana tissue culture laboratory in Maha Illuppallama to supply disease-free, high-yield planting material to farmers in the North Central, Northern and North Western Provinces, improving productivity and export potential.

Sri Lanka's average coconut price rose 7.4% to 144,000.12 rupees per 1,000 nuts at the weekly auction on Aug 28, with nuts offered up to 639,098 from 551,525 and nuts sold rising to 531,960. June production climbed 18% year-on-year to 289.5 million nuts.

Government plans incentives, including tax concessions, for the agriculture and food & beverage sectors to boost exports and the development of value-added products. The measures will also target farmer facilities, livestock reforms, recycling, distribution systems and greater private-sector involvement.

The government launched the Northern Coconut Triangle under the Kapruka Saviya programme to expand coconut cultivation across Jaffna, Mullaitivu and Mannar, targeting production of 2.9bn nuts in 2025 and 4.2bn by 2030 and export earnings of USD 2.5bn. The plan includes replanting tens of thousands of hectares, partnerships with UNIDO/Regen Agri, GI certification and measures to lift yields 10–15% annually.

Areva Investments marked its 10th anniversary on 18 September, saying it has facilitated over Rs.81 billion in short-term funding and structured private debt deals for clients including L B Finance, Vallibel Finance, Browns Investments and Bogawantalawa Tea Estates.

The Global Dialogue Forum will host an international conclave on 20 September 2025 at the Galle Face Hotel in Colombo to explore practical AI applications in green energy, food security and cybersecurity.

Sri Lanka's High Commissioner-designate Rear Admiral Fred Senevirathna met Pakistan's FPCCI on 13 Aug to promote stronger trade and investment ties and highlighted incentives including reduced corporate tax for SMEs, exporters, IT, education, tourism and agriculture to attract investors.

Colombo consumer prices were up 1.2% year-on-year to August 2025 (2.0% since Sept 2022); the CCPI fell 0.4% in August to 193.3 and the food sub-index declined sharply, amid excess liquidity and central bank rate moves.

Agriculture Minister Kuragamage Don Lalkantha urged farmers not to grow produce unless they know their buyers and prices, and to meet supermarkets or exporters before planting. He said the government hopes to solve all farmer problems by 2028.

Parliament speaker Jagath Wickramaratne endorsed the Samurdhi (Amendment) Act No. 15 of 2025, assigning audits of Samurdhi community-based banks to the National Audit Office, and the Rubber Control (Amendment) Act No. 16 of 2025, renaming the rubber regulator to Director-General.

President Anura Kumara Disanayake told tea, coconut and rubber exporters the government will support them provided they pay fair taxes and prioritised boosting export earnings to strengthen dollar reserves. Exports rose 7.8% to nearly $10bn in the first seven months of 2025, with July at a record $1.64bn.

President Anura Kumara Disanayake chaired a pre-Budget discussion to boost the industrial sector's share of GDP, proposing new industrial zones, concessionary SME loans and improved export facilities. The meeting reviewed 2025 projects, discussed issues at Sevanagala and Pelwatte sugar factories and ordered speedy payments to sugarcane farmers.