News & market updates

Colombo Rubber Traders Association warned the US will impose a 30% import tariff on Sri Lankan rubber goods from 1 August 2025, which it says will hit exports of solid tyres, gloves and industrial components and threaten rural incomes and the value‑added rubber sector.

The National Chamber of Exporters said the US set tariffs on Sri Lankan exports at up to 30% (down from an expected 44%) and urged further negotiations to push rates toward 15–20%. The NCE warned the higher tariffs risk hurting apparel, rubber and coconut exporters, urged domestic reforms and asked the government to seek talks before the 1 August deadline.

STEMedical and the Sri Lanka Institute of Biotechnology signed a $15m MoU to establish an internationally accredited laboratory to provide testing and quality assurance for health, agriculture, cosmetics, Ayurveda and export sectors.

Average coconut prices at the weekly auction rose 0.76% to 115,659.98 rupees per 1,000 nuts, with volumes offered up to 856,780 from 676,657 the previous week. Local wholesale and retail coconut and oil prices were higher, and regional coconut oil prices in India have surged ~300% year‑on‑year due to lower production.

Sri Lanka's Department of Export Agriculture and Australia's Market Development Facility signed an MoU to develop a roadmap to boost the island's specialty coffee sector. The roadmap will assess the market, improve processing and training to expand high-quality production and export opportunities; Hatton National Bank was the festival's official banking partner.

SLAMERP warned that a proposed US 30% reciprocal tariff on Sri Lankan rubber imports, effective 1 Aug, threatens the $1bn rubber export industry and over 150,000 livelihoods. The association said tyre and glove exports are especially at risk as competitors like Malaysia and Vietnam face lower tariffs (20–25%), risking loss of US buyers.

Sri Lanka and China reaffirmed a strategic cooperative partnership and pledged to accelerate Belt and Road projects, including Colombo Port City and Hambantota Port. They also agreed to deepen cooperation across trade, investment, infrastructure, maritime affairs, green energy, digital economy and agriculture.

President Anura Kumara Disanayake said Sri Lanka has negotiated a cut in the proposed US reciprocal tariff from 44% to 30% and will continue talks to seek further concessions. He urged a coordinated export strategy and diversification at a high-level meeting with export sector stakeholders.

President Anura Kumara Disanayake said negotiations with the United States reduced a planned reciprocal tariff from 44% to 30% and that talks will continue to seek further concessions; he made the remarks at a meeting with export-sector stakeholders on diversification and market access.

France and Sri Lanka recorded €540m in bilateral trade and $485m of French investment in 2024; France pledged support for the Colombo Port Safety Project, maritime cooperation, boosting tourism (French arrivals ~100,000) and GI protection for Ceylon tea.

Central Bank Governor Nandalal Weerasinghe said it is too early to assess the economic shock from a US 'Trump' tariff; the IMF estimates GDP could be hit 0.25–1.5% depending on the rate. Sri Lanka has cut the tariff from 44% to 30% and is negotiating further reductions.

The Seafood Exporters’ Association said the US tariff cut from 44% to 30% still leaves Sri Lankan seafood uncompetitive versus regional rivals; Sri Lankan seafood exports to the US account for over 25% (100% for pasteurised crab meat). SEASL urged the government to negotiate further reductions before 1 August 2025.

President Anura Kumara Disanayake met Gates Foundation Global Development President Dr. Chris Elias to discuss collaboration on agricultural modernisation, nutrition and digital public infrastructure, including the Inclusive Digital Agriculture Transformation (IDAT). The Foundation pledged support for digital agriculture, livestock/dairy and broader socio-economic development initiatives.

The Exporters Association of Sri Lanka warned that a proposed US 30% tariff on Sri Lankan exports from 1 August 2025 would severely hit key export sectors, especially apparel and rubber-based products. It urged the government to secure alternative markets (Europe, Middle East, others) and ramp up trade missions.

Markspen Group has sold and installed over 1,800 DOMA Single Elevator Automatic Rice Mill machines since their late-2023 launch, showing strong farmer uptake of single-operator rice-cleaning and milling equipment. The group also supplies barcode/label technology and is expanding showrooms and agro-machinery distribution.

Sri Lanka expects the 2025 minor Yala paddy harvest at about 2.09 million tonnes (range 1.98–2.19 mt) after 520,385 hectares were sown by end-May, short of a 572,165 ha target but ahead of last year’s planting progress.

The Department of Export Agriculture and Australia’s MDF announced an MoU at the Sri Lanka Coffee Festival (8–9 July 2025, Kandy) to develop a roadmap to grow the country’s specialty coffee sector and boost exports. The festival marked 200 years of coffee and named Hatton National Bank as the official banking partner.

The US will impose a 30% tariff on Sri Lankan rubber products from 1 August, threatening Sri Lanka's $1bn rubber export industry and about 150,000 livelihoods. Tyre and medical-glove exporters — especially solid-tyre and glove segments reliant on the US — face acute competitiveness losses versus rivals with lower tariffs.

Independent Growth Study Group released 'Sustaining Transformative Growth in Sri Lanka 2025–2030', urging macroeconomic stability, trade integration, factor-market and targeted sector reforms to boost exports, tourism, the digital economy, niche manufacturing and agriculture. The report also calls for streamlined business regulations and engagement with global supply chains to attract investment and reduce poverty.

President Anura Kumara Dissanayake met Gates Foundation leaders to discuss collaboration on agricultural modernisation, nutrition and digital public infrastructure, including the Inclusive Digital Agriculture Transformation (IDAT) initiative to support smallholder farmers and rural tech integration.

Ceylon Chamber welcomed the government's reduction of the proposed US tariff on Sri Lankan exports to 30% from 44%, calling it a significant first step. It urged continued engagement to secure further cuts by 1 August and offered industry support.

ODI Global and CEPA released 'Sustaining Transformative Growth in Sri Lanka 2025-2030', urging bold structural reforms across six policy areas and calling for at least 5% annual growth to secure recovery. The report names tourism, the digital economy, agriculture and niche manufacturing as priority sectors and warns a 44% US tariff (from 1 Aug) could cost 50,000 export jobs.

Article argues financial literacy is essential for young entrepreneurs in Sri Lanka and urges structured finance education. It recommends courses, accounting tools, workshops and collaboration between government, universities and the private sector to improve startup sustainability.

CRTA Chairman Harin de Silva urged the government to retain the 2013 all-inclusive freight regulation, warning that repealing it would reintroduce hidden surcharges and undermine exporters' competitiveness. He said removal would especially hurt small exporters and called for industry consultation before any legislative change.

The National Water Supply and Drainage Board urged consumers to conserve drinking water due to extreme dry weather and rapidly falling source levels, warning of limited supply and possible low pressure in highland areas. It asked the public to avoid non-essential uses and directed queries to hotline 1939.

US President Donald Trump has notified Sri Lanka of a 30% tariff on all Sri Lankan products to the United States from August 1, 2025, reduced from an originally proposed 44%. The measure targets trade deficits and changes competitiveness for exporters such as rubber, coconut and apparel.

Colombo market fell as ASPI declined 0.58% (around 106 points) and S&P SL20 down 0.5% on low turnover of Rs.2.4bn; major drags included Melstacorp, Colombo Dockyard, Commercial Bank, Aitken Spence and NDB, while turnover was led by Sampath, John Keells and Vallibel Finance.

Dividend · Rs 20.00 · XD Aug 1, 2025

First And Final dividend of LKR 20/share; XD 2025-08-01; record 2025-08-03; payable 2025-08-21; FY 2024/25

Commercial Bank of Ceylon and Hayleys Agriculture have partnered to offer customised Agri Leases and Diribala Green Development Loans to farmers buying Hayleys agricultural machinery. The facilities provide preferential rates, flexible repayments tied to cropping cycles and faster processing to promote mechanisation and productivity.

Colombo's ASPI finished the week up 1.5%, closing at 18,148 (up 47 pts) while the S&P SL20 gained 1.6%, with weekly turnover averaging Rs.6.8bn. Top contributors included John Keells, Melstacorp, Commercial Bank, Sunshine and CT Holdings, and food retailing led turnover.