News & market updates

Dividend · Rs 0.75 · XD Jul 1, 2026

Final dividend of LKR 0.75/share; XD 2026-07-01; record 2026-07-01; payable 2026-07-20; FY 31/12/2025

Dividend · Rs 0.50 · XD Jun 25, 2026

Final dividend of LKR 0.5/share; XD 2026-06-25; record 2026-06-25; payable 2026-07-15; FY FOR FINANCIAL YEAR ENDED 31ST DECEMBER 2025

Sri Lanka's total exports reached US$1,380.93m in April 2026 (up 6% y/y) and US$5,784.38m in Jan–Apr 2026 (up 4.3% y/y); merchandise exports rose 9.87% in April while services exports, led by ICT/BPM and financial services, also expanded.

Sri Lanka's merchandise exports rose 9.87% to $1,063.77m in April 2026. Growth was led by coconut-based products (up 23.49% to $92.17m, with activated carbon +58.32%), rubber products and processed food & beverages, while tea fell 6.82% and apparel fell 4.88%.

Government has invited Expressions of Interest to develop underutilised lands owned by JEDB, SLSPC and Elkaduwa Plantations, open to Sri Lankan investors with EOIs due by 11:00 a.m. on 30 June; property details posted on plantation.gov.lk.

Pelwatte Dairy Industries’ subsidiary Pelwatte Foods will invest approximately Rs.1.86 billion to build a Greenfield liquid milk manufacturing facility at Kurunegala, with construction starting July 2026 and commercial operations expected by July 2027.

President Anura Kumara Dissanayake said Sri Lanka faces external pressures from the Middle East conflict—higher oil and import costs and rupee depreciation—but rejected a repeat of the 2022 collapse, noting Central Bank reserves near $7bn and a $700m inflow expected; he assured no shortages of fuel, gas, milk powder or fertiliser.

Regenerative Agriculture Digital Resource Centres were handed over to the Tea Smallholdings Development Authority on 20 May to modernise Sri Lanka's smallholder tea sector through regenerative practices, digital learning and faster transfer of TRI research. Funded by Solidaridad and the Nucleus Foundation and based at Hanthana, the authority's head office and Walahanduwa, the centres will use digital tools and act as Training-of-Trainers hubs for smallholder capacity building.

Sri Lanka's Board of Investment pitched a pipeline of 30 project-ready opportunities to Vietnamese investors as the economy rebounds — GDP grew 5.0% in 2024 and 2025 and FDI rose to US$1.063bn in 2025. Projects span manufacturing, logistics and port services, tourism, pharma, and mixed infrastructure developments.

Opposition Leader Sajith Premadasa urged the Government to begin negotiating a successor IMF program, saying Sri Lanka has $7bn in reserves against the IMF's $14.2bn target by March 2027 and would need about $600m/month to bridge the gap. He noted ongoing talks with the IMF to adjust the current EFF amid Middle East war-driven oil-price shocks and rupee weakness.

IMF mission chief Evan Papageorgiou urged Sri Lanka to continue allowing the economy to adjust as the rupee has depreciated sharply ahead of IMF Board approval of the fifth and sixth EFF reviews next week (May 27). He noted authorities have made progress restoring macro stability, rebuilding reserves and strengthening confidence.

Sri Lanka's tea exports fell 4% YoY to 78.3 Mn/Kg in Jan-Apr 2026, with export earnings down 5.64% to $451m and April volumes down 1.6% to 17.9 Mn/Kg. Analysts attribute the decline and a drop in FOB to $5.76/kg to shipping disruptions after the US–Iran escalation that hit Middle East routes.

CBSL Governor Nandalal Weerasinghe defended Sri Lanka’s flexible exchange rate at a Committee on Public Finance hearing, saying rupee depreciation does not change external debt in dollar terms and that exchange-rate flexibility aids reserve rebuilding and competitiveness. He urged strengthening dollar earnings via exports and remittances and stressed the CBSL's mandate on price and financial stability.

The Cabinet approved plans to draft Sri Lanka’s first inbound labour migration policy to regulate recruitment and oversight of foreign skilled and semi-skilled workers; a Steering Committee will be appointed to prepare the draft framework to address sectoral labour shortages and centralise monitoring.

Sri Lankan rupee depreciated further, with the US dollar selling rate rising to Rs. 354.03 (buying Rs. 342.63), surpassing Rs. 350 for the first time since March 2023. The currency has come under pressure amid global and domestic factors, including uncertainty linked to the ongoing Middle East conflict.

Sri Lanka's tea exports fell 17.3% YoY in March to $114.75m as the Middle East conflict disrupts shipments; Dilmah (CTEA.N0000), which derives about 30% of sales from the Middle East, reports logistics and fuel-cost pressures and is shifting into new markets.

Sri Lanka told an SCO delegation it is keen to join Shanghai Cooperation Organization initiatives and sought support to promote tourism and investment, highlighting Port City and Free Trade Zones. Talks focused on boosting engagement in tourism, transport, logistics and agriculture.

Colombo Stock Exchange rose as the ASPI gained 0.21% to 21,833, with banks leading turnover at Rs.599.8 million and the rupee weakening to Rs.352.50. Amana Bank announced a registered address change effective May 19, 2026; its shares closed up 1.85% at Rs.27.50.

Cabinet approved procuring an additional 15,000 tons of urea fertiliser for the 2026 Yala season. Officials estimate total requirement at about 75,000 tons, with 48,297.87 tons in stock and a fixed 50-kg bag price set at Rs. 10,200.

Economist Ganeshan Wignaraja said Sri Lanka should plan for an 18th IMF programme as the current programme ends in mid-2027 and large debt repayments fall due from 2028. He warned Cyclone Ditwah and the Middle East war have raised oil prices, hit remittances and tourism, and pushed the economy toward a slower-growth, higher-inflation scenario.

The Ministry of Agriculture, with FAO support, launched the CROPIX Seed Production, Certification & Traceability System to digitize seed production and certification across Sri Lanka, improving transparency, traceability, real-time monitoring and access to quality seeds.

Talawakelle Tea Estates Plc has secured EU, USDA NOP and JAS organic certification for its Great Western and Logie teas, enabling it to market certified organic teas internationally. The company has dedicated organic fields, a Logie factory for organic production and an end-to-end management system to ensure compliance.

Sri Lanka's Deputy Minister of Digital Economy met with the Bill & Melinda Gates Foundation on 20 May 2026 in Singapore to arrange a Gates review of the country's draft national AI policy and to start technical dialogues to strengthen Digital Public Infrastructure and advance the IDAT 2 digital agriculture initiative.

Kotagala Plantations (KOTA.N0000) has installed a 1 MW rooftop solar power system delivered by E.B. Creasy Solar. The system uses LONGi panels and SUNGROW inverters and is expected to reduce carbon emissions and energy costs.

Government announced an additional Rs. 2.5 billion fertiliser subsidy for tea smallholders and growers as emergency relief amid Gulf-related cost pressures and adverse weather. Tea export earnings fell 5.22% YoY to $351.58m in 1Q 2026, with production and volumes also down.

The Ceylon Chamber of Commerce will host the Sri Lanka Climate Summit 2026 on 9 June 2026 at Taj Samudra, shifting focus to implementation, technical readiness and climate-linked finance. Platinum sponsors include Commercial Bank and Dilmah Tea; strategic sponsors include Nestlé Lanka, Cargills and Colombo Stock Exchange.

The Export Development Board and Control Union Sri Lanka held an awareness workshop on 12 May 2026 to brief coffee and wood-product stakeholders on EU Deforestation Regulation compliance and traceability requirements to support export readiness to EU markets.

The Sri Lankan rupee weakened, with the Central Bank's USD selling rate at Rs. 331.15 and buying rate at Rs. 323.53 on 15 May — the weakest selling rate since Dec 2023 — extending depreciation amid global shipping, energy and fertiliser shocks.

Sri Lanka's tea production fell 8.5% year-on-year in April 2026 to 24.22 Mn/Kgs, with Low Grown output down 14.4%. January–April cumulative output dropped 5.3% to 83.94 Mn/Kgs, and Asia Siyaka Commodities cited dry weather and reduced fertiliser use by smallholders.

Sri Lanka must pivot its export strategy toward India after US tariffs and the EU–India FTA eroded Western market advantages; Sri Lanka exported $1.07bn to India in 2024 versus $4.32bn in imports, and February 2026 exports rose 48% YoY to $264m.