News & market updates

Port City Colombo Investor Forum in Singapore on 27 January positioned Port City Colombo as the centrepiece of Sri Lanka's economic transformation, attracting close to 100 senior invitees and promoting a services-led, export-oriented investment platform. Organisers and officials highlighted the CPCEC governance framework, fiscal incentives, FX exemptions and visa facilitation to boost foreign investment.

Alpha Fire Services PLC unveiled a new logo and outlined growth plans, including regional service centres across Sri Lanka, a trading arm to enter the Maldives, and relocation to a newly acquired facility in Polgasowita. Management cited stronger governance, operational efficiency and rising construction-led demand for fire safety products.

A Sri Lanka delegation led by Deputy Minister Chathuranga Abeyasinghe met Saudi Arabia’s Public Investment Fund in Riyadh on 25 Jan 2026 to pitch investment opportunities in Sri Lanka and its capital market. PIF outlined its 2026–2030 strategic plan and both sides agreed to open follow-up channels and pursue a bilateral investment protection agreement.

Deputy Minister Chathuranga Abeysinghe led a Sri Lankan delegation to meet Saudi Public Investment Fund officials in Riyadh to present investment opportunities, capital-market reforms and discuss a Bilateral Investment Protection Agreement; both sides agreed to continue talks.

India's 2026-27 Budget offers foreign cloud providers a 20-year tax holiday until 2047 on revenues from services sold abroad if those services are delivered from data centres located in India. It also introduces a 15% cost-plus safe harbour for related-party data-centre services and expands electronics/semiconductor incentives, while flagging power and water constraints for capacity expansion.

The SLUKCC and Sri Lanka High Commission in London held a panel to strengthen Sri Lanka–UK trade ties, urging firms (especially SMEs) to use the UK Developing Countries Trading Scheme, noting relaxed apparel Rules of Origin. The event promoted Sri Lanka Expo 2026, investment opportunities and Colombo real estate projects.

UNCTAD reports global FDI rose 14% in 2025 to $1.6 trillion, with much of the increase driven by financial flows through global hubs rather than new productive investment. Data centres accounted for over one-fifth of greenfield values (>$270bn) while infrastructure and renewable energy projects fell.

Sri Lanka and UK officials and business leaders met in London to push stronger trade and investment ties, urging Sri Lankan firms to use the UK's Developing Countries Trading Scheme (including relaxed apparel Rules of Origin) and promoting Expo 2026. The BOI said Sri Lanka aims for nearly 7% growth by attracting higher-quality investment.

John Keells Stock Brokers (JKSB) forecasts the ASPI will reach 28,000 in CY2026 (ASPI at 23,812), citing recurring earnings growth and scope for foreign inflows. JKSB also expects 4–5% GDP growth, muted inflation, potential primary fiscal surplus and increased IPO activity.

Construction PMI rose to 67.1 in Dec from 66.2 in Nov, with the New Orders index at 67.6, reflecting stronger activity driven by government infrastructure and private projects. Employment eased to a neutral 50 and suppliers' delivery times lengthened, and the CBSL expects a positive near-term outlook supported by new project starts and reconstruction work.

The Colombo market ended lower with the ASPI down 0.37% (88.58 pts) to 23,812.31 amid profit-taking, elevated turnover and net foreign outflows (week net outflow > Rs.2.36bn); daily turnover was about Rs.9.2bn and foreign investors were net sellers (Rs.1.7bn yesterday).

The Social Scientists' Association survey found nearly 80% of respondents satisfied with President Anura Kumara Dissanayake’s response to Cyclone Ditwah and over 70% satisfied with government immediate rescue, relief and restoration of essential services. Lower ratings were given for early warning and evacuation (52%), with 30% reporting lack of medical care in evacuation centres and 47% noting absence of psycho-social support.

The Sri Lanka–UK Chamber of Commerce and Sri Lanka High Commission hosted a London panel on 27 Jan 2026 to boost bilateral trade and investment, urging firms to utilise the UK Developing Countries Trading Scheme (DCTS) and noting relaxed apparel Rules of Origin. Organisers promoted Sri Lanka Expo 2026 (18–21 June) and highlighted opportunities in tourism, IT/BPO, real estate and global value‑chain integration.

Port City Colombo is being positioned as a 269-hectare, services-led SEZ with US$1.4bn initial infrastructure, projected to deliver 143,000 direct jobs and US$15bn cumulative FDI. The article highlights institutional measures — the CPCEC and BSI regulations — aimed at providing predictable governance to attract long-term finance, IT and professional services investment.

Fracspace is entering Sri Lanka with Altaira, investing LKR 5 billion to develop a 26-acre, low-density destination in Bulathkohupitiya featuring a luxury hill resort, ridge suites and 40 serviced villas. The project is pitched as a sustainability- and experience-led tourism and property development.

PMI-Construction Total Activity Index rose to 67.1 in December 2025, signalling notable expansion in construction activity. New Orders expanded with more government-funded and private projects, while Employment remained neutral.

IMF Managing Director Kristalina Georgieva will visit Colombo in February to review Sri Lanka’s IMF Extended Fund Facility program and express solidarity after the recent natural disaster, which has delayed the program's Fifth Review. IMF officials said teams saw flooding and infrastructure damage and noted public appreciation for governance reforms.

Colombo market fell as the ASPI dropped 0.38% (91.22 pts) to 23,900.89 with turnover over Rs.6.9bn and foreign net outflow of Rs.20.9m. Top negatives included Senkadagala Finance, Ceylon Tobacco, John Keells, Carson Cumberbatch and C T Holdings while Prime Lands Residencies gained.

CT Land Development PLC appointed Zakir Mohamedally as a Non-Independent Non-Executive Director. Mohamedally brings over two decades of audit, assurance and capital markets experience and is Group COO and Head of Investment Banking at the CT Smith Holdings Group.

Mastercard launched the 'Tap for Change' campaign in Sri Lanka, pledging $750,000 and directing every contactless Mastercard transaction from January 2026 to support construction of the 10‑storey, 160‑bed Trail Cancer Hospital in Karapitiya. The facility will include advanced diagnostics, a bone marrow transplant unit and operating theatres to expand oncology care.

The SEC and Colombo Stock Exchange held an 'Invest Sri Lanka' forum in Riyadh on 24 January to showcase Sri Lanka's capital market and attract Saudi investors; a high-level delegation including the Central Bank Governor, SEC Chairman and CSE CEO took part.

The SEC and Colombo Stock Exchange held an 'Invest Sri Lanka' investor forum in Dubai on 22 Jan 2026 to promote Sri Lanka's capital market and attract FDI, including strategic meetings with Mubadala and UAE banks; CSE noted ASPI >23,800 (120% growth since Oct 2024) and $976m capital raised in 2024–25.

IMF Managing Director Kristalina Georgieva will visit Colombo next month to review progress of Sri Lanka’s IMF-supported programme and to express solidarity after recent natural disasters. The IMF said the visit underscores continued commitment, with staff engaging authorities and a large delegation already in Sri Lanka.

BOI promoted two proposed University Towns — Keragala (125-acre, USD 370m investment, IRR 15–18%, 6–7 year payback) and Sooriyawewa (250-acre, USD 640m, IRR 16–17%, 7–8 year payback). The investment forum drew 16 local and international education institutions and BOI highlighted incentives and higher foreign ownership allowances.

IMF reaffirmed solidarity with Sri Lanka and said it will field a mission to resume the next EFF review and support recovery from Cyclone Ditwah. Discussions focused on the fiscal response, implications for monetary policy, financial-sector stability, and financing needs for reconstruction.

Central Bank of Sri Lanka kept the Overnight Policy Rate at 7.75%. Inflation was 2.1% in Dec 2025 and is projected to move toward 5% by H2 2026 amid rising food and core inflation, strong credit growth and post-cyclone rebuilding; gross official reserves were $6.8bn at end-2025.

MTI Consulting CEO Hilmy Cader said Sri Lanka's tourism sector has shown resilience but warned of longer-term risks, citing overtourism, environmental impacts, infrastructure strain and tourism-driven inflation in real estate, rents and consumables.

John Keells Holdings (JKH) reported 3Q EBITDA of Rs. 23.76 billion, up 68%, and declared a second interim dividend of Rs. 0.10 (Rs. 1.77 billion outlay). Group revenue rose 54% to Rs. 125.05 billion and PBT increased 113% to Rs. 12.89 billion.

Altair Residences has issued over 100 individual title deeds following its ownership transition to Blackstone India, formed a Management Council, and appointed Realty Management Services (RMS) as facility manager; Indocean Developers will continue building improvements and deed issuance.