News & market updates

The Government launched the Rebuilding Sri Lanka programme to construct houses for families whose homes were destroyed by Cyclone “Ditwah” and is inviting citizens to donate land. Details are available at www.rebuildingsrilanka.gov.lk or via hotline 1800 (fax 011 233 1246).

Ceylinco Life opened its first company-owned eco-friendly branch in Ambalantota — its 35th company-owned branch — a 3,200 sq ft two-storey building with 15 kW off-grid solar, rainwater harvesting, wastewater recycling and precast-concrete construction.

Sri Lanka is offering tax holidays of up to 15 years and pitching Colombo Port City as a regional financial and trade hub to attract UAE investors. Officials said investment approvals will be streamlined and highlighted opportunities in agriculture, tourism, ports and renewable energy.

Construction has commenced on Bay One Residences Colombo — the first residential project in Port City Colombo — a US$112 million development of 231 luxury apartments on a 13,945 sq m waterfront plot. The milestone marks the SEZ’s shift from regulatory readiness to active private‑sector delivery.

Rebuilding Sri Lanka Fund has received over Rs.8.5 billion in cash donations and aid goods worth over Rs.23 billion from Sri Lanka and 47 countries. The Treasury also reported the insurance industry has received Rs.92 billion of Ditwah-related claims, with Rs.47 billion settled and Rs.45 billion being processed.

Colombo was ranked the world's most unaffordable city for property buyers in 2026, with a price-to-income ratio of 55.3. Gross rental yields are 3.0% in the city center and 3.8% outside, and average mortgage payments equal 774% of annual income.

Colombo bourse hit a new year high as the ASPI rose 142.74 pts (0.60%) to 23,956.51, about 43.49 pts shy of 24,000. Top contributors were LOLC, DOCK, COMB, BIL and MELS, with turnover ~Rs 10.5bn and net foreign selling of Rs 82.1m.

LankaPropertyWeb's 2025 Land Price Index shows Colombo suburbs and Western Province drove 2025 land-price growth, with Colombo suburbs up 8% to LKR 2.3 Mn per perch and Gampaha rising 15% to LKR 769,097 per perch. Several suburban towns (Yakkala, Homagama, Negombo) gained ~35%, and five-year gains were led by Ingiriya (+322%) and Padukka (+221%).

BOI reports $1,057 million FDI inflows in 2025, a 72% YoY increase, with manufacturing attracting 46% and port development 26% of inflows. Singapore was the largest source (30%) and the BOI aims for a $1.5 billion FDI target in 2026 backed by new projects and institutional reforms.

IMF Managing Director Kristalina Georgieva reiterated the IMF's commitment to support Sri Lanka's economic recovery in a meeting with Prime Minister Harini Amarasuriya at WEF 2026 in Davos. The delegation also held talks with ADB leadership on reform progress following Cyclone Ditwah.

Senthilverl Holdings increased its stake in Lee Hedges PLC to 10.10% (2,584,777 shares) after buying 103,480 shares on 19 Jan at Rs.247.75–255. Lanka Realty Investments, acting with Eighth Wonder, has made a mandatory offer for 28.9% at Rs.216 and combined holdings now total 71.1%.

CT Land Development PLC appointed Shalindra Fernando as Chief Executive Officer effective 16 January 2026. Fernando has over 18 years of senior leadership experience across FMCG, retail, beverages and enterprise technology, most recently serving as Senior VP and Chief Revenue Officer at MillenniumIT ESP Ltd.

SLYCAN Trust held a High-Level Forum on Climate Finance in Colombo on 20 Jan 2026 to discuss strengthening Sri Lanka's access to loss-and-damage and disaster risk finance after Cyclone Ditwah. The Fund for Responding to Loss and Damage opened its first funding call on 15 Dec 2025 (window to 15 Jun 2026).

ASPI rose 0.03% (7.45 pts) to 23,813.77 while the S&P SL20 slipped 0.02% to 6,617.85; turnover was Rs.8.3 billion and foreigners were net sellers with a reported net outflow of Rs.144.6 billion. Top contributors included HNB, DFCC, UML, RICH and ASCO, with DOCK, HAYL and SFCL dragging the index.

The Northern Province hosted the Northern Investment Summit on 21–22 Jan, where BOI chairman Arjuna Herath announced plans for a four-lane highway, Jaffna airport runway extension, Kankesanthurai port upgrade and three strategic industrial zones to attract investment. The summit highlighted priority sectors including IT, tourism, manufacturing, agriculture and healthcare and called for public–private partnerships and diaspora engagement.

Jaffna International Trade Fair (JITF) opens 23–25 Jan 2026 at Muttraweli Ground, Jaffna with over 400 stalls, building on a previous turnout of 78,452 visitors and 5,000 invited business delegates.

Kerner Haus Global Solutions PLC has signed a property management agreement to manage a commercial property in Katukale, Kandy from 1 Feb 2026, with an estimated annual management fee of Rs. 12 million. This raises the company's managed capacity to about 1,876 seats and combined estimated annual management fees to Rs. 60.1 million.

President Anura Dissanayake called for a national policy and a new statutory Authority to coordinate protection and rebuilding of Sri Lanka's Central Highlands after Cyclone Ditwah. He met ADB, UNDP and officials to design an integrated framework, with calls for a dedicated financial fund.

The government said no Chinese firm withdrew from the proposed Ambuluwawa cable car project but suspended all development there pending a technical evaluation after NBRO flagged increased landslide risks. A technical committee will inspect on 10 February; BOI had earlier approved a $4.5m Amber Adventures Ltd plan.

Commercial Bank of Ceylon PLC sold its entire 22.92% holding (4,110,938 shares) in Equity Investments Lanka Ltd for Rs. 27.1 million to Comark Engineers Ltd, a subsidiary of Lanka Aluminium Industries PLC.

MEGAKEM Engineering (a subsidiary of Wardena Venture Holdings) launched MEGAPROOF HI-BUILD, a locally developed high-build elastomeric waterproofing coating, at BMICH on 8 January 2026. The product targets exterior walls, roofs and concrete surfaces and is positioned for Sri Lanka's tropical conditions.

The Northern Investment Summit 2026 (21–22 Jan) set out plans to transform Sri Lanka’s Northern Province into an investment hub, proposing infrastructure upgrades (a four‑lane highway, Jaffna runway extension, KKS port upgrade) and three industrial zones at KKS, Paranthan and Mankulam.

Groundworth launched “The Estate” on 17 January 2026, a premium land and luxury housing development in Hokandara with land prices from LKR 11.5 million and a projected 37.5% ROI within two years. The launch follows Groundworth’s Special Recognition for Land Investments at the PropertyGuru Asia Property Awards 2025.

Fairway Holdings launched its 7th luxury apartment project, Fairway Latitude, on 20 January 2026 and construction has commenced with completion targeted for 2028. Seylan Bank is noted as a supporting partner for the development.

Standard Chartered says Sri Lanka's sovereign ratings outlook is likely to shift from Stable to Positive as debt-to-GDP falls below 100% by 2027. It expects external debt service under $3bn in 2026, reserves around $7.5bn by end-2026 and policy rates to stay on hold.

The private sector minimum monthly wage has been raised to Rs. 30,000 from Rs. 27,000 (an increase of Rs. 3,000) effective 1 January. The change, under the National Minimum Wage (Amendment) Act, requires employers to base statutory payments (EPF, ETF, overtime, gratuity, maternity, leave) on the revised wage and disallows counting most allowances toward the minimum; employees can lodge complaints with the Labour Department for non-compliance.