News & market updates

Colombo market ended flat as the ASPI fell 0.02% to 23,623.74 with turnover near Rs.5.17 billion and foreign investors net sold about Rs.91 million. Top negative contributors were SFCL, JKH, BUKI, CTHR and DFCC, while DOCK, ACL and RHL led turnover and HAYL and DOCK supported index performance.

Standard Chartered forecasts Sri Lanka GDP growth of 3.5% in 2026 (from 4.5% in 2025), expects policy rates to remain unchanged and the rupee near 315 USD/LKR by end-2026; it warns of risks from cyclone damage, limited fiscal space and strained external financing.

Colombo Stock Exchange closed flat with the ASPI down 0.02% at 23,623.74 as speculative interest in Colombo Dockyard drove turnover. Colombo Dockyard listed 323,365,158 new ordinary voting shares after its rights issue; top contributors included Hayleys, Dockyard, ACL Cables, Commercial Bank and Nations Trust Bank.

Colombo bourse opened the week down: ASPI fell 0.44% to 23,627.87 with foreign investors net sellers of ~Rs.697.9m and turnover ~Rs.4.7bn. Top negatives included DOCK, COMB, NTB, SAMP and SPEN, while ACL, Tokyo Cement, DIAL and REEF saw notable turnover/interest.

The Central Bank says the Port of Colombo is expected to nearly double throughput capacity to 15 million TEUs by end-2026 but warned geography alone won’t secure its transhipment role. Container volumes reached 6.92m TEUs in Jan–Oct 2025 (+7.1% YoY) and CBSL urged modernisation, digitalisation, automation and private investment.

A CSF study reviewing 250 EIA reports (1991–2025) finds major inconsistencies and gaps in how social impacts are assessed and communicated, weakening EIAs' role in decision‑making and public accountability. The report urges clearer ToRs, better methods and more accessible reporting to bolster investor confidence and reduce project risks.

The Baladaksha Mawatha flyover, a 340-metre by 11-metre structure costing Rs. 3.2 billion, was opened to the public today. Constructed by the RDA with government funding under the Sustainable Road Development Programme, it is the third flyover completed to reduce Colombo traffic congestion.

A liquidator has invited offers to invest in or buy the Krrish Building mixed-use project in Colombo, valued at $712m with about $85m of work completed; proposals including finance credentials are due by 28 February.

Royal Ceramics Lanka PLC (RCL.N0000) opened a 4,730 sq ft Rocell Concept Centre in Kandy showcasing its full range of tiles, bathware and accessories. The showroom features large-format slabs, outdoor tiles and Hansgrohe fixtures to help customers and designers visualise complete living spaces.

Icon V Talpe, a 17-level twin-tower oceanfront development by Odiliya Group in Talpe near Galle, comprises 227 fully furnished sea-facing apartments and has attracted strong interest from overseas Sri Lankans and international investors, with many units already sold or reserved.

Sarvesh Suri was named IFC Regional Vice President for Asia and the Pacific and will lead IFC investment and advisory operations across the region, overseeing work from India to the Pacific Islands on finance, manufacturing, agribusiness, services, infrastructure and natural-resources projects.

Marlbo Trading has added Teledyne FLIR thermal imaging cameras to its product portfolio to provide advanced inspection and safety solutions for buildings, industry and emergency services.

CBSL signals a likely hold on policy rates in early 2026 and aims to return inflation to the 5% target by H2 2026. Liquidity will be managed via targeted operations and SRR tightening, which may lift short-term rates while anchoring long-term yields and supporting consumer, construction and banking earnings recovery.

President Anura Kumara Dissanayake launched the 2026 National Housing Program in Jaffna, targeting 31,218 families nationwide and allocating Rs.2 million per house for 800 war-displaced families in Jaffna with Rs.300,000 cheques distributed at the launch. The program covers 2,500 war-displaced families in the North and East and pledges to resolve displaced housing during his term.

Cabinet approved calling for expressions of interest to find investors to develop selected areas of the Pelwatte Sugar Factory into tourist attractions under a PPP; the Pelwatte factory is owned by Lanka Sugar Company Ltd.

An IMF staff team will visit Sri Lanka from January 22–28, 2026 to assess damage from Cyclone Ditwah and its economic impact; the mission's findings will inform discussions on resuming the IMF Extended Fund Facility and shaping recovery support.

Foreign portfolio manager Django Davidson said Sri Lanka's stocks are an 'absolutely fantastic opportunity' if the central bank adopts sensible policy, low inflation and policy stability. He noted mortgage lending was only 2.7% of GDP and warned recent currency depreciation and central bank framework flaws could risk another default.

An IMF team will visit Sri Lanka from Jan 22–28 to assess Cyclone Ditwah damage and to help restart the IMF Extended Fund Facility program. The IMF initially estimates the cyclone will reduce GDP by about 0.2%.

An IMF team will visit Sri Lanka from 22–28 Jan to assess Cyclone Ditwah damage and its implications for the paused EFF program after the IMF approved $206m in emergency RFI financing. IMF staff say the shock could widen the current-account deficit by ~$700m and lift 2026 average inflation to 5.4%.

UNDP found 95% of communities in 22 districts reported infrastructure damage from Cyclone Ditwah and urged inclusive recovery financing as the government announced LKR 95 billion support for MSMEs (including 3% concessional loans). The assessment said 93% reported livelihoods affected and noted shortages of construction materials, skilled labour and funding.

JAT Holdings PLC certified more than 800 painters with NVQ Level 3 at its 6th Pintharu Abhiman Convocation, funding assessments and compressing testing into a three-day model. Surveys show 90% report increased confidence, 76% improved living standards and one in five have started businesses.

The Finance Ministry will divest its entire 100% stake in Canwill Holdings, holding a virtual pre-EOI meeting on 21 Jan and setting an EOI deadline of 16 Feb for a two-stage competitive sale. Canwill is the parent of Sinolanka and Helanco, including the stalled Grand Hyatt Colombo project, and has prior forensic-audit findings and Rs.18.5bn of equity funding.

An IMF fact-finding mission will visit Sri Lanka from Jan 22-28 to assess Cyclone Ditwah damage and implications for the country's Extended Fund Facility (EFF) programme. The IMF approved about USD 206m in emergency RFI financing on Dec 19 and said it will discuss policy intentions, including maintaining cost-recovery electricity tariffs.

UNDP's assessment found 95% of communities in 22 districts reported damage to homes, roads or other infrastructure after Cyclone Ditwah, highlighting widespread recovery needs. The report flagged shortages of materials, labour and financing and noted the government's LKR95 billion MSME support including a 3% concessional loan scheme.

CHEC Port City Colombo (unit of China Harbour Engineering) will invest another $300 million in the Port City Colombo SEZ, adding to $1.25 billion already spent on land reclamation and infrastructure. The money will fund core infrastructure and utilities, with investment recovered via leasehold land sales and some government land sales.

St. Anthony's Industries Group said its drinking water pipe range has been certified lead-free under NSF/ANSI/CAN 61 by NSF, making it the first Sri Lankan company to achieve this certification and validating its non‑toxic PVC stabilisers.