News & market updates

Outgoing Swedish Ambassador Jan Thesleff said he is optimistic about Sri Lanka's recovery and rising investor confidence, noting about 80 Swedish companies operate in Sri Lanka. He highlighted opportunities in ICT, apparel exports, renewable energy, healthcare and tourism, and cited Port City progress and the need for direct flights.

Cabinet approved signing a tripartite agreement to implement a programme promoting energy‑efficient, climate‑resilient buildings backed by a €924,063 German grant (~Rs314m). GIZ will implement the project with progress monitored by the Ministry of Energy and the Sustainable Energy Authority.

The National System Operator launched an international tender for a 250 MW / 1,000 MWh standalone battery energy storage system across 25 substations, with BOO contracts and proposals due 10:00 hrs on 14 Aug 2026.

Alpha Fire Services PLC will acquire 100% of Icon Engineering for Rs. 260 million via a share swap issuing 9,122,807 new Alpha Fire shares; the combined operations are expected to generate over Rs. 1 billion in revenue and raise profitability by 30%. The transaction is a related-party major transaction and is subject to CSE and shareholder approvals.

BPPL Holdings' subsidiary Beira Brush will acquire Ravi Industries' customer base and the 'Ravi' trademark for a minimum of Rs300mn, payable over five years and linked to revenue.

Colombo Stock Exchange ASPI fell 0.27% to 21,473.27 at midday, while the S&P SL20 was down 0.04% to 6,019.55. BPPL Holdings said subsidiary Beira Brush will acquire Ravi Industries' customer base and the "Ravi" trademark for a minimum 300 million rupees payable over five years tied to revenue.

President Anura Kumara Dissanayake chaired a pre-Budget review of 2026 projects and discussed 2027 Budget proposals for the Ministry of Industry and Entrepreneurship Development, stressing completion of projects and development of industrial zones (Dambulla, Ingiriya, Valachchenai, Millaniya, Katunayake). He also urged consolidation of state enterprises, proposed an Entrepreneurship and Industry Transformation Authority and requested proposals for concessions to support exporters and industriali

The Ceylon Chamber hosted a B2B session (8–10 July 2026) for a 31-member FIEO Indian export delegation to connect Indian SMEs (pharmaceuticals, engineering, apparel, food, infrastructure) with Sri Lankan companies to explore sourcing, market expansion and commercial partnerships.

Alpha Fire Services (AFS.N0000) will acquire Icon Engineering for Rs260 million in a share-swap, issuing 9,122,807 new shares valued at Rs28.50 each. The deal gives new investors a 19.38% stake, expands MEP/HVAC operations into the Maldives and is expected to boost group profitability ~30% and bring USD inflows.

Hikvision Sri Lanka held the Shaping Intelligence – Smart Building Summit 2026, showcasing AIoT building-management and security solutions and recording 157 participants.

Colombo Stock Exchange's ASPI fell 0.40% (86.60 pts) to 21,678.96 and the S&P SL20 dropped 0.33% to 6,057.66, with market turnover Rs194.1m as banks weighed on the index. Alpha Fire Services announced a proposed acquisition of Icon Engineering, projecting group revenue above Rs1bn, ~30% higher profitability and foreign currency inflows from Maldives projects.

CSE ended an eight-session slide as the ASPI rose 0.31% to 21,765.56 and the S&P SL20 gained 0.25% to 6,081.43. Turnover topped Rs.2bn with foreign net outflows of Rs.673mn; top contributors included Ceylon Cold Stores, Haycarb, John Keells and RIL, while banks (Commercial Bank, Sampath) led turnover.

Arcasia Investment & Trading and ATX Partners bought 1,880,693,010 shares (50.16%) of Industrial Asphalts at LKR0.40 per share and will make a voluntary offer for the remaining shares, subject to regulatory approval. The stock last traded at LKR0.70.

Mediterranean Shipping Co. (MSC) is in talks to acquire a significant stake in Hambantota International Port (CMPort 85%, SLPA 15%) and has begun switching transshipment calls to Hambantota. The port's box capacity is set to double to 2 million TEUs by year-end after recent investment.

Colombo Port City Economic Commission will invite RFPs for an international university, hospital and school as it shifts from real estate to building institutional foundations; the Commission permits transactions in 14 foreign currencies under a dollarised regime and flags IT talent shortages constraining investment.

The Parliamentary Committee on Public Finance approved a Customs Ordinance resolution and two EDB orders to implement a National Tariff Policy that will reset import duty bands to 0%, 10%, 20% and 30% from 1 April 2026. The reforms include cutting effective ceramic-tile import taxes to 20% by 2029, phasing out para-tariffs by 2029, and updating trade data to support export growth.

President Anura Kumara Dissanayake said the 2027 Budget will prioritise strengthening public healthcare and reducing private treatment costs. Measures include recommencing 26 suspended hospital projects (48 projects now under way), new primary-care 'Arogya Suwa Seva Centres', technology upgrades for state hospitals, ambulance improvements, digital health systems and pharma procurement reforms.

Colombo market fell for an eighth session as ASPI dropped 0.60% (130.78 pts) to 21,697.72 amid renewed Middle East tensions, with turnover over Rs.1.4bn and foreign net outflow of Rs.91.7m. Declines were led by Commercial Bank, Melstacorp, Hayleys and John Keells, while capital goods, food & beverage and banking drove turnover.

Prime Lands Residencies PLC pre-launched 'The Prime Colombo', a 39-floor residential development on Baseline Road with two- and three-bedroom units from LKR 45 million and construction targeted for completion in October 2030. The developer cites estimated rental yields above 6% and flexible payment plans.

Lanka Aluminium Industries PLC hosted a full-day factory visit in Ekala with the Sri Lanka Institute of Architects as part of its 'Specification Writing for Architects' programme to raise awareness of aluminium extrusion products and solutions.

Hirdaramani Apparel and the University of Moratuwa launched a three-year research collaboration to convert textile waste into durable, lightweight sustainable ceiling panels aimed at commercial scalability and circular-economy goals.

Government and stakeholders launched immediate and long-term plans to clean and beautify Colombo's Beira Lake, including an immediate seawater flushing sponsored by Nahil Wijesuriya and longer-term restoration funded in the Government Budget. The measures are intended to protect tourism, public health and the urban environment.

The Committee on Public Finance approved submitting to Parliament a Customs Ordinance resolution and two Export Development Act orders to implement a National Tariff Policy that restructures import duties into four bands (0%, 10%, 20%, 30%) from 1 April 2026 and reduces ceramic-tile taxes to 20% by 2029. The reforms aim to simplify tariffs, phase out para-tariffs by 2029 and support the EDB’s target to double exports from US$18bn to US$36bn over five years.

UAE investors make up 19% of foreign investor interest in Port City Colombo, with Singapore, China and the UK at 13% each, while South Asian investors—notably India—remain underrepresented; officials see this as a key growth opportunity. The development is an SEZ offering single-window approvals, unrestricted foreign ownership, multi-currency transactions and fiscal incentives.

Arcasia Investment & Trading Ltd and ATX Partners have entered binding agreements to acquire a 50.16% controlling stake (1.88 billion shares) in Industrial Asphalts, triggering a Mandatory Offer; the offer price and terms will be announced after SEC approval.

President Anura Kumara Dissanayake pledged the largest-ever Budget allocation for drinking water projects in the 2027 Budget. He reviewed 2026 project progress, urged consolidation of overlapping institutions, and instructed expedited resettlement and low-income housing support, citing Kandy North, Greater Colombo wastewater, Ambatale and Anuradhapura North projects.