News & market updates

The government remains confident of achieving 5% GDP growth this year and is pursuing a medium-term 7% growth target, citing Q1 growth of 5.1%. Officials say capital expenditure programs will continue as planned and that higher interest rates should only temporarily dampen demand.

India approved monthly exports of 220 metric tonnes of ammonium nitrate to Sri Lanka with immediate effect, after a prior export ban. The supply should relieve local industries dependent on ammonium nitrate, including mining, quarrying and construction.

Prime Residencies has commenced construction of THE GOLF, an ultra-luxury 66-unit residential development on Lake Drive, Colombo 08, with prices from LKR 95,700,000; a significant majority of units have already been reserved.

A Peking University delegation led by Prof. Wang Weijia held high-level meetings in Colombo to explore deeper Sri Lanka–China cooperation, prioritizing trade and FDI in logistics, energy, tourism and Port City Colombo and potential areas like high‑tech manufacturing and pharmaceuticals.

Colombo market edged up as the ASPI rose 0.04% (8.62 pts) to 22,385.91 while the S&P SL20 fell 0.17% to 6,210.72. Turnover was Rs.2.56bn on 107m shares, the banking sector led turnover and foreigners were net sellers of about Rs.12.2m.

Dividend · Rs 1.00 · XD Jun 26, 2026

Final dividend of LKR 1/share; XD 2026-06-26; record 2026-06-29; payable 2026-07-16; FY ended 31st March 2026

Sri Lanka will stick to a 5% growth target despite the Central Bank's 100bp policy rate hike to 8.75% and falling consumption; Q1 GDP expanded 5.1%. The rate rise, 27% private credit growth and steep fuel price increases are cited as headwinds, while the IMF has cut its growth forecast to 3%.

Prime and Melwa acquired a third Marina District land parcel in Port City Colombo, bringing their combined holding to about 16 acres and becoming the largest property investor in Port City. The parcel will be developed as a mixed-use project in the Marina District, a limited (≈1%) waterfront area slated for early completion.

Prime and Melwa acquired a third Marina Area land parcel in Port City Colombo, bringing their combined holding to about 16 acres and making them the largest property investor in Port City. The parcel will be developed as a mixed-use project in the Marina District, a highly limited waterfront area due for completion within five years.

A Sweden–Sri Lanka Business Council dialogue study found members prioritise simplified visa procedures, predictable tax rules, smoother compliant capital flows, clearer profit repatriation, reliable banking relations and measures to curb brain drain. The 20-respondent study will guide the Board's priorities and engagement with embassies.

Royal Ceramics Lanka (RCL.N0000) hosted Imperium 2026 sales kick-off and awards on 6 June, celebrating sales milestones and outlining future growth strategies and product innovations.

Sri Lanka's cabinet approved obtaining $200 million from the Asian Development Bank for a Post Ditwah Cyclone Renovation and Livelihood Assistance Project to fund infrastructure reconstruction and livelihood support. The financing is split $100m from ADB permanent capital and $100m from concessionary resources and targets highways, irrigation and livelihoods; a separate $100m ADB loan top-up was also approved.

Alumex PLC has installed a new 20 MN, 7-inch aluminium extrusion line at its Sapugaskanda plant, expected to exceed 1,000 kg/hour and monthly output over 2,000 tonnes. The Industry 4.0 line includes AI/IoT production controls and is projected to cut energy use 30–40%, boosting yield and export capability.

Sri Lanka held a Dubai investor forum on June 11 to pitch Port City Colombo as a Special Economic Zone and court Gulf capital to attract FDI into finance, technology, logistics, property and services across South Asia.

Sri Lanka's services PMI rose to 56.9 in May 2026 from 46.7 in April, signalling a rebound led by financial, professional and other personal services, with real estate, IT programming and goods transportation also recording growth; employment declined further.

ASPI jumped 3.43% (743.22 pts) to 22,380.65 as markets rallied on signs of a possible end to the Middle East war, with index-weighted counters SAMP, COMB, JKH, MELS and DIAL among top contributors; turnover exceeded Rs.4bn and foreigners were net buyers (Rs.21.1m).

Colombo Stock Exchange ASPI rose 0.34% to 22,456.18 (up 75.53 pts) as turnover reached 2.42 billion rupees, with materials leading turnover at 1.4 billion. Top positive contributors were Melstacorp, Commercial Bank, HNB and DFCC, while LOLC and Prime Lands were top decliners.

Sri Lanka GDP grew 5.1% year-on-year in Q1 2026, up from 4.7% in the previous quarter. Growth was led by industry (up 7.2%) with mining +19.5% and construction +16.3%, while services rose 3.4% driven by insurance (+22%), IT/BPM (+16.1%) and financial services (+12.8%); agriculture +1.1%.

Sri Lanka has spent 17.4% of its 2026 capital budget, about Rs.240 billion of Rs.1,380 billion, the National Budget Department director told Parliament; officials said some capital expenses will remain unspent and that Rs.20 billion cited was a reallocation after a fuel price hike.

Sri Lanka's real GDP grew 5.1% year-on-year in Q1 2026 to Rs. 3,652,503 million (2015 prices). Growth was led by industry (+7.2%)—notably construction (+16.3%) and mining (+19.5%)—while services rose 3.4% (insurance, IT, financial services) and agriculture grew 1.1%.

Government extends the deadline for submissions to the MRIA investment EOI process to 9 July (EOI documents open until 8 July). Proposals must remain valid for 120 days (until 5 Nov) and guarantees for 150 days (until 5 Dec).

World Bank cut its global growth forecast to 2.5% for 2026, warned higher energy and fertiliser prices will raise inflation, and is making $50–60bn available immediately (scalable to $80–100bn over 15 months) to support vulnerable countries.

The Sri Lanka Business Council UAE held a 35th-anniversary investment forum in Dubai on 11 June that drew 225 UAE business leaders and investors. Colombo Port City presented investment opportunities and speakers encouraged investment in tourism, hospitality, IT, logistics, manufacturing and renewable energy in Sri Lanka.

China Harbour Engineering Company (CHEC) chairman Bai Yinzhan met President Anura Kumara Dissanayake and reaffirmed CHEC's confidence in investing in Sri Lanka, welcoming incentives for the Port City Colombo Special Economic Zone. The President reiterated government support for FDI and cited IMF-backed policy stability to boost investor confidence.

Global GIS (Pvt) Ltd signed a Memorandum of Understanding with the University of Ruhuna to collaborate on R&D, product commercialization, consulting, training and to install a GNSS CORS station at the university. The agreement also includes funding support, internships and technology transfer to boost surveying and geospatial capacity.

The Sasakawa Memorial Sri Lanka–Japan Cultural Centre at Ward Place, Colombo 07, was inaugurated, with the Rs. 3 billion facility intended to promote cultural exchange, education and professional training between Sri Lanka and Japan.

Government and JICA aim to restart construction of Bandaranaike International Airport Terminal 2 by November after high-level talks to finalise loan allocation and contract value. JICA says the terminal could be completed within 30 months after work resumes and Finance Ministry approval for additional loan is being sought.

Colombo market rebounded as the ASPI rose 1.73% (367.41 pts) to 21,637.43 and the S&P SL20 gained 1.55% to 6,027.05. Turnover was below Rs.2bn with foreign investors net buyers of Rs.24.4m; HNB, COMB, JKH, DFCC and RIL were key positive contributors and banks led turnover (25%).

Bollywood stars Shilpa Shetty Kundra, Aditya Roy Kapur and Jacqueline Fernandez arrived in Colombo to headline the launch of Home Lands Group’s 'Central Park Boulevard Port City' at Cinnamon Life/City of Dreams.

ADB is providing $4 billion in rapid financing — about $3 billion requested by governments and $1 billion in trade finance — to help countries, including Sri Lanka, withstand fallout from the Middle East conflict. Support includes policy-based loans, trade finance for energy and food imports, and rapid repurposing of existing funds.