News & market updates

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.

Sri Lanka will launch the National Export Development Plan (NEDP) 2026–2030 targeting $36 billion in export revenue by 2030, developed by the Export Development Board with ADB technical assistance. The plan sets horizontal enablers (trade facilitation, trade finance, supply chain, ESG) and eight priority verticals including electronics, digital services, processed foods, auto components, rubber, minerals, marine and spices.

Sri Lanka will launch the National Export Development Plan 2026–2030 on 16 June, aiming to lift export revenues to $36 billion by 2030. The EDB, with ADB support, outlines two pillars and eight priority sectors including Auto Components, Minerals, Rubber, Marine, Spices, Digital Products, Electrical & Electronic Components, and Processed Food.

The rupee weakened to Rs. 335/337.50 in the interbank spot market after giving up part of Wednesday's gains (Wednesday close: Rs. 332.25/330). The midweek rebound followed the Central Bank tightening rules for exporters, cutting the conversion window to 30 days from 90.

SAARC CCI President Chandi Raj Dhakal met Yunnan Governor Wang Yubo in Kunming to push for expanded trade, investment and connectivity between South Asia and Yunnan, highlighting opportunities in infrastructure, tourism, logistics, digital industries, renewable energy, agriculture and manufacturing.

Labour Minister Dr. Anil Jayantha Fernando urged viewing AI as a productivity tool at the ILO conference, noting about 22.8% of Sri Lanka’s workforce is exposed to generative AI. He also announced ratification of ILO Convention No. 190 and a government roadmap to expand the digital economy and skills.

HighVoltagePR, marking its 10th anniversary, has entered a strategic partnership with Ncatalysts to integrate traditional PR and reputation management with digital performance marketing and digital product capabilities. The collaboration aims to offer combined PR, digital marketing and customer-experience services to Sri Lankan brands.

EDB organized Sri Lanka’s participation at Posidonia 2026 in Athens (1–5 June 2026); Colombo Dockyard Plc was one of seven Sri Lankan companies at the Sri Lanka pavilion showcasing ship repair, shipbuilding and marine services, attracting international buyers and potential business leads.

CG Corp Global chairman Binod Chaudhary highlighted the group's Sri Lanka footprint, noting it holds a majority stake in Union Bank of Colombo and operates multiple hospitality properties including the Taj Samudra. He also cited a BYD agency partnership with John Keells and a cement feasibility study.

Sri Lanka will launch the National Export Development Plan 2026–2030 in Colombo on 16 June 2026, targeting USD 36 billion in export revenues by 2030. The plan sets two pillars (Horizontals and Verticals) and names eight priority sectors including Digital Products, Electrical & Electronic Components, Auto Components, Rubber, Minerals, Marine, Spices, and Processed Food & Beverages.

The India–Sri Lanka Binational Bridge and Tunnel proposal — a ~23 km link estimated to cost US$3.6–5.19bn — could lift tourism by 50–70% and cut some transport costs by up to 50%, reshaping trade, logistics and connectivity. Sri Lanka has paused advancement over technical, environmental and sovereignty concerns.

Cabinet approved 77 Businesses of Strategic Importance for the Colombo Port City SEZ in April 2026, supporting about Rs.125 billion (including ~$262m foreign inflows) in land and development value and projecting ~$364m in secondary inflows and roughly 10,000 direct jobs over five years. Regulatory reforms by the CPCEC and CHEC's ~$1.4bn infrastructure investment aim to accelerate permits and unlock an estimated $15bn total development.

The CBSL cut the mandatory conversion period for export proceeds from 90 days to 30 days, and the rupee strengthened to about Rs. 332.25/333.00 from Rs. 337.00/337.75. The move is intended to accelerate repatriation of export earnings and boost foreign-exchange liquidity to stabilise the market.

SriLankan Airlines has formed partnerships with Saudia and Flynas to expand connectivity between Saudi Arabia and Sri Lanka, adding access to 7 international + 13 domestic Saudia destinations and 8 international + 6 domestic Flynas destinations. Passengers can connect via Riyadh and Dammam onto daily SriLankan services to Colombo.

Sri Lanka Customs collected 217.9 billion rupees in May, 16% above the 187.8 billion target. Customs collections for the first five months reached 1,143.7 billion rupees, 44% higher year‑on‑year, driven by stronger enforcement, improved valuation and a rebound in import volumes.

The Central Bank of Sri Lanka now requires exporters to convert any residual foreign-currency export proceeds into rupees by the 10th day of the month following receipt under amended Repatriation of Export Proceeds rules. The change replaces the 90-day window and is intended to support FX liquidity amid recent rupee pressure.

Sri Lanka's Central Bank ordered exporters to convert export dollar proceeds within one month (down from three) effective immediately to curb rupee depreciation. The move follows a $211m defence of the currency in May and a 100bp overnight policy rate hike on May 26.

CBSL's new 'Repatriation of Export Proceeds into Sri Lanka Rules No.2 of 2026' requires exporters to convert all residual foreign exchange proceeds on or before the 10th day of the month following receipt, shortening the previous three-month window; the rule takes effect after Parliamentary approval and preserves limited authorized uses and a 10% cap for investment in government FX debt.

The Sri Lanka–Thailand Business Council marks its 25th anniversary in 2026, holding a silver-jubilee event on 19 June at The Kingsbury Hotel with a 25-member Board of Trade Thailand delegation attending. The council highlights continued efforts to boost trade, investment and cooperation across tourism, logistics, healthcare, renewable energy and IT.

Sri Lanka's cabinet approved a proposal for the Legal Draftsman to draft a bill amending the Customs Ordinance to restructure and modernize Sri Lanka Customs. A steering committee spent about seven months producing detailed recommendations after consulting importers, exporters and other stakeholders.

Sri Lanka's BOI and Japanese partners held the 4th working-level Japan–Sri Lanka Committee on Business Environment on 2 June 2026 in Colombo to review and resolve investor concerns and strengthen FDI ties. The session stressed accountability and priorities such as technology transfer, green industry, manufacturing and tourism.

The IMF approved Sri Lanka’s combined Fifth and Sixth Reviews on 28 May 2026, releasing SDR 508 million (~US$695m) and bringing total EFF disbursements to SDR 1.778 billion (~US$2.4bn). The Fund said stabilisation has improved revenues, growth and reserves but warned debt sustainability remains “very high” and key structural reforms (electricity, public financial management) are unfinished.

ASPI fell 1.57% (340.85 pts) to 21,403.28 as the CSE opened in the red amid rising interest rates and Middle East tensions. Turnover was over Rs.2.6bn with foreign net outflows of Rs.54.1m; Melstacorp, Bukit Darah, Sampath and LOLC were key negatives while John Keells and ACL led turnover and HNB rose.

Sri Lanka participated in the US Forum on Indian Ocean Ports and Supply Chains in Washington, DC to explore port development, digital transformation, cybersecurity, trade financing and expanded US investment in regional maritime infrastructure.

Kishore Reddy was re-elected president of the Indian CEO Forum at its AGM, where the Forum reaffirmed commitment to deepen India–Sri Lanka economic cooperation and urged upgrading the FTA to boost investment in infrastructure, tourism, IT, logistics and services.

Delmege Consumer has partnered with Daraz to offer its full range of FMCG products for online purchase and islandwide delivery, expanding its digital distribution. The move aims to boost brand visibility and customer convenience through Daraz’s e-commerce platform.

The Ceylon Chamber will hold the 26th Sri Lanka Economic and Investment Summit on 12–13 October, focused on economic growth, competitiveness, investment and structural reforms. Sessions will cover trade and regional integration, energy security, digital transformation and healthcare.

Peterson Solutions Sri Lanka opened a new corporate office at Orion City, Colombo on 5 June 2026. The move reflects local growth—the consultancy, part of Peterson and Control Union Group, says it now serves 170+ Sri Lankan clients and is expanding services in sustainability, crop consultancy and digital solutions.

US President Trump signed the 'Strengthening Customs Enforcement' Executive Order giving CBP new authorities to require detailed importer ownership/supply-chain data, tighten broker due diligence, raise bond minimums and revoke importing privileges for non-compliance.

Cabinet approved 77 Businesses of Strategic Importance for the Colombo Port City SEZ, including three Primary BSIs (Prime Melwa, Marina Hotel Holdings, Home Lands); land/development costs are ~Rs125bn (incl. ~US$262m) and Secondary BSIs are projected to bring ~US$364m and ~10,000 jobs over five years.