News & market updates

Export Development Board will expand testing and certification facilities islandwide to boost export competitiveness, planning to modernise provincial labs, utilise underused facilities, pursue public–private partnerships and digital certification; next step is mapping exporter needs and provider capacities.

Exterminators PLC (EXT.N0000) reported a 275% increase in net profit for FY2025–26, swinging from a Rs.11.83m loss in FY2024–25 to a Rs.20.67m profit and total comprehensive income of Rs.32.35m. The company attributed the turnaround to AI integration, digitalisation and operational efficiency gains that also lifted gross profit by 20%.

Container Transport Owners Association increased container transport charges by 5% effective 1 June, citing higher fuel costs after the Ceylon Petroleum Corporation raised fuel prices on 31 May. The move will raise logistics costs for importers and exporters nationwide.

The LMD-PEPPERCUBE Business Confidence Index rose seven points to 148 in May. Consecutive fuel price hikes, a roughly 5% fall in the Sri Lankan rupee year-to-date, higher electricity tariffs and a US$267m drop in official reserves have kept business sentiment fragile amid geopolitical tensions and rising cybercrime concerns.

The IMF completed its combined Fifth and Sixth reviews under Sri Lanka's EFF and released US$695m, bringing total IMF disbursements to US$2.4bn. The IMF cut 2026 growth to 3.0% and warned that higher fuel costs, a sharp drop in tourism and cyclone damage have flipped the current account to a projected 0.5% of GDP deficit.

Shashel Lanka Manpower was awarded the 'Platinum Excellence in Ethical Overseas Recruitment & Workforce Solutions' award at the Platinum Excellence Awards 2026 on 5 April 2026, recognising its ethical overseas recruitment and workforce solutions. The Negombo-based agency supplies workers to construction, hospitality and healthcare sectors.

IBCSL will lead a national business delegation to the 4th China‑South Asia Standardisation Cooperation Conference in Chengdu from 8–10 July. The forum aims to harmonise product, service and technical standards with China to reduce non‑tariff barriers and certification costs for Sri Lankan exporters in tea, apparel, gems & jewellery, rubber and IT services.

INFRACON 2026, a rebranded infrastructure and construction exhibition, will be held 3–5 July at SBMEC Colombo showcasing HVAC-R, Power & Energy, Green Grid, Safe Water and Build Materials with local and international exhibitors to promote B2B deals and industry collaboration.

Colombo bourse closed lower with the ASPI down 0.21% to 22,695 as investor sentiment remained subdued after the CBSL rate hike; market turnover was over Rs. 1.7 billion.

Sri Lanka's Export Development Board plans to expand and decentralize testing and certification facilities island-wide to ease exporters' bottlenecks, proposing modernization of provincial labs, greater use of underutilized facilities, public–private partnerships and digital certification.

The Export Development Board (EDB) will expand testing and certification facilities islandwide to address centralization in Colombo and boost export competitiveness. Plans include modernizing provincial government labs, maximizing underused facilities, public–private partnerships, and digitising the certification process.

Vehicle imports rose to $208 million in April from $195 million in March, taking cumulative Jan–Apr 2026 imports to $821 million, CBSL data shows. The government gazetted SSCL amendments lowering the registration threshold and revised levy application on imported vehicles (effective 1 May 2026) and extended a 50% customs duty surcharge to some LCs.

Sri Lanka's current account slipped into a $532.4m deficit in April, erasing the Q1 surplus and leaving a $0.9m deficit for Jan–Apr, driven by a sharply widened trade gap (imports +45.7% YoY) and weaker tourism amid higher fuel spending; reserves stood at ~$6.8b and IMF review released about $695m.

Sri Lanka's state-owned CPC raised fuel prices effective 31 May — Auto Diesel +Rs15 to Rs.407/litre, Petrol Octane 92 +Rs24 to Rs.434, after multiple hikes that have pushed fuels ~45–57% higher since late February. Fuel import expenditure surged 150% YoY to $886m in April, helping widen the merchandise trade deficit to $1.38bn.

Ceylon Chamber welcomed IMF approval of the combined 5th and 6th EFF reviews, unlocking about $695m in financing, and urged continued reforms to preserve macro stability amid external pressures from the Middle East. It called for a digital fuel QR system, clearer policy communication, and accelerated reforms to boost competitiveness in trade, tourism, logistics and digitalisation.

Pink Eagle Holdings (Pvt) Ltd is expanding its diversified group globally across tea exports, logistics, food manufacturing, hospitality and digital retail, highlighting Continental Tea's ADRA Ceylon 10th anniversary and launches such as the Avanti freight app and Pink Panda marketplace.

Exterminators PLC is accelerating its AI-driven digital transformation, deploying AI-powered route optimisation, Sentro 3G and Smart Missile 3G stations and an AI-Powered Report Factory to boost operational efficiency and customer service. The company plans further AI investment to predict pest activity, reduce chemical use and strengthen preventive pest management.

Sri Lanka raised retail fuel prices effective May 31 (Auto Diesel +Rs15 to Rs407/L; Octane 92 +Rs24 to Rs434; Super Diesel +Rs20 to Rs478; Super Petrol +Rs25 to Rs495; Kerosene +Rs20 to Rs285), as the fuel import bill more than doubled to US$886m in April and prices near 2022 crisis levels.

Sri Lanka Customs exceeded its May revenue target of 187.8 billion rupees before month-end, collecting 100.1 billion in the first 26 days and marking the fifth consecutive month of outperformance; it has reached 51% of the 2,207 billion annual target in the first 146 days as enforcement and rebounding imports boost collections.

Sri Lanka's monthly oil import bill rose 149.9% to US$886 million in April as global fuel prices climbed after the Middle East escalation, with fuel accounting for 36% of April's total imports of US$2,457 million. Jan–Apr fuel spending reached US$2,167.7m, up from US$1,411.4m a year earlier.

The Ceylon Chamber of Commerce welcomed IMF approval of Sri Lanka’s 5th and 6th reviews, unlocking about USD 695 million under the EFF, and urged continued engagement and structural reforms to preserve macro stability, support investor confidence and address exchange-rate and energy pressures.

German business and government officials at the Sri Lankan‑German Business Forum 2026 said Germany views Sri Lanka as a strategic Indo‑Pacific partner and urged faster reforms and policy consistency to unlock investment in logistics, renewable energy, infrastructure and tourism.

SLPA expects up to $2 billion of port-sector investment over the next 1–3 years as Colombo Port faces a capacity crunch; the ECT next year will raise Colombo capacity to 14m TEUs and Hambantota will add 2m TEUs. SLPA also plans EOIs for a 14-acre logistics hub and PPP projects including WCT II, Colombo North Port and marina/tourism developments.

President Anura Kumara Dissanayake declared 15 categories of public services — including electricity, fuel distribution, healthcare, transport, ports/airports, water, telecoms, banking and insurance — as essential under the Essential Public Services Act to ensure uninterrupted services in post-disaster conditions.

ICT/BPM export earnings reached about $581.7m in Jan–Apr 2026, surpassing tea export earnings of $451.58m in the same period. FITIS said the milestone reflects years of ecosystem development and supports Sri Lanka’s $15bn Digital Economy Vision to 2030.

The IRD issued revised guidelines (Gazette No. 2481/17 dated 26 Mar 2026), effective retrospectively from 1 Oct 2025, changing VAT Risk-Based Refund taxpayer classifications and using five-year data and prior audit findings; more taxpayers may be classed high-risk and face pre-audits that can delay refunds beyond the 45-day window.

Ceylon Chamber of Commerce welcomed IMF approval of the 5th and 6th EFF reviews, enabling Sri Lanka to access about USD 695 million, and urged continued reform momentum to preserve macroeconomic stability amid external pressures. It reiterated measures including optimizing the fuel QR digital platform, clearer policy communication, and accelerating reforms in trade, tourism, logistics and digitalisation.

The Board of Investment launched the 'Ready to Invest' digital platform showcasing 30 pre-structured, shovel-ready projects across eight priority sectors to attract international capital. BOI says USD 1.9bn of approved projects are ready to break ground, with a further USD 1.4bn in the pipeline.

Indian CEO Forum re-elected Kishore Reddy as president at its AGM and reaffirmed commitment to deepen India–Sri Lanka business ties; Indian High Commissioner Santosh Jha urged investment, an upgraded FTA and cooperation across tourism, IT, infrastructure, manufacturing and services.

Speakers at the Sri Lanka Brand Forum Leadership Summit urged companies to redesign strategy for a new era of permanent volatility, prioritising employee wellbeing, organisational resilience (slack resources), decentralised decision-making, and long-term purpose-driven social programs.