News & market updates

Cabinet approved submitting new Import and Export (Control) Regulations to Parliament and allowed the import of retreaded aircraft tyres (HS 4012.13) under strict conditions to support operational needs of national and international carriers, including SriLankan Airlines, with required international safety certification and formal supply agreements.

Hambantota International Port handled MSC Marie Leslie from 11–15 April 2026, recording 7,968 container moves (13,260 TEUs) — the highest single-vessel throughput at HIP to date. The result surpasses prior MSC calls and highlights HIP's growing container handling capacity as a regional transhipment hub.

Sri Lanka's cumulative exports for Jan–Mar 2026 reached US$ 4,308.11 million, up 1.59% year-on-year. March exports were US$ 1,467.31 million (down 5.2% YoY but up 9.0% month-on-month), with strength in coconut, processed food, electronics and services while apparel and tea declined.

Asia Siyaka Commodities said March tea exports fell 16% YoY to 19.7 Mnkg, leaving 1Q exports down 4.5% to 60.3 Mnkg. Rupee earnings held at Rs.109 billion due to currency depreciation, but dollar earnings fell 5% to $351m amid higher freight/insurance and Gulf shipping disruptions.

Cabinet approved awarding a Rs. 356.22 million (exclusive of taxes) consultancy contract to Resources Development Consultants Ltd to conduct a feasibility study and prepare detailed plans for extending the Kelani Valley Railway Line from Avissawella to Ratnapura.

WFP warns the Middle East conflict is threatening Sri Lanka's recovery by driving fuel costs up 33–40%, raising food and fertiliser import bills (Sri Lanka imported $2.5bn of food in 2025) and risking remittances (around 80% originate in the Gulf). These shocks could push inflation higher, weaken the rupee, strain reserves and hit tourism and household food security.

Cabinet approved drafting a Bill to create the Sri Lanka Industrial Transformation and Innovation Authority, consolidating the Industrial Development Board, National Enterprise Development Authority and the Small Enterprise Development Division into one body. The authority is intended to improve policy coherence, reduce overlap and strengthen industrial transformation, innovation and SME support.

The EPF's listed equity portfolio rose 27% to Rs. 188.85 billion at end-2025. The fund cut holdings from 65 to 59, fully exited six counters (Cargills Bank, Ceylon Hotels, Colombo Dockyard, Jetwing Symphony, LAUGFS Gas, Sierra Cables) and added Hemas (40m shares); gains were led by banks and diversified stocks.

Colombo market ended marginally higher as the ASPI rose 0.06% to 22,639.81 despite net foreign selling of Rs.2.52 billion. Softlogic Life (AAIC) and Ceylon Tobacco (CTC) topped foreign selling and AAIC led turnover with a ~Rs.1.3bn crossing; insurance, food & banking dominated activity.

Cabinet approved awarding a consultancy to Resources Development Consultants (Pvt) Ltd to carry out a feasibility study and prepare detailed plans for the Avissawella–Ratnapura extension of the Kelani Valley Railway at a cost of Rs. 356.22 million (exclusive of taxes).

The Cabinet approved awarding SriLankan Airlines' Dubai ground handling contracts to Dnata: AED 33.04m for passenger/ground services (01-04-2026 to 31-03-2029) and AED 7.6m for cargo handling (01-07-2026 to 30-06-2029).

Tea production fell to 20.8 Mn kgs in March, down 14.5% YoY from 24.4 Mn kgs, hit by prolonged dry and hot weather; first-quarter output also slipped to 59.6 Mn kgs from 61.7 Mn kgs a year earlier.

DFCC Bank convened a discussion examining how the Middle East conflict could transmit into Sri Lanka’s economy, highlighting energy price, shipping, FX, tourism and remittance channels. The forum emphasised banks’ role in helping clients manage FX exposure, trade finance and liquidity amid rising uncertainty.

EPF fully exited holdings in six CSE-listed companies in 2025 — Cargills Bank, Ceylon Hotels, Colombo Dockyard, Jetwing Symphony, LAUGFS Gas and Sierra Cables — and made one new investment, buying 40 million shares in Hemas Holdings; its listed equity count fell from 65 to 59.

The Central Bank's Annual Economic Review 2025 reports real GDP growth of 5% and continued macroeconomic stabilization, with a third consecutive current-account surplus and reserve build-up. Monetary policy remained accommodative supporting low interest rates, credit expansion and improved bank/non-bank profitability, while exchange-rate flexibility and easing capital controls were noted.

Industry leaders at a Sri Lanka-Italy Business Council forum warned geopolitical tensions are testing Sri Lanka’s 2026 recovery, citing a 17.4% drop in tourism to 22 March, ~35% of shipping routes affected and sharp rises in freight, insurance and energy costs that could hit exports and tourism if prolonged.

Anura Karunathilaka was appointed Energy Minister and will continue to hold the Ports and Civil Aviation portfolio after Kumara Jayakody resigned amid allegations linked to a coal procurement scam.

Indian Affair (Giga Foods Pvt Ltd) opened a new biryani-focused outlet on Saranankara Road in Dehiwala as part of its 2026 biryani-first repositioning. The takeaway-first location offers chicken, mutton and specialty biryanis and is available through major food delivery platforms.

Exterminators PLC founder Marlon Ferreira urged an urgent shift from thermal fogging to Integrated Mosquito Management and promoted the company's AI-powered monitoring and sustainable mosquito-control solutions to better tackle rising dengue risk.

Gavinro International launched GV Auto, an EV distribution arm representing Skywell, Skyworth and Keyton, and has secured supply agreements with corporate clients including Aramex Sri Lanka and Navesta Pharmaceuticals to provide electric vehicle transport solutions.

World Bank projects Sri Lanka's growth will moderate to 3.6% in 2026, citing higher energy prices and a transition to more sustainable growth. It flagged risks from persistently high energy costs, flight disruptions hitting tourism, skilled-labour shortages, weak public capex execution and climate shocks.

CBSL's PMI showed Manufacturing PMI rose to 66.7 in March (from 56.8 in February) and Services PMI rose to 59.4 (from 54.4). Expansion was led by seasonal demand, financial services and retail, though firms reported raw-material and fuel shortages, shipping delays and Middle East conflict risks.

Oceans, a Sri Lanka-based services employer, has over 500 professionals (majority in Sri Lanka) serving 300+ global clients and has launched Oceans Academy and WAVE upskilling to support borderless careers.

Uber launched its mobility service in Kegalle, Sri Lanka, offering car, tuk and motorbike bookings via its app. The expansion aims to improve transport along the Colombo–Kandy corridor and create flexible earning opportunities for local drivers.

Exterminators PLC launched the AI-powered, carbon-neutral Smart Missile 3G termite station with real-time detection, IoT app connectivity, recycled-plastic manufacture and QR-enabled auditing. The company is seeking strategic international distributors for Asian and European markets.

France Ambassador Rémi Lambert reaffirmed France as a reliable partner for Sri Lanka's economic recovery and said France will extend support across multiple sectors, starting with the maritime sector. The Sri Lanka–France Business Council's Members' Day also highlighted tourism promotion to the French market, including a visit by French rugby legend Serge Betsen.

Sri Lanka's services PMI rose to 59.4 in March 2026 from 54.4 in February, driven primarily by financial services and growth in insurance and pension funding. Employment and activity also increased, with wholesale/retail and accommodation and food & beverage sectors expanding ahead of the festive season.

PMI Manufacturing rose to 66.7 and PMI Services to 59.4 in March 2026, indicating expansions driven by seasonal demand and strong financial services activity. Firms reported tight production from raw-material and fuel shortages, longer supplier delivery times and precautionary stocking amid the Middle East conflict.