News & market updates

Finetech Consultancy hosted 'Nexus: Gemini Enterprise for Business' on 24 July, promoting Google Gemini solutions it says can drive up to 15X productivity for Sri Lankan enterprises. The event featured technical sessions, a client success case from Anunine Holdings, and a Q&A on implementation and security.

Hambantota International Port Group said the port is for efficient cargo movement, not long-term vehicle storage, and clarified storage charges. It reported the port holds over 50,000 vehicles, with about 1,278 stored over three months and 581 stored for more than a year, citing past import restrictions.

CPA Australia President Prof. Dale Pinto said management accountants who embrace AI, data analytics and ethical judgement will outperform, urging the profession to shift from reporting to strategic advising amid geopolitical uncertainty and sustainability priorities.

India amended its DTAA with Sri Lanka to add a Principal Purpose Test (Protocol signed 16 Dec 2024, entered into force 19 Jun 2026; India applies amendments for fiscal years from 1 Apr 2027), and Deloitte urges Sri Lanka to modernise its treaty network. Sri Lanka has not joined the MLI, so updates would require bilateral negotiations.

India and Sri Lanka's DTAA was amended to add a strengthened preamble and a Principal Purpose Test (PPT); the Protocol entered into force on 19 Jun 2026 and India will apply the changes for fiscal years starting on or after 1 Apr 2027. Deloitte says Sri Lanka should modernise its treaty network (it has not joined the MLI) and urges businesses to review cross‑border structures for genuine commercial substance.

India's assistance to Sri Lanka has exceeded $7.5 billion, including more than $850 million in grants. The aid has supported projects across all 25 districts in infrastructure, housing, health, education, agriculture, renewable energy, railways and industrial development.

The US labour-related tariff on Sri Lankan exports has been reduced from 12.5% to 10%, a move the Ceylon Chamber says will relieve exporters. The Chamber welcomed the outcome and urged continued dialogue to secure longer-term market access stability.

SEC, CSE and CA Sri Lanka signed an MoU to implement XBRL-based reporting for companies listed on the Colombo Stock Exchange, targeting rollout in the latter part of 2026. The CSE has procured and customised the XBRL platform and is completing UAT while a joint committee finalises the taxonomy and implementation framework.

Oil headed for weekly gains after Houthi attacks on Red Sea tankers and Kazakhstan output cuts; Brent at $99.97 (-0.72%) on course for a 13.5% weekly rise and WTI $91.49 (-0.76%) up about 10.9% this week. The incidents raise risks to the Bab el-Mandeb route and Kazakh exports via the Black Sea.

The Ceylon Chamber of Commerce will host a business networking session with a 30-member Indian Chamber of Commerce delegation on 28 July at the Hilton Colombo Residences to connect Sri Lankan firms with Indian companies. Participating sectors include manufacturing, construction, healthcare, IT, renewable energy and tourism.

Ceylon Chamber will host a business networking session with a 30-member Indian Chamber of Commerce delegation on 28 July at the Hilton Colombo Residences, offering Sri Lankan firms opportunities to explore trade, investment and partnerships across sectors including manufacturing, construction, healthcare, IT, renewables and tourism.

Boards and regulators are urged to treat cybersecurity as a governance priority — giving CISOs stronger board access, mandatory incident reporting and minimum standards — because breaches can disrupt hospitals, payments systems and critical infrastructure.

CICT has fully electrified its RTG crane fleet at the Port of Colombo and is converting diesel ITVs to electric, adding charging stations, energy-management systems and water-reuse measures as part of a broader sustainability, community and biodiversity programme.

Solar and wind are now the cheapest sources of new electricity generation in most parts of the world, shifting renewable energy from a reputational choice to a cost-saving, price-stability option for companies. Firms are adopting rooftop solar, PPAs and storage across manufacturing, retail, logistics and large IT users to cut costs and meet rising disclosure rules.

Global sustainable consulting is forecast to reach $27.21bn by 2034, growing at a 9.5% CAGR from $11.79bn in 2025 as mandatory ESG rules and decarbonisation drive demand for sustainability advisory. Manufacturing, energy, infrastructure/green building and professional services are the main demand centers, with consultancies expanding digital and operational capabilities.

Sri Lanka's large EEZ and strategic maritime location offer opportunities to grow a Blue Economy across fisheries, ports/logistics, tourism, aquaculture, marine biotechnology and ocean renewables. Realising this will require ESG-aligned investment, tech adoption, sustainable management and coordinated policy.

CBSL Governor said private sector credit expanded 27.8% year-on-year in the first five months of 2026, with outstanding private credit at Rs.11.04 trillion in May. He said the 100-basis-point policy rate hike in May and other measures are expected to gradually moderate credit growth and demand pressures.

Sri Lanka's export earnings rose 7.96% YoY to $9.01bn in Jan–Jun 2026, with June exports at $1.65bn (up 12.5% YoY). Merchandise exports were $7.07bn (up 8.95%) and services $1.93bn (up 4.49%), led by ICT/BPM, EECs, processed foods and coconut products while tea fell 5.69%.

Sri Lanka's Industry Minister Sunil Handunneththi visited India (14–18 July 2026) to advance cooperation in textiles, manufacturing, agribusiness, technology, investment and tourism. He met Indian textile ministers at BharatTex, toured RIICO's industrial park and a Mega Food Park, held a FICCI roundtable and discussed direct air links and investment opportunities.

Sri Lanka's services exports rose 3.75% year-on-year to $344.52m in June 2026, led by ICT/BPM (+11.31% to $150.49m) and financial services (+29.56% to $3.21m); construction fell 26.14% and transport and logistics dipped 0.79%.

South Asia Gateway Terminals (SAGT) has reduced GHG emissions intensity by 21% versus its 2019/20 baseline and has recorded annual throughputs above 2 million TEUs in 2018, 2019 and 2024. Key measures include hybridising 28 of 31 RTG cranes (≈58% less diesel per move) and a 460 kW rooftop solar PV system generating 44,000 kWh/month.

Hayleys PLC's transportation and logistics arm Advantis has embedded an ESG strategy (HELIOS) across its operations and launched Advantis Blue C and Advantis Green C ecosystem restoration programmes, including mangrove projects and an MoU with Horana Plantations.

Companies can cut carbon footprints and reduce energy costs with low-cost steps — upgrading equipment, switching to renewables, optimizing transport, working with suppliers, reducing waste and measuring emissions to find savings.

Consumers increasingly expect ethical, transparent supply chains across clothing, food and electronics, valuing honesty and evidence of remediation over perfection. Companies face reputational and regulatory risk from false claims and must audit and monitor suppliers rather than rely on one-off checks.

Hambantota International Port Group's CEO says HIPG has integrated ESG into its core operations, citing community rebuilding, the Save Ali Pancha elephant programme and coral-research partnerships. He highlights alignment with CMPort's ESG philosophy and upcoming coral research presentations.

Adopting circular economy practices can turn Sri Lanka's municipal, agricultural and industrial waste into economic value through recycling, reuse, and waste-to-energy, improving resource efficiency and creating jobs. Opportunities span manufacturing, construction, agriculture, packaging/retail, and digital technologies for material tracking and financing.

Sri Lankan businesses are increasingly treating diversity, equity and inclusion (DEI) as a strategic driver of innovation, employee retention and investor confidence. Inclusive policies, transparent reporting and supply-chain labour standards are highlighted as ways to boost competitiveness and attract responsible investment.

Sri Lanka's total exports reached an estimated US$ 9,012.24 Mn in Jan–Jun 2026, up 8% y/y; merchandise exports were US$ 7,073.31 Mn (+8.95%) and services US$ 1,938.94 Mn (+4.49%). Electrical & electronic components, rubber, food & beverages and spices recorded strong gains in June, while apparel exports fell 11.74% y/y.

Cabinet approved replacing the planned purchase of 600 standard SLTB buses with air-conditioned deluxe buses, increasing the project cost to Rs.21.6bn (additional Rs.7.2bn; Rs.1.8bn in 2026, Rs.5.4bn in 2027–28). The buses will operate on intercity and long-distance routes under the Road Safety Plan.

World Bank lead economist Dr. Harsha Aturupane warned Sri Lanka must reverse anti-export policies and reconnect with global markets to restore innovation and competitiveness. He cautioned ICT/BPM faces disruption from AI and noted low global value-chain participation (8.1% vs 26% India, 34% Vietnam).