News & market updates

IndiGo launched direct Delhi–Colombo flights from 29 March 2026, operating six times a week with A320s to boost travel and trade. The airline now runs over 55 weekly flights to Colombo from five Indian cities and also links Chennai and Tiruchirappalli to Jaffna.

Sri Lanka's apparel exports fell 11.46% y/y in February 2026 to US$361.2m. Exports were down 6.91% in Jan–Feb 2026, with a sharp EU contraction pointing to a regional demand slowdown and JAAF urging improvements in logistics, cost competitiveness and market access.

Asian stocks slumped as Brent crude rose 3% to $115.98, bringing monthly gains near 60% and raising inflation and recession risks. Markets have priced in higher Fed tightening and sovereign yields have jumped, pressuring energy, manufacturing, logistics, retail and financial sectors.

Born To Win Relationships introduced a DeepLearn educational approach based on Anne Treisman's Feature Integration Theory, aiming to improve how children process and integrate information. The registered training institution offers programmes across local and international curricula in multiple languages.

Krane, a San Francisco–based AI construction supply-chain startup founded by Sri Lankan-born Eshan Jayamanne, raised $9 million in a round led by Glasswing Ventures and Link Ventures. The platform uses specialized AI agents to manage procurement, submittals and deliveries and supports over $15 billion in active projects across the U.S. and Canada.

EWIS launched 'AEGIS,' an AI-powered, on-premise platform to simulate and validate legacy-system modernisation, aiming to reduce transformation risk, downtime and cost overruns. The solution targets banks, insurance, government, telecoms and healthcare and uses AI code intelligence, dependency mapping and digital-twin simulation.

A delegation of 30 Ceylon Chamber of Commerce professionals completed a nine-day International Trade Facilitation programme at IIFT, New Delhi. Participants engaged with DGFT, FIEO, CII and covered trade negotiations, trade finance and digital topics including AI and cyber risk.

Sri Lanka Customs exceeded its March revenue target, collecting 184.8 billion rupees by day 26 (2.4% above the 180.4 billion target). This is the third straight month of over-performance as faster container clearance and tighter enforcement have boosted import-related collections and state revenue.

Opposition Leader Sajith Premadasa urged the government to cut fuel taxes after India reduced excise duties; President Dissanayake said the government is reviewing the matter, noting monthly fuel tax revenue is about Rs.20 billion and diesel generated Rs.240 billion last year.

India sharply cut special excise duties on petrol to 3 INR/litre (from 13) and diesel to 0 INR/litre (from 10) to ease domestic costs, while Vietnam suspended environmental protection and special consumption taxes on petrol, diesel and jet fuel until April 15 amid rising global oil prices.

Sri Lanka's apparel exports fell 11.46% YoY to $361.2m in February 2026, led by a 19.48% drop to the EU and declines to the US and UK. The Joint Apparel Association Forum said the slowdown reflects broader weak global demand and urged improvements in logistics, cost competitiveness and market access.

The Lanka Confectionery Manufacturers Association pledged to keep prices of biscuits, chocolates and ice cream unchanged through May (Sinhala & Tamil New Year), citing rising utility and imported-input costs and urging government support on fuel distribution and customs delays.

World Bank will provide immediate financial relief and policy support to countries hit by the Middle East conflict as commodity and shipping disruptions push up costs—crude oil ~+40% Feb–Mar, LNG to Asia ~+66%, and nitrogen fertilisers ~+50% in March.

Iran's Islamic Revolutionary Guard Corps said it prohibits shipping to and from ports of US- and Israeli-allied countries and declared the Strait of Hormuz closed, warning vessels will face harsh measures; three container ships were blocked today.

ASPI rose 3.56% for the week but closed yesterday down 0.21% at 21,375.73 as the bourse ended a volatile week; foreign investors were net sellers of over Rs.1.2 billion and market turnover was about Rs.2.7 billion.

IndiGo will launch direct Delhi–Colombo flights from 29 March 2026, operating six weekly A320 services. The addition raises IndiGo's Colombo frequencies to over 55 weekly flights from five Indian cities and is expected to boost trade and tourism between India and Sri Lanka.

Healthguard Distribution (Sunshine Group) invested Rs. 300 million to upgrade its Colombo Western Regional Distribution Centre into an 18,000 sq ft hub, doubling cold storage to 30 CBM and supporting a network of 4,500 customer points with 97% next‑day delivery.

Colombo Dockyard (DOCK.N0000) delivered the 10th vessel in the Misje Eco Bulker series, completing its 10-ship contract with Norway's Misje EcoBulk AS. The 89.95m DNV-classed 'Misje Kandy' includes an Energy Storage Battery System for electric hybrid propulsion and contributes to export earnings.

Sri Lanka's export earnings rose 4.22% YoY to $1.4bn in February, with Jan–Feb total exports up 7.56% YoY to $2.89bn (merchandise $1.06bn, services $335m); apparel fell 6.29% YoY to $831.7m in Jan–Feb while ICT/BPM, coconut products and food & beverage exports showed strong gains.

ADB pledged an additional $100m in budget support to help Sri Lanka mitigate economic shocks from the West Asia conflict, raising its planned 2026 support to $480m. It is also fast-tracking a $200m emergency loan for cyclone reconstruction and backing port, transport and logistics projects while scaling annual programs to over $1bn.

Sri Lanka's total exports rose 4.22% year-on-year to US$1,401.78 million in February 2026. Services exports grew strongly (up 14.68% to an estimated US$334.9m) while merchandise exports edged up 1.32%, and Jan–Feb total exports were up 7.56% to US$2,896.31m.

Sri Lanka's services exports rose 14.68% to $334.9m in Feb 2026, driven by a 36.66% increase in ICT/BPM earnings to $153.62m while construction services fell 8.10% to $6.35m. Total goods and services exports were $1,401.78 billion, up 4.22%.

Opposition Leader Sajith Premadasa called for immediate suspension of the parate law and a targeted relief package to save MSMEs, warning rising fuel prices and higher borrowing costs threaten about 4.5 million MSME entrepreneurs who contribute around 52% of the economy. He urged structured debt restructuring and direct Treasury support for affected businesses.

ADB will provide $100m in additional budget support, raising its planned 2026 budget support for Sri Lanka to $480m; it is also fast-tracking a $200m emergency loan and scaling its annual program to over $1bn to back infrastructure, reforms and human capital.

CSE extended its rebound as the ASPI rose 3.79% (797.62 pts) to 21,868.85, with market value gaining Rs.284.1 billion in the session and recouping about 48% of the Rs.1.1 trillion loss since the Middle East conflict began. Commercial Bank, Hatton National Bank, Melstacorp, John Keells and Hayleys led gains; turnover topped Rs.6.4bn and foreigners were net sellers (Rs.525m).

Fitch warned a prolonged Iran conflict could lift Brent to an adverse scenario averaging $128/bbl in Q2 2026 and $100/bbl for the year, heightening downside risks to Asia‑Pacific sovereign credit profiles through higher inflation, weaker growth and strained fiscal balances.

Supply chain and shipping disruptions from the Middle East conflict are likely to keep Sri Lanka's import and energy costs elevated into Q2–Q3. Shipping routings add up to 21-day transit delays and bunker fuel costs have risen nearly 150%, while insurance and war-risk surcharges have also increased.

Uber Eats has signed an exclusive partnership with Delmo to offer Delmo’s fresh chicken and value-added meat products on the Uber Eats app, launching with 10 outlets and with plans to expand nationwide.