News & market updates

US Embassy Chargé d’Affaires Jayne Howell told an AmCham forum that deeper US engagement with Sri Lanka will depend on reciprocal trade, two-way FDI and predictable, transparent rules to attract American capital. She highlighted Port of Colombo expansion to 15m containers by 2027 and SelectUSA pathways for Sri Lankan firms to invest in the US.

Hayleys PLC's logistics arm Hayleys Advantis has signed a strategic joint venture with Belgium-based Sarens to provide heavy-lift crane and engineered transport services for the 50MW Haywind wind power project in Mannar, including transport and installation of turbines.

AIDAdiva made its maiden call at Hambantota International Port on 12 Feb 2026 carrying about 2,000 passengers and 620 crew; Aitken Spence Shipping Ltd served as port agent and roughly 1,400 passengers disembarked for organised excursions.

SriLankan Airlines plans to expand India services in 2026, adding Ahmedabad as its tenth Indian destination and projecting Indian passenger traffic to rise by up to 12% this year. India accounts for about 30% of its passengers and the airline operates close to 90 weekly flights between the countries.

Russel’s Catering opened a new outlet in Orion City's IT Hub food court, bringing its fast-casual menu to Colombo’s tech community. The outlet offers quick-service meals with vegetarian options and some locally sourced ingredients, and is expected to boost on-site dining choices and jobs.

Phoenix Ogilvy was named 2025 Sri Lanka Agency of the Year after topping Campaign Brief Asia’s Creative Rankings with 295 points following wins at LIA, One Asia, Clio, AdFest, Spikes Asia and The Work. Its talent also led the national individual creative rankings, led by Nadeera Warawita (250 pts).

Phoenix Ogilvy was named 2025 Sri Lanka Agency of the Year after topping Campaign Brief Asia’s Creative Rankings with 295 points, driven by wins at LIA, One Asia, Clio, AdFest, Spikes Asia and The Work.

Gapstars marked its 10th anniversary in Colombo and launched Gapstars Group to scale its technology and finance delivery, with over 50 international partners attending. The event included AI workshops and formalised a finance vertical embedding Sri Lankan teams into European partners' reporting, compliance and forecasting functions.

Colombo market closed marginally higher: ASPI +0.05% (12.48 pts) at 23,703.10 and S&P SL20 +0.06% at 6,685.27 on turnover >Rs.4bn. Diversified financials, capital goods and banking led activity with CDB, DIAL, PLR, JKH and DOCK as key positive contributors while foreigners were net sellers (Rs.72m; YTD outflow Rs.15.9bn).

President Trump defended sweeping tariffs and said they could replace income tax; after a Supreme Court setback he signed a new 15% global tariff order (limited to 150 days) to take effect almost immediately.

Economist Talal Rafi urged a disciplined shift from stabilisation to growth, calling for trade and productivity-driven reforms alongside fiscal discipline and reserve accumulation. He noted debt-to-GDP has fallen to near 100%, IMF growth at ~2.9% (this year)/3.1% (next) and reserves projected to rise to ~$8.8bn by year-end.

Colombo stocks closed in red, with the ASPI down 0.39% (92.40 pts) to 23,690.62 and the S&P SL20 down 0.71% to 6,681.12 on turnover of nearly Rs.3.7bn. Price losses in John Keells, Melstacorp and Nations Trust Bank were key negatives while ACL Cables, Access Engineering and Dialog were top turnover names.

The US Supreme Court struck down IEEPA-based tariffs on 20 Feb, cutting the US effective tariff rate from about 13% to ~5–6%; the administration quickly imposed a temporary 10% (then 15%) global tariff under Section 122, leaving trade and fiscal uncertainty including possible $240bn in lost IEEPA revenues and questions over refunds.

Colombo Dockyard (DOCK.N0000) has appointed Capt. (Retd.) Jagmohan, Biju George and Ruchir Agrawal as Non-Executive/Non-Independent Directors after Mazagon Dock Shipbuilders acquired a majority stake; Jagmohan will serve as Chairman.

SriLankan Engineering signed a long-term line maintenance agreement with Batik Air Malaysia to support the carrier's flights to Colombo, providing comprehensive line maintenance services to boost aircraft readiness, safety and operational efficiency.

The Export Development Board says Sri Lanka will host what is expected to be the country’s largest investment forum on June 10 to connect local exporters with global investors and buyers and expand export opportunities.

The Sri Lanka Export Development Board held a virtual meeting with New Zealand and Sri Lankan high commissions and business representatives to promote Sri Lanka Expo 2026 and boost bilateral trade. Sri Lanka's exports to New Zealand were about USD 31.24m in 2025, led by tea, garments, rubber and edible preparations.

Casons Rent a Car purchased a fully owned fleet of brand-new luxury vehicles for its premium services, and will deploy them for short-term rentals, corporate assignments and high-end travel.

Sri Lanka showcased plans at the India International Seaweed Expo 2026 to scale seaweed farming from small-scale cultivation to value-added processing and export-oriented supply chains. Officials and experts flagged needs for investment, species diversification, infrastructure and measures to manage climate and operational risks.

Colombo Dockyard (DOCK.N0000) appointed Mazagon Dock Shipbuilders nominees Capt. Jagmohan, Biju George and Ruchir Agrawal to its board, and nominated MD Thimira S. Godakumbura as an MDL representative, effective 24 February. The appointments were approved after review by the Nomination and Governance Committee and the appointees held no Colombo Dockyard shares as of the date of appointment.

Sri Lanka’s export earnings in January 2026 rose 13.71% y/y to US$ 1,532.6 Mn. Merchandise exports increased 10.66% (US$ 1,165.02 Mn) and services grew 24.59% (US$ 367.55 Mn), with strong gains in tea, coconut products, electrical/electronics and ICT/BPM, while apparel and gems/jewellery fell.

UNDP and UNCDF delegations visited Sri Lanka (16–20 Feb 2026) to help design a sustainable financing mechanism for micro, small and medium industrialists and businesses affected by Cyclone Ditwah, meeting agencies including NEDA, SEDD, IDB and NCGIL to discuss risk mitigation and recovery.

IMF Resident Representative Dr. Martha Woldemichael said sustaining reform momentum is critical for Sri Lanka to move from crisis stabilisation to transformation, noting four of eight EFF reviews completed and about $1.74bn disbursed. She urged trade liberalisation, digitalisation, labour-market reform, fiscal credibility and Central Bank independence to bolster investor confidence; reserves stood at $6.8bn and inflation was 2.3% YoY in Jan 2025.

Batik Air will relaunch Colombo–Kuala Lumpur flights from 30 March with four weekly services, restoring direct connectivity. Officials say the route will support tourism, trade and export cargo flows, and Malaysia aims to increase Sri Lankan arrivals by 10–15% in 2026.

Gulf Air has increased flights between Bahrain and Colombo to 10 per week (including double daily services on Tuesdays, Thursdays and Fridays) to meet strong Ramadan and Eid travel demand. The expanded schedule also increases cargo capacity, benefiting exporters and logistics.

George Steuart Solutions deployed off-grid solar-plus-battery systems to restore electricity to hospitals, schools and community halls in remote areas hit by Cyclone Ditwah from Dec 4, using Sri Lanka Air Force airlifts for locations cut off by landslides.

UK DCTS reforms (effective 1 Jan 2026) allow Sri Lankan apparel makers to source fabrics globally and export duty-free to the UK, expected to lift production by over 10% and boost export volumes; delegation visited logistics and QA facilities, including Aitken Spence-supported operations.

EDB held a specialised "Beyond Borders" training for potential exporters and SMEs on Incoterms, risk management and strategies for international competitiveness. The EDB said a five-year National Export Development Plan is being drafted and noted SME direct exports are under 5% (vs >25% in peers).

Gulf Air will increase flights between Bahrain and Colombo from daily service to 10 weekly flights from 19 February 2026. The added frequencies target Ramadan/Eid travel demand and expand cargo capacity, improving connectivity for passengers and exporters.