News & market updates

CA Sri Lanka published a white paper urging urgent tax and investment reforms to boost FDI, proposing measures like a Qualified Domestic Minimum Top-Up Tax, refundable tax credits, targeted spend-based incentives and APA improvements. The paper prioritises tech/digital, renewable energy, export manufacturing and regional HQs and calls for institutional capacity to implement OECD-GMT–aligned reforms.

Indocopters will install Loft Dynamics' Airbus H125 VR full-motion simulator in India, creating South Asia's first dedicated H125 VR training site and expanding pilot training capacity for operators in Sri Lanka and the region. The simulator supports emergency, high-altitude and mission-specific training.

Vietjet will launch its first scheduled Colombo–Ho Chi Minh City service on 18 Aug 2026 (three times weekly) and is offering a limited-time promotion with Eco fares from USD90 one-way (taxes included) plus complimentary 20kg checked baggage for bookings 20–23 Jul 2026.

Sri Lankan exporters must prepare for new EU sustainability rules—EmpCo (from 27 Sep 2026), PPWR (from 12 Aug 2026) and EUDR (due diligence from 30 Dec 2026)—which expand scrutiny of claims and supply chains and carry penalties up to €2m or 4% of turnover.

Sri Lanka received 118,935 tourists in the first 19 days of July, a 0.6% YoY decline, with YTD arrivals at just over 1.26m (down 1.72% YoY), as disruptions to Middle Eastern air corridors continue to constrain long-haul European traffic.

EY Global Delivery Services Sri Lanka hosted a Milestones event in Colombo attended by Prime Minister Harini Amarasuriya and nearly 3,500 EY professionals, the largest EY event in Sri Lanka. The PM highlighted the National Digital Economy Strategy, AI-first operations and plans to grow ICT exports.

IFC and HSBC will invest up to $40m in South Asia Gateway Terminals to fund twin-lift ship-to-shore cranes — a $20m sustainability-linked loan from IFC and a $20m green loan from HSBC — to raise quay-side productivity (~11%), improve reliability and reduce energy use.

IFC and HSBC will provide up to $40 million in financing to South Asia Gateway Terminals (SAGT)—a $20m sustainability-linked loan from IFC (including $8.57m mobilized) and a $20m green loan from HSBC—to fund twin-lift ship-to-shore cranes, raising quay productivity by at least 11% and cutting energy use.

Sri Lankan exporters are being urged to prepare for new EU sustainability rules — EmpCo, PPWR and EUDR — with compliance timelines from Aug–Dec 2026 and penalties up to €2m or 4% of turnover. The measures target sectors including tea, food/agriculture, apparel, rubber, plastics, fisheries and tourism; Peterson Solutions is offering guidance and a free ESG webinar on 29 July 2026.

Brent crude rose 2.37% to $90.19/bbl as US‑Iran strikes and disruptions around the Strait of Hormuz curtailed shipments, pushing prices to their highest since June 11 and extending a strong weekly gain.

AA3 Holdings (Pvt) Ltd opened Sri Lanka's largest ex-stock heavy equipment showroom and a fully equipped workshop in Kiribathgoda, boosting local access to earthmoving, excavation and road-construction machinery. The facility includes an advanced service centre and aims to serve clients across Sri Lanka and the Maldives.

The Exporters Association of Sri Lanka elected Nalaka Ratnayake as Chairperson at its 29th AGM; the new Executive Committee includes representatives from CIC Holdings, Hayleys, Dipped Products, Hatton National Bank, Sampath Bank and Lion Brewery. Speakers urged faster trade digitalisation, lower export costs and improved logistics to boost competitiveness.

CA Sri Lanka and the Bar Association of Sri Lanka signed an MoU on 17 July to strengthen collaboration between the accounting and legal professions, including joint continuing professional development, knowledge-sharing forums and capacity-building initiatives.

CMA Sri Lanka will host the National Management Accounting Conference 2026 on 20–21 July at Cinnamon Life, Colombo; Prime Minister Dr. Harini Amarasuriya will be Chief Guest and Prof. Dale Pinto will deliver the keynote. The event will focus on management accounting's role in crisis management, stability and growth.

The Exporters Association of Sri Lanka urged the government to adopt a transparent, risk-based approach and publish operational guidelines before enforcing new import rules banning goods linked to forced labour, warning unclear procedures could disrupt trade and raise compliance costs.

Sri Lanka gazetted an immediate ban on importing goods wholly or partly produced with forced labour on July 10, 2026, to avert a threatened 12.5% U.S. tariff under Section 301. Exporters—especially apparel, textiles and agricultural producers—now face stricter certification, higher compliance costs and potential supply-chain delays.

The Exporters Association of Sri Lanka urged the government to publish clear, risk‑based operational guidelines and hold stakeholder consultations for newly gazetted regulations banning imports linked to forced labour, warning that unclear procedures could raise compliance costs, delay shipments and disrupt legitimate trade.

The Exporters Association of Sri Lanka urges the government and Customs to publish clear, risk-based implementation guidelines and consult stakeholders for the newly gazetted import ban on goods produced with forced labour to avoid uncertainty, higher costs and shipment delays.

World Bank Country Manager Gevorg Sargsyan said Sri Lanka must strengthen export competitiveness and productivity to sustain its recovery, noting manufacturing value-added per worker is under half of Vietnam and labour productivity fell in 2024. He urged lower business costs, expanded market access and higher‑quality FDI; the Exporters' Association elected new office bearers at its AGM.

Oil prices rose as US-Iran hostilities intensified and Iran signalled the possibility of closing the Red Sea route, with Brent up $0.70 to $84.93/bbl and WTI up $0.81 to $79.76/bbl.

Colombo West International Terminal (CWIT) became the Port of Colombo's first container terminal to achieve three ISO certifications covering quality, environmental management and occupational health & safety. The USD 800m, fully automated terminal — developed with partners including John Keells Holdings — hit one million TEUs in its first year and is expanding Phase 2 infrastructure.

The Exporters' Association of Sri Lanka elected Nalaka Ratnayake as Chair at its 29th AGM; the World Bank country manager urged reforms to boost export competitiveness, including lowering business costs, expanding market access and fast-tracking the National Single Window digital trade platform.

The Association of Container Transporters (ACT) held its 41st AGM on 26 June 2026 at Lotus Tower, Colombo, reaffirming its commitment to strengthen Sri Lanka's container transport and logistics sector through closer industry-government collaboration. Attendees included the Minister of Ports, Aviation and Energy and the Deputy Minister.

Commercial Bank of Ceylon's Basel III Tier-2 debenture issue was oversubscribed with applications for over 200 million debentures worth Rs 20 billion against an initial Rs 10 billion offer. CSE indices traded lower (ASPI down 0.11% at 21,424.48) with banks leading turnover at Rs 54.4 million.

Miwayz launched on July 12 with over 25,000 pre-registered drivers and passengers and announced strategic partnerships with Dialog Axiata (Dialog Touch payment integration and fuel vouchers) and TVS, plus a 0% commission driver model and passenger discounts.

Vera Wickramasinghe, Managing Director and Founder of Worldlink Shipping Colombo, was elected President of the Freight Forwarder Network (FFN), becoming its first female and first President from outside Europe/US. The FFN also selected Colombo (ITC Ratnadipa) to host its 15th AGM in 2025.

Sri Lanka's services PMI rose to 58.5 in June 2026 (from 56.9 in May), with growth driven by financial and professional services and gains in insurance. Employment and new business increased and firms expect stronger activity into the next quarter aided by tourism, though global uncertainties remain a risk.

Sri Lanka aims to build a 200,000-strong digitally skilled workforce by 2030 and to grow a USD 15 billion digital economy. The article argues that human-capital investment and government–academia–industry collaboration are essential for AI to become a competitive advantage.

Colombo Municipal Council cut the Entertainment Tax — including local concerts from 12% to 7% — under the CMC's 2026 budget (Gazette issued) to support the creative industry. The mayor urged event organisers to pass savings to consumers by lowering ticket prices.

Oil prices slipped as traders took profits and assessed U.S. strikes on Iran and the risk of supply disruptions via the Strait of Hormuz; Brent was $84.95/bbl and WTI $79.45/bbl. Markets remain wary that further disruption to exports could push prices materially higher.