News & market updates

John Keells Holdings, Hemas Holdings and JAT Holdings outlined growth strategies at First Capital's investor symposium; JKH highlighted City of Dreams and West Container Terminal Phase One at ~90% utilisation. Hemas sees consumers shifting back to branded quality and demographic-led convenience growth, while JAT targets post-cyclone reconstruction and manufacturing expansion.

Cabinet approved signing an implementation agreement to secure a $3 million World Bank (IBRD) grant to prepare the Sri Lanka Ports and Logistics Development Project. A Project Management Unit will be established and the agreement will be executed with the Sri Lanka Ports Authority.

Sri Lanka is pitching tax holidays of up to 15 years and positioning Colombo Port City as a regional financial and trade hub to attract UAE investors. The government says it will streamline approvals under the new Investment Promotion Act and is targeting agriculture, tourism, maritime logistics and renewable energy.

India and the EU agreed a free-trade deal creating a two-billion-person free-trade zone covering about 25% of global GDP, with tariffs on 96.6% of EU goods to India to be eliminated or reduced. The pact aims to boost sectors including machinery, chemicals, pharmaceuticals, cars and consumer foods and is expected to double EU exports to India by 2032.

The EDB and ADB held validation workshops on Jan 12–14, 2026 for the National Export Development Plan 2025–2029 to strengthen Sri Lanka’s trade competitiveness; the draft sets six strategic objectives including logistics, trade facilitation, trade finance, market linkages, quality/ESG and skills development.

Presidential Special Envoy Hanif Yusoof told Channel News Asia that Sri Lanka is on a path to economic recovery and pitched Port City Colombo as an investor-ready, export-oriented, services-led development aimed at attracting financial services, IT/digital exports, professional services, logistics and regional HQs.

ASPI ended marginally up at 23,960.16 (+0.03%) on turnover of over Rs.5.2bn. Capital goods led turnover (31%) driven by Colombo Dockyard and John Keells, while diversified financials and banks contributed 21% and foreign investors were net sellers of Rs.128.2m.

Koaloo.Fi and Stredge have formed a strategic partnership to offer AI-driven sustainability and financing solutions for supply chains, combining Koaloo.Fi's platform with Stredge's local market and operational expertise to improve resilience and cash flow.

Dividend · Rs 0.45 · XD Feb 6, 2026

Third Interim dividend of LKR 0.45/share; XD 2026-02-06; record 2026-02-08; payable 2026-02-25; FY 2025-26

India and the EU have concluded negotiations on a proposed free trade agreement, likely to be announced today, aimed at boosting bilateral trade and investment. The pact is expected to cut duties on labour‑intensive and key sectors (textiles, chemicals, gems & jewellery, electrical machinery, leather, footwear and pharmaceuticals) and is presented as a political signal against rising tariffs.

Sri Lanka Customs reported record 2025 collections of Rs. 2,257 billion and outlined reforms — including fairer incentive structures, full digitalisation and expanded pre-arrival clearance — to curb corruption and improve cargo clearance. The TRS 2025 showed median seaport release time improved to 51 hours 32 minutes.

The Export Development Board launched the National Export Development Roadmap 2026–2030 and an Export Performance Indicator data tool, targeting $36 billion in export revenue by 2030.

Sri Lanka's total export earnings reached US$17,252.15 Mn in 2025, up 5.6% year-on-year. Merchandise exports rose 6.32% to US$13,579.38 Mn and services exports increased 2.79% to US$3,672.77 Mn, with strong gains in apparel, coconut products, ICT/BPM and food & beverages.

Talks on Colombo Port and Customs operations ended with no breakthrough, and industry sources say clearing costs have risen to as much as Rs. 250,000 per full container load. Sources blame extra examinations, container diversions and monopolistic yard practices and warn stakeholders may take trade action if issues persist.

Sri Lanka is offering tax holidays of up to 15 years and pitching Colombo Port City as a regional financial and trade hub to attract UAE investors. Officials said investment approvals will be streamlined and highlighted opportunities in agriculture, tourism, ports and renewable energy.

Sri Lanka Customs collected Rs.175.4 billion by Jan 22, 2026, exceeding the January target of Rs.160.2 billion by about 9.5%. The stronger collections follow accelerated container clearances and higher December import volumes; Customs set a 2026 annual target of Rs.2.2 trillion (vs Rs.2.551 trillion in 2025).

Government circular revises one-time grants for disaster-affected businesses: Rs.200,000 per unit for registered small/micro businesses (Industry Ministry or Divisional Secretariat), Rs.50,000 for unregistered commercial/manufacturing/greenhouse units, and Rs.25,000 for temporary trading units. Funding will be provided by the Defence Ministry and disbursed through Divisional Secretariats.

IRONMAN 70.3 Colombo will be held on 22 February 2026 at Port City Colombo with Shangri‑La as host, expected to boost tourism, hotel, retail and services spending; Asiri Health is the event's official medical partner.

The Jaffna International Trade Fair opened for its 16th year at Muttraweli Ground, Jaffna and runs until Sunday, organised by LECS with the CCIY. The fair attracts importers, exporters, SMEs, financial institutions and development agencies seeking access to the Northern market.

Prime Minister Harini Amarasuriya met Swiss and Sri Lankan business leaders in Davos to promote Sri Lanka's reform agenda and to explore investment and partnerships in services, capital markets and financial technology. She emphasised economic stability, predictable policy frameworks and governance reforms to rebuild investor confidence.

AirAsia has added three weekly Colombo–Bangkok flights for Winter 2025/26, taking its total on the route to 10 weekly services. The new Wed/Fri/Sun FD142/143 flights (A320) complement the upgraded daily A321 service and boost connectivity for tourism and trade.

Colombo bourse hit a new year high as the ASPI rose 142.74 pts (0.60%) to 23,956.51, about 43.49 pts shy of 24,000. Top contributors were LOLC, DOCK, COMB, BIL and MELS, with turnover ~Rs 10.5bn and net foreign selling of Rs 82.1m.

BOI reports USD 1,057 million FDI inflows in 2025, a 72% increase from 2024. Manufacturing accounted for 46% of inflows, port development 26% and tourism 11%; 24 new projects contributed USD 134m and BOI approved 146 projects worth USD 1,906m toward 2026 targets.

The Colombo East Container Terminal commissioned its third berth; SLPA said the terminal processed over 500,000 TEUs in 2025 and, once works complete by mid-February, expects throughput to accelerate toward a 1.5 million TEU target within the year.

Sri Lanka's outgoing ambassador said discussions are ongoing with Ethiopian Airlines to start direct flights between Addis Ababa and Colombo. Launching the route would make Colombo Ethiopian's ninth South Asia destination and could boost tourism, air cargo and bilateral trade.

BOI reports $1,057 million FDI inflows in 2025, a 72% YoY increase, with manufacturing attracting 46% and port development 26% of inflows. Singapore was the largest source (30%) and the BOI aims for a $1.5 billion FDI target in 2026 backed by new projects and institutional reforms.

ASPI touched 24,000 intraday for the first time, closing at 23,956.51, up 142.74 points. Turnover rose to Rs.10.50 billion led by heavy trading in Colombo Dockyard (Rs.2.12bn) and LOLC Holdings (Rs.1.24bn), with gains led by LOLC, Colombo Dockyard, Commercial Bank, Browns Investments and Melstacorp.

The Northern Province hosted the Northern Investment Summit on 21–22 Jan, where BOI chairman Arjuna Herath announced plans for a four-lane highway, Jaffna airport runway extension, Kankesanthurai port upgrade and three strategic industrial zones to attract investment. The summit highlighted priority sectors including IT, tourism, manufacturing, agriculture and healthcare and called for public–private partnerships and diaspora engagement.

ASPI rose 0.03% (7.45 pts) to 23,813.77 while the S&P SL20 slipped 0.02% to 6,617.85; turnover was Rs.8.3 billion and foreigners were net sellers with a reported net outflow of Rs.144.6 billion. Top contributors included HNB, DFCC, UML, RICH and ASCO, with DOCK, HAYL and SFCL dragging the index.

Jaffna International Trade Fair (JITF) opens 23–25 Jan 2026 at Muttraweli Ground, Jaffna with over 400 stalls, building on a previous turnout of 78,452 visitors and 5,000 invited business delegates.