News & market updates

John Keells Holdings met Madhya Pradesh government at the WEF and expressed interest in exploring investments in logistics, hospitality, food processing and tourism in the state; a John Keells team will engage further to assess potential collaborations.

CBSL PMI: Manufacturing PMI 60.9 and Services PMI 67.9 in December 2025, indicating sharp expansion despite Ditwah weather disruptions. Manufacturing was led by food & beverages and higher new orders, while services were driven by wholesale & retail and accommodation/F&B with rising employment and optimistic near‑term expectations.

ICC Sri Lanka held a seminar on the new VAT tax invoice format due 1 April 2026, finding businesses unready and urging the IRD to clarify mandatory fields, allow adequate transition time, and prioritise guidance over strict enforcement to avoid compliance costs and disruption.

Sri Lanka Manufacturing PMI was 60.9 in December 2025, indicating continued expansion; Services PMI was 67.9, showing notable services growth despite early-month weather disruptions.

Sarvesh Suri was named IFC Regional Vice President for Asia and the Pacific and will lead IFC investment and advisory operations across the region, overseeing work from India to the Pacific Islands on finance, manufacturing, agribusiness, services, infrastructure and natural-resources projects.

Vera Wickramasinghe, Owner and Managing Director of Worldlink Shipping Colombo, won the WCIC Prathibhabhisheka Woman Entrepreneur of the Year 2025 and multiple Gold awards (Large Category and Western Province). The awards recognize her leadership in shipping and freight forwarding.

US President Donald Trump announced a 10% tariff from Feb 1, 2026 on goods from Denmark, Norway, Sweden, France, Germany, the UK, the Netherlands and Finland, rising to 25% on June 1, 2026 unless Greenland is sold to the US. The article links the move to geopolitical expansionism and notes broader macro context including inflation and Fed policy.

Outgoing US Ambassador Julie Chung said she deepened economic ties and security cooperation during her nearly four-year tenure, supporting Sri Lanka through its economic crisis and expressing confidence the US–Sri Lanka partnership will expand across trade, investment and strategic cooperation.

Brazil–Asia Chamber of Commerce has shown interest in participating in Sri Lanka Expo 2026 and began talks with Sri Lankan officials to boost trade and investment in tea, cinnamon and Port City projects; bilateral trade is about $150m. Follow-up meetings will involve the Tea Board, Spices and Allied Products Marketing Board, Colombo Port City Economic Commission and the EDB, which highlighted apparel, rubber, IT and machinery sectors.

Sri Lanka's unemployment rate rose to 4.3% in 3Q 2025 from 3.8% in 1Q/2Q as labour force entry—notably by women—outpaced job creation and total employment slipped to 8.10 million. The quarterly contraction was driven largely by agriculture while industry and services saw modest gains; youth unemployment remained high at 19.2% (ages 15–24).

UNDP found 95% of communities in 22 districts reported infrastructure damage from Cyclone Ditwah and urged inclusive recovery financing as the government announced LKR 95 billion support for MSMEs (including 3% concessional loans). The assessment said 93% reported livelihoods affected and noted shortages of construction materials, skilled labour and funding.

UNDP's assessment found 95% of communities in 22 districts reported damage to homes, roads or other infrastructure after Cyclone Ditwah, highlighting widespread recovery needs. The report flagged shortages of materials, labour and financing and noted the government's LKR95 billion MSME support including a 3% concessional loan scheme.

Sri Lanka Customs collected 106.6 billion rupees in the first 13 days of January, about 66% of the 160.2 billion January 2026 target. Customs recorded a record 2,551 billion in 2025 and set a 2026 target of 2,207 billion, citing stronger enforcement and a rebound in imports.

World Bank says one in four developing economies are poorer than in 2019 and projects global growth to ease to 2.6% in 2026 (rising to 2.7% in 2027). The report warns of slower per-capita income growth in developing economies, lower inflation in 2026, and urges fiscal rules and investment in physical, digital and human capital.

CHEC Port City Colombo pledged US$300 million in foreign direct investment to fund Phase II development of Port City Colombo. The funding will support core infrastructure and utilities in Sri Lanka’s first multi-services Special Economic Zone, boosting construction and services activity.

BURC Lanka is offering curated, company-specific English communication programmes to Sri Lankan corporates to improve workplace communication, confidence and productivity. The programmes include needs analysis, ongoing assessments and have been delivered to clients such as Zimantra, Global Marine Group and Synex International.

CSE ended flat for a second straight session: ASPI down 0.71 pts to 23,607.80 and S&P SL20 down 0.12% to 6,494.76. Top negatives included JKH, DOCK, DFCC, SFCL and HHL while Sierra Cables, Commercial Bank, CDB and RIL recorded gains; turnover ~Rs.4.9bn and foreign net inflow Rs.22m.

Colombo Stock Exchange closed flat as profit taking followed the previous day's record high; ASPI was down 0.71 points at 23,607 and S&P SL20 fell 0.12% to 6,494. Market turnover was lower at 4.9 million rupees, with Dialog up and John Keells among the top decliners.

Hambantota International Port reported a 175% YoY rise in total cargo in 2025 to 8.24 million tonnes, driven by container volumes surging from 53,170 TEUs to 428,036 TEUs. A second-phase expansion due end-2026 will raise annual container capacity to about 2 million TEUs.

Emirates will launch a daily Helsinki–Dubai service from 1 October 2026, the only year-round direct link between Finland and the UAE, operated with A350 aircraft offering Premium Economy and about 16 tonnes of belly cargo capacity per flight.

Colombo market opened lower as the ASPI fell 0.19% (45.79 pts) to 23,608.51 on turnover of Rs.5.2 billion and a net foreign outflow of Rs.35.4 million. The session saw selling pressure weighing on DOCK, RICH and banks (HNB, SAMP) while JKH, RCL, COMB and PLR were among notable buying/turnover contributors.

Sri Lanka said the SINOPEC Hambantota oil refinery agreement will be finalized in Q1 2026; China pledged support for cyclone recovery and to deepen cooperation on trade, investment and tourism.

ODI Global and CEPA launched the report 'Sustaining Transformative Growth in Sri Lanka (2025–2030)' on 8 Jan 2026, offering a six-point policy roadmap to lock in macro stability and drive transformative growth through 2025–2030. The study notes renewed growth and lower inflation but high poverty, and highlights priorities including supply-chain integration, factor-market reforms and targeted sector policies with opportunities in tourism, digital, niche manufacturing and agriculture.

Colombo Stock Exchange ASPI closed 45.79 points lower at 23,608.51 (down 0.19%) after earlier reaching an intraday high, with market turnover falling to 5.2 billion rupees. Colombo Dockyard, HNB and Sampath Bank were the top negative contributors.

FitsAir was certified by the Civil Aviation Authority of Sri Lanka as an Approved Training Organisation, authorising it to conduct in-house Airbus A320 pilot type training. The approval covers cadet and Junior FO initial training, A320 conversion/re-qualification, A330/A320 cross-crew qualification, TRI/SFI instructor training and licence revalidation using CAASL-approved A320 flight simulators.

Experts at a CEPA/ODI panel urged Sri Lanka to stick with the IMF program and invest in tourism-related infrastructure to sustain recovery, warning the rebound is fragile after Cyclone Ditwah caused about $4.1bn in damage (around 4% of GDP).

The Export Development Board launched Sri Lanka Expo 2026, a four-day event at BMICH from 18-21 June targeting about 1,500 international buyers and 750+ exhibitors to help boost exports to $36bn by 2030. The Expo will showcase 24 sectors with B2B matchmaking and investor forums to support industrial growth and market access.

Turkish Airlines has introduced an Airbus A350-900 on the Istanbul–Colombo route, increasing capacity and improving passenger comfort and fuel efficiency. The upgrade is expected to strengthen Colombo's role as a regional aviation gateway and expand travel options for inbound and outbound passengers.

Dr. Mahinda Parakrama Dissanayake, Deputy Chairman and Managing Director of Aitken Spence PLC, was appointed Adviser to the President on Maritime, Ports and Logistics with immediate effect. He accepted the role on an honorary basis to support the government's aim of leveraging Sri Lanka's position as a logistics hub.