News & market updates

Sri Lankan exports to Saudi Arabia rose 19% in Jan–Sep 2025 versus the same period in 2024, while total bilateral trade increased 9%. Embassy-led trade promotion, business delegations, product launches (eg Ceylon Biscuits Ltd.) and a new Saudi–Sri Lanka Joint Business Council were cited as drivers.

India will disburse about US$350m (of a US$450m package) to Sri Lanka denominated in Indian rupees, including US$100m in grants, to fund cyclone recovery — rebuilding roads, bridges and rail, housing, health, education and agriculture.

Sri Lanka Expo 2026 will feature 750 exporters and an investor forum targeting 1,500 foreign buyers, investors and media to help boost exports to $36bn by 2030. The event (June 18-21) will showcase 24 product/service categories with thematic pavilions including sustainable/green solutions and ICT, and offer discounted travel and accommodation for qualified buyers.

India plans an execution-led economic push with Sri Lanka in 2026 emphasizing investments, connectivity, digital collaboration and concessional financing, backed by a $450m post-Cyclone Ditwah package ($350m concessional lines, $100m grants). Engineering for the India–Sri Lanka grid interconnection is complete and Colombo Dockyard’s revival with Indian support was cited as ongoing commercial engagement.

India has committed $30 million in grants to rebuild cyclone-damaged bridges in Sri Lanka, with the first two inaugurations expected next week. The aid package also includes restoration of the Northern railway line and India airlifted Bailey bridge parts and other relief.

Sri Lanka reported departures for Korean jobs fell from over 16,000 in 2022 to about 10,202 in 2025 and is pursuing diplomatic talks to secure placements for some 10,122 registered jobseekers, including shifting eligible service and shipbuilding candidates into manufacturing as interim relief.

Parliament approved amendments to the Colombo Port City law capping tax holidays at 15 years for billion-dollar investments and imposing shorter, rule-based terms for smaller projects. The law defines investment bands (A $1bn; B $500m; C $100m; D $25m) and offers reduced rates for secondary projects, while officials note currency instability and broader fiscal/IMF policies could still affect investment appetite.

Gem Sri Lanka 2026 opened in Colombo (7–9 Jan), featuring over 100 stalls of gemstones and jewellery to promote trade, sourcing and exports. Government officials, including the Prime Minister, highlighted regulatory reforms and import-policy changes expected to increase gemstone volumes and support the sector’s global positioning.

Rights issue · 9:2 at Rs 40.00 · XD Dec 5, 2025

USD/LKR spot rate rose above Rs.310 to Rs.310.02 on Jan 7 (CBSL). The CBSL showed dollar buying/selling rates at Rs.306.28/313.81 and said the rupee depreciated 5.6% against the dollar during 2025.

Cabinet approved a five-year procurement contract awarding the printing and supply of vehicle number plates to South Asian Technologies Ltd to clear registration backlogs and improve state revenue, with the government saying there will be no extra cost to vehicle owners.

The Cabinet approved a $10m KOICA‑funded WFP project (2025–2029) to improve maize quality and strengthen the Thriposha supply chain, benefiting about 7,500 farmers in Anuradhapura, Moneragala and Badulla.

Sri Lanka will spend more than US$350m to rebuild railway tracks damaged by Cyclone Ditwah, with the Nanu Oya–Badulla line estimated at about US$127m and other sections (Rambukkana–Kadugannawa $74m, Kotawella–Nanuoya $68m) contributing to the total.

Asia Siyaka Commodities' wholly owned subsidiary Asia Siyaka Warehousing became the world's first ZeroCarbon® certified tea auction logistics company; it also holds LEED and ISO 22000 certifications, which the company says enhances competitiveness for tea exporters and 3PL clients.

Shield Restraint Systems (Pvt) Ltd opened a USD 8.5 million manufacturing facility at Wathupitiwala, starting at 10% capacity and projected to create 500 jobs and USD 50 million in annual revenue. The company, a subsidiary of TransDigm Group, said future investment could exceed USD 17 million.

Hayleys PLC's logistics arm, Hayleys Advantis, signed a Terminal Service Agreement with SLPA Terminals and CMA CGM to formalise vessel scheduling and cargo handling, aiming to increase container volumes and improve terminal efficiency at the Port of Colombo.

HelaGo, a locally-built ride-booking platform, was launched and secured USD 1 million in seed funding from the David Pieris Group. The app is available on Android/iOS and via the Helakuru Superapp, with a Western Province rollout from Jan 6 and nationwide expansion planned.

People’s Bank partnered with the Transport, Highways and Urban Development Ministry to launch a digital ticketing system for SLTB buses enabling card payments; pilots are running on Makumbura–Galle and Makumbura–Embilipitiya routes.

Sri Lankan authorities pledged to enforce the law against tuk-tuk gangs using violence to intimidate PickMe and Uber drivers, warning the tactics threaten the island's tourism safety brand.

Port of Colombo recorded a record throughput of 8,291,178 TEUs in 2025, the highest in its history. The increase from 7,792,069 TEUs in 2024 was driven by coordinated performance across SLPA terminals and operators (CICT, SAGT, CWIT), reinforcing Colombo's role as a South Asian transhipment hub.

Central Bank Governor Nandalal Weerasinghe said Sri Lanka's economy could exceed 5% growth in 2026 driven by reconstruction spending after Cyclone Ditwa, including an extra Rs 500 billion on top of about Rs 1.4 trillion in public investments. He warned the stimulus could raise inflation and strain foreign exchange reserves unless offset by higher exports, remittances, tourism and external financing.

Sri Lanka Customs collected Rs2,551bn in 2025, exceeding a revised target of Rs2,241bn, though December collections missed the monthly estimate (Rs276.7bn vs estimate Rs331bn). Officials cite stronger enforcement, improved valuation, rebounding imports (notably vehicles) and rupee depreciation as drivers, making Customs a top Treasury revenue source under the IMF program.

The Ministry of Transport launched a pilot electronic card payment system for Sri Lanka Transport Board buses, starting on selected routes (Makumbura–Galle, Makumbura–Embilipitiya) and charging no extra fees to passengers. The scheme, guided by the Ministry of Digital Economy, will be evaluated and refined after the initial phase; People’s Bank officials attended the launch.

Port City Colombo has commissioned public utility connections to Colombo’s main grid and attracted over $1bn in land development investments as it moves into full commercial operations. Browns Investments PLC (part of the LOLC group) has broken ground on a $120m Luxury Marina with berthing for 200 vessels.

Passenger movements in Jan–Nov 2025 rose 15.2% YoY to 9.23m, with international aircraft movements up 14.6% to 58,454 and tourism-linked air arrivals up 16.7% to about 2.1m. The Ports and Civil Aviation Ministry attributed the gains to improved connectivity, rising tourist inflows and renewed policy focus under the new government.

President Anura Dissanayake urged unity in rebuilding Sri Lanka, noting 2025 recorded the lowest budget deficit since 1977, the first-ever primary surplus and nearly USD 17 billion in export earnings.

Sri Lanka Customs exceeded its 2025 revenue target of Rs. 2,115 billion, entering 2026 with a surplus of about Rs. 300 billion. The President reviewed the department's 2025 performance and 2026 plans including digitalization, anti-corruption measures and cargo inspection modernization.

Aggregate profits of 273 listed companies fell 12% YoY to Rs.176.5 billion in Sep-25, ending a seven-quarter growth streak. Banks (Rs.52bn, +39% YoY) and diversified financials (Rs.39bn, +112% YoY) underpinned a QoQ rebound, while food, beverage & tobacco and capital goods posted steep declines.

The Cabinet approved installation of four automatic passenger clearance gates at the departure terminal of Bandaranaike International Airport. The move is part of ongoing 2023 upgrades under an IOM–Japan cooperation funded by a ¥1,170m grant, and four gates have already been installed at arrivals.