News & market updates

India will provide a comprehensive assistance package to Sri Lanka for relief and rehabilitation after Cyclone Ditwah, with External Affairs Minister S. Jaishankar sent as Special Envoy to coordinate implementation. The support follows 'Operation Sagar Bandhu' which delivered immediate relief and emergency services.

SriLankan Airlines launched a one-month international digital campaign on 16 December 2025 to restore traveller confidence after Cyclone Ditwah, targeting Europe, Australia and India and aiming to reach over four million potential travellers. The Meta/Google campaign seeks to reassure visitors, sustain forward bookings and support tourism and hotel sector recovery.

CSE ended mixed with the ASPI up 0.13% to 21,927.00 and the S&P SL20 down 0.05% to 6,011.31, on turnover of about Rs.2.56bn and foreign net selling of ~Rs.68.6m. Top positive contributors included DOCK, RICH, SAMP, JKH and CARG, while SFCL, SUN, RCL, LOLC and HHL were among decliners.

Colombo Dockyard led gains as the ASPI rose 0.13% to 21,927.00, with Dockyard up to Rs127.00. Other contributors included Sampath Bank, John Keells, Tokyo Cement and Sierra Cables; turnover fell to Rs2.5bn and the CSE recorded a net foreign outflow of Rs68.58m.

India committed US$450 million to Sri Lanka for Cyclone Ditwah recovery, comprising US$350m in concessional lines of credit and US$100m in grants to rebuild roads, railways, bridges, houses, health services and rehabilitate agriculture.

The Western Province accounted for 42.4% of Sri Lanka's nominal GDP in 2024, down from 44.0% in 2023 as other provinces lifted their combined share; national nominal GDP rose to Rs. 29.9 trillion. The Western Province generated Rs. 12.66 trillion, while North Western and Central provinces recorded Rs. 3.45 trillion and Rs. 3.20 trillion respectively.

EDB Chairman says Sri Lanka is on track to surpass $17.0bn in export revenue in 2025 after goods and services earned $15.77bn in Jan–Nov, up 5.8% YoY. Apparel reached $4.82bn (4.9% YoY), tea exceeded $1.4bn (7.4% YoY) and services were $3.35bn (3.6% YoY).

Sri Lanka will launch the National Export Development Plan (NEDP) in January 2026, targeting about $36 billion in export receipts over 2026–2030. The plan, prepared with the ADB, includes tariff reform (Rs.80bn), Rs.2.5bn for a National Single Window, aims to create 3,000 new exporters and a Ministerial report on FTAs by Feb 2026.

BOI says Cyclone Ditwah caused nationwide industrial and export disruptions and is assessing damage to BOI-registered enterprises. It has opened a 24/7 Investor Services support unit to expedite import/export approvals, handle damaged goods and coordinate policy and financial aid for recovery.

Colombo market lost Rs. 80 billion as the ASPI fell 1.13% to 21,898.20, led by extended selling in Colombo Dockyard and negative contributions from DOCK, HNB, RICH, CARG and JKH. Turnover was over Rs. 2.9 billion on nearly 81.9 million shares, with capital goods accounting for 33% of turnover.

Colombo Dockyard PLC secured the largest shipbuilding contract in its history — a repeat order from Orange Marine for two cable laying/repair vessels — and completed four complex cable‑ship repair projects, boosting dock utilisation and returns.

A Sri Lankan trade delegation visited Phnom Penh to explore investment and trade opportunities and agreed with Cambodia’s Investment Board to organise a virtual investment roadshow. Discussions highlighted opportunities in premium rice, cashews, agrifood processing, microfinance, logistics, digital innovation and Cambodia’s tax incentives (3–9 year tax holidays, VAT exemptions, up to 150% R&D deductions).

World Bank estimates Cyclone Ditwah caused US$4.1 billion in direct physical damage in Sri Lanka, about 4% of GDP. Infrastructure losses were US$1.735bn (42% of damages), residential US$985m, and agriculture US$814m, with Kandy hardest hit (US$689m).

World Bank's GRADE estimates Cyclone Ditwah caused US$4.1 billion in direct physical damage in Sri Lanka (about 4% of GDP). Infrastructure accounted for US$1.735bn, agriculture US$814m and residential US$985m; the World Bank has mobilized up to US$120m for recovery.

Colombo Dockyard's continued sell-off pushed the CSE ASPI down 1.13% (68.27 points) to 21,898.20, with Dockyard closing at Rs107, down Rs35.50. HNB, Cargills and John Keells also fell; market turnover was Rs2.7bn and Dockyard received Rs27.1m of net foreign inflow.

Sri Lanka's exports for Jan–Nov 2025 reached US$15,776.36 Mn, up 5.8% y/y, with November 2025 exports at US$1,364.52 Mn (+5.56% y/y). Merchandise exports rose 6.41% to US$12,417.98 Mn and services 3.62% to US$3,358.35 Mn; coconut products, processed foods and selected electronics showed strong gains while apparel and tea recorded modest increases.

The BOI held an impact-assessment forum on Dec 19, 2025 with 36 participants from 26 BOI-registered enterprises to assess damage from Cyclone Ditwah and identify recovery needs. The BOI will establish a 24/7 Investor Services support unit to expedite import/export approvals and restoration efforts.

New owners have committed over Rs. 600 million for safety, operational and aesthetic upgrades at the Altair Colombo apartment and retail complex after Blackstone India's acquisition of its parent, with TWC providing strategic oversight. Blue-chip firms including John Keells and Hayleys are using Altair to showcase products.

SLASSCOM released its 2025 Compensation & Benefits Survey showing 72% repeat participation and that 52% of respondents operate as Global Capability Centres; the report finds salary increments have stabilised and organisations are shifting to personalised, performance-linked rewards and skill-based structures.

SriLankan Airlines moved its operations to Terminal 1 at Velana International Airport, Malé, effective 17 December 2025. The airline operates three daily Colombo–Malé flights and says the new Terminal 1 facilities will improve passenger comfort and support tourism and connectivity between the countries.

IMF and officials say Cyclone Ditwah will likely cause a temporary GDP hit in 2026, probably concentrated in one quarter, with reconstruction expected to partly offset the output loss but push short-term inflation and widen the current account. Some distilleries were reported flooded, hurting production and revenues.

Colombo stock market closed lower as the ASPI fell 0.64% to 22,149.09, with the exchange losing Rs.70 billion on the week (ASPI down 1.59% w/w); turnover was Rs.3.45 billion and foreign investors were net sellers.

SJB MP S.M. Marikkar criticised the Government's Rs. 500 billion Supplementary Estimate for post-Ditwah recovery, saying the RDA alone needs Rs. 190 b and the CEB Rs. 50 b and that unofficial infrastructure damages may exceed Rs. 900 b.

Colombo Bourse closed lower with the ASPI down 0.17% (37.12 pts) to 22,292.57 on subdued activity and profit-taking, with turnover over Rs.2.3bn. Top negative contributors included DOCK, SFCL, RICH, MELS and BREW, while Tokyo Cement and Hemas saw notable investor participation.

Industries Minister Sunil Handunnetti told Parliament that 29,649 businesses have registered as Cyclone Ditwah-affected and damages for over 10,000 have been assessed. The government released Rs1bn, will pay Rs200,000 per reported business and offer 3% loans under an Rs80bn 2026 allocation.

ADB launched a $40 million emergency Trade and Supply Chain Finance Program facility to help Sri Lanka import food, medicines and relief supplies after Cyclone Ditwah. The funds, backed by Munich Re and Swiss Re, will be channeled through six partner banks for rapid delivery.

China's NPC Standing Committee Vice Chairman Wang Dongming pledged full support to Sri Lanka's recovery from Cyclone Ditwah, and Sri Lanka requested Chinese technical assistance to restore and reconstruct its damaged railway network.

David Pieris Group acquired 50% of Dubai-based Navire Logistics Services L.L.C to expand its international logistics footprint. The deal integrates D P Logistics’ warehousing, freight forwarding and custom house brokering expertise into Navire and extends operations to Oman with plans for Saudi Arabia, Thailand and India.

Sri Lanka will spend Rs115 billion on slope protection for major roads damaged by Cyclone Ditwah; total repair and improvement costs are estimated at Rs190 billion and the government is seeking Rs500 billion for relief and recovery (Rs250 billion for infrastructure).