News & market updates

A Cabinet-appointed committee reviewing Sri Lanka’s Free Trade Agreements is expected to submit recommendations in July, and an India Trade Desk has been launched to help Sri Lankan firms tap the Indian market. Bilateral trade reached about $5.8bn in 2025, with Sri Lankan exports to India over $1bn and imports $4.3bn.

SJB MP Harsha de Silva urged the government to conclude the Economic and Technology Cooperation Agreement (ETCA) with India to integrate Sri Lankan firms into Indian value chains and attract FDI. He warned delays risk missing India’s growth, called for services-sector safeguards and urged resolution of non-tariff barriers such as certification and logistics.

Headline NCPI inflation rose to 5.4% YoY in May from 4.7% in April, the third consecutive monthly increase. Rises were driven by higher petrol and LP gas prices and increases in several food items (vegetables, fish, onions), while rice, eggs and sugar eased; core inflation edged to 4.5%.

Cabinet approved steps to implement electrification of key railway corridors — Main Line (Maradana–Ragama), Kelani Valley Line (Maradana–Makumbura) and Coastal Line (Maradana–Panadura) — and upgrades to stations at Gampaha, Veyangoda, Mirigama and Polgahawela.

Perituza held an executive breakfast in Colombo with Sri Lankan PR, communications, advertising and marketing leaders to demonstrate practical AI applications for agency workflows, including live demos of AI-assisted development. The firm plans sector-specific follow-ups, next focusing on banking and financial services.

Uber launched Uber Eats and Uber Rides in Ratnapura, enabling food and grocery delivery plus multi-vehicle ride-hailing across the district. The expansion provides local merchants, delivery partners and drivers with new customer access and earning opportunities.

The Thailand–Sri Lanka Business Forum highlighted opportunities from the new Sri Lanka–Thailand FTA, with bilateral trade at USD 649m in 2025 (up 48%) and commitments to boost supply chains, investment and trade across food processing, logistics, IT, healthcare, tourism and manufacturing.

Masterwork Group GM Sales Maxen Liu said Masterwork regards Sri Lanka as one of its fastest-growing markets and is promoting automation, AI-driven smart-factory solutions and rooftop solar to improve efficiency and sustainability in the printing and packaging sector.

The Industry and Entrepreneurship Development Ministry launched the National SME Strategy Framework – SME NEXUS in Colombo and recognised Chrysalis for its contributions to SME development. Chrysalis was acknowledged for helping simplify business name registration and strengthening the National Industry Database to support SMEs.

Cabinet approved procurement of a Rs. 1 billion Aeronautical Message Handling System for Airport and Aviation Services (Sri Lanka) Ltd to replace its end-of-life system at Ratmalana. The project will be financed through AASL's capital budget to modernise critical aviation communications.

Forbes and Walker Tea Brokers Ltd and Forbes and Walker Warehousing Ltd were awarded Carbon Neutral Certification by the Sri Lanka Climate Fund Ltd. The certification recognises their quantification, verification and offsetting of GHG emissions via the Forbes and Walker Rooftop Solar Project and helps position the group to meet tightening exporter sustainability rules, notably in the EU.

Cabinet approved a three-year ground handling contract for SriLankan Airlines at Delhi IGI Airport awarded to Bird Flight Services (India) Pvt Ltd for INR 332.85m (LKR 1.1bn) from 1 June 2026 to 31 May 2029. The award followed a limited international competitive bidding process with two bids received.

The National Chamber of Exporters warns unresolved regulatory, operational and policy bottlenecks could hamper Sri Lanka's US$36bn export target by 2030; total exports were US$4.31bn in Q1 2026 (up 1.59% y/y). Sectors including coconut, floriculture, minerals, boat-building and logistics seek digitised single-window clearances, labour import mechanisms and royalty/licence reforms.

Sri Lanka will enact key reforms within the next 90 days, including changes to the BOI and EDB and tabling the Investment Protection Act and PPP Bills to attract investment and boost exports. The IMF says a clear PPP Act is crucial for governance, while labour reform timing is uncertain.

Sri Lanka used the 10th China–South Asia Expo in Kunming to boost market access, with Yunnan authorities agreeing to provide a 2,000 sq m free warehouse in Kunming for Sri Lankan exporters to store and distribute goods via Chinese e-commerce. The pavilion highlighted tea, spices, coconut products, processed foods, handicrafts and tourism services amid rising participation and trade growth with China.

Senok Trade Combine handed over a fleet of Foton Tunland G7 double-cab vehicles to NEM Construction, with the locally assembled units delivered from Senok’s Western Automobile Assembly in Kurunegala, underscoring support for construction mobility and after-sales services.

D P Logistics (Private) Limited has been renamed David Pieris Logistics (Private) Limited as part of the David Pieris Group’s integration and regional expansion into Asian and Middle Eastern markets. The group also acquired Pulsar Shipping and a 50% stake in Dubai-based Navire Logistics plus subsidiaries in Oman and a JV in Saudi Arabia.

Sri Lanka and Thailand plan to deepen trade and investment using the Sri Lanka–Thailand FTA and enhanced B2B engagement, targeting tourism, hospitality, food processing, agriculture, logistics and other sectors to boost bilateral ties and supply‑chain links.

President Anura Kumara Dissanayake chaired a meeting to find swift solutions to strengthen Sri Lanka's apparel sector and boost dollar export earnings; discussed measures include plug-and-play factory infrastructure, land/legal reforms, VAT relief proposals, expanded FTAs and a National Single Window due end-July.

Deputy Minister Chathuranga Abeysinghe said Sri Lanka can reach $36bn in exports under the National Export Development Plan if urgent reforms, strategic FDI and lower energy costs are delivered. The government will prioritise digitalisation, trade facilitation, supply‑chain improvements and value addition, with focus on plantations while warning of acute skills shortages.

Sri Lanka urged Belgian and Luxembourg investors to seize opportunities in infrastructure and green energy, pointing to planned PPP and investment protection reforms and competitively priced land. Officials highlighted Port City expansion, shipbuilding, marinas and agricultural processing as priority sectors for partnerships.

Emirates is offering complimentary stays at the JW Marriott Marquis for return tickets to or stopping over in Dubai (two nights for First/Business; one night for Premium Economy/Economy) for travel between 25 June–30 September. It also relaunches My Emirates Pass with 600+ offers and notes three daily Colombo–Dubai flights.

Exterminators PLC founder Marlon Ferreira was named a finalist in the 2026 Great British Entrepreneur Awards in the Global Entrepreneur of the Year category. Ferreira, founder/MD of Exterminators PLC and Sentario UK, has developed AI-powered pest-management and reporting platforms.

Sri Lanka briefed about 100 foreign mission representatives to seek support promoting the rescheduled Sri Lanka Expo 2027 (Jan 14–17, 2027) to attract international buyers, investors and business delegations.

FitsAir began the only non-stop Colombo–Ahmedabad service on 19 June 2026, operating three times weekly. The new route is intended to boost connectivity between Sri Lanka and Gujarat, supporting tourism, trade and business travel.

Sri Lanka has issued a Gazette to systematically monitor imports, requiring detailed importer information and mandating banks to assign a separate identification number for each transaction to curb illicit foreign-exchange outflows. The move follows disclosures of scams using fake company registrations and aims to protect reserves without fully restricting trade.

The US and Iran signed a memorandum committing to a 60-day ceasefire and reopening the Strait of Hormuz, with waivers expected to allow Iran to resume oil exports. The accord also envisages a $300 billion reconstruction fund and sets tougher talks for a final deal within 60 days.

Government aims to lift gem and jewellery exports from about $300m to around $1–1.2bn by boosting value‑addition and marketing and tackling smuggling. Plans include regulatory reforms, a proposed Gem and Jewellery Experience Centre and the Gem City Ratnapura Exhibition (31 Aug–2 Sep 2026) to attract international buyers.