News & market updates

The University of West London officially opened its Sri Lanka branch campus in Colombo, the country's first full UK university branch campus. The campus, run with ANC Campus/CEG, will offer UWL-approved programmes including Business, IT, Law, AI, Psychology and Early Childhood Education.

Colombo market rose for a second session as the ASPI gained 0.22% to 22,436.14 on turnover above Rs.3.1bn, driven by elevated HNW activity with PKME, Dialog and NDB among top contributors; foreigners were net sellers of Rs.333.3m.

The Foreign Affairs Ministry and EDB held a diplomatic briefing on 12 June to promote the rescheduled Sri Lanka Expo 2027, attended by about 100 diplomatic representatives. The Expo is set for 14–17 January 2027 at BMICH, Colombo, and organisers are seeking diplomatic support to attract buyers, investors and business delegations.

Officials reviewed delayed implementation of 2026 budget projects after Sri Lanka spent only 17.4% (about Rs.240 billion of Rs.1,380 billion) of allocated capital expenditure so far this year. They cited procurement delays, institutional bottlenecks and cyclone-related diversions and urged expedited action to boost year-end spending.

Sri Lanka Customs was instructed to modernise export facilitation, review the TIEP scheme and support SMEs to implement the National Export Development Plan 2026–2030 targeting USD 36 billion in export revenue by 2030. Plans include upgrading the Export Facilitation Centre, decentralising operations (Jaffna), easing e‑commerce exports and introducing digital systems.

Sri Lanka Customs will implement a new comprehensive fee and operational framework from 1 July 2026, revising customs service charges, cargo examination fees and ICT user fees (e.g., FCL export exam fee set at Rs.600 for the first container; BOI ICT fee Rs.16,000 per user).

The National Chamber of Exporters warned that a Central Bank gazette requiring exporters to convert foreign-currency proceeds to rupees by the 10th of the following month was introduced without industry consultation and could disrupt cash flow and raise costs. NCE urged flexibility to allow exporters to retain FX where future needs are demonstrated.

Emirates marks 40 years of service to Colombo, having carried over 15 million passengers on more than 97,000 flights and currently operating three daily services linking Colombo to 135+ destinations. It has uplifted 403,000 tonnes of cargo over the past two decades and expanded interline ties with SriLankan Airlines to 30 routes.

A Peking University delegation led by Prof. Wang Weijia held high-level meetings in Colombo to explore deeper Sri Lanka–China cooperation, prioritizing trade and FDI in logistics, energy, tourism and Port City Colombo and potential areas like high‑tech manufacturing and pharmaceuticals.

A diplomatic briefing on 12 June 2026 was held to promote the rescheduled Sri Lanka Expo 2027, now set for 14–17 January 2027 at BMICH, with about 100 foreign mission representatives invited to support attracting buyers, investors and business delegations.

Sri Lanka will stick to a 5% growth target despite the Central Bank's 100bp policy rate hike to 8.75% and falling consumption; Q1 GDP expanded 5.1%. The rate rise, 27% private credit growth and steep fuel price increases are cited as headwinds, while the IMF has cut its growth forecast to 3%.

National Chamber of Exporters says the Central Bank's new Gazette requiring exporters to convert foreign-currency proceeds by the 10th day of the following month was introduced without industry consultation and may disrupt cash flows, raise costs and hurt competitiveness; members seek flexibility to retain funds for verified FX needs.

The Presidential Task Force chaired by Tourism Minister Vijitha Herath reviewed major tourism initiatives, including the proposed Southern Mist Corridor across Galle, Matara and Ratnapura and a 10-year Maritime Tourism Corridor with phased ferry services starting from Jaffna. The meeting also covered film-tourism facilitation, skydiving development at Koggala, whale-watching rules and visa/security measures.

Manufacturing PMI rose to 56.6 and Services PMI to 56.9 in May, indicating expansion in both sectors. Manufacturing was driven by food & beverages and textiles, while services growth was led by financial, professional services and IT; outlook buoyed by expected tourist arrivals but risks from the Middle East conflict persist.

Sri Lanka launched the National Export Development Plan (NEDP) 2026–2030 targeting USD 36 billion in export revenue by 2030. The Cabinet-approved plan, prepared by the Ministry and the Export Development Board with ADB support, targets eight priority sectors and upgrades in logistics, customs digitization and SME export readiness.

The Computer Society of Sri Lanka hosted the CSSL National CIO Forum 2026 and unveiled the CIO List 2025 at Shangri‑La Colombo, convening 150+ senior leaders from banks, telecoms, conglomerates and healthcare to emphasise CIOs' role in digital transformation and AI governance.

Colombo market closed flat as the ASPI fell 0.02% to 22,377.29 after an early peak at 22,563.09, while the S&P SL20 rose 0.03% to 6,221.32 on turnover of Rs. 3.85bn. Foreigners were net buyers (Rs. 427.1m); top contributors were JKH, HAYL, DOCK, BREW and BIL, with CARG, CINS, SAMP, NDB and CFIN weighing on the index.

Delmege Consumer has partnered with Daraz to sell its full range of FMCG products online via a Delmege store on daraz.lk, expanding its digital distribution and enabling islandwide delivery and online offers.

The government presented the National Export Development Plan 2026–2030 to the President, targeting USD 36 billion in export revenue by 2030. The plan names eight priority export sectors (including digital products, electronics, automotive components, processed foods, rubber, minerals and maritime) and sets horizontal enablers such as logistics, trade finance, trade facilitation and ESG capacity building, with ADB technical support.

Sri Lanka launched the National Export Development Plan (NEDP) 2026–2030 targeting USD 36 billion in export revenue by 2030. The plan sets six cross-sector enablers and eight priority sectors — including auto components, minerals, rubber, marine, spices, digital products, electrical/electronics and processed food — to drive export diversification.

Sri Lanka held a Dubai investor forum on June 11 to pitch Port City Colombo as a Special Economic Zone and court Gulf capital to attract FDI into finance, technology, logistics, property and services across South Asia.

Sri Lanka's services PMI rose to 56.9 in May 2026 from 46.7 in April, signalling a rebound led by financial, professional and other personal services, with real estate, IT programming and goods transportation also recording growth; employment declined further.

Brent crude fell about 4.5% to below $83.4 per barrel after the US and Iran confirmed a deal to end the war, triggering global equity gains. Asia-Pacific indices and US futures rose as analysts said lower oil should ease inflation pressure ahead of the US Federal Reserve rate decision.

SLASSCOM and BeyondOne launched a national virtual Internship Platform on 15 May to provide structured, project-based virtual internships that bridge academia and industry and support Sri Lanka's IT/BPM talent pipeline; multiple IT firms and universities are piloting the initiative.

Sri Lanka GDP grew 5.1% year-on-year in Q1 2026, up from 4.7% in the previous quarter. Growth was led by industry (up 7.2%) with mining +19.5% and construction +16.3%, while services rose 3.4% driven by insurance (+22%), IT/BPM (+16.1%) and financial services (+12.8%); agriculture +1.1%.

Sri Lanka has spent 17.4% of its 2026 capital budget, about Rs.240 billion of Rs.1,380 billion, the National Budget Department director told Parliament; officials said some capital expenses will remain unspent and that Rs.20 billion cited was a reallocation after a fuel price hike.

Sri Lanka's real GDP grew 5.1% year-on-year in Q1 2026 to Rs. 3,652,503 million (2015 prices). Growth was led by industry (+7.2%)—notably construction (+16.3%) and mining (+19.5%)—while services rose 3.4% (insurance, IT, financial services) and agriculture grew 1.1%.

Government extends the deadline for submissions to the MRIA investment EOI process to 9 July (EOI documents open until 8 July). Proposals must remain valid for 120 days (until 5 Nov) and guarantees for 150 days (until 5 Dec).

The Sri Lanka Business Council UAE held a 35th-anniversary investment forum in Dubai on 11 June that drew 225 UAE business leaders and investors. Colombo Port City presented investment opportunities and speakers encouraged investment in tourism, hospitality, IT, logistics, manufacturing and renewable energy in Sri Lanka.

Government and JICA aim to restart construction of Bandaranaike International Airport Terminal 2 by November after high-level talks to finalise loan allocation and contract value. JICA says the terminal could be completed within 30 months after work resumes and Finance Ministry approval for additional loan is being sought.