News & market updates

Dialog Axiata PLC launched Arcana, Sri Lanka’s first enterprise-ready Sinhala text-to-speech model developed with Rime Labs and now live for enterprise deployment. The model supports on-premise and cloud deployment, domain-specific tuning and custom brand voices for local enterprises.

A fireside panel positioned Sri Lanka as a high-value tourism and innovation hub, urging focus on quality tourism, digital/AI infrastructure and long-term investment; Sri Lanka welcomed about 2.36 million international visitors in 2025, surpassing pre‑pandemic levels.

Colombo Stock Exchange was up midday, ASPI +0.54% (119.98 pts) to 22,433. Market turnover was Rs.597.2m with capital goods leading at Rs.181.7m; Colombo Fort Investments and Colombo Investment Trust announced interim scrip dividends.

Sophos' State of Identity Security 2026 found 71% of organizations suffered at least one identity-related breach in the past year, with mean recovery costs of $1.64 million (median $750,000). The report cites human error and weak non-human identity (NHI) management—exacerbated by agentic AI—as primary causes and recommends MFA, least-privilege, secrets management and ITDR/Zero Trust.

Asian stocks fell as drone attacks in the Gulf pushed Brent above $111/bbl and global bond yields higher (US 10-year ~4.63%), raising inflation and tightening risks; Nvidia and major retail earnings this week will test equity resilience.

Dialog Axiata PLC reported 1Q FY26 revenue of Rs. 47.3 billion (up 9% YoY) and NPAT of Rs. 9.2 billion (up >100% YoY), and approved a first interim dividend of Rs. 0.70 per share. EBITDA rose 23% YoY to Rs. 24.3 billion, operating free cash flow was Rs. 14.6 billion, and capex was Rs. 5.5 billion mainly for 5G expansion.

Dialog Axiata reported Q1 net profit of Rs.9.2 billion, up 122.3% from Rs.4.1 billion a year earlier. Group revenue rose 9.2% to Rs.47.3 billion and the board proposed an interim dividend of Rs.0.70 per share.

Sri Lanka must pivot its export strategy toward India after US tariffs and the EU–India FTA eroded Western market advantages; Sri Lanka exported $1.07bn to India in 2024 versus $4.32bn in imports, and February 2026 exports rose 48% YoY to $264m.

Sri Lanka Telecom PLC reported 1Q2026 consolidated revenue of Rs.30.8bn (up 10.6% YoY) and PAT of Rs.3.1bn (up 53.3%), driven by broadband demand; SLT PLC standalone revenue was Rs.19.7bn with PAT of Rs.2.1bn, supported by cost efficiencies and FX gains.

Dialog Axiata PLC reported Q1 2026 group revenue of Rs 47.3Bn (+9% YoY) and group NPAT of Rs 9.2Bn (up >100% YoY). The board approved a Rs 0.70 interim dividend, OFCF was Rs 14.6Bn, and capex of Rs 5.5Bn was spent to expand 5G infrastructure.

Dividend · Rs 0.70 · XD May 26, 2026

First Interim dividend of LKR 0.7/share; XD 2026-05-26; record 2026-05-26; payable 2026-06-15; FY 2026

CMA Sri Lanka launched national Cost Accounting Standards to strengthen costing, control and reporting across large and medium public and private institutions; the standards prioritize sectors including power, telecom, manufacturing, drugs and agricultural/tea exporters to improve efficiency, pricing transparency and competitiveness.

Vertex HD Distribution has formally launched operations in Sri Lanka, bringing international brands (Verbatim, Marvo, Microlab, Bestoss, Synomax) to the gaming, storage and computer accessories market. It aims to build a nationwide distribution platform for retailers, resellers and corporate customers with competitive pricing and after-sales support.

Branding in Sri Lanka is shifting toward people-centered co-creation supported by AI—with nearly 90% of digital content ignored—offering opportunities for firms (e.g., Dialog Axiata) and hotel, tea and consumer brands to use community-driven storytelling and creator networks.

Dialog Axiata reported a net profit of Rs.9.19 billion for the quarter ended Mar 31, 2026 (up 122.3% y/y) and announced an interim cash dividend of 70 cents per share. The Colombo bourse was up (ASPI +0.28%) midday with Rs.1.81bn turnover, led by capital goods (Rs.870.3m).

Colombo stock market edged down 0.09% to close at 22,899.53 (ASPI down 20.79 pts). Turnover was Rs.2.62bn with foreign investors net selling Rs.116m; top negative contributors included Dialog, Hemas, HNB, LOLC and Colombo Dockyard.

Sri Lanka and Nepal launched cross-border QR payment connectivity on 12 May, enabling Nepali travellers to make real-time payments at more than 400,000 LankaQR merchants in Sri Lanka using Nepali payment apps (including connectIPS). The arrangement, announced in Colombo by central banks and payment operators, aims to enhance regional digital payment interoperability and merchant access.

Huawei held the 10th ICT Competition APAC finals at the ASEAN Headquarters in Jakarta, drawing over 8,600 student entrants, more than 160 finalists and qualifying 16 teams for the global finals in Shenzhen. Huawei also launched a white paper on ICT job roles, announced AI-focused curriculum updates and regional AI talent initiatives.

Dialog Axiata's subsidiary Digital Health (Doc990) has deployed a digital queue management system for pharmacy counters at Galle National Hospital, enabling patients to take and track queue numbers via screens to reduce congestion and support staff with real-time backend coordination.

The Computer Society of Sri Lanka (CSSL) set a national direction for a human-centric digital economy at the 44th National IT Conference, advancing a Society 5.0 vision focused on skills, inclusion and innovation across FinTech, EduTech, MedTech, TravelTech, InfoSec and AgriTech to drive digital transformation.

Kapruka Holdings PLC subscribed Rs. 41.51 million for 883,203 ordinary shares in its wholly-owned Kapruka E-Commerce Ltd. to fund working capital and acquire electric delivery vehicles to expand and green its delivery infrastructure.

Sri Lanka and Nepal launched cross-border QR payment connectivity on 12 May 2026, allowing Nepali users to pay at more than 400,000 LankaQR merchants in Sri Lanka using Nepali payment apps. The interoperability is expected to ease payments for travellers and expand digital acceptance for local merchants and SMEs.

Colombo Stock Exchange fell as the ASPI dropped 104.80 points (0.46%) to 22,910.52. Top negatives were Melstacorp, Sampath Bank and HNB; Ceylon Tobacco declared a Rs34 dividend and Kapruka said it will inject Rs41,510,541 into its subsidiary to buy shares to fund electric delivery vehicles and working capital.

Dialog Axiata's Dialog Enterprise has partnered with Seceon Inc to deploy Seceon's aiSIEM platform and offer AI-driven Managed Detection and Response (MDR) services in Sri Lanka. The collaboration enables a multi-tenant SOC delivering unified SIEM, UEBA, SOAR and automated incident response across networks, endpoints, cloud and applications.

ANC Campus hosted a dialogue with Hayleys' executive director and Janashakthi's CEO on geopolitical risks and private-sector resilience; the University of West England will open its first Sri Lanka branch campus in June. Speakers urged firms to adopt AI, diversify exports and streamline approvals to attract investment.

Sri Lanka Expo 2026 has been rescheduled to 14–17 January 2027 at BMICH in Colombo. The EDB expects about 750 local exporters and 1,500 international participants and has extended exhibitor registration to 31 July 2026, citing geopolitical uncertainties.

Short Circuit Group has merged with Payables, bringing 40,000+ merchants and over $200m of transaction volume. Payables aims to expand to 100,000+ merchants and $8.9bn in transaction volume over the next five years as the group moves into owning and monetising payment flows.

Seylan Bank co‑sponsored the Colombagama Awurudu 2026 event at Viharamahadevi Children’s Park, presenting branded gifts to winners; Dialog Axiata’s Dialog A Plus Kids Channel and Channel One organized interactive Awurudu-themed games for children.

Colombo Stock Exchange closed marginally higher, ASPI up 0.02% at 23,015.32 with turnover of Rs.3.66 billion. Real estate and transportation led turnover (Rs.495.2m and Rs.485.2m) and Abans Finance listed Rs.1.34bn five-year debentures; its shares rose 3.47%.