News & market updates

The Bar Association and Computer Society will hold the 2nd National Data Protection Symposium on 6 January 2026 at Cinnamon Life Colombo, themed 'Safeguarding Privacy in the Age of Intelligence', focusing on the amended Data Protection Act, AI ethics, and privacy in e‑commerce and digital transactions.

Kapruka Holdings (KPHL.N0000) completed its Partner Central e-commerce project at Rs. 89.3m versus a Rs. 200m IPO allocation, leaving Rs. 110.7m unutilised proposed for reallocation to working capital subject to shareholder approval. The company attributes the underspend to in‑house development and use of existing teams.

Booking.com Regional Head Santosh Kumar urged a collective rebranding of Sri Lanka to move from recovery to high-value, year-round tourism, calling for unified branding and stronger digital visibility. He said Booking.com will support this shift with data, technology and global reach.

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.

Parliament passed 26 Acts in 2025, including amendments to major revenue laws (Inland Revenue Act, VAT, Social Security Contribution Levy, Betting and Gaming Levy), two Appropriation Acts, the National Minimum Wage Act, Companies and Electricity Act amendments, and changes to data protection and rubber control.

Cabinet approved steps to establish the Sri Lanka Industrial Transformation and Innovation Authority by merging the Industrial Development Board, NEDA and the Small Business Development Division to streamline industrial and entrepreneurship services. The ministry is seeking ADB policy-based loan support for the required technological assistance.

Opposition MP Harsha de Silva criticised Media Minister Nalinda Jayatissa's statement that broadcasting licences could be revoked for media publishing news 'detrimental to public health', warning this threatens media freedom and contradicts promises to repeal the Online Safety Act.

Emirates carried 55.6 million passengers in 2025 and placed orders for 73 new aircraft. The airline expanded its A350 network, rolled out Starlink across 232 planes, broadened Premium Economy to 100+ aircraft and launched Emirates Courier Express across 10 markets.

Sri Lanka's Ambassador in Thailand attended the International Conference on the Global Partnership against Online Scams in Bangkok and thanked Thailand for help rescuing Sri Lankans from cyber scam centres in Myanmar. She outlined Sri Lanka's digital initiatives (GovPay, eBMD) and strengthened cyber laws and enforcement measures.

flydubai signed a firm agreement for 150 Airbus A321neo and an MoU for 75 Boeing 737 MAX aircraft, and confirmed Starlink as its new inflight connectivity partner with installations to begin in 2026.

EDOTCO Sri Lanka commissioned its first independently owned neutral-host telecommunications tower in Kahagalla, Kegalle after receiving an Infrastructure Provider License, enabling MNOs to use passive infrastructure to improve coverage and rollout. MNOs such as Dialog and Sri Lanka Telecom are expected to benefit from faster, cost-efficient deployments in underserved areas.

The Government launched online registration of institutions and members under the digitalisation of Employees’ Provident Fund (EPF) services to improve transparency, efficiency and accessibility. The move is part of a wider public-sector digital transformation with funding noted in the 2026 Budget.

Public advised to beware online purchase scams where fraudsters on platforms like Facebook, Ikman and WhatsApp sell goods at below-market prices and demand advance payments (Rs. 5,000–20,000); avoid advance payments, use COD or inspect items, verify sellers (video call), and report fraud to the police.

Port City Colombo marks 11 years as CHEC reiterates progress, announcing commissioning of public utility connections to Colombo’s grid and citing over USD 1bn in land development investments, including a USD 120m marina by Browns Investments (LOLC group).

Dialog Axiata PLC and the Dialog–University of Moratuwa Research Lab launched SinhalaVITS, an open-source Sinhala text-to-speech model now available for download on Hugging Face. The non-commercial model is intended to help developers, researchers and services in areas like education and healthcare.

The Management Club will host the Northern Investment Summit 2026 on 21–22 January 2026 in Jaffna to showcase KPMG-vetted, district-specific bankable proposals aimed at unlocking investment in the Northern Province; Hatton National Bank (HNB) is the official banking partner.

Digital Mobility Solutions Lanka PLC (PickMe) has written to the Inspector General of Police after escalating incidents of intimidation, obstruction and violence against independent drivers in tourist zones, requesting written police directives, zero-tolerance enforcement, an enforcement review mechanism and a joint stakeholder forum.

PickMe (Digital Mobility Solutions Lanka PLC) has written to the Inspector General of Police after independent drivers using its platform faced intimidation, physical assaults and road obstruction in tourist areas such as Ella. The company urged written police directives, a zero-tolerance approach, enforcement reviews and a joint stakeholder forum to protect drivers and tourists.

S&P Global says global credit conditions should remain resilient into 2026, supported by steady growth, easing interest rates and investor demand, but warns of uneven sector outlooks and risks from potential overinvestment in AI-driven data centres. It forecasts 3.2% global growth and a US speculative-grade default rate easing to 4% by Sept 2026.

The Jaffna International Trade Fair will return 23–25 January 2026 at Muttraweli Ground, featuring 400+ stalls; last year the event attracted 78,452 visitors and 5,000 invited business delegates.

Fitch assigned a 'neutral' sector outlook for APAC corporates for 2026, forecasting mild improvement in credit metrics and aggregate EBITDA margins rising to just over 15% from ~14.5% in 2025. It flagged risks from geopolitics, US–China tensions and tariffs, China property weakness weighing on construction, and deteriorating outlooks for tech, automotive, chemicals and shipping.

EDOTCO Sri Lanka has commissioned 400 resilient power systems (USD 1.7m) to strengthen telecom network reliability, supporting Dialog, Hutch and Mobitel, and plans to scale to 1,000 sites by mid-2026 (approx LKR 1.2bn). The rollout aims to ensure service continuity during disasters after Cyclone Ditwah disrupted thousands of sites.

FITIS warned that up to half of laptops, desktops, monitors and accessories sold in Sri Lanka are being illegally imported or sold as used/counterfeit, often 25–30% cheaper than authorised stock, harming dealers and creating warranty, security and e‑waste risks. FITIS is coordinating brands, distributors and retailers to assess the problem and drive a coordinated industry response.

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.

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).

eMudhra has formed a strategic partnership with LankaSign (operated by LankaPay) to integrate eMudhra’s emSigner platform with LankaSign, enabling legally recognised, cross-platform digital signatures for Sri Lanka’s government, businesses and citizens.

The National Initiative for the Commercialisation of Research and Development (NIRDC) awarded over LKR 227 million to nine projects selected in Q1, with Bank of Ceylon providing funds under MoUs and disbursements tied to project KPIs. Projects span AI, energy supercapacitors, tea and cinnamon processing, coconut oil testing, kitul beverages, export knitting and soil microbial inputs.

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.