News & market updates

An IMF delegation met with Sri Lanka Customs to review progress on reform milestones, focusing on operational efficiency improvements and measures to strengthen revenue administration and compliance frameworks.

Deputy Minister Chathuranga Abeysinghe said Sri Lanka's handloom sector should be repositioned as an 'industry of the future' with untapped export potential, urged greater private investment, and announced government plans to restructure the EDB, Department of Textiles, Laksala and Salusala to support growth.

Sampath Bank launched a real-time USD payment solution with the Sri Lanka Ports Authority to enable instant dollar payments and real-time settlement for shipping lines, freight forwarders and other port users, streamlining foreign-currency transactions and trade facilitation.

Sampath Bank PLC launched Sri Lanka’s first real-time USD payment solution for Sri Lanka Ports Authority users via its FC Quick Connect platform, enabling instant USD payments with real-time settlement and automated notifications for shipping lines and port users. The solution replaces manual processes and can be scaled to other port operators.

AEO-certified traders record a median cargo release time of ~30 hours versus ~53 hours for non-AEO traders — a facilitation gain of about 22 hours, according to a fully digital 2025 Time Release Study using ASYCUDA. Sri Lanka Customs has introduced CargoFlow to better manage container movements and speed clearance.

John Keells Holdings chair Krishan Balendra was re-elected Chairperson of The Ceylon Chamber of Commerce at its 187th AGM for 2026/27. The Chamber's board includes executives from Hayleys, Renuka Hotels and Dialog Axiata, and said 18 of its Budget 2026 recommendations on trade, digitalisation and investment were adopted.

Renuka M. Weerakone, Director General of the Board of Investment of Sri Lanka, relinquished her post on 30 June after 32 years at the BOI. She served across multiple BOI departments and on the Export Development Board and ICC Sri Lanka.

Ceylon Chamber re‑elected Krishan Balendra (Chairperson of John Keells Holdings PLC) and named its 2026/27 board, which includes executives from Hayleys PLC, Dialog Axiata PLC and Renuka Hotels PLC.

EDB Chairman Mangala Wijesinghe said Sri Lanka aims to more than double export earnings to $36 billion and is evaluating petroleum-linked and logistics proposals to help reach that target. He said implementing NEDP reforms on trade facilitation and the export ecosystem is essential to meet the five-year export goals.

EDB Chairman Mangala Wijesinghe said rupee-to-rupee trade with India could lift bilateral commerce by about 30–40% within two years (15–20% in year one) by enabling direct INR–LKR settlements. The initiative, supported by the Indian High Commission and CBSL and involving local and Indian banks, is intended to cut dollar demand, lower transaction costs and reduce exchange-rate volatility.

IFC will invest up to $10 million in New Anthoney’s Farms Group to scale poultry capacity, targeting exports of 1,936 tonnes annually (a 29% rise from 2024) and creating over 900 jobs. The funding includes up to $5m from GAFSP and aims to benefit ~200 smallholder farmers.

Teejay Lanka reported PAT of Rs. 54.7m, a 98% YoY decline, on revenue of Rs. 60.04bn (‑10% YoY) as weak global textile demand, US tariffs, pricing pressure and lower volumes hit margins. Cash was Rs. 8.3bn and NAV/share rose to Rs. 44.91 despite restructuring costs and provisions.

Oil prices fell as Middle East supply expectations rose, with August Brent down $1.22 to $72.52/bl and WTI down $1.02 to $69.32, hitting their lowest since Feb. 27. Reopening of the Strait of Hormuz and expected Iranian exports eased supply concerns despite low U.S. crude stocks.

Sri Lanka, led by Trade Minister Wasantha Samarasinghe, participated in the 10th China–South Asia Exposition and 30th Kunming Import Fair (11–16 June 2026), showcasing 100 booths and securing export partnerships including an MoU to promote Sri Lankan beverages in China. Discussions also covered access to Kunming bonded-zone free warehouses to boost supply-chain connectivity.

The Export Development Board convened stakeholders to tackle a coconut fibre shortage that is disrupting production and raising costs even as 2025 coconut coir exports rose to about $294m (22.5% growth). Discussions focused on short-term relief, supply-chain regulation and policy measures to stabilise raw-material availability and support exporters.

Renuka M. Weerakone, Director General of the Board of Investment of Sri Lanka, relinquishes her post on 30 June after 32 years at the BOI. She led outward investment-promotion missions, served on project approval committees (education, power, environment) and sat on the EDB and ICC Sri Lanka boards.

Enfection has established operations in Melbourne, Australia as part of its Asia-Pacific expansion into AI-powered marketing. It is running AI workshops, has collaborations with the Australian Institute of Architects and Melbourne Polytechnic, and aims to export marketing technology from Sri Lanka.

Spa Ceylon's Virgin Coconut Nourishing Hair Conditioner was named Best Conditioner for Damaged Hair at the Marie Claire UK Hair Awards 2026.

The Thailand–Sri Lanka Business Forum centred on implementing the Sri Lanka–Thailand FTA to boost trade and investment after bilateral trade reached USD 649m in 2025 (+48% vs 2024). Delegates highlighted opportunities in logistics, manufacturing, food and agriculture, IT, healthcare and tourism and urged streamlined customs and predictable FTA implementation.

Ceylon Chamber of Commerce holds its 187th AGM today (25) at 5:30 p.m. at The Forum, Cinnamon Life, with UK High Commissioner Andrew Patrick delivering the keynote. Chair Krishan Balendra will outline priorities on private-sector competitiveness, evidence-based policy advocacy and long-term economic stability.

Milinda Moragoda hosted a luncheon on 23 June 2026 for U.S. Assistant Secretary of State S. Paul Kapur to discuss maritime security, regional connectivity, trade and cooperation with business leaders and diplomats.

U.S. Assistant Secretary S. Paul Kapur arrived in Colombo for a three-day visit to strengthen U.S.–Sri Lanka ties, meeting government officials and U.S. company leaders (Chevron, Coca‑Cola, Microsoft, Visa, JP Morgan) to discuss expanding trade, investment, security cooperation and supply-chain links.

Sri Lanka's total exports for Jan–May 2026 reached US$7,393.39 million (+7.56% YoY), with May exports of US$1,570.64 million (+18.34% YoY). Growth was broad-based across merchandise and services, led by apparel, coconut products, rubber gloves, electrical/electronic components and ICT/BPM, while tea slipped marginally.

IFC will invest up to $10 million in New Anthony’s Farm Group to expand poultry capacity, retail/franchise reach and value-chain efficiency. The project is expected to create over 900 jobs, benefit ~200 smallholder farmers and raise exports to 1,936 mt annually.

Sri Lanka's goods and services exports rose 18.3% year-on-year in May to US$1,570.6 million, with merchandise at US$1,223.5m and services US$347.2m. The EDB reported estimated export earnings of US$7,393.4m (+7.6% YTD) and launched the NEDP 2026–2030.

Sri Lanka's apparel and textile exports rose 7.96% in May 2026 to US$394.14m, led by a 15.36% increase in US shipments to US$149.96m. The sector now faces a critical US Trade Representative 301 review that could impose a 12.5% tariff unless Sri Lanka secures a fairer outcome; a public hearing is set for 7 July.

Teejay Lanka (TJL.N0000) reported PAT of LKR 54.7 million, a 98% YoY decline, on revenue of LKR 60.04 billion (-10% YoY) and gross profit down 36%. The deterioration was driven by weak global textile demand, US reciprocal tariffs, pricing pressure, lower volumes and higher rupee‑denominated costs; cash stood at LKR 8.3bn and NAV/share rose to LKR 44.91.

Apparel and textile exports rose 7.96% YoY to $394.14m in May 2026, led by a 15.36% jump in US shipments to $149.96m. The sector is seeking tariff parity as the US Section 301 review could assign Sri Lanka a 12.5% tariff, with a public hearing on 7 July.

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.