News & market updates

ISO has published a Chinese-developed standard for corrosion testing of conducting alloys in AC conditions and IEC approved a Chinese-led offshore wind standard; the measures aim to improve conductor lifespan and could cut maintenance/operational costs by over 10%.

Tokyo Cement reported FY26 turnover of Rs.61,011m (+22%) and 4Q turnover of Rs.17,623m (+36%), with FY26 PAT of Rs.2,580m (down from Rs.3,459m). Profitability was hit by rupee depreciation, higher material, fuel and financing costs even as volumes rose 28% and national cement consumption grew 19% to 5.62m MT.

The Central Bank of Sri Lanka said banks increased their willingness to lend in 1Q 2026, with loan demand rising across retail, corporate, SME and SOE sectors and overall NPLs declining; banks expect lending to rise further in 2Q while warning that geopolitical tensions and supply disruptions pose risks.

Pelwatte Dairy says its subsidiary Pelwatte Foods will invest about Rs.1.86 billion to build a greenfield liquid milk manufacturing facility at Kurunegala (BOI agreement signed 21 May). Construction is due to start July 2026 with commercial operations expected by July 2027.

The Sri Lankan–German Business Forum 2026 will be held in Colombo on May 27–29 to bring German public and private sector representatives together with Sri Lankan stakeholders to explore collaboration and investment, focusing on maritime, logistics and IT. Prime Minister Harini Amarasuriya and senior German officials will attend; sessions will cover port infrastructure financing, digitalisation and boosting exports to the EU.

Home Lands unveiled 'Central Park Boulevard Port City', a twin-tower 37-floor development with 630 ultra-luxury units, offering pre-launch rates of $300–$400 per sq ft and prices from Rs.60m (1BR) to Rs.140m (3BR). The project is valued at over $300m, with Home Lands investing $150m and expecting significant foreign currency inflows.

Prime Lands and Melwa Conglomerate have acquired a marina-front parcel at Port City Colombo for a USD 57.6 million ultra-luxury waterfront residential development, with construction expected to finish within four years and projected revenue over USD 250 million. The project is positioned to drive opportunities in construction, engineering and logistics while raising Colombo's international investment profile.

Embilipitiya Stores Tool & Ceramic Manufacturing (Eagle Group affiliate) was awarded ISO 9001:2015 certification for design, manufacturing and marketing of sanitaryware, tile mortar and wire‑based construction products. The certification followed an SGS Lanka audit and the company says it will use it to boost quality and expand local and export markets.

Tokyo Cement Group reported Q4 turnover of Rs.17,623mn (+36% YoY) and PAT of Rs.577mn; for FY it posted turnover of Rs.61,011mn (+22%) and PAT of Rs.2,580mn, citing currency depreciation and higher material and fuel costs that weighed on margins.

Sri Lanka's services exports fell 6.13% in April 2026 to $317.16m. ICT/BPM exports rose 24.89% to $146.09m and financial services grew 119.41% to $10.45m, while construction and transport/logistics exports declined sharply.

BOI Acting Chairman Dr. Sulakshana Jayawardena unveiled a pipeline of 30 structured investment projects across manufacturing, logistics, tourism and infrastructure aimed at Vietnamese investors. He said Sri Lanka has regained macro stability with GDP growth of 5% in 2024–25 and FDI rising to $1.063bn in 2025 (target $1.5bn in 2026).

The Sri Lankan–German Business Forum 2026 will run 27–29 May in Colombo to promote FDI in maritime, ports and logistics and to showcase Sri Lankan IT startups. The conference, attended by the Prime Minister, will focus on port infrastructure financing, boosting exports to the EU and digitalisation.

President Anura Kumara Dissanayake said Sri Lanka faces external pressures from the Middle East conflict—higher oil and import costs and rupee depreciation—but rejected a repeat of the 2022 collapse, noting Central Bank reserves near $7bn and a $700m inflow expected; he assured no shortages of fuel, gas, milk powder or fertiliser.

Deputy Finance and Planning Minister Dr. Anil Jayantha Fernando defended Sri Lanka's flexible exchange rate and independent monetary policy amid rupee pressure, noting the interbank rate averaged Rs.330/USD (bids Rs.327, offers Rs.332). He warned fuel import costs could hit $521m in May, forecast remittances above $9b and expected IMF tranche approvals.

China Harbour Engineering Company topped out the main structural works for 112 housing units at the Maharagama site on 12 May 2026, part of a 1,996-unit China-funded affordable housing project in Colombo. Work will proceed to interior finishing, installations and subsequent completion and handover.

Commercial Bank of Ceylon (COMB.N0000) signed an agreement to establish a fully-fledged branch at Port City Colombo offering full banking services including digital banking, trade, foreign currency and corporate solutions. The branch aims to support cross-border business and international investors in the Special Economic Zone.

The 21st Build SL Housing and Construction International Exhibition opened at BMICH, highlighting a construction-sector resurgence: Q3 2025 activity grew 12.2% year-on-year and cement supplies rose 17.7%.

Commercial Bank of Ceylon (COMB.N0000) will open a full-service branch in Port City Colombo offering digital banking, trade, foreign-currency, corporate and retail services to support cross-border transactions and international investors.

Sri Lanka's Board of Investment pitched a pipeline of 30 project-ready opportunities to Vietnamese investors as the economy rebounds — GDP grew 5.0% in 2024 and 2025 and FDI rose to US$1.063bn in 2025. Projects span manufacturing, logistics and port services, tourism, pharma, and mixed infrastructure developments.

Commercial Bank of Ceylon has signed an agreement to open a fully‑fledged branch in Port City Colombo to offer full banking services—including digital banking, trade services, foreign currency transactions, corporate and retail products—to clients in the Special Economic Zone.

Dividend · Rs 0.40 · XD Jul 1, 2026

Final dividend of LKR 0.4/share; XD 2026-07-01; record 2026-07-01; payable 2026-07-20; FY 31st March 2026

Hellmann Worldwide Logistics and MAS Holdings will develop an 8,000+ sqm built-to-suit fashion logistics hub in Kimbulapitiya, six km from Bandaranaike Airport, to serve as Hellmann’s South Asia fashion hub. The facility features dual-zone humidity/climate control, solar panels and scalable regional distribution capabilities.

The Cabinet approved plans to draft Sri Lanka’s first inbound labour migration policy to regulate recruitment and oversight of foreign skilled and semi-skilled workers; a Steering Committee will be appointed to prepare the draft framework to address sectoral labour shortages and centralise monitoring.

China Harbour Engineering Company (CHEC) topped out the main structural works for 112 housing units at the Maharagama site on 12 May 2026, part of a China-funded 1,996-unit affordable housing development in Colombo; interior finishing and installation work will follow.

Hatton National Bank PLC (HNB) has partnered with Diesel & Motor Engineering PLC (DIMO) to provide tailored leasing solutions and special leasing rates for heavy machinery. HNB General Insurance will offer discounted machinery insurance and customers get a waived first-year credit-card annual fee.

Prime Melwa Port City has formally commenced its marina-front residential development and sales at Port City Colombo, promoted as 'Asia’s Global Marina Front Masterpiece'. The project is developed by Prime Group with Melwa and designed by P&T Singapore, targeting luxury waterfront living.

Dr. Saman Mahawatta was appointed Director/Chief Executive Officer of Prime Constructions (Pvt) Ltd and seconded as CEO of Prime – Melwa Port City (Pvt) Ltd. Prime Constructions, established in April 2023, has achieved CIDA C1 grade and ISO 9001:2015 certification.

John Keells Holdings' real estate arm reports The Offices at Cinnamon Life have achieved Colombo's highest office rents at USD 3/sq ft/month (~LKR 950/sq ft/month) with potential investor yields up to 8%, driven by strong demand for integrated premium office space.

Groundworth (Pvt) Ltd launched "The Infinity", a 19-plot premium land development in Piliyandala–Polgasowita with prices from LKR 1.2 million per perch. The site is 500m from Colombo–Horana Road and 1.5km from the Kahathuduwa interchange, pitched for residential demand and connectivity.

Emirates has broken ground on a US$5.1 billion, 1.1 million sqm engineering MRO complex at Dubai South that can service 28 wide-body aircraft simultaneously and targets LEED Platinum, with construction due for completion by mid-2030.