News & market updates

EU-funded Green Recovery Facility and the Rubber Development Department are running a capacity-building programme to prepare Sri Lanka’s rubber sector for the EU Deforestation Regulation (EUDR), including a workshop and training expected to directly train about 280 stakeholders. The initiative aims to strengthen traceability and due diligence to protect access to EU markets.

Government aims to lift gem and jewellery exports from about $300m to around $1–1.2bn by boosting value‑addition and marketing and tackling smuggling. Plans include regulatory reforms, a proposed Gem and Jewellery Experience Centre and the Gem City Ratnapura Exhibition (31 Aug–2 Sep 2026) to attract international buyers.

UK Trade Envoy Lord Hannett and British High Commissioner Andrew Patrick met Industry Minister Sunil Handunneththi to discuss strengthening bilateral trade and investment, including boosting utilisation of the UK Developing Countries Trading Scheme (DCTS) to expand Sri Lankan exports.

Renuka Agri Foods PLC was among Sri Lankan companies showcasing products at THAIFEX – Anuga Asia 2026 (26–30 May) in Bangkok as part of an EDB-organized pavilion to promote food and beverage exports.

The Ceylon Chamber of Commerce will focus on UK ties and boosting private-sector competitiveness at its 187th AGM on June 25, with UK High Commissioner Andrew Patrick delivering the keynote. Chairperson Krishan Balendra will outline progress and priorities including evidence-based policy advocacy to strengthen investor confidence.

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.

Sri Lanka Print Expo 2026 opens 19 June at BMICH and runs to 21 June, showcasing printing, packaging and digital technologies and hosting the National Print Excellence Awards on 20 June; Gestetner of Ceylon is listed as a Gold Sponsor.

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.

Hela Apparel Holdings' shares were suspended from trading on the Colombo Stock Exchange effective 18 June 2026 after its auditor issued a disclaimer of opinion for the year ended 31 March 2025. The suspension will remain until the company resolves the audit issues.

Deputy Finance Minister Anil Jayantha Fernando said the rupee’s 7% year-to-date fall, which hit a four-year low of 354 LKR on May 21, is mainly driven by speculation and false information. The Central Bank used $211.3m of reserves in May, hiked the OPR 100bp to 8.75% and shortened the exporters' dollar-conversion window to 30 days.

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.

Lakarcade was appointed as a National Entity Member of the World Crafts Council AISBL, giving the company formal membership in an international network for craft practitioners. The membership enables Lakarcade to participate in global craft development initiatives, exhibitions and representation of Sri Lankan artisans.

Kapruka Holdings (KPHL.N0000) reported full-year Profit Before Tax of LKR 37.56m, a 132% turnaround, and quarterly PBT rose 160% to LKR 22.25m. Management attributes the improvement to AI-driven automation, marketplace growth, cross-border USD sales and plans to convert its delivery fleet to EVs.

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.

Kapruka Holdings PLC (KPHL.N0000) returned to profitability for the year to 31 Mar 2026 with PBT of Rs.37.56m on revenue of Rs.1.92bn, and quarterly PBT of Rs.22.25m (up 160% YoY) as revenue grew 19% QoQ. Management credits AI-driven platform, marketplace expansion and cross-border USD sales, plus EV fleet conversion, for improved margins.

UK Trade Envoy Lord Hannett will visit Colombo 17–19 June 2026 to hold talks with government ministers and business leaders to deepen UK–Sri Lanka trade and investment ties and promote use of the UK's Developing Countries Trading Scheme zero-tariff access for Sri Lankan exports. He will engage with exporters including the apparel sector, UK firms operating locally, and stakeholders in clean energy, retail, manufacturing and technology.

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 Foreign Affairs, Foreign Employment and Tourism Ministry hosted an Economic Diplomacy networking reception on 8 June to connect diplomats, government and the private sector to promote trade and attract quality investment. About 100 participants attended and ministers pledged support to facilitate partnerships and investment opportunities.

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's cabinet approved a $100m top-up to an Asian Development Bank loan, raising the Sub-Programme 1 allocation for trade, investment and industries development to $200m. The government said the increase responds to economic uncertainty from the Middle East crisis and recent climate disasters.

Alumex PLC has installed a new 20 MN, 7-inch aluminium extrusion line at its Sapugaskanda plant, expected to exceed 1,000 kg/hour and monthly output over 2,000 tonnes. The Industry 4.0 line includes AI/IoT production controls and is projected to cut energy use 30–40%, boosting yield and export capability.

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.

Fitch Ratings warns the developing El Niño, likely to persist into early 2027, raises the risk of economic disruption for vulnerable sovereigns by intensifying fiscal, growth, inflation and external liquidity pressures. It could also harm crop yields and lift global food prices, worsening inflation risks.

Sri Lanka and India are exploring converting their roughly $6 billion bilateral trade to rupee-to-rupee settlement, with RBI and CBSL measures allowing Indian bank branches in Colombo to lend in INR and Sri Lankan banks to borrow INR to reduce dollar dependence and transaction costs.