News & market updates

Colombo Port handled 761,096 TEUs in April 2026, a 22% year-on-year rise, with Jan–Apr throughput up 13.9% to 2,915,004 TEUs. The SLPA plans to invite EOIs this year for Phase II of the West Container Terminal to add over 3m TEU capacity, and an ADB-funded National Port Master Plan is due within a year.

Private sector credit rose by Rs. 258.4 billion M-o-M to Rs. 10.7 trillion in March (2.5% M-o-M) and expanded 27.1% YoY. Domestic banking units accounted for most of the increase, and the CBSL expects credit momentum to continue in 2026 though it may moderate amid geopolitical risks.

RIUNIT hosted 'Driving Growth Through Real Estate: 10 Year Plan' at the Port City Sales Gallery on 5 May 2026 to launch a decade-long roadmap to attract international real estate investment. The forum, sponsored/attended by major developers including Prime Group and RIL Properties, focused on Port City, affordability and sector synergies.

Macktiles Lanka opened a new showroom at 236, Main Road, Attidiya, Dehiwala on 24 April 2026. The outlet debuts new product lines including a 4x2 range, Batik, Junior and Green series and implements technology-driven customer tailoring with ISO 14001:2015-certified processes.

Colombo Port City officials will travel to Dubai on June 11 to meet investors as they seek further foreign investment into the Colombo Port City economic zone.

Lanka Realty Investments (ASCO.N0000) reported FY26 pre-tax profit of Rs.2.92 bn, total assets of Rs.29.7 bn and NAV per share of Rs.51.40, driven by fair value gains and a value-accretive 51% acquisition of Lee Hedges; the enlarged portfolio and lower LTV support stronger recurring income.

HNB PLC signed an MoU on 12 February 2025 to provide exclusive home-financing solutions for buyers of the 447-unit 447 Luna Tower residential development by Union Place Apartments (Belluna Lanka). The completed Colombo 02 project is ready for immediate occupancy.

The Cabinet designated six firms as Businesses of Strategic Importance under the Colombo Port City Economic Commission, expected to attract $14.6m in FDI over five years and create about 650 jobs. The firms will operate across IT, logistics, consultancy, public utilities, infrastructure and maritime technology and receive incentives under the law.

Cabinet approved Prime Melwa Port City Ltd and Home Lands Port City Ltd as primary Businesses of Strategic Importance, enabling $278m of combined investment to build luxury residential towers in Colombo Port City. Prime Melwa will invest $127.6m and Home Lands $150m, with about 1,170 jobs expected.

Cabinet approved moving ahead with procurement for five sub-projects under the $250 million ADB-funded Climate-Resilient Sustainable Water Supply and Sanitation Project. Planned works include upgrades to Ambatale and Jubilee water systems, a Kolonnawa non-revenue water initiative, a 20,000 m3 Lunugamvehera scheme and Jaffna wastewater management.

Sri Lanka and South Korea signed debt-restructuring amendment agreements covering 18 EDCF concessional loans totaling about $267 million. The move supports Sri Lanka's broader external debt restructuring and helps sustain development financing for ongoing infrastructure projects.

China has retooled its Belt and Road Initiative, with deals linked to the programme reaching a record $213 billion in 2025. The revamp emphasizes smaller projects, greater equity stakes (about 40% by 2025) and 'soft connectivity' to export standards, services and digital systems abroad.

Minoli Wickramasinghe, CEO/Chairperson of Capital Trust Properties, was appointed President of the COYLE Ladies Chapter for 2026–2027. She will lead the 'Sip Shakthi' initiative to uplift rural schools by improving basic infrastructure, sanitary facilities, learning resources and introducing digital education tools.

The Ceylon Chamber of Commerce will host a one-day Mineral Sands Technical Conference on 17 June at the Galle Face Hotel, Colombo, in partnership with Mineral Technologies Australia, to discuss exploration-to-market development, ESG, and investment readiness for Sri Lanka's mineral sands sector.

Sri Lanka and South Korea exchanged signed debt restructuring amendment agreements for 18 EDCF loans totaling about USD 267 million at the 2026 EDCF Policy Dialogue. Delegations reviewed ongoing infrastructure projects, discussed extending the 2018 EDCF Framework Arrangement, and signed a Minutes of Dialogue to guide future cooperation.

Cabinet approved two contracts totaling Rs. 2,025.97 million to rehabilitate 25.63 km of the Colombo–Galle–Hambantota–Wellawaya Road (A002). A 13.3 km Kamburugamuwa–Dewinuwara section was awarded to RR Construction Ltd for Rs. 1,207.74m and a 12.33 km Talalla–Kudawella section to Rathna‑Suhada JV for Rs. 818.23m.

Cabinet approved land acquisition for the long-delayed Kelani Valley railway modernisation (Maradana–Avissawella). Funds have been allocated to identify and acquire land across seven divisions and to compensate and relocate affected households.

Cabinet approved obtaining ADB transaction advisory services for the 150 MW Kondachchi wind power project, with ADB providing end-to-end support and $1.2m in advisory services funded as a grant. The project will include a 150 MW wind farm with advanced battery storage to provide firmed power to the grid.

Tempest PE Partners completed three deals: a minority investment in Acentura (enterprise software), a majority acquisition of The Grand Surf Hotel (leisure/beach club) and a RM30m raise for Malaysian-listed PTT Synergy to scale smart warehousing. Tempest will play an active advisory role supporting governance, KPIs and regional expansion.

Sri Lanka and the Maldives pledged deeper economic cooperation at the Maldives–Sri Lanka Business Forum in Colombo, with Maldives announcing investment‑friendly reforms and leaders urging expansion of bilateral trade (US$137m in 2025), tourism, infrastructure and sector partnerships.

Sri Lanka's construction PMI eased to 57.1 in March 2026 from 70.3 in February, remaining in expansion, the central bank said. Firms reported limited fuel and raw materials, rising costs and logistics delays tied to the Middle East conflict, while new orders, hiring and purchases rose.

Hambantota International Port hosted senior representatives from CMA CGM and Evergreen to discuss potential new container services as carriers reassess routes amid Middle East instability. HIP has expanded container yard capacity and handling equipment, but no formal service announcements have been made.

Beruwala Resorts PLC has closed The Palms Hotel Beruwala from May 1 until August 30, 2026 for refurbishment and operational upgrades and expects to reopen on September 1, 2026. The board said the closure is not expected to have a material long-term impact and cost management measures will be applied.

The Sri Lanka Construction PMI (Total Activity Index) was 57.1 in March 2026, indicating continued expansion at a slower pace. Respondents reported fuel and raw-material shortages, rising costs and transport delays linked to the Middle East conflict, while new orders, hiring and purchases continued to rise.

City of Dreams Sri Lanka is a USD 1.3 billion, 4.5 million sq ft integrated luxury resort developed by Melco Resorts and John Keells, combining Nüwa (113 rooms) and Cinnamon Life (687 rooms) with major entertainment, retail and MICE facilities to strengthen Colombo's tourism offering.

AHC Group signed an MoU with the Asia Africa Chamber of Commerce and Industry to attract investment into agriculture, tourism, real estate, mining and trade and to generate employment in Sri Lanka. AHC highlighted its vermicompost programme, a 1,000-acre seed paddy initiative and will co-host a major international business conference in August.

Overseas Realty (OSEA.N0000) reported group revenue of Rs. 3,292 million and group PBT of Rs. 1,926 million for the quarter ended 31 March 2026. Higher rental rates and occupancy lifted WTC, Mireka Tower and Havelock City Mall revenues; NAV/share was Rs. 54.43 and EPS Rs. 1.47.

Sri Lanka's rupee closed at 319.75/320.00 to the US dollar, slipping below 320 as inflation reached the central bank's 5% target; the central bank intervened around 319.50 and conducted repo operations while bond yields remained broadly steady.

HNB and DIMO have formed a strategic partnership to offer tailored leasing solutions for heavy machinery (Komatsu, BOMAG, Kaeser, Everdigm, Gehl, Car Mix). HNB will provide special leasing rates, a waived first-year credit card fee and discounted machinery insurance through its group.