News & market updates

The IMF completed its combined Fifth and Sixth reviews under Sri Lanka's EFF and released US$695m, bringing total IMF disbursements to US$2.4bn. The IMF cut 2026 growth to 3.0% and warned that higher fuel costs, a sharp drop in tourism and cyclone damage have flipped the current account to a projected 0.5% of GDP deficit.

Shashel Lanka Manpower was awarded the 'Platinum Excellence in Ethical Overseas Recruitment & Workforce Solutions' award at the Platinum Excellence Awards 2026 on 5 April 2026, recognising its ethical overseas recruitment and workforce solutions. The Negombo-based agency supplies workers to construction, hospitality and healthcare sectors.

Vibhawa Consultants announced Malki Madapatha as Sri Lanka’s first female Level 2 Certified Infrared Thermographer (IRISS, USA), strengthening the firm's in-house thermography capabilities used for predictive maintenance across power, hospitality and renewable-energy sectors.

LOLC Holdings PLC reported a 49% increase in results from operating activities to Rs.71.5 billion for FY2026. Gross income rose 28% to Rs.430.3 billion, with the financial services segment contributing Rs.51.7 billion and strong gains across manufacturing, plantations and insurance.

Hayleys PLC agreed to sell its Maldivian subsidiary Luxury Resort (Pvt) Ltd to Bohemia Luxury Resort for USD 17.25m. The group recognised impairment losses of LKR 6.9bn and a LKR 1.23bn loss from discontinued operations, with assets held for sale of LKR 6.05bn.

Uva Greenlands Estate (Vella Group) signed a USD 5.1 million BOI agreement to expand 98 Acres Resort & Spa in Ella, a two-phase project over 36 months expected to create about 150 direct jobs. This is the group's second BOI tourism project following the Ravana Pool Club.

Sri Lanka's tourist arrivals exceeded 1.01 million through 28 May, crossing the 1 million mark on 28 May. May saw 134,530 arrivals (up 12% YoY), India was the top source, and about 2 million more visitors are needed over the next seven months to hit the 3 million target for the year.

Sri Lanka's current account slipped into a $532.4m deficit in April, erasing the Q1 surplus and leaving a $0.9m deficit for Jan–Apr, driven by a sharply widened trade gap (imports +45.7% YoY) and weaker tourism amid higher fuel spending; reserves stood at ~$6.8b and IMF review released about $695m.

Ceylon Chamber welcomed IMF approval of the combined 5th and 6th EFF reviews, unlocking about $695m in financing, and urged continued reforms to preserve macro stability amid external pressures from the Middle East. It called for a digital fuel QR system, clearer policy communication, and accelerated reforms to boost competitiveness in trade, tourism, logistics and digitalisation.

Pink Eagle Holdings (Pvt) Ltd is expanding its diversified group globally across tea exports, logistics, food manufacturing, hospitality and digital retail, highlighting Continental Tea's ADRA Ceylon 10th anniversary and launches such as the Avanti freight app and Pink Panda marketplace.

Sri Lanka's current account moved into a deficit in April 2026, driven by a wider trade gap from higher fuel (US$886m in April) and vehicle imports and weaker tourist earnings; the Jan–Apr trade deficit rose to US$3.7bn from US$2.3bn a year earlier. Gross official reserves were about US$6.8bn and the rupee had depreciated 5.4% YTD by end‑May.

John Keells Holdings reported a 218% rise in quarterly profit to LKR 6.31 billion for the quarter ended March 31, 2026, with revenue up 62% to LKR 144.89 billion, driven by retail, transportation and leisure; a final dividend of LKR 0.10 per share was announced.

The Ceylon Chamber of Commerce welcomed IMF approval of Sri Lanka’s 5th and 6th reviews, unlocking about USD 695 million under the EFF, and urged continued engagement and structural reforms to preserve macro stability, support investor confidence and address exchange-rate and energy pressures.

German business and government officials at the Sri Lankan‑German Business Forum 2026 said Germany views Sri Lanka as a strategic Indo‑Pacific partner and urged faster reforms and policy consistency to unlock investment in logistics, renewable energy, infrastructure and tourism.

SLPA expects up to $2 billion of port-sector investment over the next 1–3 years as Colombo Port faces a capacity crunch; the ECT next year will raise Colombo capacity to 14m TEUs and Hambantota will add 2m TEUs. SLPA also plans EOIs for a 14-acre logistics hub and PPP projects including WCT II, Colombo North Port and marina/tourism developments.

Ceylon Chamber of Commerce welcomed IMF approval of the 5th and 6th EFF reviews, enabling Sri Lanka to access about USD 695 million, and urged continued reform momentum to preserve macroeconomic stability amid external pressures. It reiterated measures including optimizing the fuel QR digital platform, clearer policy communication, and accelerating reforms in trade, tourism, logistics and digitalisation.

The Board of Investment launched the 'Ready to Invest' digital platform showcasing 30 pre-structured, shovel-ready projects across eight priority sectors to attract international capital. BOI says USD 1.9bn of approved projects are ready to break ground, with a further USD 1.4bn in the pipeline.

Dividend · Rs 0.28 · XD Jul 1, 2026

First And Final dividend of LKR 0.28/share; XD 2026-07-01; record 2026-07-01; payable 2026-07-20; FY 2025/2026

Colombo Stock Exchange ASPI rose 0.50% to 22,310.80, with diversified financials leading turnover at Rs.3.89bn and total turnover Rs.7.38bn. Aitken Spence reported Q1 profit of Rs.3.81bn and declared a tax-exempt Rs.4.00/share dividend; Aitken Spence Hotel Holdings declared a Rs.0.28/share tax-exempt dividend.

Sun Siyam Pasikudah has launched a 400 sq ft, solar-powered floating dining platform (the Aqua Lounge) in Pasikudah Bay, billed as the only ocean-facing floating fine-dining venue on the bay and east coast. The platform emphasizes sustainability and community outreach as part of the resort's wider programmes.

Comfort World has repositioned from a traditional bedding manufacturer into a science-led sleep and wellbeing company, expanding into hospitality, healthcare and international markets while launching Sleep Technology and Experience Centres to provide personalized sleep solutions.

Emirates Skywards launched a global 'Season of Rewards' campaign running to 31 August 2026 offering 20% bonus Tier Miles, enhanced Cash+Miles (e.g. 2,000 Miles = USD30), and up to 50% bonus Miles with partner airlines, hotels, car rentals and holiday packages.

Cinnamon Life at City of Dreams Sri Lanka will host 'An Italiano Culinary Affair' by Chef Stefano Maria La Penna from 2–7 June 2026 at Bistro Des Marées, featuring a curated à la carte Italian menu and a special Italian National Day celebration on 2 June.

LG Electronics opened its first LG Business Innovation Centre at Abans Elite in Colombo on 14 May 2026, a dedicated hub for commercial information displays and AV solutions. The centre showcases integrated solutions (video walls, digital signage, Pro TV and management software) for retail, hospitality, healthcare and transport and is open for demos.

Indian CEO Forum re-elected Kishore Reddy as president at its AGM and reaffirmed commitment to deepen India–Sri Lanka business ties; Indian High Commissioner Santosh Jha urged investment, an upgraded FTA and cooperation across tourism, IT, infrastructure, manufacturing and services.

Eight Sri Lankan cocktail bars will stage a two-part showcase in Bangkok on 29 May and 3 June, taking over The House on Sathorn and Anantara’s Aqua Bar. The events will spotlight indigenous ingredients and contemporary Sri Lankan bar culture for international audiences.

The Shoppes at City of Dreams Sri Lanka will host World Oceans Day events on June 6-7 with The Pearl Protectors, featuring children's workshops (Reef Builders, Tide Pool Crew, Deep Reef Crew) and an art competition; entries for the competition close May 31.