News & market updates

The Central Bank of Sri Lanka now requires exporters to convert any residual foreign-currency export proceeds into rupees by the 10th day of the month following receipt under amended Repatriation of Export Proceeds rules. The change replaces the 90-day window and is intended to support FX liquidity amid recent rupee pressure.

Frontier Research says Sri Lanka is better placed to absorb a potential El Niño due to stronger fiscal and external buffers, but warns of short-term pains. It cites an 80% chance of El Niño in June–August 2026 (over 90% through November) and warns disruptions to agriculture, energy and supply chains that could raise inflation.

CBSL cut the foreign-currency conversion window for merchandise exporters from three months to one, prompting a stronger rupee (USD buying rate fell from Rs.332.38 to Rs.324.66; selling from Rs.342.08 to Rs.335.39).

Sri Lanka's central bank cut exporters' dollar conversion extension to 30 days and the rupee strengthened to about 332/334 (intraday low 328.00 from 336.50). Short-term government bond yields traded lower, with a 15.12.2029 bond at 11.95/12.15% and a 01.08.2030 quote at 12.20/30%.

Sri Lanka's central bank cut the mandatory conversion period for exporters' foreign-currency receipts from 90 days to 30 days, requiring conversion by the 10th of the following month. The rule is intended to generate predictable monthly dollar inflows to banks to ease FX shortages and help stabilise the rupee, while tightening exporters' working-capital flexibility.

Sri Lanka's Central Bank ordered exporters to convert export dollar proceeds within one month (down from three) effective immediately to curb rupee depreciation. The move follows a $211m defence of the currency in May and a 100bp overnight policy rate hike on May 26.

CBSL's new 'Repatriation of Export Proceeds into Sri Lanka Rules No.2 of 2026' requires exporters to convert all residual foreign exchange proceeds on or before the 10th day of the month following receipt, shortening the previous three-month window; the rule takes effect after Parliamentary approval and preserves limited authorized uses and a 10% cap for investment in government FX debt.

The Sri Lanka–Thailand Business Council marks its 25th anniversary in 2026, holding a silver-jubilee event on 19 June at The Kingsbury Hotel with a 25-member Board of Trade Thailand delegation attending. The council highlights continued efforts to boost trade, investment and cooperation across tourism, logistics, healthcare, renewable energy and IT.

Sri Lanka's cabinet approved a proposal for the Legal Draftsman to draft a bill amending the Customs Ordinance to restructure and modernize Sri Lanka Customs. A steering committee spent about seven months producing detailed recommendations after consulting importers, exporters and other stakeholders.

Sri Lanka's BOI and Japanese partners held the 4th working-level Japan–Sri Lanka Committee on Business Environment on 2 June 2026 in Colombo to review and resolve investor concerns and strengthen FDI ties. The session stressed accountability and priorities such as technology transfer, green industry, manufacturing and tourism.

The IMF approved Sri Lanka’s combined Fifth and Sixth Reviews on 28 May 2026, releasing SDR 508 million (~US$695m) and bringing total EFF disbursements to SDR 1.778 billion (~US$2.4bn). The Fund said stabilisation has improved revenues, growth and reserves but warned debt sustainability remains “very high” and key structural reforms (electricity, public financial management) are unfinished.

The IRD has begun Phase II of Sri Lanka's Digital Invoicing System, expanding the platform to VAT-registered businesses after Phase I onboarded more than 340 companies; technical documentation has been shared with 27 export-oriented firms and 170 manufacturers, and Phase III POS integration is planned by year-end.

Kishore Reddy was re-elected president of the Indian CEO Forum at its AGM, where the Forum reaffirmed commitment to deepen India–Sri Lanka economic cooperation and urged upgrading the FTA to boost investment in infrastructure, tourism, IT, logistics and services.

The Ceylon Chamber will hold the 26th Sri Lanka Economic and Investment Summit on 12–13 October, focused on economic growth, competitiveness, investment and structural reforms. Sessions will cover trade and regional integration, energy security, digital transformation and healthcare.

Peterson Solutions Sri Lanka opened a new corporate office at Orion City, Colombo on 5 June 2026. The move reflects local growth—the consultancy, part of Peterson and Control Union Group, says it now serves 170+ Sri Lankan clients and is expanding services in sustainability, crop consultancy and digital solutions.

Sri Lanka's workers' remittances rose 36.2% YoY to $847m in May, and pushed January–May inflows above $3.9bn, bolstering foreign exchange reserves and macro stability. May marked the fifth consecutive month of strong growth and was second only to the Dec 2025 record.

US President Trump signed the 'Strengthening Customs Enforcement' Executive Order giving CBP new authorities to require detailed importer ownership/supply-chain data, tighten broker due diligence, raise bond minimums and revoke importing privileges for non-compliance.

Cabinet approved 77 Businesses of Strategic Importance for the Colombo Port City SEZ, including three Primary BSIs (Prime Melwa, Marina Hotel Holdings, Home Lands); land/development costs are ~Rs125bn (incl. ~US$262m) and Secondary BSIs are projected to bring ~US$364m and ~10,000 jobs over five years.

Fitch cut its 2026 global growth forecast by 0.2pp to 2.4% and raised its 2026 Brent crude assumption to USD87/bbl (from USD70/bbl) due to an oil shock from the US–Iran war. Strong IT-related investment is partly cushioning the hit, while central banks’ policy paths have shifted with rates expected to hold this year and cuts delayed until 2027 in some cases.

The Ceylon Chamber of Commerce will hold the 26th Sri Lanka Economic and Investment Summit on 12–13 October 2026. The Summit will focus on economic growth, investment, trade, fiscal and structural reforms, energy security and sustainability, healthcare, and digital transformation.

The Ceylon Chamber of Commerce will hold the 26th Sri Lanka Economic and Investment Summit on Oct 12-13 to focus on pressing national priorities including economic growth, investment, trade, fiscal and structural reforms, energy security, healthcare and digital transformation.

A 16-member Sri Lankan delegation of export-oriented food and beverage firms attended THAIFEX – Anuga Asia 2026 in Thailand (24–31 May) to showcase products and pursue trade and investment opportunities. The program included a Sri Lanka pavilion, factory visits and meetings with Thai industry bodies for technical exposure and capacity building.

Finance and Planning Deputy Minister Dr. Anil Jayantha Fernando said recent rupee depreciation — from about Rs.331.50/332.50 on Monday to Rs.336.00/338.00 on Friday — was driven by market forces, higher global fuel prices and FX demand, and denied it signals a broader economic crisis.

The Board of Investment extended the deadline for its green hydrogen and ammonia RFI to 19 June (from 5 June) to gather investor proposals. The RFI requests financial, technical, land, power and water details to assess feasibility of large-scale export-oriented green hydrogen projects and related infrastructure.

EU-funded UNIDO project has revised Sri Lanka’s National Green Reporting System guidelines, aligning them with GRI standards to help public and private organisations better measure and report ESG data. The updated NGRS aims to improve transparency, compliance with global requirements and access to international markets.

EU supported the launch of Sri Lanka’s revised National Green Reporting System Guidelines, aligned with GRI standards and officially launched by President Anura Kumara Dissanayake. The voluntary framework aims to strengthen ESG reporting and transparency across manufacturing, commercial and service sectors to help firms meet global market requirements.

Ceylinco Life signed an MoU with FTZMA to be the insurance service provider for FTZMA member companies, offering customised employee health and retirement plans; Ceylinco Life and Ceylinco General will also be FTZMA AGM gold sponsors for three consecutive years starting 2026.

Deputy Finance Minister Anil Jayantha said Sri Lanka's rupee is returning to a normal state through market forces, with the Central Bank's buying rate between 320–330 after a near four-year low of 354; he cited export, tourism and remittance inflows and interventions stabilising fuel-driven fluctuations.

Oil prices edged down after Oman said operations at Mina al Fahal port were proceeding normally; Brent was $94.79/bbl and U.S. WTI $92.48/bbl, with both contracts set to post their first weekly gain in three weeks amid Middle East tensions.