News & market updates

Cabinet approved cancellation of the Korean-funded Medical Equipment Division Development Loan Project and will seek funding from the Korean EXIM Bank for a feasibility study to re-establish Matara General Hospital at Kaburugamuwa. Officials cited implementation constraints and said the study will align with the Matara urban development plan.

India and the EU agreed a free-trade deal creating a two-billion-person free-trade zone covering about 25% of global GDP, with tariffs on 96.6% of EU goods to India to be eliminated or reduced. The pact aims to boost sectors including machinery, chemicals, pharmaceuticals, cars and consumer foods and is expected to double EU exports to India by 2032.

India and the EU have concluded negotiations on a proposed free trade agreement, likely to be announced today, aimed at boosting bilateral trade and investment. The pact is expected to cut duties on labour‑intensive and key sectors (textiles, chemicals, gems & jewellery, electrical machinery, leather, footwear and pharmaceuticals) and is presented as a political signal against rising tariffs.

Yaden Laboratories signed a BOI agreement to establish Unit II in the Katunayake EPZ with an estimated $25 million investment to add lyophilized vials and liquid injectable manufacturing. This expansion follows Unit I (started Oct 2022), which supplied 6.5m liquid injectables locally and began sterile formulation exports.

President Trump said he is increasing U.S. tariffs on South Korean imports (autos, lumber, pharmaceuticals) from 15% to 25%, with timing unclear; South Korea's KOSPI and the won fell on the news.

APIIT Sri Lanka, in partnership with the University of Staffordshire, is offering a BSc (Hons) Biomedical Science fully deliverable in Sri Lanka, claiming about LKR 12 million savings versus completing the degree overseas. Students can transfer to the UK and apply for a 1.5-year post-study work visa; applications open for Jan/Feb 2026.

DIMO Healthcare supplied a range of ZEISS ophthalmic systems to the new Ninewells Eye clinic, including the OPMI LUMERA 700 surgical microscope and IOLMaster 700, to enhance diagnostic accuracy and surgical capacity.

The Sri Lanka Chamber of the Pharmaceutical Industry donated Rs. 50 million to the government's 'Rebuilding Sri Lanka' Fund to support disaster recovery and strengthen health services. The cheque was presented to the Minister of Health and Mass Media; SLCPI represents over 70 member companies covering most of the private pharma market.

IRONMAN 70.3 Colombo will be held on 22 February 2026 at Port City Colombo with Shangri‑La as host, expected to boost tourism, hotel, retail and services spending; Asiri Health is the event's official medical partner.

The Northern Province hosted the Northern Investment Summit on 21–22 Jan, where BOI chairman Arjuna Herath announced plans for a four-lane highway, Jaffna airport runway extension, Kankesanthurai port upgrade and three strategic industrial zones to attract investment. The summit highlighted priority sectors including IT, tourism, manufacturing, agriculture and healthcare and called for public–private partnerships and diaspora engagement.

Jaffna International Trade Fair (JITF) opens 23–25 Jan 2026 at Muttraweli Ground, Jaffna with over 400 stalls, building on a previous turnout of 78,452 visitors and 5,000 invited business delegates.

Janashakthi Finance PLC (BFN.N0000) appointed Indresh Puvimanasinghe Fernando as Chief Financial Officer. She has over 33 years' experience, including roles at Softlogic Holdings/Softlogic Finance and as Chief Process Officer of the Asiri Hospital Group.

The Northern Investment Summit 2026 (21–22 Jan) set out plans to transform Sri Lanka’s Northern Province into an investment hub, proposing infrastructure upgrades (a four‑lane highway, Jaffna runway extension, KKS port upgrade) and three industrial zones at KKS, Paranthan and Mankulam.

Suwasevana Hospital renewed a three-year MoU with the National Insurance Trust Fund on Jan 6, 2026 to extend Agrahara-insured government employees benefits including free admission, free OPD consultations, 20% room discounts, 10% off investigations and free ambulance up to 10 km.

Siddhalepa Ayurveda (Hettigoda Group) opened a new retail outlet at the Departure Terminal of Bandaranaike International Airport (BIA) in Katunayake. The outlet offers a curated selection of Siddhalepa products for travellers as a final pre-departure experience.

Softlogic Life (AAIC.N0000) secured a USD 15 million five-year Tier 2 loan from Norfund and OP Finnfund Global Impact Fund I to bolster capital and fund growth. For the nine months to 30 Sep 2025 it reported Gross Written Premiums of Rs.28.2bn (+29% YoY), Profit Before Tax of Rs.3.3bn and a Capital Adequacy Ratio of 298%.

The private sector minimum monthly wage has been raised to Rs. 30,000 from Rs. 27,000 (an increase of Rs. 3,000) effective 1 January. The change, under the National Minimum Wage (Amendment) Act, requires employers to base statutory payments (EPF, ETF, overtime, gratuity, maternity, leave) on the revised wage and disallows counting most allowances toward the minimum; employees can lodge complaints with the Labour Department for non-compliance.

Softlogic Life Insurance PLC secured a $15 million five-year Tier 2 loan facility from Norfund and OP Finnfund to strengthen capital and support growth. For nine months to 30 Sep 2025, GWP rose 29% to Rs.28.2bn, PBT was Rs.3.3bn and Capital Adequacy Ratio 298%.

Siddhalepa Ayurveda (Hettigoda Group) opened a new outlet at Bandaranaike International Airport's Departure Terminal in Katunayake, offering curated Siddhalepa products to departing passengers.

Hemas Holdings (HHL.N0000) announced Project Fusion, a major transformation to unify processes, digitise operations and build real-time data capabilities to accelerate decision-making and group growth. KPMG will implement the program with EY providing independent governance oversight.

Alexander Osterwalder told TiECon Sri Lanka 2026 attendees in Colombo that business models — not ideas or products — determine company success, stressing experimentation, platform-driven lock-in, subscription revenue and data/AI-powered defensibility.

Softlogic Life launched a 2026 brand campaign featuring a children’s-band version of 'E Rate Minissu' to promote national resilience and positivity; the campaign has gone viral and is gaining strong organic traction across traditional, digital and social platforms.

The BRIGHT national survey of 6,850 households (Nov 2024–Mar 2025) found that just before Cyclone Ditwah 27% of households were multidimensionally poor, 33% experienced food insecurity and 42% reported household debt.

AIA Insurance was ranked No.1 Life Insurer in Customer Excellence in the LMD Customer Service Excellence Survey 2025, based on over 3,200 online responses. The award highlights AIA Sri Lanka's customer-centric service approach and ongoing service enhancements.

LAUGFS Life Sciences, with the Medical Research Institute, launched Sri Lanka’s first public allergy-awareness wristbands to record drug sensitivities and improve emergency patient safety.

Cloud Solutions International held the Spark Tank final pitch, showcasing employee-developed healthcare solutions and naming winning teams being positioned as potential independent ventures. The event was live-streamed to Saudi Arabia and finalists received prizes and recognition.

Cloud Solutions International hosted Spark Tank: The Final Pitch, an intrapreneurship finale where employee teams presented healthcare solutions and winners received prize money and are being positioned to evolve into independent ventures. The event was live-streamed to teams in Saudi Arabia.

The U.S. Embassy pledged an additional US$2 million in humanitarian assistance for Cyclone Ditwah, bringing total U.S. support to US$4 million to aid relief and early recovery in hard-hit districts. The funding will back emergency food, water, shelter, drainage and small infrastructure repairs and livelihood support, implemented via WFP and World Vision.

Dr. Neville Fernando Teaching Hospital (NFTH) and the Colombo School of Health and Sciences (CSHS) signed an MoU making NFTH the official clinical training partner for CSHS’s NVQ Level 6 Diploma in Nursing, starting February 2026. The three-year NVQ Level 6/HND pathway includes hands-on rotations across multiple specialties and a BSc (Hons) top-up option.

Sri Lanka was ranked the most affordable retirement haven in Asia by the Annual Global Retirement Index, with retirees reporting comfortable living for about $2,200/month and some managing on as little as $1,000/month thanks to low housing, food, transport and healthcare costs.