News & market updates

The Seafood Exporters’ Association urged the government to prevent the anticipated resumption of illegal Tamil Nadu trawler incursions around 15 June, warning they will damage marine ecosystems, deplete seafood stocks, harm export competitiveness and coastal livelihoods.

The Ceylon Chamber warned that a proposed 12.5% US labour-related tariff on Sri Lankan exports could hurt competitiveness and urged urgent high-level engagement; apparel and tea exports fell 7% and 6% respectively in the first four months of 2026.

EDB and NMRA met with pharmaceutical manufacturers in Colombo to address export barriers, citing delays in product registration and regulatory approvals as key constraints to boosting exports. They committed to aligning processes with international benchmarks to support Sri Lanka's $36bn export target by 2030.

EU-funded capacity-building programme to accelerate Eco-Industrial Park practices in Sri Lanka has been launched, targeting over 1,100 stakeholders including ~25 policymakers, 32 park operators, 475 tenant industries and 640 community members. Training covers policy, green finance, environmental management and industrial symbiosis, delivered via virtual and in-person sessions through July.

Pink Eagle Holdings is consolidating as a diversified Sri Lankan conglomerate, expanding globally across tea exports, logistics, food manufacturing, hospitality and digital retail. Milestones include Continental Tea/ADRA Ceylon's 10th anniversary, the Avanti freight app launch, and new food-manufacturing and retail initiatives.

Commercial Bank of Ceylon PLC co‑organised an EDB awareness seminar on export procedures, costing/pricing and financial facilities in Kurunegala on 27 May 2026, attended by 59 SMEs and 16 Export Development Officers. The session covered export documentation, pricing strategies and bank financing options for exporters.

SLCGE presented a proposal on 28 May 2026 to establish the SLCGE Design Hub, a centralized platform to showcase SME apparel manufacturers and connect them directly with international buyers to boost exports. The Industry and Entrepreneurship Development Deputy Minister responded positively to the proposal.

Ceylon Chamber warns the US has proposed a 12.5% labour-related tariff on Sri Lankan exports, which could weaken export competitiveness; apparel and tea exports were down 7% and 6% respectively in the first four months of 2026.

Oil prices fell after Israel and Lebanon agreed a ceasefire, with Brent down $1.14 to $96.67 and U.S. WTI down $0.90 to $95.12. The ceasefire raised hopes of wider de‑escalation and reopening the Strait of Hormuz, while U.S. crude stocks fell 8 million barrels and Chinese demand slowed.

JAT Holdings (JAT.N0000) recorded highest-ever annual revenue of Rs. 12.6 billion in FY25/26 and profit before tax rose 5% to Rs. 1.68 billion, with gross profit up 21% to Rs. 4.8 billion. Performance was supported by the acquisition of Mirotone, a 76% increase in binder plant capacity, improved margins, and growth in its EV charging and decorative paints businesses.

Sri Lanka is among 60 countries the U.S. has included for a new import tax over failures to enforce a ban on goods made with forced labour, a move that could hit exporters — the U.S. takes ~22% of Sri Lankan exports, led by garments.

Sri Lanka has been placed in the higher 12.5% tier of a proposed US Section 301 duty regime targeting goods made with forced labour, prompting JAAF to warn of competitiveness risks for apparel exporters versus rivals facing a lower 10% rate. USTR hearings are set for 7 July; written submissions due 6 July.

JAT Holdings posted record group revenue of Rs. 12.6 billion in FY25/26 (up 9% YoY) with gross profit rising 21% to Rs. 4.8 billion and PBT up 5% to Rs. 1.68 billion, driven by stronger margins, local sales growth and expansion into EV charging and international markets.

Pelwatte Dairy commissioned Sri Lanka's largest dairy effluent treatment plant at its Buttala facility, with a base capacity of 250 m³/day and peak capability up to 325 m³/day. The plant meets CEA standards and ISO 14001-aligned practices to support environmental compliance and export market access.

The US has announced new 10–12.5% tariffs on imports from 60 trading partners over forced-labour concerns, a group that accounts for about 99.4% of US imports. The measure follows an investigation finding the countries failed to prohibit or enforce bans on goods made with forced labour.

Bangladesh has requested a new IMF-supported financial arrangement to support its reform program; IMF staff will engage with authorities, plan a visit to assess developments, and negotiate the size and reform commitments of any successor program.

President’s Special Envoy for Foreign Investment Hanif Yusoof met US Under Secretary Jacob Helberg in Washington to promote US investment in Sri Lanka, highlighting opportunities in ports, logistics, energy and data centres.

Eswaran Brothers Exports launched a six-month "She Transforms" women's leadership programme; within six months 20 women were promoted (a 2.4-fold increase versus the prior year) while male promotions also doubled, with reported improvements in leadership capabilities.

Commercial Bank of Ceylon PLC co-hosted an EDB awareness seminar on export procedures, costing & pricing and financial facilities in Kurunegala on 27 May 2026, attended by 59 SMEs and 16 Export Development Officers. Sessions covered export documentation, pricing strategies and banking support for exporters.

A 102.40‑carat unheated Sri Lankan sapphire, the “Peacock of Ceylon,” sold for CHF 1.55 million (approx. $1.75m) at Sotheby’s Geneva auction, above the CHF 1–1.5m estimate, underscoring strong international demand for untreated Ceylon sapphires.

Pyramid Wilmar aims to double its turnover in the next five years from around $250 million by expanding FMCG product lines and boosting local manufacturing and value addition. The group — a 50:50 JV with Wilmar International — also holds interests including Watawala Plantations and has invested close to $1bn to date.

CIC Holdings PLC reported PAT of Rs. 8.25 billion for FY26, up 24.5% YoY, on consolidated revenue of Rs. 91.75 billion (+10.16% YoY) and EPS of Rs. 3.64. Crop Solutions remained the largest revenue contributor (≈40.8%) while Agri Produce was hit by Cyclone Ditwah.

Export Development Board will expand testing and certification facilities islandwide to boost export competitiveness, planning to modernise provincial labs, utilise underused facilities, pursue public–private partnerships and digital certification; next step is mapping exporter needs and provider capacities.

Haycarb PLC signed an agreement with the BOI for an $18.18m expansion of its Energy Storage Carbon manufacturing operations. The company reported FY26 pre-tax earnings of Rs. 5.52bn and post-tax Rs. 4.27bn, is developing a Philippines facility (phase 1 by H1 2027), and its shares rose 3% yesterday.

Container Transport Owners Association increased container transport charges by 5% effective 1 June, citing higher fuel costs after the Ceylon Petroleum Corporation raised fuel prices on 31 May. The move will raise logistics costs for importers and exporters nationwide.

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.

Sampath Bank will open a branch in Colombo Port City offering services in rupees and 16 designated foreign currencies and a tailored digital/tax/treasury platform for CPC companies. It is the second commercial bank in CPC after Commercial Bank opened a branch last month.

Yasas Hewage assumed duties as Chairman of the Industrial Development Board on 1 June 2026. He brings nearly 20 years of experience in banking, finance and entrepreneurship and said Sri Lanka's industrial transformation should draw on past strengths while embracing technology, innovation and sustainability.

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.