News & market updates

Oil prices fell over $1/bbl after the US and Iran paused attacks, with Brent down $1.47 (1.66%) to $86.89 and WTI down $1.45 (1.76%) to $81.16, their lowest since July 20. Analysts warn supply risks remain as Red Sea traffic has dropped and tensions could resume.

SLPMA President Dinesh Athapaththu urged a national policy push to transform Sri Lanka's pharmaceutical manufacturing into a major export industry, calling for a multi-stakeholder task force, faster regulation and investment incentives. He outlined five strategic priorities including quality, innovation, skills collaboration and building a supporting pharma ecosystem.

Hambantota International Port Group said the port handles over 50,000 vehicles, with about 1,278 stored over three months and 581 over a year, and clarified its free storage rules (10 days for imports, 21 days for transshipments) while urging timely clearance.

The Consulate General of Sri Lanka in Milan and partners held a Business Forum on 9 July to promote Sri Lanka Expo 2027 and present trade and investment opportunities to the Italian business community. Government speakers highlighted investor-friendly policy reforms and Sri Lanka's manufacturing/export strengths.

Intex-InMac Sri Lanka 2026 will run at BMICH, Colombo from 5-7 August 2026, featuring 250+ exhibitors and an InMac technology showcase of garment machinery, AI-enabled systems and factory automation to drive textile sourcing, exports and manufacturing productivity.

Talawakelle Tea Estates' Somerset estate sold a single lot for Rs. 3,050/kg in March 2025, the highest price for the region. The estate also generated 3,622,254 kWh from its 1,100 kW hydro plant in FY2025/26 and has introduced digital weighing, cloud monitoring and drone fertiliser use.

The Sri Lanka Economic & Investment Summit 2026 will convene government, policymakers, businesses, investors and international experts in Colombo on Oct 12-13 to discuss the country's economic outlook, reform agenda and investment and export opportunities.

Agro Green Harvest Cultivation (Pvt) Ltd won the Platinum Excellence in Agricultural Impact & Rural Development Award on 5 April 2026, recognising its contributions to sustainable agriculture and rural empowerment. The company operates across coconut husk chips, crop cultivation, compost, livestock and exports fruits, vegetables and spices.

Pussalla Agri Ventures (Pvt) Ltd won the Sustainable Agriculture Infrastructure Award at the Sri Lankan Sustainability Awards 2026 for its sustainable organic cinnamon production and integrated farm-to-packaging value chain. The company holds EU Organic, USDA Organic, SL-GAP, Food GMP and Cosmetic GMP certifications and emphasises soil conservation, biodiversity and traceability.

Alumex PLC has deployed four AI and IoT-enabled innovations — including a new AI/IoT extrusion line, Golden Batch extrusion digitisation, a scrap optimisation tool, an AI knowledge hub and IoT energy monitoring — to boost export competitiveness, efficiency and sustainability.

The National Intellectual Property Office (NIPO) said Sri Lanka has not yet received an application to register Ceylon Tea as a Geographical Indication (GI). NIPO urged producer bodies to organise for GI registration, noted only Ceylon Cinnamon has GI status, and said Sri Lanka is pursuing accession to the Lisbon Agreement to strengthen recognition.

SLAMERP welcomed the USTR's decision to apply a 10% U.S. tariff to Sri Lankan rubber products under Section 301, saying it preserves exporters' competitiveness. The rate was reduced from earlier proposed 44%/30%/20% following sustained government engagement with U.S. authorities.

Registrations are open for the Sri Lanka Economic & Investment Summit 2026, taking place 12–13 Oct at the Shangri‑La Colombo, focusing on resilience, reform and economic policy to attract investment, boost exports and promote private‑sector‑led growth.

SAIC Motor has delivered 100 million vehicles worldwide, with the IM Motors LS9 Hyper recorded as the 100 millionth vehicle. Evolution Auto (Pvt) Ltd is the authorised IM Motors distributor in Sri Lanka, offering local sales, after-sales service and genuine parts to support the brand.

JAT Holdings PLC has signed an exclusive nationwide partnership to distribute WASHLEX Japanese smart toilets across Sri Lanka's hospitality, residential and commercial sectors. Over 350 units have been installed to date and the brand is already used by several luxury hotels and property developments.

India and Sri Lanka's DTAA was amended to add a strengthened preamble and a Principal Purpose Test (PPT); the Protocol entered into force on 19 Jun 2026 and India will apply the changes for fiscal years starting on or after 1 Apr 2027. Deloitte says Sri Lanka should modernise its treaty network (it has not joined the MLI) and urges businesses to review cross‑border structures for genuine commercial substance.

Sri Lanka secured a reduction in the US labour-related tariff on its exports from 12.5% to 10%, preserving tariff parity with key competitors and easing competitive pressure on exporters—notably the apparel industry.

The US Trade Representative will apply a 10% tariff on imports from Sri Lanka under Section 301. The Exporters Association of Sri Lanka welcomed the rate as lower than earlier proposals, saying it preserves competitiveness—particularly for apparel—by maintaining tariff parity with regional rivals.

Ceylon Chamber of Commerce welcomed the reduction of the US labour-related tariff on Sri Lankan exports from 12.5% to 10%. The chamber said the cut provides relief to exporters and called for continued dialogue with the US to secure a longer-term framework to reduce uncertainty.

The U.S. Trade Representative will apply a 10% tariff on imports from Sri Lanka under Section 301. The Exporters Association of Sri Lanka welcomed the outcome as preserving exporters' competitiveness—particularly in apparel—and urged pursuit of a comprehensive bilateral trade arrangement with the U.S.

The US labour-related tariff on Sri Lankan exports has been reduced from 12.5% to 10%, a move the Ceylon Chamber says will relieve exporters. The Chamber welcomed the outcome and urged continued dialogue to secure longer-term market access stability.

Sri Lanka's Finance Ministry said the US reduced the proposed additional Section 301 tariff on Sri Lankan goods to 10% from 12.5%, improving exporters' competitiveness, particularly for apparel. The ministry noted overall apparel duties still average about 26.5% and the US is over 20% of exports.

USTR finalized Section 301 results placing Sri Lanka on a 10% US tariff for goods produced with forced labour, matching key competitors (Bangladesh, Pakistan, India, Cambodia) and preserving apparel export competitiveness. JAAF thanked the President and government for securing the parity.

The US has imposed a 10% Section 301 tariff on Sri Lankan goods under a forced-labor import ban, raising effective apparel tariffs to about 26.5% and rubber product duties to roughly 12–15%. The US remained Sri Lanka's top export destination, with US$1,436.85m of exports in H1 2026 (~20.3%).

Oil headed for weekly gains after Houthi attacks on Red Sea tankers and Kazakhstan output cuts; Brent at $99.97 (-0.72%) on course for a 13.5% weekly rise and WTI $91.49 (-0.76%) up about 10.9% this week. The incidents raise risks to the Bab el-Mandeb route and Kazakh exports via the Black Sea.

The U.S. will impose new 'forced labor' tariffs of 10% or 12.5% on imports from 60 trading partners, including Sri Lanka, replacing an expiring temporary 10% tariff; the duties take effect as the temporary levy expires, with goods in transit exempt until July 28.

The CBSL's FIU warned from 2021 that advance import payments were being used for trade-based money laundering, preceding CID findings that about $715m was transferred overseas via fraudulent import transactions (2023–26). Officials cited limited Customs digital records and weak bank compliance and said tougher beneficial ownership, importer registration and multi-agency coordination measures are being introduced.

Opposition MP Dr. Harsha de Silva warned that new import control regulations requiring importer registration and extra bank checks will burden legitimate businesses and may not fix enforcement gaps that allowed about $715m in fraudulent advance import remittances to leave Sri Lanka.

The Ceylon Chamber of Commerce will host a business networking session with a 30-member Indian Chamber of Commerce delegation on 28 July at the Hilton Colombo Residences to connect Sri Lankan firms with Indian companies. Participating sectors include manufacturing, construction, healthcare, IT, renewable energy and tourism.

Dr Binod Chaudhary said his group's BYD venture with John Keells expanded into 25 countries within a year and credited the partnership for that growth. He urged Sri Lankan boards to pair sound governance with global ambition, citing Wai Wai's export success and the need to embrace AI.