News & market updates

Central Bank Governor told Parliament that increased imports—especially petroleum by the state fuel retailer—and slower tourism have pressured foreign exchange, contributing to a 4.5% fall in the rupee through May 15. He said oil import bills rose sharply while exports have not kept pace, though remittances are holding up.

Dipped Products PLC (DIPD.N0000) inaugurated a Rs. 2.3 billion expansion at its Kottawa facility to boost automated high-value glove production. The project—by Hayleys PLC’s subsidiary—adds advanced robotic dipping lines, a 2,000 m3/day ETP and a high-efficiency boiler to support exports and sustainability.

Bairaha Farms PLC (BFL.N0000) has achieved ISO 14064 GHG Verification with a “reasonable level of assurance” at the organizational level. The certificate was issued under the Sri Lanka Climate Fund and presented in early 2026, positioning the company for greater ESG transparency and export-market credibility.

The Export Development Board and Control Union Sri Lanka held an awareness workshop on 12 May 2026 to brief coffee and wood-product stakeholders on EU Deforestation Regulation compliance and traceability requirements to support export readiness to EU markets.

IIHS Multiversity, led by Dr. Kithsiri Edirisinghe, has developed international nursing pathways and trained over 4,500 Sri Lankan nurses, with more than 2,500 working abroad and contributing foreign income to Sri Lanka.

Energy Ministry and the BOI issued an RFI on 23 April 2026 inviting domestic and international investors to develop green hydrogen and green ammonia projects in Sri Lanka, targeting $1 billion in annual export revenue by 2030. The non-binding RFI (open to 5 June 2026) covers production, storage, export terminals and component manufacturing and notes potential BOI facilitation and incentives.

Commercial Bank and Sampath Bank are among the initial Sri Lankan banks to roll out PayPal, a move bankers say will ease cross-border payments for freelancers and strengthen formal foreign-exchange inflows.

Sri Lanka must pivot its export strategy toward India after US tariffs and the EU–India FTA eroded Western market advantages; Sri Lanka exported $1.07bn to India in 2024 versus $4.32bn in imports, and February 2026 exports rose 48% YoY to $264m.

The Sri Lankan rupee has fallen more than 5% so far this year, risking higher inflation and possible monetary tightening that would raise borrowing costs; rising import, fuel and medicine prices threaten household purchasing power and could drag on growth.

CMA Sri Lanka launched national Cost Accounting Standards to strengthen costing, control and reporting across large and medium public and private institutions; the standards prioritize sectors including power, telecom, manufacturing, drugs and agricultural/tea exporters to improve efficiency, pricing transparency and competitiveness.

PayPal will soon be available in Sri Lanka through initial banking partners Commercial Bank (COMB.N0000) and Sampath Bank (SAMP.N0000), improving cross-border payment access for freelancers, SMEs and digital service providers.

PayPal launched in Sri Lanka through integration with the domestic banking system, initially available via Commercial Bank and Sampath Bank. The service aims to ease cross-border payments for freelancers and SMEs and expand digital payment access as more banks join.

US dollar strengthened to Rs. 323.95 on May 14, with the selling rate rising to Rs. 329.92 — the highest since Dec 28, 2023; the buying rate increased to Rs. 322.28.

Sri Lanka Customs collected Rs. 1.009 trillion by 12 May 2026, exceeding Treasury targets by Rs. 133.45 billion (115% of cumulative target) as stronger enforcement and trade recovery boosted import-related revenues.

Sri Lanka and the UAE discussed expanding bilateral trade (about $1.5bn) with a focus on ports, maritime and aviation cooperation and a proposed CEPA; Abu Dhabi Ports expressed interest in Port of Colombo and the UAE flagged interest in SriLankan Airlines maintenance opportunities.

CBSL Economic Research Director Dr. Lasitha Pathberiya warned prolonged Middle East conflict and rising global volatility threaten growth and government revenue, urging sustained structural reforms and stronger fiscal and external buffers. He noted 5% growth in 2025, improved financial-sector metrics, and a likely wider 2026 trade deficit.

EDB and Janathakshan have partnered under the UNDP GEF-07 project to promote biodiversity-friendly, climate-resilient agriculture across six districts, targeting organic/artisanal tea, kithul, pepper, arecanut, cardamom and jackfruit and pursuing GI certification and export linkages to Japan, the EU and the US.

Sri Lanka's Ambassador to Türkiye met the President of the Istanbul Chamber of Commerce to explore trade and investment cooperation aimed at boosting the Türkiye–Sri Lanka bilateral trade target of USD 500 million. They discussed Turkish investment, tourism promotion, air/maritime links and agreed on a virtual B2B session for traders/exporters.

The Sri Lanka Export Development Board (EDB) signed an MoU with Janathakshan under the GEF-07 project to boost biodiversity-linked exports and rural livelihoods, targeting products like organic/artisanal tea, kithul, pepper, arecanut, cardamom and jackfruit and pursuing GI certification.

The Sri Lankan government has launched a fresh investor drive for Mattala Rajapaksa International Airport, inviting EOIs for airside operations and landside commercial development across cargo, logistics, MRO, industrial parks, renewable energy and hospitality; EOI documents are available until 8 June with a briefing and site visit scheduled for 22 May.

Sri Lanka Expo originally planned for 2026 has been postponed to January 14-17, 2027 because of geopolitical uncertainties affecting trade and travel, the Export Development Board said. The event is expected to host about 750 local exporters and 1,500 international participants, and exhibitor registration is extended to July 31, 2026.

Sri Lanka completed a four-year FAO–Republic of Korea project to modernize shrimp aquaculture, producing a National Aquatic Animal Health Strategy and a digital Shrimp Industry Information System (SIIS). The project mapped 699 farms, trained 450 farmers and 190 officials, upgraded labs and provided about USD 128,000 of equipment.

Sri Lanka's Embassy in Türkiye met with the Istanbul Chamber of Commerce to explore trade and investment cooperation aiming to raise bilateral trade to USD 500 million under the Türkiye–Sri Lanka Joint Economic Cooperation framework. Discussions covered air connectivity, maritime cooperation, tourism and a planned virtual B2B session.

ANC Campus hosted a dialogue with Hayleys' executive director and Janashakthi's CEO on geopolitical risks and private-sector resilience; the University of West England will open its first Sri Lanka branch campus in June. Speakers urged firms to adopt AI, diversify exports and streamline approvals to attract investment.

Sri Lanka Expo 2026 has been rescheduled to 14–17 January 2027 at BMICH in Colombo. The EDB expects about 750 local exporters and 1,500 international participants and has extended exhibitor registration to 31 July 2026, citing geopolitical uncertainties.

EDB and Janathakshan GTE signed an MoU to strengthen biodiversity-friendly agri-export value chains across six target sectors—including organic/artisanal tea, Kithul, pepper, arecanut, cardamom and jackfruit—supporting market linkages, GI certification and export readiness.

US authorities granted Sri Lanka a "Comparability Finding" under the Marine Mammal Protection Act, clearing the country to resume uninterrupted blue swimming crab exports to the United States with the certification valid until 31 December 2029. The US accounted for over $12m of Sri Lankan crab shipments in 2023.

Government will amend the National Environmental Act to introduce pollutant-based (load-based) charging, stricter industrial approvals, legally binding Environmental Management Plans and mandatory pre-project environmental clearances. The changes target manufacturing, energy, construction and chemicals firms and include fines and up to two years' imprisonment for non-compliance.

Oil prices rose about 1% as fragile U.S.-Iran talks kept supply concerns alive; Brent was $105.07/bbl and WTI $99.06. Tensions around the Strait of Hormuz, OPEC output near multi-decade lows and forecasts of U.S. stock draws supported the gains.

Ports Minister Anura Karunathilaka denied that the government has decided to privatise the East Container Terminal, saying it is open to investment proposals but no formal policy or Cabinet discussion has taken place. He added any strategic decision would be discussed with port workers, unions and stakeholders.