News & market updates

Mordor Intelligence forecasts the coconut oil market to grow from USD 7.75bn in 2026 to USD 11.05bn by 2031 (CAGR 7.36%). Growth is driven by rising demand in cosmetics/personal care, clean-label cooking oils and pharmaceutical/nutraceutical uses, with Asia-Pacific leading production and government support improving supply.

JAAF says Vietnam's trade strategy lifted apparel exports from about $13bn to ~$45bn in 15 years via 19 FTAs, while Sri Lanka's apparel exports grew from $3.4bn to ~$5.4bn and now earn roughly $5bn annually. JAAF recommends pursuing FTAs plus investment, infrastructure and skills to boost exports.

Morison, a subsidiary of Hemas Holdings, says its Homagama facility began commercial manufacturing in 2022 and it is pursuing EU‑GMP accreditation to enable exports. The company manufactures ~60 products, subjects every batch to 20+ tests, and was named LMD's 2024 Most Respected Entity in pharma.

Sri Lankan Australian business networks — exemplified by Arjuna (Arj) Samarakoon — are helping connect Australia, Sri Lanka and Southeast Asia, supporting market entry, trade and investment, illustrated by his meeting with Cambodian Prime Minister Hun Manet.

Ceylon Chamber of Commerce will host a one-day Mineral Sands Technical Conference on 17 June at the Galle Face Hotel, bringing Australian and international experts to discuss moving Sri Lanka's mineral sands from resource availability to sustained value creation.

The Sri Lanka Export Development Board has rescheduled Sri Lanka Expo to 14–17 January 2027 at BMICH citing geopolitical uncertainty. The event is expected to host about 750 local exporters and 1,500 international participants across apparel, tea, ICT, pharma, renewable energy and other sectors.

John Keells Holdings chair Krishan Balendra will lead a 19-member Sri Lankan corporate delegation to Mumbai for the India–Sri Lanka Business Forum on 13 May to engage Indian counterparts on trade, investment and partnerships. Sri Lanka and India have also discussed a proposed $450m post-conflict reconstruction package.

The Sri Lankan rupee has depreciated 3.6% against the US dollar year-to-date, with an indicative USD/LKR spot rate of Rs.321.87 (buy Rs.318.03, sell Rs.325.64) as of 8 May 2026 — the weakest level since 16 January 2024.

IPS research economist Dilani Hirimuthugodage argues Geographical Indications (GI) can boost Sri Lanka's export earnings by securing premium prices and niche-market access for origin-based products like tea and spices. She notes tea accounted for 51% of agricultural exports (10.9% of total exports) and calls for targeted GI reforms, better traceability and enforcement.

Colombo Port handled 761,096 TEUs in April 2026, a 22% year-on-year rise, with Jan–Apr throughput up 13.9% to 2,915,004 TEUs. The SLPA plans to invite EOIs this year for Phase II of the West Container Terminal to add over 3m TEU capacity, and an ADB-funded National Port Master Plan is due within a year.

Sri Lanka's official reserve assets fell $267m to $6.76bn in March, with foreign currency reserves down $295m to $6.54bn; the CBSL was a net seller of dollars in April (net $13m). Predetermined near-term FX obligations total $2.1bn and forward short positions amount to $3.87bn.

Workers' remittances rose to $767.9m in April 2026 (up 19% YoY) and exceeded $3.06bn in Jan–Apr (up 24.5% YoY), marking record inflows that bolster Sri Lanka's foreign-exchange reserves amid weak exports and tourism.

RTS Holdings' Hidellana and Avissawella tea factories received Zero Carbon Manufacturing Certification after independently audited measures and offsetting 1,020 tonnes CO₂e to reach net-zero GHG emissions. Carbon credits were sourced from a CDM-certified hydropower project and the audit followed WBCSD/WRI GHG Protocol and ISO 14064-1 standards.

Five Sri Lankan ICT companies took part in an EDB–IPD European market exposure programme, participating at Hannover Messe and follow-up events in Berlin and Stockholm and securing multiple high-quality leads and follow-ups. The initiative, the second EDB–IPD collaboration, aims to boost exports and help Sri Lankan tech firms refine European market-entry strategies.

The Ceylon Chamber will lead a senior corporate delegation to Mumbai for the India–Sri Lanka Business Forum on 13 May 2026, with leaders from John Keells, Aitken Spence, Hayleys, Sierra Cables and Vidullanka among participants to engage Indian investors on trade and investment opportunities.

CEAT Kelani Holdings opened a new premium Shop-in-Shop outlet at Olympic Tyre House on Havelock Road, Colombo 6, expanding its premium retail network and offering its full range of tyres and related services in a modern customer-focused setting.

Dynawash hosted Pepsi Lipton CEO Bjorn Bernemann and a senior delegation to view “Tea Dye”, a sustainable apparel dye made from Lipton Ice Tea byproducts, at its Biyagama facility. The collaboration highlights waste reduction and scalable circular manufacturing for global apparel supply chains.

Remarko Bakers and Caterers has entered a strategic partnership with Orzone Mineral Water Exports, with Orzone designated as the official mineral water partner across Remarko's franchise network.

Vietnamese President Tô Lâm called for a new phase of strategic economic cooperation with Sri Lanka, urging direct Colombo–Ho Chi Minh flights and closer ties in logistics, manufacturing, food processing, textiles, tourism and services to boost trade and investment. A Sri Lanka–Vietnam trade and tourism forum was held in Colombo to advance these plans.

Prime Minister Harini Amarasuriya set a bilateral trade target of $1 billion with Vietnam by 2030. She highlighted Sri Lanka's economic recovery (5% real GDP growth in 2025, 2.36m visitor arrivals) and invited Vietnamese investment across manufacturing, tourism, IT and logistics.

Opposition Leader Sajith Premadasa welcomed Vietnamese President Tô Lâm to Parliament, praising Vietnam’s Doi Moi reforms and urging deeper bilateral cooperation in electronics, artificial intelligence and innovation-driven industries to bolster investment and economic ties.

Prime Minister Dr. Harini Amarasuriya said rural youth can drive Sri Lanka's agricultural transformation with the right investment, noting SAPP has supported nearly 5,000 young agripreneurs since 2017. The National Youth Agripreneur Showcase connected 400 agripreneurs with markets, finance and partners, highlighting digital innovation and climate-resilient approaches.

The National Chamber of Exporters (NCE) marked its 40th anniversary at its AGM on 27 March 2026, honouring founder Patrick Amarasinghe and past presidents for their contributions to Sri Lanka's export community. NCE president Indhra Kaushal Rajapaksa was re-elected and the Chamber reaffirmed its role representing exporters.

Vietnam used FTAs to grow apparel exports from $13bn to $45bn over 15 years; the article recommends Sri Lanka create a full-time FTA negotiation resource and align trade, investment, infrastructure, skills and sustainability to help expand its $5bn apparel sector.

Sri Lanka and Vietnam set a target to increase bilateral trade to $1 billion by 2030. Discussions covered renewable energy, digital infrastructure/AI, manufacturing and agriculture; Vietnam donated 100 tonnes of fertilizer and new airline routes to Colombo are planned.

Mila Fashion says it has not closed its Welioya facility and is undertaking a temporary, structured operational consolidation, reassigning affected employees to affiliated group companies with continued pay and support. The company says the moves comply with labour law and include transport, accommodation and meal support.

Sri Lanka and Pakistan discussed expanding bilateral trade through enhanced private-sector collaboration, improved trade facilitation and greater use of their 2005 Free Trade Agreement, the Sri Lanka Export Development Board said after a meeting with the Karachi Chamber of Commerce and Industry.

PayPal will launch in Sri Lanka on 15 May, initially enabling inward B2B payments to exporters with selected local banks appointed as agents. The rollout aims to formalise inward remittances and increase regulated foreign currency inflows under CBSL oversight.

Sri Lanka will allow direct receipt of funds through PayPal into local bank accounts from May 15. The Central Bank and private banks finalized arrangements to remove legal and technical barriers, aiming to boost official foreign exchange inflows and enable regulated tax reporting.

The Research Vessel Dr. Fridtjof Nansen completed a marine scientific survey in Sri Lankan waters and departed Colombo. The FAO–Norway mission collected data on fish stocks, oceanography, pollution and seafood contaminants and provided training to support evidence-based fisheries management and export market reporting.