News & market updates

Ceylon Land & Equity (KZOO) will issue 614,156,734 new shares at Rs.7 in a 2-for-1 rights issue to raise about Rs.4.3 billion. Proceeds are to repay short-term borrowings and fund property development and portfolio investments, subject to CSE and shareholder approvals.

The Geoffrey Bawa Trust launched the Moonamal Award to recognise design for ecological coexistence, with nominations opening in August 2026 and the shortlist and winner expected by mid-2027. The Trust is partnering with the Wildlife and Nature Protection Society and a steering committee will oversee the award.

Unique Industrial Solutions (Pvt.) Ltd. won the National Award of Excellence for Best Supply Chain Practising Organisation and was named 1st Runner Up in the Trading category at the National Supply Chain Excellence Awards 2025. The ISO 9001:2015-certified firm supplies PPE, safety solutions and consultancy to over 600 Sri Lankan customers, including construction and manufacturing firms.

The SLUKCC and Sri Lanka High Commission in London held a panel to strengthen Sri Lanka–UK trade ties, urging firms (especially SMEs) to use the UK Developing Countries Trading Scheme, noting relaxed apparel Rules of Origin. The event promoted Sri Lanka Expo 2026, investment opportunities and Colombo real estate projects.

Würth Lanka appointed a refreshed management team for 2026 to sustain growth after strong 2025 results, backed by investments in training, product development, a 66% larger direct sales force and a new Trade division.

UNCTAD reports global FDI rose 14% in 2025 to $1.6 trillion, with much of the increase driven by financial flows through global hubs rather than new productive investment. Data centres accounted for over one-fifth of greenfield values (>$270bn) while infrastructure and renewable energy projects fell.

Sri Lanka and UK officials and business leaders met in London to push stronger trade and investment ties, urging Sri Lankan firms to use the UK's Developing Countries Trading Scheme (including relaxed apparel Rules of Origin) and promoting Expo 2026. The BOI said Sri Lanka aims for nearly 7% growth by attracting higher-quality investment.

John Keells Stock Brokers (JKSB) forecasts the ASPI will reach 28,000 in CY2026 (ASPI at 23,812), citing recurring earnings growth and scope for foreign inflows. JKSB also expects 4–5% GDP growth, muted inflation, potential primary fiscal surplus and increased IPO activity.

DIMO.N0000 completed the design, supply, installation and commissioning of a 630-fixture LED floodlighting system across six high-mast towers at the Singhalese Sports Club, enabling SSC to host international day–night matches ahead of the ICC Men's T20 World Cup. The system meets ICC illumination standards, supports HD/4K/8K broadcasts and uses DMX centralised controls.

Construction PMI rose to 67.1 in Dec from 66.2 in Nov, with the New Orders index at 67.6, reflecting stronger activity driven by government infrastructure and private projects. Employment eased to a neutral 50 and suppliers' delivery times lengthened, and the CBSL expects a positive near-term outlook supported by new project starts and reconstruction work.

The Social Scientists' Association survey found nearly 80% of respondents satisfied with President Anura Kumara Dissanayake’s response to Cyclone Ditwah and over 70% satisfied with government immediate rescue, relief and restoration of essential services. Lower ratings were given for early warning and evacuation (52%), with 30% reporting lack of medical care in evacuation centres and 47% noting absence of psycho-social support.

The Sri Lanka–UK Chamber of Commerce and Sri Lanka High Commission hosted a London panel on 27 Jan 2026 to boost bilateral trade and investment, urging firms to utilise the UK Developing Countries Trading Scheme (DCTS) and noting relaxed apparel Rules of Origin. Organisers promoted Sri Lanka Expo 2026 (18–21 June) and highlighted opportunities in tourism, IT/BPO, real estate and global value‑chain integration.

Port City Colombo is being positioned as a 269-hectare, services-led SEZ with US$1.4bn initial infrastructure, projected to deliver 143,000 direct jobs and US$15bn cumulative FDI. The article highlights institutional measures — the CPCEC and BSI regulations — aimed at providing predictable governance to attract long-term finance, IT and professional services investment.

Fracspace is entering Sri Lanka with Altaira, investing LKR 5 billion to develop a 26-acre, low-density destination in Bulathkohupitiya featuring a luxury hill resort, ridge suites and 40 serviced villas. The project is pitched as a sustainability- and experience-led tourism and property development.

PMI-Construction Total Activity Index rose to 67.1 in December 2025, signalling notable expansion in construction activity. New Orders expanded with more government-funded and private projects, while Employment remained neutral.

IMF Managing Director Kristalina Georgieva will visit Colombo in February to review Sri Lanka’s IMF Extended Fund Facility program and express solidarity after the recent natural disaster, which has delayed the program's Fifth Review. IMF officials said teams saw flooding and infrastructure damage and noted public appreciation for governance reforms.

Colombo market fell as the ASPI dropped 0.38% (91.22 pts) to 23,900.89 with turnover over Rs.6.9bn and foreign net outflow of Rs.20.9m. Top negatives included Senkadagala Finance, Ceylon Tobacco, John Keells, Carson Cumberbatch and C T Holdings while Prime Lands Residencies gained.

Mastercard launched the 'Tap for Change' campaign in Sri Lanka, pledging $750,000 and directing every contactless Mastercard transaction from January 2026 to support construction of the 10‑storey, 160‑bed Trail Cancer Hospital in Karapitiya. The facility will include advanced diagnostics, a bone marrow transplant unit and operating theatres to expand oncology care.

The SEC and Colombo Stock Exchange held an 'Invest Sri Lanka' forum in Riyadh on 24 January to showcase Sri Lanka's capital market and attract Saudi investors; a high-level delegation including the Central Bank Governor, SEC Chairman and CSE CEO took part.

John Keells Properties said The Offices at Cinnamon Life in Colombo has reached full occupancy, with some floors sold to local and international corporates and supported by long-term tenants generating attractive rental yields.

IMF Managing Director Kristalina Georgieva will visit Colombo next month to review progress of Sri Lanka’s IMF-supported programme and to express solidarity after recent natural disasters. The IMF said the visit underscores continued commitment, with staff engaging authorities and a large delegation already in Sri Lanka.

BOI promoted two proposed University Towns — Keragala (125-acre, USD 370m investment, IRR 15–18%, 6–7 year payback) and Sooriyawewa (250-acre, USD 640m, IRR 16–17%, 7–8 year payback). The investment forum drew 16 local and international education institutions and BOI highlighted incentives and higher foreign ownership allowances.

IMF reaffirmed solidarity with Sri Lanka and said it will field a mission to resume the next EFF review and support recovery from Cyclone Ditwah. Discussions focused on the fiscal response, implications for monetary policy, financial-sector stability, and financing needs for reconstruction.

Central Bank of Sri Lanka kept the Overnight Policy Rate at 7.75%. Inflation was 2.1% in Dec 2025 and is projected to move toward 5% by H2 2026 amid rising food and core inflation, strong credit growth and post-cyclone rebuilding; gross official reserves were $6.8bn at end-2025.

MTI Consulting CEO Hilmy Cader said Sri Lanka's tourism sector has shown resilience but warned of longer-term risks, citing overtourism, environmental impacts, infrastructure strain and tourism-driven inflation in real estate, rents and consumables.

The Offices at Cinnamon Life in Colombo has reached full occupancy, John Keells Properties announced, with some floors sold to local and international corporates and backed by long-term tenants delivering attractive rental yields. The mixed-use development links to hotels, retail and transport hubs.

Melwa distributed essential stationery and school equipment to schoolchildren affected by the Dithwa Cyclone across Central, Uva, North Central, Sabaragamuwa, North Western and Eastern Provinces to help them continue their education.

John Keells Holdings (JKH) reported 3Q EBITDA of Rs. 23.76 billion, up 68%, and declared a second interim dividend of Rs. 0.10 (Rs. 1.77 billion outlay). Group revenue rose 54% to Rs. 125.05 billion and PBT increased 113% to Rs. 12.89 billion.

Altair Residences has issued over 100 individual title deeds following its ownership transition to Blackstone India, formed a Management Council, and appointed Realty Management Services (RMS) as facility manager; Indocean Developers will continue building improvements and deed issuance.

BOI unveiled two University Town projects—Keragala ($370m, IRR 15–18%, payback 6–7 yrs) and Sooriyawewa ($640m, IRR 16–17%, payback 7–8 yrs)—to attract local and foreign investment into education infrastructure and services.