News & market updates

The Exporters Association of Sri Lanka urges the government and Customs to publish clear, risk-based implementation guidelines and consult stakeholders for the newly gazetted import ban on goods produced with forced labour to avoid uncertainty, higher costs and shipment delays.

Asian markets plunged on July 17 as a global technology-led selloff drove Japan and Taiwan down as much as 6% and pushed the Nikkei into correction territory (over 10% below its June 25 high). Market watchers cited rising yields, profit-taking in AI/semiconductor names and unwind of leveraged positions.

World Bank Country Manager Gevorg Sargsyan said Sri Lanka must strengthen export competitiveness and productivity to sustain its recovery, noting manufacturing value-added per worker is under half of Vietnam and labour productivity fell in 2024. He urged lower business costs, expanded market access and higher‑quality FDI; the Exporters' Association elected new office bearers at its AGM.

Oil prices rose as US-Iran hostilities intensified and Iran signalled the possibility of closing the Red Sea route, with Brent up $0.70 to $84.93/bbl and WTI up $0.81 to $79.76/bbl.

Sri Lanka sold Rs12,000 million of treasury bills on tap at average rates of 10.13%, 10.27% and 10.20%, bringing total bills sold this week to Rs132 billion.

Sri Lanka's rupee was quoted at 336.26/30 to the US dollar on Friday, while government bond yields were broadly steady; near-dated and medium-term maturities were quoted around 11.10%–11.85%.

Treasury expects Sri Lanka's sovereign rating to be upgraded from CCC+ to B- by early 2027 amid fiscal consolidation. Officials said talks are underway with three major rating agencies and the government plans to return to markets to raise $1.5bn in 2027-28.

Western Province cut entertainment tax rates for cinemas, sports and concerts in the Colombo Municipal Council area — cinema admissions cut to 7% from 10%, international sporting events to 14% from 15%, and foreign-artist concerts to 10% from 15%. A 5% concessional rate and exemptions for certain charity/veteran-artist events are retained.

The government advanced energy infrastructure ahead of Budget 2027, ordering Delft, Analaitivu and Nainativu to be developed as Green Energy Islands and reviewing 14 petroleum projects including eight new storage tanks at Kolonnawa and Muthurajawela. Major grid works reviewed include a second 220 kV underground cable to Colombo, multiple transmission projects, a STATCOM at Padukka, rooftop solar integration, and the planned resumption of JICA-backed projects with 2027 funding.

Commercial Bank of Ceylon Plc's Rs.20 billion Basel III-compliant Tier 2 debenture offer was oversubscribed on opening day, receiving applications for more than 200 million debentures and prompting the bank to close the offer. The bank may issue up to a further 100 million debentures in additional tranches and is awaiting Central Bank approval to include the issue as Tier 2 capital; basis of allotment will be notified to the CSE.

Secondary bond-market yields remained broadly steady with selected maturities trading between 10.53% and 12.10% and healthy transaction volumes. Money-market net liquidity surplus was Rs.143.41bn (SDFR deposits Rs.86.65bn), overnight rates ~8.95–8.98%, and USD/LKR closed at 336.20/336.30 (volume $37.02m).

Softlogic Finance (CRL.N0000) reported a financial year profit of approximately Rs.150 million and says its Capital Adequacy Ratio is about 61%. The company notes assets >Rs.7.5bn, a lending portfolio ~Rs.6.7bn, deposits >Rs.3.8bn and zero non-performing loans on new originations.

HNB General Insurance appointed Lakshman Silva as Non-Executive/Nominee Director and Sandra De Zoysa as Independent/Non-Executive Director to its board. The appointments are intended to strengthen governance and drive digital/CX transformation as the insurer scales its platforms and customer service architecture.

Arcasia Investment & Trading Ltd and ATX Partners agreed to acquire a 50.16% stake in Industrial Asphalts and will make a voluntary offer of LKR0.40 per share to remaining shareholders. The consortium bought ~1.8807bn shares at LKR0.40; shares last traded at LKR0.70 and assets were LKR0.47/share (end‑March 2026).

The Wireless Intelligence and Innovation (WIIN) Institute of Technology was launched at TRACE Expert City to conduct research and industry training across telecommunications, energy, construction, FinTech and healthcare, including AI/ML programmes, in collaboration with University of Oulu and IIT Madras.

Excello Developers launched Aathavan, a 44-unit, eight-storey residential project in Dehiwala starting at LKR 38 million, featuring full solar power, water recycling, low maintenance fees and flexible bank-backed payment plans.

Sri Lanka will host the UN Global Compact's Forward Faster Now | APAC 2026 in Colombo on 11–12 August 2026, convening 200+ business leaders and an SDG Investment Forum to advance sustainable business leadership, sustainable finance and practical SDG implementation across the Asia‑Pacific region.

Colombo Stock Exchange daily turnover fell to Rs. 722 million on Friday (17), the lowest level in the past 15 months. Both benchmark indices closed lower: ASPI down 42.16 points to 21,405.41 and S&P SL20 down 5.31 points to 5,999.68.

Sri Lanka stocks closed lower as the ASPI fell 0.20% to 21,405.41 and market turnover hit a 52-week low of Rs 722.6m. Banks led turnover at Rs 184.3m; Commercial Bank, RIL Property, Melstacorp and People's Leasing were among gainers while John Keells and Digital Mobility were among laggards, and oil prices rose on Gulf tensions.

FACETS Sri Lanka 2027, organised by the Sri Lanka Gem & Jewellery Association, will be held 4–6 Jan 2027 at Cinnamon Life and will bring together over 100 exhibitors and international buyers to Colombo.

TikTok will launch an in-app AI literacy hub in Sri Lanka and expand measures to label and detect AI-generated content, including enhanced spam detection and joining the C2PA Steering Committee. The company has committed over US$4 million to the program and has labeled 3+ billion videos to date.

Shantha Bandara (CEO of Sunshine Healthcare Lanka) was reappointed president of the Sri Lanka Chamber of the Pharmaceutical Industry (SLCPI) for the 2026/27 term. His mandate focuses on turning governance and ethics reforms into regulatory and pricing changes to protect medicine availability and affordability amid exchange-rate volatility and rising freight, fuel and electricity costs.

Colombo West International Terminal (CWIT) became the Port of Colombo's first container terminal to achieve three ISO certifications covering quality, environmental management and occupational health & safety. The USD 800m, fully automated terminal — developed with partners including John Keells Holdings — hit one million TEUs in its first year and is expanding Phase 2 infrastructure.

The Exporters' Association of Sri Lanka elected Nalaka Ratnayake as Chair at its 29th AGM; the World Bank country manager urged reforms to boost export competitiveness, including lowering business costs, expanding market access and fast-tracking the National Single Window digital trade platform.

The Association of Container Transporters (ACT) held its 41st AGM on 26 June 2026 at Lotus Tower, Colombo, reaffirming its commitment to strengthen Sri Lanka's container transport and logistics sector through closer industry-government collaboration. Attendees included the Minister of Ports, Aviation and Energy and the Deputy Minister.

The Cauldron marks its ninth anniversary and will scale beyond its cafés by expanding Ground Theory Coffee Roasters and developing an artisan baking division for retail and wholesale customers.

Commercial Bank of Ceylon's Basel III Tier-2 debenture issue was oversubscribed with applications for over 200 million debentures worth Rs 20 billion against an initial Rs 10 billion offer. CSE indices traded lower (ASPI down 0.11% at 21,424.48) with banks leading turnover at Rs 54.4 million.

The George Keyt Foundation and the British High Commission will present "19th Century Views of Ceylon" at Westminster House from July 30 to Aug 1, 2026; British Airways is the primary partner and Nations Trust Bank is a supporting sponsor.

Miwayz launched on July 12 with over 25,000 pre-registered drivers and passengers and announced strategic partnerships with Dialog Axiata (Dialog Touch payment integration and fuel vouchers) and TVS, plus a 0% commission driver model and passenger discounts.

NASSCOM launched its Disha Mentorship Program in Sri Lanka — its first international expansion — to mentor 48 Sri Lankan technology SMEs through structured guidance from industry leaders. The program aims to deepen India–Sri Lanka tech cooperation and support exports, jobs and digital transformation.