News & market updates

MTI Consulting completed a performance review and turnaround strategy for Zimbabwe’s Industrial Development Corporation on behalf of the Mutapa Investment Fund, and the assignment was described as successfully concluded. The work involved SERA and included stakeholder feedback from industrial and NBFI sectors and regional best practices.

The Finance Ministry will divest its entire 100% stake in Canwill Holdings, holding a virtual pre-EOI meeting on 21 Jan and setting an EOI deadline of 16 Feb for a two-stage competitive sale. Canwill is the parent of Sinolanka and Helanco, including the stalled Grand Hyatt Colombo project, and has prior forensic-audit findings and Rs.18.5bn of equity funding.

An IMF fact-finding mission will visit Sri Lanka from Jan 22-28 to assess Cyclone Ditwah damage and implications for the country's Extended Fund Facility (EFF) programme. The IMF approved about USD 206m in emergency RFI financing on Dec 19 and said it will discuss policy intentions, including maintaining cost-recovery electricity tariffs.

Hayleys PLC's unit Hayleys Fentons launched construction of a 50 MW wind power plant in Mannar, expected to generate 207,000,000 kWh/year and supply electricity at USD 0.0465 (LKR 14.37) per unit, scheduled for completion in March 2027.

UNDP's assessment found 95% of communities in 22 districts reported damage to homes, roads or other infrastructure after Cyclone Ditwah, highlighting widespread recovery needs. The report flagged shortages of materials, labour and financing and noted the government's LKR95 billion MSME support including a 3% concessional loan scheme.

CHEC Port City Colombo (unit of China Harbour Engineering) will invest another $300 million in the Port City Colombo SEZ, adding to $1.25 billion already spent on land reclamation and infrastructure. The money will fund core infrastructure and utilities, with investment recovered via leasehold land sales and some government land sales.

St. Anthony's Industries Group said its drinking water pipe range has been certified lead-free under NSF/ANSI/CAN 61 by NSF, making it the first Sri Lankan company to achieve this certification and validating its non‑toxic PVC stabilisers.

The CID has charged two hardware dealers for allegedly selling duplicated KITZ plumbing products as genuine, with the inquiry before Chief Magistrate Asanka S. Boderagama adjourned to 19 March. Elite Corporation, the authorised Sri Lanka distributor for KITZ Japan, testified the seized items were fake.

Amber Adventures warns it may pursue legal action to recover USD 3.5Mn after the Central Environmental Authority ordered suspension of development of the BOI-approved Ambuluwawa Cable Car project pending a site inspection. The company says it has invested about USD 3.5m of the approved USD 12.75m, denies landslide claims and urges BOI intervention.

CHEC Port City Colombo pledged US$300 million in foreign direct investment to fund Phase II development of Port City Colombo. The funding will support core infrastructure and utilities in Sri Lanka’s first multi-services Special Economic Zone, boosting construction and services activity.

SLII hosted a forum on the 'Aftermath of Ditwah' where regulators and insurers reported insurers had received claims exceeding Rs. 52 billion from more than 24,200 clients as of 5 Jan 2026. Panelists warned reinsurance costs may rise and urged regulatory reform, a national catastrophe scheme and micro/parametric products.

Overseas Realty (Ceylon) PLC's majority shareholder Shing Kwan Group donated $100,000 to the Rebuild Sri Lanka Fund to support recovery and rebuilding after Cyclone Ditwah.

The U.S. Embassy pledged an additional US$2 million in humanitarian assistance for Cyclone Ditwah, bringing total U.S. support to US$4 million to aid relief and early recovery in hard-hit districts. The funding will back emergency food, water, shelter, drainage and small infrastructure repairs and livelihood support, implemented via WFP and World Vision.

Central Bank Governor Nandalal Weerasinghe said Sri Lanka will seek to revise IMF EFF targets and has postponed the fifth review after Cyclone Ditwah, with an IMF team due later this month. He said the RFI was considered to buy time and official reserves are expected to reach close to US$8 billion by year-end.

Sri Lanka's cabinet approved calling for expressions of interest to develop Pelwatte Sugar Factory premises as tourist attractions under a public-private partnership. The Pelwatte Sugar Factory is owned by the Lanka Sugar Company (Pvt.) Ltd.

Hambantota International Port reported a 175% YoY rise in total cargo in 2025 to 8.24 million tonnes, driven by container volumes surging from 53,170 TEUs to 428,036 TEUs. A second-phase expansion due end-2026 will raise annual container capacity to about 2 million TEUs.

Kerner Haus Global Solutions PLC has signed a third property management agreement (effective 1 Feb 2026) expected to generate Rs.22 million annually, lifting total estimated annual management fees to Rs.48.1 million. The Slave Island property adds ~440 office seats, taking managed capacity to ~1,440 as part of its asset-light strategy.

Housing, Construction and Water Supply Ministry Secretary Eng. Kumudu Lal Bogahawatta said major construction firms have requested permission to recruit at least 7,500 foreign workers as the sector faces about 20,000 vacancies. He said 10,000 skilled local workers are needed immediately, noted rising material costs (river sand) and proposed using fine aggregate and dedicated brick-manufacturing zones.

Sri Lanka said the SINOPEC Hambantota oil refinery agreement will be finalized in Q1 2026; China pledged support for cyclone recovery and to deepen cooperation on trade, investment and tourism.

Hosking Partners says Sri Lanka's fragmented, 'overbanked' banking sector is constraining returns on capital and credit growth and limiting mortgage/housing finance; the Central Bank has a Master Plan to consolidate banks to boost scale, technology investment and long-term lending.

Verité Research says grants and revenue measures — including time-bound solidarity taxes and an increase in cigarette excise — are critical to finance Sri Lanka's Rs. 500 billion supplementary allocation for Cyclone Ditwah recovery. The allocation raises 2026 government spending to Rs. 7,557 billion and widens the budget deficit from 5.1% to 6.5% of GDP.

Prime Group opened its 7th branch at No. 270, Main Street, Kalutara, expanding its regional footprint and offering a technologically advanced space to improve customer convenience and access.

CFA Society Sri Lanka will host an evening discussion 'Real Estate Reimagined: Investment Opportunities in a Transforming Market' on 28 January 2026 at Courtyard by Marriott Colombo, featuring panelists including Nayana Mawilmada of John Keells Holdings and Premalal Brahmanage of Prime Group. The session will examine emerging investment opportunities and strategic considerations in Sri Lanka's real estate sector.

People’s Bank will support MSMEs through government-backed and bank-funded loan schemes, offering interest rates of 7.0%–12.0% and products including working capital, term loans, trade finance, and solar/green power financing.

Ceylon Hardware Merchants Association donated Rs. 5 million to the Government’s 'Rebuilding Sri Lanka' Fund for Diṭwah cyclone relief, handing the cheque to Secretary to the President Dr. Nandika Sanath Kumanayake. The handing-over was attended by the association's chairman, vice chairman, secretary and a member.

Experts at a CEPA/ODI panel urged Sri Lanka to stick with the IMF program and invest in tourism-related infrastructure to sustain recovery, warning the rebound is fragile after Cyclone Ditwah caused about $4.1bn in damage (around 4% of GDP).