News & market updates

Deloitte Sri Lanka hosted an exclusive forum on 4 March 2026 to help Sri Lanka's consumer sector plan cross-border expansion, with a focus on India. Speakers stressed tax/regulatory due diligence, long-term commitment, partner selection, ESG and use of FTAs; IFC noted ~US$1bn invested in Sri Lankan corporates over the past five years.

Deloitte Sri Lanka urged Sri Lankan consumer companies to deepen their understanding of tax and regulatory frameworks and form strategic partnerships to succeed in cross-border expansion, with India highlighted as a key market. Panelists stressed due diligence, ESG standards, FTAs and risks like permanent establishment when entering new markets.

The Sri Lanka Export Development Board's SheTrades Hub ran a training in Anuradhapura for over 50 women-led businesses on branding, digital marketing, website SEO and AI-based content to strengthen export readiness, with more regional sessions planned.

Russia’s Deputy Energy Minister will visit Sri Lanka for formal talks on a government-to-government oil deal to address fuel shortages and price hikes. Sri Lanka has been constrained from buying Russian oil by fears of US trade retaliation and high third-party tanker insurance/logistics costs despite a temporary US waiver.

ADB announced a financial support package to help its developing member countries mitigate economic and financial impacts from the Middle East conflict, including fast-disbursing budget support and reactivated trade and supply-chain finance for oil imports. The bank will mobilize countercyclical lending and TSCFP support to address energy price volatility, supply disruptions, inflationary pressures and risks to tourism and trade.

The Planters’ Association urged a sustainable electricity tariff framework as the CEB has proposed a 13.6% tariff hike for Q2 2026, warning it would raise production costs for tea and rubber processors and hurt export competitiveness. Plantation companies (eg. Talawakelle) are increasingly investing in solar, mini‑hydro and efficiency measures to reduce grid dependence.

Sri Lanka and Brazil agreed to elevate bilateral trade to USD 1 billion by 2030. They also committed to finalise pending MoUs (including on traditional/Ayurvedic medicine), and to sign Dairy Livestock and Sugarcane technical cooperation projects while exploring cooperation in agriculture, ports and tourism.

Fitch warns APAC sovereign credit profiles face heightened downside from a prolonged Iran conflict as higher oil prices and supply disruptions raise inflation, weaken growth and worsen public finances; an adverse scenario assumes Brent at about $128/bbl in 2Q26 and $100/bbl for 2026. Net fossil-fuel importers (e.g. India, Korea, Pakistan, the Philippines, Maldives, Thailand) would be hardest hit, while supply-chain and fertiliser disruptions could amplify inflation and food-security risks.

Prym Intimates (William Prym Group) opened a new manufacturing facility in Hung Yen, Vietnam that began operations on 3 March 2026, its fourth global plant. The site supplements existing plants in Sri Lanka, China and Indonesia to strengthen production capacity and supply-chain flexibility for intimate apparel brands.

A Rs. 520 million, three-storey textile training complex at the Sri Lanka Institute of Textile & Apparel (SLITA) opened in Ratmalana. The facility includes a 150-computer CAD lab, art and fashion studio, auditorium and library to strengthen skills for the export-oriented garment sector.

Indian sugar mills locked in about 100,000 metric tons of export shipments in a week as a record-low rupee and rising global prices restored the economics of overseas sales. Mills have contracted roughly 550,000 tons this season and India raised its export quota to 2 million tons.

ADB President Masato Kanda began a three-day visit to Sri Lanka to deepen economic cooperation, review development financing and macroeconomic stabilisation, and assess Cyclone Ditwah damage. He toured Colombo Port, will meet the president and private sector, and will review project pipelines and recovery needs.

EDB's SheTrades Sri Lanka Hub ran a training on 17 February 2026 in Anuradhapura for over 50 women-led businesses on branding and digital marketing (social media strategies, website SEO, and AI content tools) to help them explore export opportunities. The programme is part of a continuing nationwide initiative with more sessions planned.

MAS Holdings' subsidiaries Texo and Noyon have become bluesign® System Partners, bringing 75% of MAS's wet-processing facilities into alignment with the bluesign standard for responsible chemical management.

Bank of Ceylon concluded a visit to India to reinforce banking and regulatory ties, meeting Reserve Bank of India officials, Sri Lankan diplomats and business leaders to explore cross-border opportunities and improve operations.

ADB President Masato Kanda led a delegation to the Sri Lanka Ports Authority and Port of Colombo on 23rd to review ongoing development projects and port operations. Discussions focused on project progress, improving delivery timelines, operational efficiency and strengthening ADB collaboration.

ADB President Masato Kanda arrived in Sri Lanka for a three-day visit to strengthen economic cooperation and assess Cyclone Ditwah damage, including touring Colombo Port and inspecting affected areas in Kegalle. He will meet the President and private-sector representatives to discuss recovery and development financing.

CT Smith Securities warned a prolonged Middle East conflict could weigh on Sri Lanka's banking-sector earnings by reducing non-interest income such as remittances, trade finance and LCs. The note adds higher inflation may limit CBSL rate cuts ahead of Wednesday's Monetary Policy Review.

Port City Colombo is proposed as a strategic South Asian hub aimed at driving construction and infrastructure development and boosting trade, tourism and IT-enabled services in the region.

Textrip (Elasto Group) won multiple awards for export and industrial excellence in 2025, including recognition at the NCE Export Awards (Rubber & Rubber-Based Products), Silver (provincial) and Bronze (national) at the CNCI Achiever Awards, and a Bronze at the PRISL Awards.

Speakers at an OPA seminar warned the Middle East conflict will raise global energy prices, strain fuel supplies (fuel ≈20% of Sri Lanka's import bill), and hit tourism and remittances (≈40% from the Middle East), urging price reforms, renewables, maritime and cyber security upgrades.

Nations Trust Bank (NTB) hosted the Beyond Ordinary – Nations Business Advisory forum in Colombo to provide businesses with economic insights, advisory perspectives and panels on macroeconomic outlook, export readiness, ESG and digital transformation.

Nations Trust Bank (NTB) partnered with the National Chamber of Exporters (NCE) to support Sri Lankan exporters by offering networking, knowledge-sharing and customised commercial banking and digital trade solutions.

Gulf escalation and shipping disruptions have hit Sri Lanka's tourism, tea and apparel sectors, pulling the bourse down 12.7% through March 20; plantation and apparel stocks plunged (Namunukula -30.6%, Agalawatte -22%, Teejay Lanka -20.6%) while Sunshine benefits from higher palm oil prices.

IMF says Sri Lanka’s reform programme has made very significant progress: economy grew ~5% in 2025, inflation about 1.6% and reserves are rising with debt restructuring nearly complete. The IMF warned Middle East tensions could hurt trade, remittances and tourism and will send a review mission Mar 26–Apr 9.

Tesla is reportedly in talks to buy about $2.9 billion of solar-panel and cell manufacturing equipment from Chinese suppliers to support a plan to add 100 GW of U.S. solar capacity. Sources say some equipment would be delivered before this autumn, with shipments likely headed to Texas.

The International Maritime Organization called for a provisional 'safe maritime corridor' in the Gulf to evacuate stranded merchant ships and seafarers after an emergency meeting that condemned Iranian attacks.

Strikes on ammonia plants in Iran have reduced ammonia/urea supply and helped push fertilizer prices about 40% higher in South Asian markets, risking higher rice and other agricultural prices and food-security strains. The article also highlights rodenticides market growth and Chinese space-mouse research.

Seylan Bank PLC will issue SME loan decisions within three working days for facilities below Rs.25 million. The bank has also joined the government/ADB-backed National Credit Guarantee initiative (guarantees up to 67%, 80% for women-led MSMEs) to boost SME access to finance.

President Anura Kumara Dissanayake said the government will prioritise the export sector and intervene fully to overcome current challenges, highlighting difficulties in securing fuel supplies. He met leading exporters and industry representatives to discuss measures to minimise the sector's economic impact.