News & market updates

Melstacorp PLC appointed D. Hasitha S. Jayawardena as Executive Chairman with immediate effect via a board resolution dated 6 February 2025. He was previously a Non-Independent Non-Executive Director, holds 7,531,332 Melstacorp shares, and the board also appointed M.R. Mihular as Senior Independent Director.

Hasitha Jayawardena was appointed chairperson of Melstacorp and Distilleries Company of Sri Lanka, effective 6 February, in stock exchange filings. He was also named chairperson of Balangoda Plantations and Madulsima Plantations; Melstacorp holds 92.44% of Distilleries.

UN Global Compact Network Sri Lanka hosted Compass 2025, unveiling its 2025 strategic roadmap including enhanced working groups, an SDG Innovation Centre and new accelerator programmes to drive corporate sustainability, governance and collaboration across Sri Lankan businesses.

Sri Lanka's Export Development Board and the Consulate in Gothenburg are in talks to boost exports to Sweden, where 2024 merchandise exports were USD 101 million. They aim to diversify and expand shipments over five years targeting apparel/textiles, rubber, tea, spices, coconut products, processed foods and ICT-BPM services.

EDB met Sweden's Honorary Consul to boost Sri Lanka–Sweden trade; Sri Lanka's merchandise exports to Sweden were USD 101 million in 2024. EDB outlined a 5-year plan to grow exports via product diversification and market expansion across apparel, rubber, tea, processed foods, coconut products, eco-handicrafts and ICT-BPM services.

The Cabinet approved a five-year Integrated Rural-Urban Development and Climate Resilience Project backed by a $100 million concessional World Bank loan, launching June 2025 to boost productivity and climate resilience across food crops, plantation crops, livestock and fisheries.

Sri Lanka will obtain US$100 million from the World Bank, with IFC technical support, to fund the Integrated Village Development and Climate Resilience Project supporting climate‑smart agriculture and improved domestic and export competitiveness across crops, livestock and fisheries over five years from June 2025.

Ceylon Tea Brokers PLC appointed Waruna de Silva as Managing Director and Dinesh Fernando as Chief Executive Officer effective 31 January 2025. Waruna was CEO since May 2017 and Dinesh has been COO since June 2019; the Board composition was updated accordingly.

Two prominent Sri Lankan business figures, Ken Balendra (85) and Harry Jayawardena (82), died yesterday. Both men had led or chaired multiple listed firms, including Melstacorp, Aitken Spence, Distilleries Co., Ceylon Tobacco, Lanka Milk Foods and Hatton National Bank.

Dividend · Rs 0.21 · XD Feb 14, 2025

First Interim dividend of LKR 0.21/share; XD 2025-02-14; record 2025-02-16; payable 2025-03-06; FY 2024/25

Printcare PLC (70% owner) has opened a new packaging facility in Kenya, its second overseas investment, targeting packaging for tea, horticulture and apparel to boost exports, create jobs locally and repatriate profits to Sri Lanka.

Sri Lanka stocks fell 0.97% as the ASPI closed down 166.24 points at 16,956 and turnover was Rs3bn, the lowest so far this year. John Keells, Browns Investments and Tea Smallholder Factories announced interim dividends and net foreign outflow was Rs179mn with foreign selling in several large stocks.

Sri Lanka posted a $6.07b merchandise trade deficit in 2024 (vs $4.9b in 2023) as imports rose 12.1% to $18.84b while exports increased 7.2% to $12.77b; petroleum products, textiles and tea boosted exports, but imports grew across most major categories.

Tea Exporters Association warns abolishing the SVAT system from April 2025 would raise exporters' working capital needs by about Rs.5 billion/month (≈Rs.60 billion/yr), harm exports and cut incomes of over 480,000 smallholder farmers by ~18%. TEA urges continuation of SVAT or VAT exemption and a fast refund mechanism.

Tea Exporters Association warned that abolishing the cashless SVAT from April 2025 would force exporters to lock up about Rs.5 billion per month (≈Rs.60 billion/year) in working capital and could reduce smallholder farmers' incomes by roughly 18%. The group says this will raise financing costs, hurt competitiveness and lower auction prices for 480,000+ smallholders.

The government plans to allocate Rs. 1.35 trillion for capital expenditure in the upcoming budget, its largest such allocation. It targets economic growth above 4% and aims to streamline approvals, digitize services, and prioritise tourism, IT, power and maritime projects to attract investment.

Colombo Tea Auction returned to in-person outcry at the Ceylon Chamber, selling 948 Ex-Estate lots (just under 1 million kg) and 6.4 million kg in total, with Asia Siyaka Commodities PLC opening the sale. The auction operated as a hybrid with concurrent digital sales and strong demand.

Sri Lanka’s merchandise exports rose 6.67% to US$12,705.44 million in 2024, with apparel at US$5,050m and tea up 9.62% to US$1,435m; coconut and rubber exports also grew while seafood exports fell in December.

Sri Lanka recorded a record-high total export revenue of US$16.17bn in 2024, a 7.06% increase year‑on‑year (merchandise US$12.70bn; services US$3.47bn). Growth was driven by apparel, tea, rubber, coconut products, spices and stronger ICT and logistics/services exports.

Rothschild Estate, managed by Pussellawa Plantations Ltd, operates a high-grown tea estate at 1,200m with a 40,000 kg/day green-leaf processing capacity and is investing over Rs. 500 million to add 35,000 kg/day for Orthodox/Rotorvane production. The estate is Rainforest Alliance and ISO 22000 certified, employs 562 workers and runs housing, welfare and sustainability programmes.

Asia Siyaka Commodities (Asia Siyaka) reported Sri Lanka exported 245.7 Mn kg of tea in 2024 worth about $1.435bn, a record FOB of $5.83/kg. The company noted higher USD export value despite lower farmer/estate rupee earnings due to LKR appreciation.

Kahawatte Plantations has partnered with Australia’s Market Development Facility to expand coffee cultivation through an outgrower (contract farming) model and a centralized processing facility in Nawalapitiya. The initiative aims to boost specialty coffee volumes for export and provide market access and stable prices to smallholders.

Fitch recalibrated Sri Lanka’s national rating scale, upgrading seven non-financial corporates (including Sri Lanka Telecom to AA-(lka), Windforce to A+(lka) and Resus Energy to A-(lka)) and revising Bogawantalawa Tea Estates to BBB+(lka).

George Steuart & Co Ltd celebrates its 190th anniversary in 2025. The group will stage community-focused activities and says local and export revenues are roughly 50:50 (with under 5% from the state sector) and it aims to boost exports and expand globally.