News & market updates

The Vehicle Importers’ Association said a 2.5% tax on imported vehicles will take effect from 1 April 2026, raising a Rs.10m vehicle's price by about Rs.250,000. Dealers say demand remains strong, and second‑hand Japanese vehicle auctions have seen 11–15% price increases.

Prof. O.G. Dayaratna-Banda warned Sri Lanka remains trapped by ideology, institutional inertia and regulatory red tape and said services account for around 57% of GDP. He flagged weak broadband, skills mismatches and fragmented regulation, and cited a 8.5% of GDP corruption cost estimate.

The Export Development Board met with Sri Lanka's Honorary Consul to Hong Kong Hung Chiu Wah Derek to strengthen trade ties and promote Sri Lanka Expo 2026, focusing on expanding exports, buyer-seller linkages and boosting Ceylon Tea branding in Hong Kong.

The ninth Boat & Marine Show Sri Lanka was held 30 Jan–1 Feb 2026 at Port City, Colombo, showcasing marine tourism and boat-building (50 exhibitors, 90 stalls) to promote exports and B2B links with international buyers. The event aimed to boost nautical tourism and attract investment into boat-building and related services.

Hayleys PLC reported consolidated Profit After Tax of Rs. 14.02 bn for the nine months to 31 March 2026 while consolidated revenue rose 16% to Rs. 421.40 bn. The Board approved a Rs. 9 bn rights issue and paid an interim dividend of Rs. 6 per share; Fitch reaffirmed its 'AAA (lka)' rating.

United Motors Group reported Group PAT of LKR 2.4 billion for the nine months to 31 Dec 2025, up 5,315% y/y. Group revenue rose to LKR 33.3 billion (up 323%), driven by stronger vehicle demand after the import ban lift, Perodua sales expansion and exports from Dutch Lanka Trailers.

United Motors Group (UML.N0000) reported Group PAT of Rs. 2.4 billion for the nine months to 31 Dec 2025, up 5,315% y/y; company-level PAT was Rs. 1.1 billion (up 537%) and group revenue rose to Rs. 33.3 billion, driven by strong SUV, commercial vehicle and parts demand and export growth at DLT.

Sri Lanka's High Commissioner to Pakistan, Rear Admiral Fred Senevirathne, met Pakistan Business Council Chair Dr. Zeelaf Munir on 06 Feb 2026 and invited her to lead a delegation of business leaders to explore investment and trade opportunities in Sri Lanka. He highlighted Sri Lanka's improving economic outlook and investment-friendly reforms.

Sri Lanka will participate in BIOFACH 2026 (10–13 Feb 2026) in Nuremberg with a Sri Lanka Country Pavilion organized by the EDB and NOCU featuring eight leading organic exporters. The pavilion will showcase certified organic products including PGI Pure Organic Ceylon Cinnamon and Pure Ceylon Tea and include SME promotion and regulatory cooperation to boost organic exports.

HNB MD/CEO Damith Pallewatte highlights HNB’s Sarusara agripreneur programme (15,000 participants to date, 30,000 target) and a 2026–2030 strategic plan. He warns of banking-sector challenges (liquidity, asset quality, digital risk) and urges ecosystem-building across exports, agriculture, tourism and digital services.

Dankotuwa Porcelain (DPL.N0000) was one of six Sri Lankan exhibitors at Ambiente/Christmasworld/Creativeworld Frankfurt 2026, where exhibitors reported strong international buyer interest and promising export inquiries, supporting potential growth in Sri Lankan consumer-goods exports.

Mild Earth launched 'Wild Mist Water', a premium Sri Lankan spice-based brewed wellness beverage in four variants, to be sold via its e-commerce site and selected boutique hotels/resorts from an export-grade facility, with early export talks for Australia, Malaysia and Singapore.

Central Bank of Sri Lanka clarified that all transactions between residents must be in Sri Lankan Rupees and that it has not authorized merchants to accept or convert payments into foreign currency, with penalties up to Rs25,000,000 and/or up to three years' imprisonment. The instruction explicitly covers payments via credit/debit cards.

Sunshine Holdings reported 9MFY26 consolidated revenue up 8.1% to Rs. 48.9bn and EBIT up 1.2% to Rs. 7.5bn, while PAT fell 8.8% to Rs. 4.3bn. Healthcare remained the largest revenue driver but faced margin pressure from new pharma pricing, while agribusiness (Watawala) posted strong palm oil-led gains.

Government has begun stakeholder consultations on a proposed Four-Band Tariff Policy under the 2026 Budget to rationalise tariffs, improve predictability for businesses and boost exports; the Finance and Industry ministries and the World Bank are gathering industry feedback before finalising reforms.

The US will exempt certain Bangladeshi apparel made with US-produced materials from tariffs and cut its overall tariff rate on Bangladesh from 20% to 19% in exchange for Dhaka opening its markets to more US goods. The deal targets Bangladesh's apparel sector, which makes up over 80% of its export revenue.

Ajay Banga (World Bank) warns 1.2 billion young people will enter the workforce in the next 10–15 years while only about 400 million jobs are expected, creating a vast shortfall. The World Bank proposes a three-pillar jobs strategy (infrastructure and skills, business-friendly rules, and scaling businesses) focused on infrastructure, agribusiness, healthcare, tourism and manufacturing.

Mild Earth launched Wild Mist Water, a premium Sri Lankan spice-based brewed wellness drink in four variants produced at an export-grade facility and sold via its e-commerce site and select upmarket hotels and boutiques, with export talks for Australia, Malaysia and Singapore.

The Sri Lanka Export Development Board will run a workshop on Feb 18 titled 'Risk Management, Strategies and Incoterms to Win Competitiveness in International Trade Beyond Borders' for potential and SME exporters at the NDB-EDB Building in Colombo; sessions will be bilingual with practical exercises and limited seats (register via the Trade Facilitation Division).

Sri Lanka Navy earned USD 598,250 in foreign exchange over four months by independently facilitating Onboard Security Team (OBST) operations, with all proceeds credited to the Government Consolidated Fund. Between 03 Oct 25 and 08 Feb 26 the Navy conducted 323 maritime security operations under a Cabinet decision and a Presidential Order.

Bank of Ceylon's Entrepreneur Development Program, built on reviving about 700 businesses, will be rolled out from 2026 aiming to train 1,500–2,000 SME entrepreneurs free of charge. The program targets entrepreneurs (age 18–45) with turnovers of Rs.5–50m and offers mentorship, expert guidance and links to concessionary financing.

Sunshine Holdings (SUN) reported consolidated 9MFY26 revenue of LKR 48.9bn (+8.1% YoY), Group EBIT of LKR 7.5bn (+1.2% YoY) and PAT of LKR 4.3bn (-8.8% YoY). Healthcare remained the largest contributor with margin pressure from a new pricing mechanism, while Agribusiness (Watawala) delivered strong revenue and margin gains.

Government ministries and the World Bank commenced stakeholder consultations on a proposed Four-Band Tariff Policy under the 2026 Budget to support domestic industries and boost exports.

Sri Lanka's Cabinet approved signing an MoU with Japan on 16 February to formalise an economic policy dialogue aimed at promoting trade, investment and economic development and positioning Sri Lanka as an export-oriented corridor in South Asia.

The Cabinet approved the National Mineral Policy 2026 to strengthen sustainable management and development of mineral resources, prioritising an updated mineral database, value addition for mineral exports, promotion of mineral-based industries, environmental management and land-ownership resolution.

Prime Minister Dr. Harini Amarasuriya met representatives of the European External Action Service on 10 Feb to deepen the EU–Sri Lanka economic partnership and to expand trade and investment, urging legislative and policy reforms. She also thanked the EU for timely cyclone assistance and briefed the delegation on government economic reforms.

EDB met with Hong Kong's Honorary Consul on 6 Feb 2026 to strengthen trade ties and expand buyer-seller linkages, highlighting Ceylon Tea's market potential in Hong Kong. They promoted Sri Lanka Expo 2026 (18–21 June at BMICH) and invited a Hong Kong buyer delegation to boost export opportunities.

Ministry of Brands (backed by Akbar Brothers) will open Sri Lanka’s first off-price flagship store in Colombo on 16 Feb 2026, offering authentic global designer brands at discounts up to 90%. The 10,000 sq ft store will carry over 2,000 brands and a second location is planned at One Galle Face Mall.

Export Development Board hosted a networking session for new and potential tea and coconut exporters, attended by about 100 small and medium exporters. Speakers covered market entry, Coconut Development Authority exporter registration, branding and building international buyer relationships.

Hayleys PLC presented Haycarb PLC with the Overall Winner Award at the Hayleys Chairman’s Awards 2025 for its HCE 400 Series silicon‑carbon anode materials for lithium‑ion batteries. Hayleys Fabric PLC won the ESG Category Award for a smart energy‑saving system for stenter machines.