News & market updates

IGT I Outsourcing Lanka moved into Port City Colombo and has grown to just over 500 staff serving international clients, highlighting Port City’s role in boosting Sri Lanka’s ICT exports (ICT/BPM exports $1.64bn in 2025). The article urges predictable tax treatment after a 2026 amendment changed employee tax in the zone and calls for digital process improvements to keep talent and investment.

The Planters' Association has urged the Government to curb organised theft of high-value plantation crops, saying losses may run into millions and one RPC is spending ~Rs.20m over three months on security, deterring investment and harming export competitiveness; it calls for tougher penalties and traceability.

EY Global Delivery Services Sri Lanka hosted a Milestones event in Colombo attended by Prime Minister Harini Amarasuriya and nearly 3,500 EY professionals, the largest EY event in Sri Lanka. The PM highlighted the National Digital Economy Strategy, AI-first operations and plans to grow ICT exports.

MAS Holdings handed over official podium and performance kits to Team Sri Lanka for the Glasgow 2026 Commonwealth Games, presenting kits for 42 athletes across seven sports at a Colombo press conference on 15 July. The designs, developed with CGA Sri Lanka, are sport-specific and themed "Sacred Giants of Sri Lanka."

IFC and HSBC will invest up to $40m in South Asia Gateway Terminals to fund twin-lift ship-to-shore cranes — a $20m sustainability-linked loan from IFC and a $20m green loan from HSBC — to raise quay-side productivity (~11%), improve reliability and reduce energy use.

IFC and HSBC will provide up to $40 million in financing to South Asia Gateway Terminals (SAGT)—a $20m sustainability-linked loan from IFC (including $8.57m mobilized) and a $20m green loan from HSBC—to fund twin-lift ship-to-shore cranes, raising quay productivity by at least 11% and cutting energy use.

Sri Lankan exporters are being urged to prepare for new EU sustainability rules — EmpCo, PPWR and EUDR — with compliance timelines from Aug–Dec 2026 and penalties up to €2m or 4% of turnover. The measures target sectors including tea, food/agriculture, apparel, rubber, plastics, fisheries and tourism; Peterson Solutions is offering guidance and a free ESG webinar on 29 July 2026.

Sri Lanka and India amended their DTAA to introduce the OECD Principal Purpose Test, with the protocol entering into force on 19 June and the revised provisions applying in India from 1 April 2027. The change lets tax authorities deny treaty benefits where one principal purpose is obtaining a tax advantage, requiring genuine commercial substance for cross-border arrangements.

The Lanka India Business Association will host the 'India Calling' corporate forum on 6 August at Taj Samudra, Colombo, to address trade and investment barriers and promote deeper Sri Lanka–India private sector integration. The full-day event will feature Indian and Sri Lankan policymakers, academics and business leaders.

Teejay has committed USD 2.57m to a 7.2 MW rooftop solar array and USD 2.65m to replace coal with certified biomass. Together the projects are expected to cut facility emissions (solar ~13%, biomass ~49%), boost renewables and could meet a 42% Scope 1/2 cut by 2030, possibly by Sept 2026.

Hatton National Bank (HNB.N0000) was named Sri Lanka's Best Bank for Large Corporates at the Euromoney Awards for Excellence 2026, its second time winning the title. The bank cited involvement in a USD 1bn sustainability-linked syndication, LKR 44.5bn financing for a 350MW power project and investments in digital and transaction banking.

Sweden's ambassador reaffirmed plans to bring a Swedish trade delegation to Sri Lanka Expo 2027 (14–17 Jan 2027) to connect Swedish buyers with Sri Lankan exporters, highlighting opportunities in cinnamon, coconut products, gems & jewellery, apparel and ICT.

The Lanka India Business Association will host the 'India Calling' forum on Aug 6 at the Taj Samudra, Colombo to bridge commercial gaps and unlock bilateral trade and investment corridors with India. Speakers including Montek Singh Ahluwalia and C. Raja Mohan will address regulatory friction, consumer behaviour and practical ways to reduce trade barriers.

WSO2 founder Sanjiva Weerawarana urged Sri Lankan and South Asian tech entrepreneurs to build globally competitive product companies from the region and retain ownership of their IP, saying AI lowers barriers and India–Sri Lanka collaboration can unlock opportunities.

HNB PLC was named Sri Lanka's Best Bank for Large Corporates at the Euromoney Awards for Excellence 2026, the second time it has won the title. The award highlighted HNB's role in landmark deals during the review period, including participation in a $1bn sustainability-linked syndicated financing and arranging Rs.44.5bn for the 350MW Sobadhanavi power project.

The Exporters Association of Sri Lanka elected Nalaka Ratnayake as Chairperson at its 29th AGM; the new Executive Committee includes representatives from CIC Holdings, Hayleys, Dipped Products, Hatton National Bank, Sampath Bank and Lion Brewery. Speakers urged faster trade digitalisation, lower export costs and improved logistics to boost competitiveness.

The Sri Lanka-USA Business Council will host 'The IP Trade Corridor' breakfast forum on 22 July 2026 in Colombo to discuss strengthening the US–Sri Lanka economic partnership through intellectual property protection for exporters, manufacturers and IT/creative firms.

The Exporters Association of Sri Lanka urged the government to adopt a transparent, risk-based approach and publish operational guidelines before enforcing new import rules banning goods linked to forced labour, warning unclear procedures could disrupt trade and raise compliance costs.

Intex and InMac trade shows will be held 5–7 August 2026 at BMICH, Colombo, hosting over 300 international companies to help drive Sri Lanka's apparel export target of $8bn by 2030. The events will showcase fibres, fabrics, garment machinery, automation and seminars on sustainability and digital transformation.

Nojili Group CEO L.A.D. Palitha completed a business development visit to Myanmar (11–17 June 2026) to explore collaboration in gemstones, jewellery, tourism and investment. Meetings in Yangon and participation in the UMTA Travel Fair focused on eco-, cultural- and heritage-tourism and trade partnerships.

FACETS Sri Lanka 2027, the 34th annual international gem and jewellery exhibition, will be held 4–6 January in Colombo and will bring over 100 exhibitors and buyers from the USA, Europe, the Middle East, India, China and other markets. Organisers say the event aims to boost SME exporters, sustainable sourcing and market access for Sri Lankan gem and jewellery businesses.

Sri Lanka gazetted an immediate ban on importing goods wholly or partly produced with forced labour on July 10, 2026, to avert a threatened 12.5% U.S. tariff under Section 301. Exporters—especially apparel, textiles and agricultural producers—now face stricter certification, higher compliance costs and potential supply-chain delays.

The Exporters Association of Sri Lanka urged the government to publish clear, risk‑based operational guidelines and hold stakeholder consultations for newly gazetted regulations banning imports linked to forced labour, warning that unclear procedures could raise compliance costs, delay shipments and disrupt legitimate trade.

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.

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.

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.

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.