News & market updates

COOPFED signed MoUs with Lanka Sugar and BCC Lanka to supply 1,000 mt/month of brown sugar and 20,000 liters/month of bottled coconut oil (plus soap and other products) for distribution through 3,500 cooperative retail outlets, with plans to expand to 10,000 by 2029.

DTS has appointed MTS Foods (Menon Technical Services Ltd.) as its commercial partner for India, Sri Lanka and Bangladesh to act as the regional commercial and first-line technical contact for DTS auger-based thermal food-processing applications. MTS will coordinate enquiries, support existing equipment locally and represent DTS at FoodPro 2026 and Anuga FoodTec India 2026.

Intex-InMac Sri Lanka 2026 will be held at BMICH from 5-7 August, featuring 250+ exhibitors from over 15 countries showcasing textiles, fabrics and next‑generation garment machinery including AI-enabled systems. The event aims to attract buyer delegations from 12+ countries to boost international sourcing, technology partnerships and Sri Lanka's apparel exports.

The Import Section of the Ceylon Chamber held its 91st AGM, reappointing Brandix's Ushan de Silva as chairman and naming Sankha Gammanpila (Hemas) vice-chair. The Section pledged to push trade facilitation, digital transformation (paperless trade/National Single Window) and address rising logistics costs.

The Central Bank reported a monthly current account deficit of US$149 million in June 2026 (third consecutive month) and a cumulative H1 deficit of US$245 million. The deterioration was driven by a wider merchandise trade deficit (US$5.5bn H1), a 40.2% rise in fuel import costs y/y, a 9.9% drop in tourist arrivals in June, and a 7.8% YTD depreciation of the rupee.

Harischandra Mills PLC reported 1QFY27 PAT of LKR 91.8m, up 147% y/y, on revenue of LKR 1.9bn (up 31%) and expanded gross margin to 18%. Management attributed the result to easing raw material costs, volume growth and operational efficiencies; Food segment revenue rose 22% and segment operating profit was LKR 83.2m.

Former IGP Pujith Jayasundara and former Defence Secretary Hemasiri Fernando were sentenced to death by the Colombo Permanent High Court Trial-at-Bar for failing to prevent the 21 April 2019 Easter Sunday attacks. The three-judge bench found them guilty of criminal dereliction of duty and aiding and abetting murder in attacks that killed 260 people.

Colombo Port handled 4,444,034 TEUs in 1H 2026, an 11.9% increase from 3,972,053 TEUs in 1H 2025; transshipment accounted for 84.7% of throughput and CICT handled 1,642,647 TEUs (37%). Vessel calls rose 2.5% to 2,066, with notable growth in break-bulk and value-added service calls.

Colombo Dockyard returned to quarterly profitability for the three months to 30 June 2026, posting PAT of Rs. 80.2m and profit attributable of Rs. 86.3m (EPS 22¢) versus a Rs. 813.4m loss a year earlier. The turnaround was driven by stronger ship repair revenue, improved cost efficiencies and a 63.8% decline in net finance expenses.

Opposition MP Dayasiri Jayasekara has petitioned CIABOC to probe the Cabinet's decision to extend judges' retirement age, alleging the proposed constitutional amendment amounts to bribery and corruption and requesting a preliminary inquiry and a halt to the amendment. He cites provisions of the Anti-Corruption Act and asks CIABOC to examine Cabinet papers, question ministers and relevant officials, and refer offences for prosecution if found.

CHEC Port City Colombo is pitching its 2.7 sq km SEZ to attract Indian investors, allowing Indian firms to register as offshore companies and transact in Indian rupees; the plan includes four dedicated hospitality plots, a two-km beach and a 90-hectare lagoon.

Colombo CCPI inflation rose to 7.3% in July, breaching the Central Bank's upper target limit and reaching a three-year high. Non-food inflation accelerated to 7.8% and core inflation was 4.4%; the Central Bank had raised policy rates by 100bps in May as a response to administered price adjustments.

Harischandra Mills PLC reported 1QFY27 PAT of Rs.91.8 million, up 147% YoY. Revenue rose 31% to Rs.1.9 billion and gross margin expanded to 18%, driven by easing raw material costs, volume growth and operational efficiencies led by the Food segment.

Sri Lanka's state petroleum corporation (CPC) kept domestic fuel prices unchanged for the month and is absorbing diesel losses of about Rs63-70 per litre as global diesel prices have risen ~158.9% vs pre-war while local diesel is up ~135.9%. CPC blamed the Russia-Ukraine war, refinery outages and higher Red Sea shipping costs; petrol has risen ~141% since February.

Seylan Bank reported a June-quarter profit of Rs3.21bn, up 16.3% y/y, with EPS of Rs5.06 and H1 profit of Rs6.02bn. Total operating income rose 14% to Rs13.29bn while impairment charges increased to Rs632.4m; total capital ratio was 15.56% and Tier-1 10.91%.

The Ministry of Digital Economy and GovTech held a national workshop on 31 July to review and build stakeholder consensus on a strategic roadmap to boost Sri Lanka's digital export earnings to US$5 billion by 2030. The roadmap, developed with KPMG and World Bank support, will be refined with industry feedback and include priority actions and timelines.

FCCISL congratulated the Export Development Board after Sri Lanka's combined merchandise and services exports reached $9,012.24 million in Jan-Jun 2026, an 8% year-on-year increase. FCCISL praised EDB chair Mangala Wijesinghe's leadership and called for continued public-private cooperation to sustain export growth and foreign-exchange earnings.

Registrations are open for the Sri Lanka Economic and Investment Summit 2026, to be held on 12-13 Oct at the Shangri-La Colombo. The Ceylon Chamber says the two-day forum will bring government, business and investors together to discuss economic policy, reform, investment and ways to expand exports.

The Colombo market ended the week in red: ASPI fell 0.2% for the week and closed yesterday at 21,129.21 (‑0.09%), while the S&P SL20 was down 0.04% for the week. Market turnover was over Rs.4.3bn; main negative contributors were HNB, CFIN, DFCC, HAYL and LOLC, and foreign investors were net buyers of Rs.955.2m.

Nearly 3,000 Sri Lankan youth selected for Israeli construction jobs under the G2G recruitment programme will hold a peaceful protest on 6 Aug 2026 at the Parliament Roundabout to urge the President to address prolonged delays, lack of transparency and alleged unfair treatment by the SLBFE; candidates say many have waited over a year without employment agreements while private agencies appear to receive more job contracts.

Dividend · Rs 1.00 · XD Aug 11, 2026

Final dividend of LKR 1/share; XD 2026-08-11; record 2026-08-12; payable 2026-09-01; FY 31 March 2026

Dividend · Rs 73.00 · XD Sep 23, 2026

Final dividend of LKR 73/share; XD 2026-09-23; record 2026-09-24; payable 2026-10-12; FY Ended 31st March 2026

Union Bank of Colombo reported PBT of LKR 881 Mn in 1H 2026 (up 84% YoY) and PAT of LKR 587 Mn (up 134% YoY). Group PBT was LKR 997 Mn, total assets rose 15% to LKR 199,283 Mn, and income included LKR 249 Mn from sale of shares in subsidiary UB Finance.

Headline inflation in Colombo rose to 7.3% year-on-year in July 2026, up from 6.8% in June, driven by a jump in food inflation to 6.3% (from 3.6%). Non-food inflation moderated to 7.8% from 8.4%.

Oil prices fell as Brent dropped $1.44 to $87.59/bbl and WTI fell $1.59 to $82, though both are set for about a 20% monthly rise, as increased flows through the Strait of Hormuz and other chokepoints offset Middle East tensions.

Colombo Dockyard (DOCK) returned to quarterly profitability for the three months ended 30 June 2026, reporting profit after tax of Rs. 80.2 million and profit attributable to owners of Rs. 86.3 million (EPS Rs. 0.22) versus a Rs. 813.4 million loss a year earlier. The turnaround was driven by stronger ship repair revenue, improved cost efficiencies and a 63.8% decline in net finance expenses.

Binance will begin offering USDT-settled European-style commodity options on physical gold and silver through its ADGM-regulated Nest Exchange Limited. Retail users may only buy (long) options while eligible institutional users and liquidity providers can write options; the product includes KYC/market surveillance and other compliance controls.