News & market updates

NASSCOM launched its Disha Mentorship Program in Sri Lanka — its first international expansion — to mentor 48 Sri Lankan technology SMEs through structured guidance from industry leaders. The program aims to deepen India–Sri Lanka tech cooperation and support exports, jobs and digital transformation.

Vera Wickramasinghe, Managing Director and Founder of Worldlink Shipping Colombo, was elected President of the Freight Forwarder Network (FFN), becoming its first female and first President from outside Europe/US. The FFN also selected Colombo (ITC Ratnadipa) to host its 15th AGM in 2025.

The EDB launched two sector-specific export handbooks in Sinhala and Tamil to help women-led SMEs in textiles, apparel, accessories, footwear, handicrafts and processed agrifood/spices access the UK market under the Developing Countries Trading Scheme (DCTS), which offers duty-free access on ~92% of product lines. Developed with the ITC and the British High Commission, the guides aim to improve export readiness and inclusion ahead of the National Export Development Plan 2026–2029.

Sri Lanka's manufacturing PMI fell to 53.0 in June from 56.6 in May, indicating continued but slower expansion. New Orders were at the neutral 50.0, production was driven by food & beverages, employment remained near neutral, inventories rose and suppliers' delivery times lengthened amid global uncertainties and labour shortages.

Government launched the nationwide 'Ceylon Tea Village' program to transform smallholder tea production and lift annual output to 400m kg and tea export earnings to $2.5bn by 2030, starting with 144 tea villages. The program includes nurseries, mechanisation, insurance, pensions, concessional finance, value‑addition and links to tourism.

June tea production rose 4% YoY to 22.5 MnKg, but first-half output was 131.8 MnKg, weighed down by extreme weather, Cyclone Ditwah and rising fertiliser costs. The industry is urging a targeted fertiliser subsidy for smallholders ahead of expected El Niño.

The National Chamber of Exporters renewed an MoU with Ernst & Young to expand support for Sri Lankan exporters on compliance, supply‑chain traceability, sustainability and digital transformation. The partnership will deliver workshops and advisory programmes to help exporters meet US/EU requirements as Sri Lanka pursues a US$36bn export target by 2030.

Sampath Jayasundara has been appointed SLASSCOM Chairman for 2026/27; he currently serves as CEO of hSenid Business Solutions PLC (HBS.N0000). He will prioritise AI-ready workforce development, curriculum reform and entrepreneurship to boost Sri Lanka's knowledge and innovation exports.

Sampath Jayasundara, CEO of hSenid Business Solutions PLC, was elected Chairman of SLASSCOM for 2026/27 and will prioritise AI upskilling, entrepreneurship and product-led growth to help scale Sri Lanka's knowledge and innovation exports toward a $5bn target.

Asian stocks rallied after U.S. CPI fell 0.4% in June and annual core inflation eased to 2.6%, cutting rate-hike odds and sending two-year Treasury yields down 11bp to 4.19%. Oil steadied around $85.80/bbl and China's Q2 GDP slowed to 4.3%.

Outgoing Swedish Ambassador Jan Thesleff said Sri Lanka's improving policy stability is restoring international investor confidence and named renewable energy, ICT, apparel, healthcare and food processing as key growth sectors; a Swedish business delegation will visit in January 2027.

BPPL Holdings (via subsidiary Beira Brush) will acquire Ravi Industries' customer base, 'Ravi' trademark and related IP under a business transfer agreement with minimum consideration of Rs.300 million payable over five years linked to revenue. The company says the deal will create synergies and position Beira Brush among the largest industrial brushware manufacturers in Asia.

Government banned imports of goods produced using forced labour effective 10 July, requiring importers to certify goods are free of forced labour to strengthen compliance and reduce the risk of higher U.S. tariffs (USTR had proposed an additional 12.5% on Sri Lankan exports). The move targets protection of apparel exports to the US, Sri Lanka's largest market (~$3bn annually).

Haycarb PLC will invest USD 18 million in a BOI-approved expansion to scale production of high-performance activated carbon for energy-storage applications (HCE 400). HCE 400, which won the Presidential Export Award, is being validated by international customers for silicon–carbon anodes and supercapacitors.

SheTrades Sri Lanka Hub (EDB with ITC and the British High Commission) launched two Sinhala and Tamil export handbooks for textiles/apparel and processed agrifood/spices to boost women entrepreneurs and SMEs' UK export readiness, noting the UK's DCTS offers duty-free access on about 92% of product lines. The handbooks are available on the EDB SheTrades portal.

Outgoing Swedish Ambassador Jan Thesleff said he is optimistic about Sri Lanka's recovery and rising investor confidence, noting about 80 Swedish companies operate in Sri Lanka. He highlighted opportunities in ICT, apparel exports, renewable energy, healthcare and tourism, and cited Port City progress and the need for direct flights.

The Cabinet approved establishment of a Centralised Zero-Waste Biomass Cinnamon Processing Centre at the University of Ruhuna to be carried out in four phases over 27 months. Jointly implemented by the Science & Technology Ministry, ITI and the university, it aims to support small-scale cultivators in Matara and Galle by lowering processing costs and utilising biomass waste.

EDB and Expertise France began cooperating on the EU-funded 'Advancing Sustainable Trade between the EU and Sri Lanka' project following a 9 July 2026 meeting to boost sustainable, climate‑resilient access for Sri Lankan exporters to EU markets. The initiative will align trade regulations, support a green transition and enhance SME competitiveness for EU market entry.

Sri Lanka's cabinet approved establishing a centralized zero-waste biomass cinnamon processing centre at the University of Ruhuna, to be implemented over four phases spanning 27 months. The state-led project aims to modernize infrastructure, cut processing costs and commercialize cinnamon biomass to help regional smallholder producers.

The National System Operator launched an international tender for a 250 MW / 1,000 MWh standalone battery energy storage system across 25 substations, with BOO contracts and proposals due 10:00 hrs on 14 Aug 2026.

BPPL Holdings' Beira Brush will acquire Ravi Industries' customer base and the 'Ravi' trademark under a business transfer agreement with a minimum five-year, performance-linked consideration of Rs. 300,000,000. Payments are annual and tied to revenue, and BPPL plans to integrate production to unlock synergies.

The Free Trade Zone Manufacturers' Association urged the government to operationalise power wheeling, lower industrial energy costs and set up dedicated fuel stations in Katunayake and Biyagama to protect export manufacturing competitiveness. The group also asked for a review of industrial diesel pricing.

The Sri Lanka Shippers' Council urged sweeping trade facilitation reforms to eliminate hidden logistics costs and accelerate digitalisation to boost exporters' competitiveness, speaking at its 60th anniversary and 56th AGM.

Alpha Fire Services PLC will acquire 100% of Icon Engineering for Rs. 260 million via a share swap issuing 9,122,807 new Alpha Fire shares; the combined operations are expected to generate over Rs. 1 billion in revenue and raise profitability by 30%. The transaction is a related-party major transaction and is subject to CSE and shareholder approvals.

Emirates is offering a seasonal strawberry menu on Dubai–UK flights from 13–31 July with strawberry desserts across all cabin classes. Emirates SkyCargo has transported more than 230 tonnes of British strawberries to the UAE since March 2026, partly sourced from Bustanica vertical farm.

A 31-member Indian SME delegation from the Federation of Indian Export Organisations held B2B networking sessions with Sri Lankan businesses at the Ceylon Chamber (8–10 July 2026) to explore trade, sourcing and partnership opportunities across pharmaceuticals, engineering, apparel, food/agriculture and infrastructure.

Ceylon Chamber launches 'Scale Up 2.0', its National SME Forum on 11 August 2026 at Taj Samudra, Colombo, to connect SMEs with buyers, financial institutions, policymakers and support organisations to boost market access, finance, standards and value‑chain integration.

Sri Lanka's High Commission in the UK held a roundtable on 3 July with the SLUKCC and UK officials to strengthen bilateral economic ties and promote Sri Lanka EXPO 2027 in Colombo. Discussions covered macroeconomic reforms, trade and tourism, the UK's DCTS, education partnerships, technology investment and a planned Business Forum in September.

Intex and InMac will be held 5-7 August 2026 at BMICH Colombo, hosting 300+ international companies to support Sri Lanka's apparel industry's US$8 billion export target by 2030. The co-located shows will showcase materials, next-generation garment machinery and seminars on sustainability and digital/automation to modernize the supply chain.

EDB, IFC and the EU ran the 7th Provincial ExpoNavigator Program in Batticaloa on 9–10 June 2026 to boost export readiness of nearly 100 Eastern Province SMEs. The two-day event offered awareness sessions, technical consultations and a Business Clinic to identify high-potential enterprises for continued SLEEI support.