News & market updates

Sri Lanka's inflation rose to 6.8% in June 2026, the highest since June 2023 and close to the Central Bank's 7% upper target. The rise was driven by a ~47% fuel price hike and higher food and transport costs; the Central Bank raised its policy rate by 100bp.

Colombo headline inflation rose to 6.8% Y-o-Y in June 2026 (from 5.5% in May), with a 2.1% month-on-month increase driven by food (fish, vegetables) and non-food items amid energy price pass-through. The Central Bank projects inflation to remain above the 5% target near term before easing, with elevated uncertainty due to Middle East tensions.

Sri Lanka's CCPI rose to 5.5% in May (from 5.4% in April), driven partly by higher local energy costs, eroding real returns on typical savings. Wealth managers recommend diversifying into unit trusts (money-market, income/balanced and equity funds) to protect savings.

Dividend · Rs 8.00 · XD Aug 14, 2026

First And Final dividend of LKR 8/share; XD 2026-08-14; record 2026-08-16; payable 2026-09-04; FY 2026

Sri Lanka cut fuel prices effective June 30: Auto Diesel down Rs25 to Rs382/litre and Octane 92 down Rs20 to Rs414. Prices had risen sharply since Feb, driving up transport and grocery costs and pressuring retailers and logistics.

John Keells Foundation ran substance-abuse awareness and training sessions across John Keells Group businesses, covering 644 staff at Cinnamon Grand, 218 staff at Cinnamon Myst/Citadel, and rollouts across 145 Keells supermarket outlets; JKF says over 36,000 people have been reached since 2016.

Parenthood Global held the Mom Leaders Conference on 21 May 2026 at Cinnamon Life, recognising Top 10 Most Outstanding Mom-Inclusive Workplaces including Ceylon Tobacco Company, Hemas Holdings, DFCC Bank and National Development Bank; sponsors included Maharaja Foods and others.

Thai Sumeda Enterprises (Pvt) Ltd won the "Business of the Year 2026" Award in the Large Category for Manufacturing Excellence. The award recognises the company's role as a major incense and fragrance products manufacturer and exporter and its contributions to rural employment.

Colombo Stock Exchange ASPI fell 0.45% midday to 22,309.09 with turnover of 951.8 million rupees, utilities contributing 448.6 million. Convenience Foods Lanka authorized an 8.00 rupee first-and-final dividend and Tokyo Cement proposed a 2.50 rupee first-and-final dividend.

Dr. Rohantha Athukorala was awarded the 'Rotarian of the Year 2025/26' by Rotary Sri Lanka and Maldives. He is a director of Lotus Hydro Power PLC (HPFL) and has held leadership roles with Sri Lanka Tourism, the Export Development Board and several multinational and tech firms.

The Thailand–Sri Lanka forum highlighted the newly enacted SLTFTA and reported bilateral trade rose 48% to $649m in 2025. Officials said the FTA and related measures should expand market access and investment across logistics, manufacturing, tourism, food processing, IT and healthcare.

Government aims to build coconut and food & beverage exports to USD 3.0bn in two years (USD 2.0bn coconut, USD 1.0bn food & beverage) and pledged incentives, support for value-added production, streamlined raw-material imports and industry establishment in the Northern Province.

Government tabled its Fiscal Strategy Statement for 2027 and defended recent tax amendments, clarifying that digital VAT targets non-resident service providers and that the reduction of the compulsory VAT registration threshold from Rs.60m to Rs.36m has been postponed.

Dividend · Rs 1.00 · XD Jul 8, 2026

Third Interim dividend of LKR 1/share; XD 2026-07-08; record 2026-07-08; payable 2026-07-24; FY 2025-2026

Uswatte Biscuits Pvt Ltd honoured and partnered with javelin thrower Rumesh Tharanga Pathirage, awarding him Rs.2.5 million and pledging long-term support toward his 2028 Olympic campaign. Pathirage set a Sri Lankan record of 92.62m at the 2026 Rome Diamond League and rose to World No.2.

The Sri Lanka Retailers’ Association held its 9th AGM on 23 June 2026 and elected Infiyaz M. Ali (Director, Healthguard Pharmacy Ltd) as President, with Mahesh Wijewardena (Group CEO, Singer (Sri Lanka) PLC) as Senior Vice President and Kumar De Silva (CEO, SPAR SL) as Vice President. The AGM adopted the 2025/26 annual report and previewed the Sri Lanka Retail Forum 2026.

Barista launched Tap Grab Go, a mobile app that enables order-ahead and islandwide pick-up to speed takeaway service. The app integrates with Barista’s Loyalty Crown program and targets takeaway orders, which the company says make up 21% of transactions with a 9.5-minute average wait.

IFC will invest up to $10 million in New Anthoney’s Farms Group to scale poultry capacity, targeting exports of 1,936 tonnes annually (a 29% rise from 2024) and creating over 900 jobs. The funding includes up to $5m from GAFSP and aims to benefit ~200 smallholder farmers.

Sri Lanka, led by Trade Minister Wasantha Samarasinghe, participated in the 10th China–South Asia Exposition and 30th Kunming Import Fair (11–16 June 2026), showcasing 100 booths and securing export partnerships including an MoU to promote Sri Lankan beverages in China. Discussions also covered access to Kunming bonded-zone free warehouses to boost supply-chain connectivity.

Praveena Perera, Associate Vice President and Client Services Director at MullenLowe Group Sri Lanka, became the first Sri Lankan woman named to Campaign Asia-Pacific’s 40 Under 40. She leads MullenLowe Sri Lanka’s Unilever portfolio (27 brands) and contributed to the agency’s recent industry awards.

Spa Ceylon's Virgin Coconut Nourishing Hair Conditioner was named Best Conditioner for Damaged Hair at the Marie Claire UK Hair Awards 2026.

The Thailand–Sri Lanka Business Forum centred on implementing the Sri Lanka–Thailand FTA to boost trade and investment after bilateral trade reached USD 649m in 2025 (+48% vs 2024). Delegates highlighted opportunities in logistics, manufacturing, food and agriculture, IT, healthcare and tourism and urged streamlined customs and predictable FTA implementation.

Chef Shantha Peiris of Nyne LUXE outlines the restaurant's sustainable gastronomy approach, focusing on local sourcing, waste minimisation, plant-forward dishes and in-house preparations to reduce environmental and social impact while maintaining luxury dining.

Fitch Ratings says US consumer spending growth is slowing as inflation erodes real incomes, with real spending easing to 1.4% qoq annualized in 1Q26 and Fitch forecasting 1.7% growth for 2026. Lower oil prices could ease the squeeze, but falling savings and rising auto and credit-card delinquencies point to uneven spending.

Sri Lanka's total exports for Jan–May 2026 reached US$7,393.39 million (+7.56% YoY), with May exports of US$1,570.64 million (+18.34% YoY). Growth was broad-based across merchandise and services, led by apparel, coconut products, rubber gloves, electrical/electronic components and ICT/BPM, while tea slipped marginally.

IFC will invest up to $10 million in New Anthony’s Farm Group to expand poultry capacity, retail/franchise reach and value-chain efficiency. The project is expected to create over 900 jobs, benefit ~200 smallholder farmers and raise exports to 1,936 mt annually.

First Capital Research: aggregate earnings of 271 listed companies fell 11.4% YoY in the March 2026 quarter (third straight quarter), but underlying earnings rose 30.1% YoY after adjusting for major one-offs. Food, Beverage & Tobacco dragged the aggregate result while retailing and telecom posted strong gains (e.g. UML, DIAL, SLTL, SINS).

Headline NCPI inflation rose to 5.4% YoY in May from 4.7% in April, the third consecutive monthly increase. Rises were driven by higher petrol and LP gas prices and increases in several food items (vegetables, fish, onions), while rice, eggs and sugar eased; core inflation edged to 4.5%.

Uber launched Uber Eats and Uber Rides in Ratnapura, enabling food and grocery delivery plus multi-vehicle ride-hailing across the district. The expansion provides local merchants, delivery partners and drivers with new customer access and earning opportunities.

The Thailand–Sri Lanka Business Forum highlighted opportunities from the new Sri Lanka–Thailand FTA, with bilateral trade at USD 649m in 2025 (up 48%) and commitments to boost supply chains, investment and trade across food processing, logistics, IT, healthcare, tourism and manufacturing.