News & market updates

Alumex PLC has installed a new 20 MN, 7-inch aluminium extrusion line at its Sapugaskanda plant, expected to exceed 1,000 kg/hour and monthly output over 2,000 tonnes. The Industry 4.0 line includes AI/IoT production controls and is projected to cut energy use 30–40%, boosting yield and export capability.

Sri Lanka held a Dubai investor forum on June 11 to pitch Port City Colombo as a Special Economic Zone and court Gulf capital to attract FDI into finance, technology, logistics, property and services across South Asia.

ASPI jumped 3.43% (743.22 pts) to 22,380.65 as markets rallied on signs of a possible end to the Middle East war, with index-weighted counters SAMP, COMB, JKH, MELS and DIAL among top contributors; turnover exceeded Rs.4bn and foreigners were net buyers (Rs.21.1m).

Sri Lanka GDP grew 5.1% year-on-year in Q1 2026, up from 4.7% in the previous quarter. Growth was led by industry (up 7.2%) with mining +19.5% and construction +16.3%, while services rose 3.4% driven by insurance (+22%), IT/BPM (+16.1%) and financial services (+12.8%); agriculture +1.1%.

Sri Lanka has spent 17.4% of its 2026 capital budget, about Rs.240 billion of Rs.1,380 billion, the National Budget Department director told Parliament; officials said some capital expenses will remain unspent and that Rs.20 billion cited was a reallocation after a fuel price hike.

Sri Lanka's real GDP grew 5.1% year-on-year in Q1 2026 to Rs. 3,652,503 million (2015 prices). Growth was led by industry (+7.2%)—notably construction (+16.3%) and mining (+19.5%)—while services rose 3.4% (insurance, IT, financial services) and agriculture grew 1.1%.

Sierra Cables PLC reported FY2025/26 revenue of LKR 16 billion and net profit of LKR 2.7 billion, up 73% and 194% year‑on‑year respectively. Export revenue rose 345% to LKR 5.0 billion (31% of group revenue) with expansion into the US market.

World Bank cut its global growth forecast to 2.5% for 2026, warned higher energy and fertiliser prices will raise inflation, and is making $50–60bn available immediately (scalable to $80–100bn over 15 months) to support vulnerable countries.

Government extends the deadline for submissions to the MRIA investment EOI process to 9 July (EOI documents open until 8 July). Proposals must remain valid for 120 days (until 5 Nov) and guarantees for 150 days (until 5 Dec).

Huawei unveiled a grid-interactive AIDC strategy at the 2026 Global AIDC Industry Summit in Dongguan, promoting '3+1' innovations to build grid-friendly, energy-efficient, high-density AI data centers that maximize tokens per watt and emphasize renewable integration and liquid cooling.

The Sri Lanka Business Council UAE held a 35th-anniversary investment forum in Dubai on 11 June that drew 225 UAE business leaders and investors. Colombo Port City presented investment opportunities and speakers encouraged investment in tourism, hospitality, IT, logistics, manufacturing and renewable energy in Sri Lanka.

China Harbour Engineering Company (CHEC) chairman Bai Yinzhan met President Anura Kumara Dissanayake and reaffirmed CHEC's confidence in investing in Sri Lanka, welcoming incentives for the Port City Colombo Special Economic Zone. The President reiterated government support for FDI and cited IMF-backed policy stability to boost investor confidence.

Global GIS (Pvt) Ltd signed a Memorandum of Understanding with the University of Ruhuna to collaborate on R&D, product commercialization, consulting, training and to install a GNSS CORS station at the university. The agreement also includes funding support, internships and technology transfer to boost surveying and geospatial capacity.

The Sasakawa Memorial Sri Lanka–Japan Cultural Centre at Ward Place, Colombo 07, was inaugurated, with the Rs. 3 billion facility intended to promote cultural exchange, education and professional training between Sri Lanka and Japan.

Government and JICA aim to restart construction of Bandaranaike International Airport Terminal 2 by November after high-level talks to finalise loan allocation and contract value. JICA says the terminal could be completed within 30 months after work resumes and Finance Ministry approval for additional loan is being sought.

Bollywood stars Shilpa Shetty Kundra, Aditya Roy Kapur and Jacqueline Fernandez arrived in Colombo to headline the launch of Home Lands Group’s 'Central Park Boulevard Port City' at Cinnamon Life/City of Dreams.

ADB is providing $4 billion in rapid financing — about $3 billion requested by governments and $1 billion in trade finance — to help countries, including Sri Lanka, withstand fallout from the Middle East conflict. Support includes policy-based loans, trade finance for energy and food imports, and rapid repurposing of existing funds.

ADB is deploying $4 billion to help countries including Sri Lanka manage impacts from the West Asia conflict, with about $3 billion requested by governments and $1 billion for trade finance for energy and food imports. Support includes policy-based loans, countercyclical financing, rapid repurposing of portfolios and emergency assistance.

The UN has formally concluded its emergency response to Cyclone Ditwah after delivering critical assistance to 575,000 people and mobilising $28.5m in donor funds, while recovery and reconstruction needs are estimated at $3.4bn. Around 113,000 homes were damaged or destroyed and more than 2.2m people were affected.

SAARC CCI President Chandi Raj Dhakal met Yunnan Governor Wang Yubo in Kunming to push for expanded trade, investment and connectivity between South Asia and Yunnan, highlighting opportunities in infrastructure, tourism, logistics, digital industries, renewable energy, agriculture and manufacturing.

Port City Colombo forum in Dubai convened about 200 senior UAE business and diplomatic leaders to position Port City Colombo as a gateway for UAE firms expanding into South Asia. Speakers highlighted the project's investor protections, tax incentives and governance framework and noted new strategic partner appointments to deepen Gulf investment ties.

Colombo Stock Exchange ASPI rose 1.68% (up 357.08 pts) to 21,627.10, with the S&P SL20 up 1.55% as banks supported gains. Market turnover was Rs.666m led by real estate; Colombo Fort Investments and Colombo Investment Trust listed scrip-dividend shares effective June 12, 2026.

Adamjee Lukmanjee Group hosted the "Legacy of Trust - Customer Forum 2026" on 23 May at Cinnamon Life, Colombo to recognise longstanding and top-performing customers. The 160-year group highlighted its supply of animal feed ingredients, Saviya cement and N-Joy coconut oil to agriculture, livestock and construction sectors.

CG Corp Global chairman Binod Chaudhary highlighted the group's Sri Lanka footprint, noting it holds a majority stake in Union Bank of Colombo and operates multiple hospitality properties including the Taj Samudra. He also cited a BYD agency partnership with John Keells and a cement feasibility study.

The India–Sri Lanka Binational Bridge and Tunnel proposal — a ~23 km link estimated to cost US$3.6–5.19bn — could lift tourism by 50–70% and cut some transport costs by up to 50%, reshaping trade, logistics and connectivity. Sri Lanka has paused advancement over technical, environmental and sovereignty concerns.

Cabinet approved 77 Businesses of Strategic Importance for the Colombo Port City SEZ in April 2026, supporting about Rs.125 billion (including ~$262m foreign inflows) in land and development value and projecting ~$364m in secondary inflows and roughly 10,000 direct jobs over five years. Regulatory reforms by the CPCEC and CHEC's ~$1.4bn infrastructure investment aim to accelerate permits and unlock an estimated $15bn total development.

Design Square Academy launched an apprenticeship-driven interior design training programme to provide students with on-site project experience and industry-led mentorship, as the dedicated training arm of Design Square (Pvt) Ltd. The programme focuses on practical exposure, industry mentorship and career readiness.

Home Lands will unveil Central Park Boulevard Port City Colombo in a Grand Launch Weekend — a twin‑tower 37‑level development with over 640 units and a total project value of over $300 million (Home Lands' $150m investment). The developer says 50% of units are already sold ahead of launch.

Sasakawa Memorial Sri Lanka–Japan Cultural Centre Trust unveiled the Rs. 3 billion Nippon Office Building at No. 85, Ward Place, Colombo 07. The office complex (three basements, ground plus ten upper floors) was designed by Design Consortium International Ltd. with a hybrid concrete/steel structure and energy-efficient features.

Home Lands says it pre-sold about 50% (over 300 of 640) units in its Central Park Boulevard Port City Colombo twin-tower project, part of a development valued at more than $300 million, ahead of the official 12–14 June launch.