News & market updates

Pelwatte Dairy commissioned Sri Lanka's largest dairy effluent treatment plant at its Buttala facility, with a base capacity of 250 m³/day and peak capability up to 325 m³/day. The plant meets CEA standards and ISO 14001-aligned practices to support environmental compliance and export market access.

Colombo Stock Exchange closed lower as the ASPI fell 0.75% to 22,011.10. Top contributors included John Keells and Lion Brewery on the upside, while Dialog Axiata, Sampath Bank, Ceylon Beverage Holdings and Ceylon Cold Stores led declines; Maharaja Foods opened a new outlet and its shares fell 2.23%.

John Keells Holdings' Consumer Foods Sector graduated 36 participants from the "Aspire" Executive Development Programme 2025, strengthening leadership capability across its food brands. The sector ran the programme with the Postgraduate Institute of Management to build strategic, cross-functional and business leadership skills.

Maharaja Foods opened a Maharaja Super – SPAR Savemore outlet in Kotahena under a partnership with SPAR Sri Lanka and plans four new Colombo outlets. The company raised LKR 112.5 million via a 1-for-10 rights issue of 12.5 million shares at LKR 9.

Gamer.LK hosted the seventh Women’s Cyber Games 2026 in Colombo with a Rs. 100,000 prize pool; Soul of Devils were crowned Best Clan after winning multiple titles across mobile, PC, console and VR events.

Colombo Stock Exchange dipped midday as the ASPI fell 0.10% to 22,155.45 with market turnover at 981 million rupees; Consumer Durables & Apparel led turnover at 348.1 million rupees. Central Finance, Hemas and Browns gained, while Access Engineering, Ceylon Cold Stores and Sampath Bank were down.

Pyramid Wilmar aims to double its turnover in the next five years from around $250 million by expanding FMCG product lines and boosting local manufacturing and value addition. The group — a 50:50 JV with Wilmar International — also holds interests including Watawala Plantations and has invested close to $1bn to date.

Colombo market fell for a second day as ASPI slipped 0.39% to 22,177.65 and the S&P SL20 eased 0.32% to 6,130.65 on turnover of Rs.2.01bn. Notable moves: Ceylon Cold Stores, Haycarb and Pan Asia Banking gained, John Keells was flat, with mixed or retail interest in several other stocks.

CIC Holdings PLC reported PAT of Rs. 8.25 billion for FY26, up 24.5% YoY, on consolidated revenue of Rs. 91.75 billion (+10.16% YoY) and EPS of Rs. 3.64. Crop Solutions remained the largest revenue contributor (≈40.8%) while Agri Produce was hit by Cyclone Ditwah.

The LMD-PEPPERCUBE Business Confidence Index rose seven points to 148 in May. Consecutive fuel price hikes, a roughly 5% fall in the Sri Lankan rupee year-to-date, higher electricity tariffs and a US$267m drop in official reserves have kept business sentiment fragile amid geopolitical tensions and rising cybercrime concerns.

The IMF completed its combined Fifth and Sixth reviews under Sri Lanka's EFF and released US$695m, bringing total IMF disbursements to US$2.4bn. The IMF cut 2026 growth to 3.0% and warned that higher fuel costs, a sharp drop in tourism and cyclone damage have flipped the current account to a projected 0.5% of GDP deficit.

Indo-Lanka Chamber hosted a dialogue on Sri Lanka’s investment future, highlighting growing India–Sri Lanka economic ties and citing Indian investments including ITC Limited and CEAT Limited; speakers urged stable, credible policy and consistent investor engagement.

CIC Holdings PLC reported FY26 profit after tax of Rs. 8.25 billion, up 24.50% YoY, on consolidated revenue of Rs. 91.75 billion (10.16% YoY) and EPS of Rs. 3.64. Crop Solutions contributed ~40.8% of revenue while Agri Produce faced weather-related losses from Cyclone Ditwah, with Health & Personal Care and Livestock Solutions showing strong growth.

Colombo headline inflation rose to 5.5% YoY in May (from 5.4% in April), led by non-food price increases in housing, electricity, gas and transport while food inflation slowed to 0.9%. The CBSL said Middle East tensions and energy price escalations keep inflation outlook uncertain and likely above 5% near term.

Sunshine Holdings reported consolidated FY26 revenue of Rs.65.9 billion, up 11.2% YoY. PAT was Rs.5.0 billion (down 2.5% YoY) as NMRA pricing cuts weighed on healthcare margins, and the group acquired a majority stake in Joint Agri Products Ceylon Ltd to bolster exports.

Pink Eagle Holdings (Pvt) Ltd is expanding its diversified group globally across tea exports, logistics, food manufacturing, hospitality and digital retail, highlighting Continental Tea's ADRA Ceylon 10th anniversary and launches such as the Avanti freight app and Pink Panda marketplace.

Sri Lanka raised retail fuel prices effective May 31 (Auto Diesel +Rs15 to Rs407/L; Octane 92 +Rs24 to Rs434; Super Diesel +Rs20 to Rs478; Super Petrol +Rs25 to Rs495; Kerosene +Rs20 to Rs285), as the fuel import bill more than doubled to US$886m in April and prices near 2022 crisis levels.

Cargills (Ceylon) PLC reported a March-quarter profit of Rs2.63bn, up 31% y/y, and FY profit of Rs10.61bn (from Rs7.22bn); quarterly revenue rose 16.8% to Rs69.52bn. The group reduced net debt to Rs16.1bn, recorded non-recurring losses (Rs858m cyclone damage; Rs328m on disposal of a 6.54% stake in Cargills Bank) and warned of energy and currency pressures that could moderate consumption.

Sri Lanka Customs exceeded its May revenue target of 187.8 billion rupees before month-end, collecting 100.1 billion in the first 26 days and marking the fifth consecutive month of outperformance; it has reached 51% of the 2,207 billion annual target in the first 146 days as enforcement and rebounding imports boost collections.

John Keells Holdings reported a 218% rise in quarterly profit to LKR 6.31 billion for the quarter ended March 31, 2026, with revenue up 62% to LKR 144.89 billion, driven by retail, transportation and leisure; a final dividend of LKR 0.10 per share was announced.

Hayleys PLC reported FY2025/26 revenue of Rs.585.02 bn (up 19%) and consolidated Profit Before Tax of Rs.38.04 bn (up 4%). Consumer & Retail revenue rose 44% to Rs.156.74 bn, Q4 revenue grew 29%, the group completed a Rs.9 bn rights issue and Fitch affirmed a 'AAA (lka)' rating.

Sunshine Holdings (SUN) reported FY26 consolidated revenue of LKR 65.9bn, up 11.2% YoY, while PAT fell 2.5% to LKR 5.0bn and EBIT margins eased amid healthcare pricing pressure. The Group cited NMRA pricing cuts, acquired a majority stake in JAPC, and saw Watawala's palm oil revenue rise 23.6%.

Sri Lanka's CCPI rose to 5.5% in May 2026, a 27-month high driven by a c.40% fuel price increase that pushed up both food and non-food items. The central bank this week raised the policy rate by 100 basis points to curb demand-driven inflation.

Colombo headline inflation rose to 5.5% year‑on‑year in May 2026 from 5.4% in April, driven by higher non-food prices—notably housing, L.P. gas and petrol—while food inflation eased to 0.9%. Core inflation edged up to 3.9% and inflation is expected to remain above the 5% target near term.

The National Chamber of Exporters is pressing for a clear timeline as Sri Lanka's accession to the Madrid Protocol remains in the legislative phase, with the Legal Draftsman's Department finalising required statutory amendments and NIPO set to prepare an Action Plan once the draft is submitted. Joining the Madrid system would let exporters seek international trademark protection via a single application, lowering costs for sectors like tea, apparel, spices, gems, IT services and processed foods.

President Anura Kumara Dissanayake declared 15 categories of public services — including electricity, fuel distribution, healthcare, transport, ports/airports, water, telecoms, banking and insurance — as essential under the Essential Public Services Act to ensure uninterrupted services in post-disaster conditions.

Comfort World has repositioned from a traditional bedding manufacturer into a science-led sleep and wellbeing company, expanding into hospitality, healthcare and international markets while launching Sleep Technology and Experience Centres to provide personalized sleep solutions.