News & market updates

The Tea Exporters Association urged President Dissanayake to provide targeted support to over 480,000 tea smallholders to restore productivity, noting production fell from 340m kg in 2013 to 261m kg in 2025 while exporters can process about 400m kg. TEA proposed infilling/replanting (Rs.200 per plant) financed by government, IFIs or banks and said improved yields would boost smallholder incomes and foreign exchange; the President expressed support.

The Sri Lanka Export Development Board (EDB) and Germany's Import Promotion Desk (IPD) signed an MoU to renew cooperation to strengthen export development and market access for Sri Lankan export‑oriented SMEs through technical assistance, capacity building and business matchmaking. The partnership, active since 2019, highlights support for natural ingredients exporters and women-led enterprises.

Duminda Hulangamuwa was appointed Chairman of the Board of Investment and pledged to restore the agency's authority and make it a one-stop shop to boost FDI and accelerate export growth. He is a chartered accountant, former Country Managing Partner at EY Sri Lanka and Maldives, and a senior economic adviser to the President.

Dr. J.G.L.S. Jayawardena has been appointed Director General of the Board of Investment of Sri Lanka. He joins from the Finance, Planning and Economic Development Ministry and the move is intended to better align investment promotion with fiscal policy to boost FDI and external earnings.

President Anura Kumara Dissanayake said the government aims to raise economic growth to 7–8% and identified IT and electrical & electronics as key sectors, noting targets of US$5bn in IT exports and US$2bn in electronics. He pledged Rs.2 trillion in capex and outlined measures (Virtual SEZ, data centre, customs Green Channel, incentives) to address import, banking and talent barriers.

Tea Exporters Association urged government support for tea smallholder infilling to raise production after Sri Lanka's tea output fell from 340 million kg in 2013 to 261 million kg by 2025. Smallholders (480,000, c.75% of crop) face low yields (~150kg vs potential ~600kg/acre/month); infilling costs ~Rs.200/plant and the President expressed support.

Duminda Hulangamuwa was appointed Chairman of the Board of Investment and pledged to restore the agency's authority and turn it into a one-stop shop to boost FDI and accelerate export growth.

Sri Lanka's current account recorded a US$194 million deficit in May 2026, the second consecutive monthly deficit and leaving a US$97 million deficit for January–May. The trade gap widened to US$4.7bn (Jan–May), fuel import spending rose 112% YoY in May, tourist earnings fell 5.1% YoY in May, remittances rose 26% YTD, reserves were US$6.9bn and the rupee was down 7.9% YTD.

The World Bank approved US$150 million for the REGROW DPO to support Sri Lanka's reform agenda focused on boosting investment, competitiveness and jobs. The operation backs reforms to reduce trade barriers, improve the investment climate, strengthen the financial sector and enhance power sector competitiveness to lower energy costs.

Sri Lanka's current account posted a US$194m deficit in May 2026, the second consecutive monthly deficit, driven by a wider trade gap and a smaller services surplus despite higher remittances. The cumulative trade deficit reached US$4.7bn Jan–May 2026, fuel imports rose 112% YoY in May, and gross official reserves were US$6.9bn at end-May.

Hayleys Agriculture Holdings launched the 'Where Value Blossoms' campaign to position itself as a diversified, export-focused agricultural group (HJS Condiments ≈60% of Sri Lanka's processed fruit & veg exports). The company highlights digital platform OMNIX, sustainability measures (27% of water from sustainable sources), a 12,500+ outgrower network and a Haychem Bangladesh subsidiary.

The Council for Business with Britain elected Ameena Ziauddin as President at its 26th AGM and named a 2026–27 committee including Aitken Spence Travels, Hayleys, John Keells and invited Commercial Bank's CEO to serve. The UK Developing Countries Trading Scheme and rising British tourist arrivals were highlighted as opportunities for exporters and tourism.

UK High Commissioner urged Sri Lankan businesses to use the Developing Countries Trading Scheme (DCTS), which offers zero-tariff access to the UK and whose January 2026 reforms expand preferential access for the apparel sector, boosting export opportunities for Sri Lankan firms.

CanCham SL convened a high-level dialogue on 17 June 2026 on women's economic empowerment and SME sustainability with public and private leaders from Sri Lanka, India and Canada. The chamber said it will form a core stakeholder group and host an Economic Summit for Women to boost market access, financial inclusion and support for women-led SMEs.

The Ceylon Chamber met IMF staff during the fund’s recent visit to discuss sustaining macroeconomic stability and priorities for H2 2026, focusing on improving the investment climate, export expansion, tourism and agriculture support, energy-sector reforms and accelerating digitalisation.

The government will phase out para-tariffs starting in 2028 — removing 50% of the cess for most products in 2028, a further 25% in 2029 and fully by 2030, while 107 HS codes follow a slower 25%/25%/50% timetable. Customs reforms also include a simplified four-band tariff (0/10/20/30%), greater digitalisation and new non-intrusive scanners to speed clearance.

UNP MP Ravi Karunanayake urged Parliament's Committee on Public Finance to summon Central Bank officials, Customs and the chief compliance officers of 13 banks to probe an alleged ~$1bn foreign-exchange fraud involving phantom imports and possible crypto-enabled capital flight.

Port of Colombo handled 3,702,265 TEUs in the first five months of 2026, a 13.5% YoY increase; vessel arrivals rose 4.7% to 1,726 and transshipment throughput increased 14.0%, supported by infrastructure, digitalisation and capacity investments.

Asian stocks closed a strong quarter — Japan's Nikkei is set for a ~36% quarterly rise and South Korea's KOSPI about 65% — as a resurgent dollar (index +1.3% this quarter) pushed the yen to a four-decade low of 162.41 and sent gold sharply lower; Brent crude at $72.49/bbl.

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.

TFGL and GLX launched Cohort 1 of Project Hyacinthesis, an eight-month accelerator onboarding six SMEs to develop market-ready handicrafts, fashion and homeware from water hyacinth; the project is engaging government to amend the 1909 ordinance to enable commercial use and export potential.

University of Sri Jayewardenepura and Port City Colombo co-authored and published an international case study, 'Port City Colombo: Catalysing Sri Lanka's Emergence as a Global Investment Hub,' via Nova Publishers. The study examines the project's urban planning, economic, regulatory and sustainability dimensions and is intended as a multidisciplinary teaching and policy resource.

EDB hosted a North Western & North Central Exporters' Networking Forum in Chillaw to boost regional export capabilities and link exporters with government agencies, discussing customs, legal and market-access challenges and enabling direct engagement with Sri Lanka Customs and the Inland Revenue Department.

Two Sri Lankan exhibitors, Asiabika Industrial Ltd and Samson Rubber Industries, showcased rubber products at EUROBIKE Frankfurt 24–27 June 2026 to promote exports and connect with international buyers. The participation aimed to create networking and business-development opportunities for Sri Lankan manufacturers.

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.

The Sri Lankan rupee depreciated 8.0% against the US dollar in 2026 up to June 26, the Central Bank reported; the CBSL showed the dollar buying rate at Rs.332.22 and selling at Rs.341.88 on June 26. The move will materially affect exporters and tourism-related sectors via revenue and cost translation.

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 adopts 'Ceylon Tea Village' program to restructure the smallholder tea sector and target $2.5bn in annual tea exports by 2030; the plan foresees 500 cluster villages, starting with 144 in 2026, and focuses on productivity, value addition and tea-linked tourism.

The Ceylon Chamber of Commerce re-elected Krishan Balendra as Chairperson and approved its 2026/27 board. The board includes senior executives from John Keells, Hayleys (Hayleys Agriculture), Renuka Hotels and Dialog Axiata, and the Chamber said 18 recommendations were included in Budget 2026 covering trade, digitalisation and infrastructure.