News & market updates

Hayleys PLC's engineering arm was appointed to deliver Continental's tyre plant expansion at Wagawatta, Kalutara under a turnkey contract signed on 21 July; the project covers civil, structural, PESB, MEP and utilities work and is expected to create about 200 jobs.

Sri Lanka's Construction PMI (Total Activity Index) rose to 60 in June from 59.1 in May, indicating expansion; the Employment Index increased to 61.4. Firms cited ongoing project execution supporting activity but flagged shortages of skilled workers and key raw materials (notably bitumen) and supply disruptions as constraints.

The Colombo Port Health Office, built with a grant from Japan and implemented by the IOM, was inaugurated on 28 July 2026 to strengthen Sri Lanka's port health infrastructure and emergency preparedness. The compact facility used a pre-engineered hybrid building system and advanced, corrosion-resistant façade materials to suit the marine environment.

Rush Lanka's Rush Metropolis in Dehiwala received Board of Investment (BOI) approval on 23 July. The project is a 125-unit highrise with amenities including a swimming pool, gym, kids' play area and rooftop gathering space, and the company says BOI status adds regulatory credibility.

Gateway College has acquired the 3.2-acre Regent Country Club site in Malabe from Prime Lands to develop a new state‑of‑the‑art international school; the property already includes a banquet hall, offices, pool and other facilities and will expand Gateway's school network.

Odel PLC has revised its Odel Mall plan, prioritising completion of Zone 1 within 18-24 months and deferring Zone 2. Construction has recommenced, significant contracts and capital commitments remain, and the company is pursuing a reduced-scope financing plan plus loan restructuring with a HNB-led banking consortium.

Diesel & Motor Engineering PLC (DIMO) is installing international-standard LED floodlighting across four key hard courts, including the centre court, in partnership with the Sri Lanka Tennis Association and SLTPL; installation is underway and expected to be completed in the coming weeks with a nighttime unveiling.

The Cabinet approved land allocation to 23 investors across 13 regional industrial estates on 35-year leases for projects totaling over Rs. 2.8 billion, expected to create 870 direct jobs. The moves are part of the Industry and Entrepreneurship Development Ministry's regional industrial estate development programme to build infrastructure and promote balanced industrialisation.

Cabinet approved commencing the procurement process to award about Rs. 15 billion of contracts for Phase I of the Ruwanpura Expressway, with contracts expected to be awarded in 2026 using approved 2026 budget allocations. Phase I covers Kahathuduwa to Ingiriya and includes a Kahathuduwa System Interchange linking to the Southern Expressway.

Cabinet approved awarding about Rs15 billion in local funding to construct Phase 1 of the Ruwanpura Expressway in 2026; the RDA will complete procurement and select a contractor to build the Kahathuduwa-Ingiriya stretch, including a system interchange at Kahathuduwa linking to the Southern Expressway.

Colombo Dockyard (DOCK.N0000) signed a contract with Global Marine Systems (UK) to build a 100m cable laying and repair vessel, due for delivery in September 2029. The ultra-modern diesel-electric vessel (14.5 kn) accommodates 76, has three cable tanks and meets Bureau Veritas CLEANSHIP standards.

ODEL PLC has disclosed that construction on Zone 1 of the Odel Mall Project in Colombo 07 has re-commenced and is expected to be completed within 1½-2 years. The company said Zone 2 (100-perch) will be held for future development and provided the update to curb speculation.

AA3 Holdings Ltd opened a state-of-the-art showroom and fully equipped workshop in Kiribathgoda, housing what it says is Sri Lanka's largest ex-stock inventory of heavy construction equipment to speed customer access and strengthen after-sales support and servicing.

The Court of Appeal dismissed two writ applications against Pentara Residencies, the Home Lands Group apartment project in Thummulla, Colombo 5, finding the UDA approvals complied with the Development Plan and rejecting the petitioners' challenges.

Three Sinha Industries (Pvt) Ltd was named Sustainability Business Leader of the Year at the Sri Lankan Sustainability Awards 2026 on 11 July 2026. The award recognizes the company's sustainable manufacturing practices and product innovation within Sri Lanka's construction and engineering sector.

Odiliya Homes & Residencies has appointed Sri Lankan cricketer Lasith Malinga as its official Brand Ambassador to boost its local and international brand presence, promote its Icon hotel portfolio and support efforts to attract foreign investment into Sri Lanka's premium real estate and hospitality sectors.

Sri Lanka and India held talks to resolve implementation challenges in Indian-funded development projects, including review of projects financed under a US$450 million loan and grant for disaster recovery. Participants discussed renewing agreements and creating a dedicated unit in the Presidential Secretariat to monitor project progress.

A high-level delegation from Russia's NOSTROY visited Sri Lanka to explore investment and collaboration in infrastructure and urban development projects and held talks on expanding employment opportunities for Sri Lankan construction professionals.

Arcasia Investment & Trading Ltd. and ATX Partners launched a voluntary offer to buy all issued shares of Industrial Asphalts at 40 cents per share, securing binding undertakings for 50.16% of the company. The offer will convert to a mandatory offer once those acceptances are tendered; the stock last traded at 60 cents.

Pelwatte Dairy Industries broke ground on a Greenfield liquid milk manufacturing facility in Kurunegala, scheduled to open in July 2027. The plant will produce plain and flavored fresh milk, expanding Pelwatte from milk powder into liquid dairy to strengthen local supply and support farmers.

Pelwatte Dairy Industries has broken ground on a Greenfield liquid-milk manufacturing facility in Kurunegala, slated to open in July 2027. The plant will produce plain and flavoured fresh milk, marking Pelwatte's expansion from milk powder into liquid dairy products to boost local supply.

JAT Holdings PLC has signed an exclusive nationwide partnership to distribute WASHLEX Japanese smart toilets across Sri Lanka's hospitality, residential and commercial sectors. Over 350 units have been installed to date and the brand is already used by several luxury hotels and property developments.

A high-level delegation from Russia's National Association of Builders (NOSTROY) visited Sri Lanka from 22–25 July 2026 to explore investment and collaboration in infrastructure, urban development and hotel/tourism projects and to discuss skilled labour mobility for construction professionals.

President Anura Kumara Dissanayake instructed officials to formulate a program to allocate underutilised State land, with project support, to Sri Lankan migrant workers returning from overseas. He also reviewed 2026 plantation projects, urged completion of 10,000 Malayagam houses, ordered land-agreement reviews and noted improved profitability at six State plantation entities.

India's assistance to Sri Lanka has exceeded $7.5 billion, including more than $850 million in grants. The aid has supported projects across all 25 districts in infrastructure, housing, health, education, agriculture, renewable energy, railways and industrial development.

Beruwala Resorts PLC proposes a Rs. 398 million rights issue (318,429,225 shares at Rs. 1.25) to fund refurbishment of The Palms Beruwala and meet working capital needs. The issue is subject to CSE in-principle approval, listing approval and shareholder approval at an EGM; Colombo Fort Hotels holds a 66.25% stake.

Overseas Realty (OSEA.N0000) reported Group PBT of Rs. 4,767 million and Group revenue of Rs. 6,775 million for the six months to 30 June 2026. Fair value gains were Rs. 1,091m (down from Rs. 2,331m), occupancy and rental improvements drove stronger recurring revenue, NAV per share Rs.54.67 and EPS Rs.3.60.