Industry & Sector News
View all(73)🏥 Kandy National Hospital Receives Rs. 620 Mn Medical Equipment Upgrade 🏥
• Investment: Rs. 620 million overall outlay to upgrade public health infrastructure. • Capacity Boost: Installation of three advanced medical equipment systems. • Service Impact: Strengthens healthcare delivery by enhancing diagnostic and non-invasive treatment capabilities, benefiting regional patient care and reducing burden on national facilities. _(Note: Based on provisional data)_
Govt. Launches ADB-Backed US$ 328 M Power Grid Modernisation Project ⚡📈
• Project Overview: The Power System Strengthening and Renewable Energy Integration Project (PSSREIP), backed by US$ 328.25 Mn in concessional funding from ADB, has commenced under Energy Minister Anura Karunathilaka to modernise national transmission networks and boost renewable energy integration. • Substation Expansions: • Homagama 132/33 kV Grid Substation: Construction launched to meet rising demand across Homagama, Kottawa, Malabe, and Horana, easing load on Pannipitiya and Kosgama sites. • Negombo 132/33 kV Grid Substation: Package 1B addition to support regional tourism, industrial activity, Bandaranaike International Airport expansion, and the proposed Aero City project. Both substations targeted for completion within 2 years. • Transmission & Grid Upgrades: Future investments include a 220/33 kV substation in Mirigama, 132/33 kV substation in Peliyagoda, a 78 km 132 kV line (Hambantota–Matara), and a 2 km underground 132 kV line linking Kelaniya-Kotugoda to Peliyagoda. • Colombo Port Connection: Work began last week on a 220 kV underground transmission cable connecting Kerawalapitiya to Colombo Port to reinforce energy infrastructure for long-term economic growth.
📈 UNDP & Ministry Partner to Boost Sri Lanka's Industrial Transformation
The United Nations Development Programme (UNDP) in Sri Lanka and the Ministry of Industry and Entrepreneurship Development (MoIED) have signed an MoU to establish an embedded Expert Support Unit to accelerate industrial growth and SME competitiveness. • Strategic Focus: The unit will deploy multidisciplinary technical experts across SME development, industrial zone development, trade and policy, digital transformation, data analytics, skills development, and international relations. • Economic Impact: Designed to enhance export competitiveness, generate employment, and integrate local industries into global value chains through evidence-based policymaking. • Key Stakeholders: Signed by MoIED Secretary J. M. Thilaka Jayasundara and UNDP Resident Representative Azusa Kubota, in the presence of Deputy Minister Chathuranga Abeysinghe. • Implementation: Facilitates agile deployment of specialists, strengthens project management and monitoring systems, and aims to mobilize funding from private sector and development partners for sustainable implementation.
📈 ProFood ProPack & AgBiz 2026 Set for Aug 21-23 at BMICH
Sri Lanka’s premier food processing, packaging, and agribusiness exhibition returns for its 23rd edition, driving regional trade, innovation, and B2B/B2C networking. • Event Scale & Footprint: • Expected turnout: Over 30,000 trade and consumer visitors. • Exhibition space: 450+ stalls across 6 halls. • Global presence: 50+ international participants from countries including China, India, and Germany. • Organizers: Sri Lanka Food Processors Association (SLFPA) and Lanka Exhibition and Conference Services Ltd. • SME Development & Regional Support: • Co-organised with the Industry and Entrepreneurship Development Ministry to strengthen local agribusiness and processed food value chains. • Features a dedicated SME Pavilion providing market access and feedback. • Eligible SMEs receive a 50% discount on stall fees to promote entrepreneurship and market entry.
🌿 Yala National Park: Strategic Value of Sri Lanka's Wildlife Tourism
• Sector Context & Overview Yala National Park remains one of Sri Lanka’s most visited national parks, serving as an anchor for wildlife tourism and nature-based tourism. Positioned along the south-eastern coast, it complements Sri Lanka's broader leisure and heritage offerings, including tea country, beaches, and historic sites. • Key Highlights & Biodiversity • Status & History: Sri Lanka’s second-largest national park; designated as a wildlife sanctuary in 1900 and a national park in 1938. • Core Attractions: Famous for an exceptionally high density of Sri Lankan leopards, alongside elephants, sloth bears, wild water buffalo, jackals, and crocodiles. • Avian Diversity: Supports over 200 recorded bird species, attracting both birdwatchers and big-game safari enthusiasts. • Ecosystem Range: Features diverse habitats including dry monsoon forest, open grasslands, wetlands, lagoons, and rocky coastline. • Economic & Experiential Value • Enhances destination competitiveness for high-value international travelers seeking refined safari experiences and experiential travel. • Provides domestic safari tourism opportunities, contributing to regional tourism activity and local economic engagement. _Note: Specific financial data and visitor growth percentages were omitted in the source text._
📈 EDB Steps Up Support for Local Jewellery Exporters
• Sector Performance & Targets: - 2025 Total Exports: US$ 334 Mn (gemstones US$ 189 Mn, diamonds US$ 127 Mn, jewellery US$ 17.8 Mn). - 1H 2026 Earnings: US$ 154.24 Mn recorded from January to June 2026. - 2030 Target: EDB aims for US$ 1 Bn in export income, supported by platforms like FACETS Sri Lanka, Gem Sri Lanka, and Gem City Rathnapura. • Key Export Markets: - Gems: Hong Kong, Switzerland, Thailand, United States, and Italy. - Diamonds: Switzerland, Israel, United Arab Emirates, Belgium, and India. - Jewellery: United States, Switzerland, United Arab Emirates, Thailand, and Australia. • Enterprise Readiness Focus: - EDB Chairman led an observation visit to Ashadi Jewellers (Pvt) Ltd (est. 1988, 330 workforce) to enhance international expansion and export readiness. - The manufacturer combines traditional craftsmanship with CAD, CNC precision engineering, laser welding, and advanced gem grading. • Major Event Milestone: - Sri Lanka Expo 2027: To be held January 14–17, 2027, at BMICH, Colombo, connecting local exporters with over 1,500 global buyers and investors.
⚡ Cabinet Approves 2.28M MT Coal Procurement for Norochcholai
The Cabinet has approved the procurement of 2.28 million metric tonnes (MT) of coal to ensure uninterrupted electricity generation at the Norochcholai Lakvijaya Power Plant for the 2026/2027 period, strengthening Sri Lanka's energy & power sector security. • Procurement Breakdown: • Total Volume: 2.28 million MT • Aditya Birla Global Trading Singapore Ltd.: 70% (1.596 million MT) • Mohit Minerals Ltd. (India): 30% (684,000 MT) • Key Details: • Awarded through an international competitive bidding process that attracted 9 bids. • Recommended by the High-Level Standing Procurement Committee and authorized by the National Procurement Commission. • Proposal submitted by Energy Minister Anura Karunathilake to safeguard national electricity supply and prevent generation disruptions.
⛽ Sri Lanka Approves Major Long-Term Fuel Procurement Contracts
The Cabinet of Ministers has approved long-term supply agreements to secure uninterrupted fuel supplies across the national energy sector through the Ceylon Petroleum Corporation (CPC). Contracts were awarded to Singapore-based Vitol Asia Ltd. and Aditya Birla Global Trading Ltd. following competitive bidding. • Petrol 92 Supply Aditya Birla Global Trading selected from 4 bidders to supply 1.2 Mn barrels (±5%) of Petrol 92 Unleaded. Duration: 1 September 2026 – 28 February 2027 (6 months). • Murban Crude Oil Aditya Birla Global Trading selected from 4 bidders to supply 2.8 Mn barrels (±5%) of Murban crude oil. Duration: 1 November 2026 – 28 February 2027 (4 months). • Diesel Procurement Vitol Asia Ltd. selected from 6 bidders to supply 1.12 Mn tons (±5%) of diesel (0.05% max sulphur content). Duration: 1 September 2026 – 28 February 2027 (6 months). The proposal submitted by Energy Minister Anura Karunathilake strengthens Sri Lanka's overall petroleum & power supply stability and energy infrastructure.
📈 Sri Lanka Finance Sector Assets Surge 41% YoY to Rs. 3.2 Tn by June
• Overall Growth: Total sector assets rose to Rs. 3.2 trillion by end-June 2026, up from Rs. 2.8 trillion a year earlier, according to CBSL data. • Lending & Investments: The loan book expanded sharply by 47.8% YoY to reach Rs. 2.6 trillion. Other investments grew 19.7% YoY to Rs. 434 billion. • Funding & Capital: Total deposits increased 22.9% YoY to Rs. 1.43 trillion, while borrowings for on-lending more than doubled, surging 124% to Rs. 1.05 trillion. Equity capital rose 13.4% YoY to Rs. 578.2 billion. • Earnings: Net interest income grew 27.6% YoY to Rs. 72.7 billion. Profit Before Tax increased 17.4% to Rs. 39.9 billion, and Profit After Tax rose 16.4% to Rs. 21 billion. • Asset Quality: Gross non-performing loans (NPLs) improved significantly, dropping to 5.1% from 8.3% a year earlier, while Stage 3 NPLs fell to 3% from 4.5%.
📈 NBIA Relaunches to Drive Sri Lanka’s Biotechnology Sector
• Relaunch & Leadership: The National Biotechnology Industry Association (NBIA) has resumed operations under a newly reconstituted Council and Committee, marking a renewed commitment to advance Sri Lanka’s biotechnology industry following a period of inactivity. • Core Mission: Established in 2016, the national representative body aims to strengthen industry-academia collaboration, promote research and innovation, facilitate knowledge exchange, and boost skills development and quality assurance. • Key Sectors Covered: Focus areas include Agricultural Biosystem Technology, Medical Biotechnology, Industrial Biosystem Technology, Marine and Aqua Technology, Energy and Environment, Food Biotechnology, and Bioprocess Technology. • Call for Collaboration: NBIA invites corporates, universities, research institutions, and professionals to collaborate on enhancing the global competitiveness of the ecosystem. Contact the Secretariat at 011 558 8834 for engagement opportunities.
📈 Port City Colombo Positioned as Hub for Global Tech & IP Creation
• Sector Overview & Key Figures: - ICT services rank as Sri Lanka’s 3rd largest export sector, according to the Export Development Board (EDB). - The sector encompasses 400+ companies and a workforce of over 140,000 professionals. - Total export value of the ICT/BPM industry currently reaches US$ 2 Bn and continues to grow, as reported by SLASSCOM. • High-Value IP & Defence Tech: - Local talent is generating globally competitive intellectual property, including defence technology and simulation software engineered in Sri Lanka for NATO, US, and UK defence forces. - Demonstrates Sri Lanka's capability to shift from outsourcing services toward high-value R&D and proprietary product development. • Strategic Value of Port City Colombo: - Acts as a springboard for technology exports by providing an international business environment with multi-currency transacting and flexible recruitment. - Offers regulatory certainty, transparency, and operational stability to attract global capital and long-term business investment.
📈 Global AI Divide Threatens Economic Parity; Urgent Global Action Needed
• The AI Divide: Artificial Intelligence is rapidly driving global growth, but unequal access threatens to worsen income inequality across three major dimensions: - Corporate Gap: Large corporations gain productivity and profits, while small and medium enterprises (SMEs) struggle to compete due to high costs. - Global Gap: Advanced nations with strong digital infrastructure expand rapidly, leaving developing countries behind. - Social Divide: Wealth concentrates among capital owners, causing job displacement and stagnant wages for workers. • Historical Precedent & Speed: Unlike historical transitions like electricity—where Sri Lanka achieved universal access over decades via domestic policy and aid from multilateral lenders like the World Bank and ADB—AI is evolving at an exponential pace, giving developing nations far less time to adapt. • Global Commitments: China announced at the 2026 World AI Conference that it will offer 5,000 AI training opportunities over five years and set up application centers for regional blocs including BRICS and ASEAN. • Proposed Framework: To avoid fragmentation and geopolitical bias, experts urge creating a Global Action Group driven by development banks (IMF, World Bank, ADB) rather than politicized bodies like the UN, establishing an annual 4-tier index (High, Medium, Emerging, and Low AI) to track equity and guide funding.