Industry & Sector News
View all(77)Sri Lanka AI Week 2026 Announced to Drive Digital Transformation 📈
The Ministry of Digital Economy, GovTech Sri Lanka, and SLT-MOBITEL have officially announced Sri Lanka AI Week 2026, scheduled from September 28 to October 4, 2026. The flagship initiative aims to accelerate national digital transformation and position the island nation as South Asia's premier artificial intelligence hub. • National Targets & Strategy: - Transition Sri Lanka from a technology consumer into an active producer of AI solutions. - Empower the local IT sector with R&D capabilities to drive the national target of US$ 5 Bn in tech export revenue. - Democratize AI technology nationwide beyond Colombo, supported by sovereign digital infrastructure under DIGIECON 2030 and SLUDI projects, and establish a National AI Institute. • Key Event Pillars ("AI Amplified"): - International Conference: Highlighting global trends and strategic industry insights. - Tech Exhibition: Featuring cutting-edge solutions from local and international innovators. - Awards Ceremony: Honoring top Sri Lankan researchers and innovators. • Infrastructure & Industry Commitments: - SLT-MOBITEL is supporting the transformation via accelerated 5G rollout, IP infrastructure modernization, and upgrading data centers to AI-ready status. - Key sub-initiatives launched include 'AI Hub' and 'SMART AI', alongside a focus on online safety and child protection.
CBSL to Drive Digital Payment Adoption in Jaffna 📈
• Event Overview: The Central Bank of Sri Lanka (CBSL) is hosting a promotional event on 07–08 August 2026 at Cargills Square, Jaffna (8:30 a.m. to 7:00 p.m.) under the theme 'Shaping the future through digital payments'. • Key Stakeholders: Inaugurated by Northern Province Governor Mr. Nagalingam Vethanayahan as Chief Guest, joined by Jaffna District Secretary Mr. M. Piiratheepan, senior CBSL officials, banks, NBFIs, and national retail payment operator LankaPay (Pvt) Ltd. • Target Sectors: Direct engagement targeting government officials, local businesses, and the public to drive digital financial literacy, e-money service provider registration, and adoption of the LANKAQR merchant facility across the Jaffna town area. • National Context: Continuation of CBSL’s nationwide campaign to modernize retail transactions, following past regional programs in Hambantota, Nuwara Eliya, Dambulla, Kurunegala, and Trincomalee.
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📈 Ceylon Chamber Releases Motor Vehicle Report 2025/26 as Imports Resume
The Ceylon Chamber of Commerce has published its flagship Motor Vehicle Industry Report 2025/26, marking its return after a six-year hiatus following the suspension and subsequent resumption of motor vehicle imports in Sri Lanka. • Economic & Industry Scope: • Evaluates the macroeconomic contribution and policy landscape of the national motor vehicle industry. • Provides comprehensive data on vehicle imports, registrations, fleet composition, and ownership transfers. • Covers registration patterns categorized by brand, fuel type, cylinder capacity, and district. • Future Outlook & Global Trends: • Examines emerging global automotive technologies and the growing role of artificial intelligence in mobility. • Addresses market adaptation to a renewed import environment, changing consumer preferences, and evolving regulatory frameworks. • Stakeholder Relevance: • Designed as a data-driven intelligence resource for importers, assemblers, dealers, financial institutions, insurers, investors, and policymakers to support strategic decision-making.
📈 EDB Eyes Expansion of Sri Lanka's Graphite Sector to Boost Revenue
• Strategic Focus: The Sri Lanka Export Development Board (EDB) is intensifying efforts to boost mineral export revenues by promoting value addition, expanding international market access, and strengthening industry partnerships. The initiative aligns with the National Export Development Plan (NEDP), which identifies minerals & mineral-based products as a priority export thrust sector. • Field Inspection: EDB officials recently inspected the complete mining and processing operations of Bogala Graphite Lanka PLC—a company with over 160 years of expertise—covering the entire value chain from underground mining and extraction to purification, grading, and export preparation. • Unique Market Position: Sri Lanka is the world's only commercial producer of natural crystalline vein graphite, highly sought after for its exceptional carbon purity and crystalline structure. Key applications include lubricants, carbon brushes, brake pads, refractories, advanced industrial uses, and emerging graphene technology. • Growth & Economic Impact: • Aims to shift from raw mineral exports to high-value, technology-driven products. • Seeks to foster collaboration among government, mining firms, research institutions, and global tech partners. • Intends to diversify exports, increase foreign exchange earnings, create high-skilled employment, and support sustainable economic growth.
⚠️ Labour Shortages Threaten Sri Lanka’s Export Sector: NCE Calls for Action 📈
• Overview & Migration Gap - Exporters face acute talent shortages across skill levels, risking operational continuity and national foreign exchange earnings. - 143,087 Sri Lankans departed for overseas jobs in 2026 so far (SLBFE target: 250,000 for 2026), adding to 1.07M+ registered migrant workers globally. - A large share of the National Chamber of Exporters' 700 member companies report severe recruitment and retention struggles. • Q1 2026 Labour Force Snapshot - Participation Rate: 49.2% | Unemployment Rate: 3.7% (Youth: 16.1%). - Total Employed: 8.1 million. - Sector Share: Services (50.4%), Industry (25.9%), Agriculture (23.7%). • Industry Impact & Policy Response - Shortages heavily affect manufacturing enterprises needing technical personnel and agricultural exporters requiring specialized value-addition skills. - Cabinet approved drafting an inward labour migration policy to allow regulated recruitment of foreign talent for specialized skill gaps while prioritizing local workers. - NCE emphasizes urgent workforce planning, industry-aligned training, and retention mechanisms to meet export targets.
📈 Sri Lanka Construction Costs Surge 20–30% Amid Rising Input Pressures
• Overall Escalation: Sri Lanka’s construction sector costs are currently estimated to be 20–30% higher than benchmarks established in the CIOB Construction Cost Report 2025, ending a period of temporary cost stability. • Key Drivers: - Labour Shortages: Domestic scarcity of skilled tradespeople and rising wage expectations. - Global Commodities: Global copper prices surged over 40%, driving up mechanical and electrical service costs. - Material Procurement: Higher international commodity prices and imported material inflation. • Sector Impact: - High input prices heavily affect electrical, plumbing, and M&E-intensive projects across commercial developments, hotels, hospitals, industrial facilities, and telecommunications infrastructure. • Strategic Implications: - Financial Feasibility: Outdated cost estimates require developers and investors to revisit project budgets, returns, and procurement strategies. - Contractor Liquidity: Rising material and wage costs squeeze working capital and profit margins, especially for fixed-price contracts. - Project Delivery: Public and private developments face potential deferrals, redesigns, or phased implementation. - Productivity Shift: Pushes the sector toward risk management, value engineering, and adoption of Building Information Modelling (BIM) and prefabrication.
🚗 Sri Lanka Vehicle Import Bill Drops 27% M-o-M in June
• Import Expenditure: - Motor vehicle import spending dropped 27% M-o-M to US$ 182 Mn in June, down from US$ 250 Mn in May, according to CBSL data. - Cumulative 1H 2026 vehicle import expenditure reached US$ 1.254 Bn, lower than US$ 1.572 Bn recorded in 2H 2025. • Vehicle Registrations: - Total vehicle registrations fell to 58,151 units in June from 62,776 in May (JB Securities). - Motor car registrations eased to 3,929 units (vs 4,738 in May), while brand-new registrations dropped to 998 units (vs 1,199 in May). - SUVs and crossovers remained the strongest-performing passenger vehicle segment, increasing to 5,933 units. • Financing: - Vehicle financing accounted for approximately 43% of total purchases during the month.
Boost to Healthcare: 1,444 New Officers Appointed to Sri Lanka’s Public Public Health Service 🩺
• Overview: Sri Lanka’s public health service received a significant capacity boost with the official appointment of 1,444 new officers. • Scope: The appointments span 14 distinct service categories distributed across four major professional sectors within the healthcare framework. • Economic Context: Strengthening the health workforce enhances human capital and healthcare delivery, serving as a vital foundation for national productivity and economic resilience. _Note: Summary based on provisional health sector reporting._
🇱🇰 Strategic Proposal: Returning Hambantota Port’s Eastern Expansion to Sri Lankan Control
• Overview & Vision Call to transform Southern Sri Lanka’s logistics assets into a unified regional hub. Proposal advocates returning Hambantota Port's undeveloped Eastern Expansion to Sri Lanka Ports Authority (SLPA) control for competitive global tenders to boost national asset ownership. • Hambantota Port Performance • Operates under China Merchants Port Group (CMPort). • Container throughput surged 81.1% YoY to 326,000 TEUs in 1H 2026—CMPort’s fastest-growing overseas terminal. • Demonstrates strong potential for integrated logistics, bonded warehousing, and domestic cargo operations beyond basic transshipment. • Mattala Airport (MRIA) Momentum • Handled 150,000+ passengers and 700+ international flights in 2025. • Attracted 19 Expressions of Interest (EOIs) in 2026, showing rising commercial confidence. • Regional Maritime Competition • India’s automated Vizhinjam Port handled 1.57 Mn TEUs in its first year, expanding capacity to 5.7 Mn TEUs by 2029 to target Indian Ocean transshipment. • Underscores urgent necessity for Sri Lanka to invest in draft depth, automation, and expanding port infrastructure to retain maritime dominance.
Colombo Port Records 11.9% Growth in 1H 2026 Container Throughput 📈
• Overall Performance: - Total container throughput reached 4.44 Mn TEUs in 1H 2026, marking an 11.9% YoY increase compared to 3.97 Mn TEUs handled in 1H 2025. • Cargo & Segment Breakdown: - Transshipment: Maintained core business focus, accounting for 84.7% of total throughput and growing 12.6% YoY. - Domestic Cargo: Registered a healthy 8.3% YoY growth. - Terminal Operations: Colombo International Container Terminals (CICT) handled 1.64 Mn TEUs, contributing 37% of overall volume. • Vessel Arrivals & Services: - Total vessel calls increased 2.5% YoY to 2,066 ships (up from 2,016). - Container vessels grew 0.8% YoY to 1,797 calls. - Break-bulk vessel calls recorded a notable 55.6% YoY jump, while liquid bulk rose 5.3% YoY. - Value-added maritime services (bunkering, ship repairs, and ship chandelling) surged 24.4% YoY to 107 calls. • Strategic Growth: - Operational progress in Sri Lanka's ports & logistics sector is supported by ongoing capacity expansions, digitalization, equipment modernization, and reduced vessel turnaround times, aiming to position Colombo among the top 15 busiest global container ports.
🏛️ NIHS EXPO 2026 Opens to Mark Centenary Milestone
• Overview The National Institute of Health Sciences (NIHS), Kalutara, officially inaugurated the "NIHS EXPO 2026" Educational Exhibition and its Centenary Museum to commemorate the institute's 100th anniversary. • Key Highlights • Opened under the patronage of Dr. Nalinda Jayatissa, Minister of Health and Mass Media. • Showcases a century of landmark achievements in Sri Lanka's healthcare and public health training sectors. • Serves as a key public platform celebrating the institute's historic contribution to national health human resources and community health development.