ECONOMYNEXT – Sri Lanka Customs has reached Rs. 2 trillion revenue this year through September 15, its spokesman said, as the revenue-collecting body’s performance shows potential of exceeding the target for the second year.

Customs Spokesman Chandana Punchihewa said they have reached 2 trillion rupee revenue on Tuesday (15)

Customs’ 2026 revenue target was set at 2,207 billion rupees for this year. However, the revenue-collecting body collected over 90 percent of the target through September 15.

It has exceeded the monthly targets for the past eight consecutive months, official data showed.

Last year, Customs collected a record 2,551 billion rupees in revenue, exceeding a revised target of 2,241 billion rupees for the year and achieving 64.2% higher revenue than the previous year’s revenue of 1,553 million rupees.

Customs has set a revenue target of 2,207 billion rupees for this year, 13.5% less than last year as it expects a significant decline in car imports.

Sri Lanka Customs’ revenue jump is largely due to stronger enforcement, improved valuation practices, and a rebound in import volumes after years of contraction.

Following the 2022 economic crisis, imports fell sharply as the country imposed restrictions to conserve foreign exchange.

However, with the stabilization of reserves, the relaxation of certain import controls, and a steady recovery in consumer demand, customs collections from import duties, excise, and other levies have risen.

Officials note that tighter monitoring of under-invoicing and misdeclaration of goods has also boosted state revenue.

The combined effect of increased import activity, currency movements, and stricter enforcement has positioned Customs as one of the top revenue sources for the Treasury in 2025, providing a vital cushion as the state works to meet fiscal targets under the IMF-supported program. (Colombo/September 16/2026)

ECONOMYNEXT – Sri Lanka’s Colombo Stock Exchange closed down on Wednesday trading, CSE data showed, with the benchmark All Share Price Index moving down 0.58 percent.

The ASPI was down 122.82 points at 21,139.31, while the more liquid S&P SL20 was down 0.38 percent, or 22.63 points, at 5,954.04.

Positive contributors to the ASPI were Richard Pieris and Company (up 2.18 percent at 28.10 rupees), Namunukula Plantations (up 6.03 percent at 70.30 rupees), Pan Asia Banking Corporation (up 1.94 percent at 52.60 rupees), and Ceylon Cold Stores (up 1.05 percent at 120.25 rupees).

John Keells Holdings (down 1.04 percent at 19.10 rupees), Melstacorp (down 0.81 percent at 183.25 rupees), RIL Property (down 3.75 percent at 23.10 rupees), and Cargills (Ceylon) (down 2.06 percent at 676.00 rupees) were top negative contributors.

Market turnover was 1.63 billion rupees. Food, Beverage & Tobacco led turnover with 782.3 million rupees.

Hunas Holdings entered into a partnership effective September 14 with CCH Inc, a Tokyo-based diversified business group, in relation to its real estate and hospitality sectors. (Colombo/September16/2026)

ECONOMYNEXT – Sri Lanka’s real Gross Domestic Product slowed to 4.2% in the second quarter of 2026 compared to the same period last year, weighed down by expensive energy prices following Middle East escalation, lower purchasing power amid higher taxes, and adverse weather conditions.

While the growth performance demonstrates ongoing recovery, it reflects a deceleration from the 5.0% growth registered in the second quarter of 2025 and a slowdown from the 5.1% expansion seen in the first quarter of 2026.

Analysts say external factors and policy dynamics weighed on economic expectations during the period.

Escalating geopolitical tensions in the Middle East led to crude oil supply concerns and localized fuel price adjustments, which compressed household purchasing power and raised energy costs for domestic businesses.

Additionally, tourism performance remained subdued relative to expectations, limiting the broader spillover benefits typically seen across hospitality and retail services.

The economic moderation was primarily caused by a severe decline in agricultural production and a broader softening of service sector momentum.

Agriculture Down

Sri Lanka’s agriculture sector contracted by 2.3% year-on-year in the second quarter of 2026, reversing the 2.5% growth achieved in Q2 2025.

This downturn stemmed from a combination of severe local sub-sector slumps, adverse weather patterns, higher input costs, and shifting environmental factors.

There was a sharp decline in paddy and grain crops.

The cultivation of rice, the staple food of Sri Lankan agriculture, dropped by 15.1% in real value-added terms during Q2 2026.

This was primarily driven by lower overall yields from the 2025/26 main (Maha) harvesting cycle, alongside a reduction in total sown area due to water allocation constraints and localized dry spells preceding the Yala season.

Collapse in inland aquaculture and fishing added to the drop in the agricultural sector.

Freshwater fishing and aquaculture suffered the steepest drop across the entire national economy, collapsing by 61.0% in real terms.

Marine fishing also contracted by 10.1%. Reduced water levels in major inland reservoirs and inland water management disruptions severely impacted inland fish yields, while high marine fuel costs constrained small-scale offshore fishing operations.

The drop in commercial cash crops also weighed on the growth.

Major cash crops including sugarcane and tobacco registered significant output drops during the quarter.

Unfavorable weather transitions between growing cycles led to lower crop productivity across non-plantation commercial farming zones.

The quarter also witnessed a sharp depreciation of the rupee and significant increase in fuel prices.

Although fertilizer access improved relative to previous crisis years, intermediate operational costs including transportation, machine fuel, pesticides, and agricultural labor, remained high.

Elevated input pricing compressed profit margins for smallholder farmers, leading to reduced farming intensity in several rural districts.

Irregular rainfall patterns and early heat anomalies during the inter-monsoonal windows disrupted the planting schedules for seasonal field crops and fruits, reducing total harvest volumes during the second quarter.

While tree crops like coconut (+6.2%) and certain spices (+7.0%) performed well during the quarter, their gains were insufficient to offset the deep losses in paddy, fishing, and field crops.

Booming Industries

In contrast, Sri Lanka’s industrial sector grew by 7.3% in the second quarter of 2026, positioning it as the leading driver of national economic expansion. This growth offset the contraction in agriculture and outperformed the services sector.

The industrial sector expansion was contributed by a 13.9% growth in construction sector year-on-year. The resumption of stalled public infrastructure works, alongside private residential and commercial developments, led to increased demand across building sub-sectors.

The mining and quarrying sub-sector also surged by 17.4%. This expansion directly supported the construction boom, marked by higher extraction of sand, soil, stone, and other raw building materials.

Increased imports of capital inputs also contributed to industrial growth in the quarter. The rise in imports of industrial raw materials and machinery provided the structural input required to sustain higher manufacturing and construction throughput.

Overall manufacturing also grew by 3.2% during the quarter. Gains in food, beverage, and chemical product manufacturing offset weaker export demand for domestic textiles and apparel.

Subdued Services

Sri Lanka’s service sector recorded a growth rate of 2.7% in the second quarter of 2026, slowing down from the 4.0% expansion recorded in Q2 2025. While high-performing areas like IT programming (+10.0%), insurance (+8.0%), and financial services (+7.7%) supported the sector, several underlying domestic and external factors dragged down its broader momentum.

The Department of Census and Statistics (DCS) identified weaker-than-expected tourism growth during the quarter as a major factor. This muted performance directly constrained sub-sectors tied to visitor spending, limiting growth in accommodation, food, and beverage services to 2.9%.

Wholesale and retail trade, one of the largest single components of the service economy, grew by just 1.4% due to squeezed consumer purchasing power, driven by cumulative inflation and tax reforms like high value added tax, constrained domestic household spending and trade volumes.

Contraction in Public administration and defense by 2.4% also weighed on the service sector. Ongoing fiscal consolidation and expenditure curbs under Sri Lanka’s economic reform programs limited public sector recruitment, operational spending, and government services growth.

Escalating geopolitical tensions in the Middle East led to crude oil supply concerns and energy market volatility during the second quarter. This raised transport and operational overheads for service businesses, dampening business sentiment.

In addition to these, personal, health, and educational services experienced minimal gains. Education grew by 1.3%, health services expanded by 1.4%, and other personal services grew by only 0.7%, reflecting cautious consumer spending on non-essential services. (Colombo/September 16/2026)

ECONOMYNEXT – Sri Lanka’s Printcare plans to raise 700 million rupees in a rights issue offering 19 new ordinary voting shares for every 70 ordinary voting shares.

23,333,810 ordinary voting shares will be offered at 30 rupees per share. 

The total consideration for which the shares are to be issued is at 700,014,300 rupees.

The current stated capital of the company is at 271,893,021 rupees.

The funds will be used for investment and working capital, the company said in a market filing.

The company’s shares were trading at 38.00 rupees, down 5 percent. (Colombo/September16/2026)

ECONOMYNEXT – Sri Lanka’s Colombo Stock Exchange indices were trading slightly lower on Wednesday morning, CSE data showed, with the benchmark All Share Price Index moving down 0.07 percent.

The ASPI was down 15.72 points at 21,246.41, while the more liquid S&P SL20 was flat, up 0.15 points (0.00 percent) at 5,976.82.

Positive contributors to the ASPI were Namunukula Plantations (up 12.37 percent at 74.50 rupees), Colombo Land and Development Company (up 4.21 percent at 49.50 rupees), Hatton National Bank (up 0.20 percent at 380.75 rupees), and Co-operative Insurance Company (up 3.03 percent at 3.40 rupees).

Digital Mobility Solutions Lanka (down 1.59 percent at 155.00 rupees), Sampath Bank (down 0.36 percent at 139.75 rupees), Melstacorp (down 0.41 percent at 184.00 rupees), and Hemas Holdings (down 0.65 percent at 30.80 rupees) were top negative contributors.

Market turnover was 106.1 million rupees. Diversified Financials led turnover with 26.4 million rupees.

Asia Asset Finance converted 41,398,511 convertible, irredeemable, five-year preference shares into 53,348,596 ordinary voting shares, which were listed with effect from September 16, 2026. Asia Asset Finance shares were trading down 0.86 percent at 46.10 rupees.

Meanwhile, Printcare announced that its board of directors recommended a rights issue of 23,333,810 ordinary voting shares at 30.00 rupees each in the proportion of 19 new shares for every 70 existing shares to raise 700.01 million rupees for investment and working capital. Printcare shares were trading down 5.00 percent at 38.00 rupees. (Colombo/September16/2026)

ECONOMYNEXT – Sri Lanka’s Hunas Holdings has entered into a partnership with CCH Inc, a Tokyo-based diversified business group, in relation to its real estate and hospitality sectors. 

The partnership, effective September 14, will be struck with Yoshimichi Watanabe, who is “a high-net-worth individual with extensive investment experience across ecommerce, hospitality and real estate, with exposure to both the Japanese and international markets, including Bali, Indonesia,” Hunas Holdings said in a market filing. 

Watanabe has made many investments in Sri Lanka over the years. 

The Sri Lankan company said that the partnership will support expansion into the real estate and hospitality sectors, as well as be instrumental in its long term growth. 

CCH Inc is a Tokyo-based diversified business group founded in 2008 that specializes in business process outsourcing (BPO), in-house services, investment, mergers and acquisitions, and business development.

Hunas Holdings, a listed company, has 12 subsidiaries that specialise across renewable energy, leisure, tea and real estate. (Colombo/September16/2026)