AGP Executive Report

Fuel & Energy: Sri Lanka’s fuel import bill jumped 62% to US$4.1bn in the first eight months of 2026, with August alone up 76.5%, as questions grow over domestic fuel pricing and the impact of the Iran war; the central bank kept the policy rate at 8.75% while warning inflation stays high, and the government also urged the public to cut fuel use and shift toward EVs and solar. Construction & Materials: A bitumen shortage is slowing road construction, with contractors citing labour and material price pressures even as new orders rise. Ports & Aviation Infrastructure: Work has started on Jet A-1 pipeline and new fuel storage tanks at Muthurajawela to strengthen aviation fuel supply and cut logistics costs. Fisheries & Trade: Sri Lanka-India talks on illegal bottom trawling were postponed at India’s request, with a new date still pending. Sanctions & Shipping: Sri Lanka’s foreign ministry rejected claims of US warnings, saying secondary sanctions are global and not Colombo-specific—an issue tied to services for Iranian tankers near Sri Lanka. Policy & Finance: The US toned down its view of Sri Lanka’s NPP ideology but kept its verdict that the investment climate remains challenging. Digital & Industry: XpressJobs won national recognition for an AI recruitment assistant, while Sri Lanka’s school meals programme received LKR 33.6bn for 2026 expansion.

Energy & Infrastructure: President Anura Kumara Dissanayake backed new fuel-security works at Muthurajawela, including a Jet A-1 aviation fuel pipeline to Katunayake and new aviation fuel storage tanks, as Sri Lanka targets higher reserves and lower logistics costs. Construction Watch: A Central Bank survey says a continuing bitumen shortage is slowing road construction, alongside skilled labour and material price pressures. Transport & Compliance: Parliament is probing a growing backlog of about 678,000 driving licences stuck in printing capacity limits, alongside delays in vehicle number plates. Trade/Shipping Risk: Sri Lanka’s Foreign Ministry rejected claims of a US warning on sanctions, saying US secondary sanctions are global and not Sri Lanka-specific, amid reports of Iranian tankers idling near the island. Digital & Industry Tech: XpressJobs won at Sri Lanka AI Week for an AI recruitment assistant, while Dialog says it has 5G across all 25 districts (with coverage claims questioned). Food & Human Capital: The government allocated LKR 33,600 million for a 2026 School Meals Program expansion to 1.5 million students, aiming to support health and local economic activity.

Fuel & Aviation Infrastructure: Sri Lanka has started major fuel storage and distribution works in Muthurajawela, including a 21-km Jet A-1 pipeline to Katunayake and new aviation fuel tanks, as President Dissanayake pushes energy security and targets higher reserve days. Energy Transition & Public Use: The energy ministry urged the public to cut fuel consumption alongside price controls, linking the push to EVs and solar expansion. Skills for Industry: The ADB approved a $100m results-based loan to overhaul TVET and better match training to employer needs, with a focus on women’s jobs in nontraditional sectors. Rubber Manufacturing Efficiency: EDB and SLAMERP ran a workshop on sustainable energy efficiency to help rubber product manufacturers cut costs and stay competitive. Solar Investment: Abans commissioned a 5 MW ground-mounted solar plant in Kandy with a Rs 1.2b investment. Ports, Trade & Sanctions Risk: Reports highlight how U.S. sanctions are leaving Iranian tankers stranded near Sri Lanka, raising knock-on risks for local port and service providers; separately, Colombo’s role as a transhipment hub is adding congestion pressure on India–U.S. shipping connections. Connectivity Claim Under Scrutiny: Dialog says 5G covers all 25 districts, but its own data suggests population coverage is under 40%, raising questions for telecom rollout expectations. Business Resilience: Ceylon Chamber expanded business continuity training for private firms to strengthen disaster preparedness and recovery.

Port & Logistics: Sri Lanka’s Colombo West International Terminal (CWIT) is set to double capacity to 3.2 million TEUs after Prime Minister Harini Amarasuriya inaugurated APSEZ’s $750m Phase II expansion, reinforcing Colombo’s push to capture more Indian Ocean transshipment business. Digital Economy & Payments: Sri Lanka’s emerging digital public infrastructure (Unique Digital Identity, National Data Exchange and National Payment Platform) is expected to open new fintech paths beyond payments, while Digital Summit Asia Sri Lanka 2026 continues in Colombo with a focus on AI, marketing and the creator economy. Energy & Skills: ADB approved a $100m results-based loan to strengthen Sri Lanka’s TVET system and boost women’s employment in engineering, construction, ICT and renewable energy—implemented from 2027 to 2031. SME & Finance: Visa backed the Scale Up 2.0 National SME Forum to help SMEs scale via digital commerce and secure payments; Senfin Money Market Fund won a fifth straight Gold at the CFA Capital Market Awards 2026. Agriculture & Media: Agriculture Minister K. D. Lal Kantha accused two private media channels of distorting his remarks on paddy land needs, saying his stance is based on scientific assessments. Public Health: Sri Lanka hosted the 1st World Congress on Snakes in Kandy, highlighting nearly 10,000 snakebite cases reported annually and the need for better prevention and treatment.

NEDP Push: Sri Lanka’s Export Development Board (EDB) met lead agencies to accelerate the National Export Development Plan (NEDP) 2026–2030, aiming to boost competitiveness, diversify markets, strengthen trade facilitation and logistics, and improve access to trade finance. Construction Finance: CBSL kept a $1m cap on guarantees for Sri Lankan firms’ overseas loans, leaving builders and engineering companies constrained when bidding for larger Africa projects. Healthcare Funding Debate: Advocata warned the new “Ayubo” daily lottery could be regressive, with lower-income groups effectively subsidising universal free healthcare while also citing governance and overhead concerns. Gems & Jewellery Reform: NGJA says JEWELS 2026 (Dec 4–6) will spotlight regulatory reforms and SME support, with policy changes aimed at cleaner, more competitive industry practices. Women in Business: WCIC is shifting from launching women’s ventures to driving sustainable growth, scaling regional chapters and capacity-building for women entrepreneurs. Investment Climate Watch: A US State Department report says Sri Lanka’s recovery is real but foreign investors still face policy reversals, regulatory uncertainty and delays; FDI in 2025 was $1.06bn. Port City Momentum: Port City Colombo continued Gulf outreach via a UAE investor forum, pushing its Special Economic Zone investment proposition. Digital Economy Drive: Digital Summit Asia Sri Lanka 2026 opened with a push toward cashless payments, AI-enabled services, and $5bn digital exports by 2030. Aviation Maintenance Deal: SriLankan Engineering signed a long-term line maintenance agreement with Jetstar for Boeing 787 operations at Colombo, with a pathway to expanded certification services. Household Strain: Despite macro recovery, new analysis suggests household prosperity is lagging, with fragile finances and cautious consumer behaviour.

Investment Climate Watch: The US State Department says Sri Lanka’s recovery is real but foreign investors still face policy reversals, regulatory uncertainty, delays and weak support; FDI hit $1.06bn in 2025, with manufacturing, ports, tourism, IT/BPO and real estate leading. Digital Economy Push: Digital Summit Asia Sri Lanka 2026 opened in Colombo, with officials pointing to AI, digital skills and a cashless shift, aiming for $5bn in digital exports by 2030. Transport & Connectivity: Sri Lanka Railways plans to restart Colombo–Kandy services in January after spending Rs. 1bn on repairs. Energy Transition: Floating solar is moving ahead with a plant at Ibbankatuwa Wewa, while Storex Renewables launches a solar-plus-storage system as net schemes tighten. Industry & Trade: SriLankan Engineering signed a long-term Jetstar 787 line maintenance deal, and Port City Colombo’s Gulf roadshow highlights UAE–Qatar–Oman interest. Environment & Compliance: CAA seized 801 reusable plastic bottles in Pettah over standards and certification rules. Agriculture/Conservation: A proposed rice mill in Ampara elephant country faces wildlife and farmer opposition over corridor disruption.

Port & Logistics: Adani Ports’ Colombo West International Terminal (CWIT) officially launched Phase II, doubling capacity to 3.2 million TEUs with a $750m investment and aiming to capture nearly 25% of Port of Colombo’s 13m TEU target by 2028. Disaster Recovery & Infrastructure: The World Bank approved $110m to repair and reconstruct about 600 km of roads damaged by Cyclone Ditwah, using climate-resilient designs (drainage, landslide protection) to reconnect communities to markets, schools and health services. Finance & Markets: Treasury bill yields edged up at the latest auction (91-day 9.25%, 182-day 9.41%, 364-day 9.95%) while the secondary bond market closed broadly steady after a brief sell-off. Monetary Policy Watch: Sri Lanka’s policy rate stayed at 8.75% as inflation remains elevated. Standards & Consumer Protection: The Consumer Affairs Authority seized 801 reusable plastic bottles in Pettah raids, citing compliance with SLS 1616 and SLSI certification/import inspection rules. Insurance Recognition: AIA Sri Lanka’s Upul Wijesinghe received an award for outstanding contribution to the insurance industry. Energy/Engineering: EQMS and Acelerex formed an alliance to support renewable energy, storage and microgrid projects, with EQMS leading opportunities including Sri Lanka.

Monetary Policy Watch: Sri Lanka’s central bank kept the policy rate at 8.75% as inflation hit 8% in August, while it expects high single-digit inflation into early 2027 and says private credit is slowing but still enough to support growth. Trade & FX Controls: Parliament’s finance committee approved Foreign Exchange Regulations Nos. 01 and 02 of 2026, tightening rules around overseas investment and emigrant transfers amid concerns over foreign exchange outflows. Post-Cyclone Infrastructure: The World Bank approved $110m to rebuild about 600 km of roads damaged by Cyclone Ditwah, with climate-resilient drainage and landslide protection. External Sector Pressure: Sri Lanka’s trade deficit widened 69% to over $6.5bn in Jan–Jul 2026 as imports surged faster than exports, with textiles and agriculture both slipping. Energy Transition: WindForce shelved a planned Rs. 4bn green bond issue due to adverse market conditions, while a 5MW floating solar plant on Ibbankatuwa Reservoir was commissioned, boosting local clean power credentials. Business & Industry Moves: LAUGFS appointed Dhanusha Muthukumarana as Group CEO from Oct 1 to drive transformation; ICA-GemLab plans a Surat lab opening to expand gem testing closer to supply chains. Logistics Cost Signal: Maersk cut its Emergency Contingency Surcharge for Maldives/Sri Lanka-linked shipments to Northern Europe and the Mediterranean, easing container costs.

AI & Digital Economy: Sri Lanka AI Week 2026 kicked off with a National AI Expo and Conference (29–30 Sept), featuring 60+ speakers from 16 countries and an AI exhibition at Monarch Imperial, as SLT Mobitel pushes AI-ready infrastructure and plans to launch 8–10 AI products. Monetary Policy: The Monetary Policy Board kept the Overnight Policy Rate at 8.75%, citing resilient growth but warning that Middle East risks and El Niño could weigh on inflation and outlook. Mobility & Services: Uber launched Uber Black in Sri Lanka, adding premium ride options for locals and tourists. Corporate Reporting Tech: Softlogic Life rolled out an AI-powered 2025 Annual Report ecosystem aimed at making corporate information more accessible and interactive. Capital Markets Recognition: The Colombo Stock Exchange’s 2025 Annual Report won Sri Lanka’s top spot and a third straight LACP Gold Award. Household Distress: Gold pawning surged—up 23.6% to Rs. 1.11 trillion by end-June—signaling tighter finances. Ports & Logistics: The Colombo East Container Terminal faces procurement and execution delays, with government exploring shipping-line partnerships to unlock capacity. Energy & Industry: Vidullanka reported winning bids for 18.7MW/93MWh battery storage under solar projects, while First Energy won awards for building-integrated solar at People’s Bank HQ. Construction & Housing: Work began on 51 new houses for Alagolla Estate families under India’s housing support, targeting safer living in landslide-risk areas. Tourism Pressure: Sri Lanka’s fast tourism gains are rising faster than infrastructure readiness, raising sustainability bottlenecks.

AI & Digital Economy: Sri Lanka AI Week 2026 kicked off on Sept 25, with a two-day AI Conference (60+ speakers from 16 countries) and an AI Exhibition at Monarch Imperial (35+ exhibitors), spotlighting AI use across industries. Energy & Industry: Sri Lanka allocated LKR 15bn (about US$45.3m) for an October diesel subsidy covering auto and industrial diesel, as fuel prices stay under pressure. Power Sector Reform: Budget 2027’s energy focus continues with calls for deeper power-sector reform and faster renewables integration, while a National Chamber of Commerce warning says a shift from net metering to “Net Plus” could hurt rooftop solar just as a 2027 power shortfall looms. Agrifood & Waste: NIT Rourkela hosted a Sri Lanka–India workshop on turning food-industry waste into value-added products. Food Processing: Sri Lanka Food Processors Association held its 29th AGM, urging a whole value-chain approach to reduce food loss and waste. Agriculture Tech: Deep Tec is pushing solar-powered smart agriculture with remote monitoring and automation. Trade & Exports: EDB promoted “Sri Lanka Expo 2027” via a specially branded SriLankan Airlines aircraft, aiming to draw 1,500+ international buyers. Maritime & Shipping: Chamber of Marine Industries of Sri Lanka appointed Ricky Barnett as new Chairman at its AGM. Finance: Gold-backed pawning lending surged, with CBSL data showing pawning becoming a major driver of new bank credit.

Food Waste Plan: Sri Lanka launched a five-year programme with FAO to cut food loss and waste after UN data highlighted chronic hunger and local experts said nearly 30% of Sri Lanka’s food is wasted, with urban areas discarding about 4,000 metric tons of edible food daily. Digital Payments & Trade: Qatar Chamber met Sri Lanka’s Port City Colombo Economic Commission in Doha to discuss high-value investment, trade ties and joint ventures, positioning Port City as a gateway for Qatari investors. Energy & Shipping Watch: Qatar-linked LNG transits through the Strait of Hormuz have picked up despite conflict, with vessels showing up off Sri Lanka after earlier disruptions—an important signal for regional fuel logistics. Public Health Support: India sent about three tonnes of anti-TB medicines to Colombo by IAF C-130J, reaffirming support for Sri Lanka’s public health system. Macroeconomic Messaging: Sri Lanka told UNGA it has restored stability and was reclassified by the World Bank as upper-middle-income, while warning that debt and shocks still bite. Industry Finance: An audit flagged that expressway loan principal repayment could take over 171 years at current earnings, with the Treasury covering gaps. Security & Drugs: A UNODC South Asia report says synthetic-drug markets are evolving across Bangladesh, Maldives, Nepal and Sri Lanka, with methamphetamine rising in Sri Lanka. Aviation Tech: EHang expanded its Global Fast Track Program to Vietnam, with Hanoi starting low-altitude eVTOL sandbox testing using the EH216-S.

Health & Trade: India sent about 3 tonnes of anti-TB medicines to Sri Lanka by IAF C-130J, as both countries reaffirm support for Sri Lanka’s public health system. Media & Education: BMI Group launched Ahasa TV, pitching education-first, family-focused programming after research with thousands of viewers. Capital Markets: Sri Lankan shares fell as utilities and real estate dragged the CSE All Share index down 0.44%, with Industrials Asphalts and Tess Agro among the biggest losers. Transport & Finance: An audit says Sri Lanka’s expressway loans could take over 171 years to repay principal at current earnings, with repayments relying on Treasury allocations. Energy & Shipping: LNG traffic through the Strait of Hormuz is picking up again, including Qatar-linked vessels, though “dark transits” and conflict risks remain. Public Health Accountability: Animal welfare groups accuse Sri Lanka’s health authorities of underfunding dog vaccination while spending heavily on rabies post-bite treatment. Tourism (Industry): Sri Lanka’s destination-wedding push continues with a Hyderabad roadshow, positioning the island as a “wedding plus holiday” hub for Indian planners. Energy Transition: Sri Lanka adds more than 1,500MW of solar to the national grid, supporting the renewables build-out.

Cybersecurity: Acronis Threat Research says a campaign dubbed “Red Heron” exploited a critical Gitea flaw (CVE-2026-60004) to compromise internet-facing development servers, steal repositories and deploy a Linux rootkit (“SIXZUT”), with confirmed targets including Sri Lanka. Energy & Power: Sri Lanka added 1,513MW of solar to the national grid between last year and Aug 2026, led by rooftop solar (1,141MW) plus ground-mounted projects (~370MW). Finance & Policy: President Anura Kumara Dissanayake said Sri Lanka’s current account has turned slightly negative as global fuel prices doubled dollar outflows. Legal/Transport: Sri Lanka Police clarified that leasing and finance firms cannot forcibly repossess vehicles; they must follow the Finance Leasing Act and seek a District Court order if the lessee resists. Wildlife & Agriculture: A deputy minister claimed about 30% of Sri Lanka’s elephants are unable to hear, linking it to substandard “elephant crackers,” while warning of wider crop damage from wildlife conflicts. Aviation/Regional ties: Sri Lanka is listed among foreign participants in India’s Tarang Shakti 2026 air exercise in Jodhpur, focused on interoperability.

Tourism Momentum: Sri Lanka landed among the world’s fastest-improving travel destinations in the WEF Travel & Tourism Development Index 2026, highlighting stronger competitiveness and visitor experience. Solar Power Push: Sri Lanka added 1,513MW of solar capacity to the national grid since early 2025, with rooftop systems leading the gains. Clean Energy Awards: First Energy won two Sri Lanka Clean Energy Week Leadership Awards for a building-integrated solar system at People’s Bank HQ. E-commerce Recognition: Daraz Sri Lanka picked up a Bronze at SLIM DIGIS 2.6 for its 2025 11.11 campaign, praised for connected in-app and WhatsApp engagement. Digital Skills & Education: MOGO Media Academy partnered with NEXT Campus to offer a BA (Hons) Digital Media degree from London Metropolitan University. Automotive Marketing Wins: Zirateh secured three SLIM Digis awards in the automotive category in its first submission. Legal Clarity for Leasing: Sri Lanka Police warned leasing firms against forceful vehicle repossessions, saying police only maintain peace and District Court steps are required if there’s resistance. Public Health Drive: Nearly 1.7 million dogs were vaccinated against rabies in 2025, supporting a continued fall in human cases. Industry Events: Saudifood and Saudifood Manufacturing 2026 open in Jeddah with 1,000+ exhibitors across the full food value chain.

Finance & Leasing Law: Sri Lanka Police clarified that leasing and finance firms cannot forcibly repossess leased vehicles or equipment. Under the Finance Leasing Act No. 56 of 2000, lessors must act only when the lessee offers no resistance; if there is resistance, they must seek a District Court order. Police may provide protection only to maintain peace after prior notice, and officers will not take part in the actual repossession. Public Health: Sri Lanka’s anti-rabies push vaccinated a record 1.69 million dogs in 2025, up from 1.28 million in 2024, as canine sources account for most confirmed human rabies exposure. Maritime Security: Sri Lanka completed a five-day workshop on Standard Operating Procedures for radiological and nuclear emergencies in territorial waters, involving Navy, Coast Guard, regulators, customs, ports and disaster agencies. Tech & Industry: Sri Lanka AI Week 2026 launched to boost AI awareness, skills and industry collaboration, with an AI Expo planned for Sept 29–30. Trade & Exports: Sri Lanka tea faces export pressure from lower shipment volumes and higher freight/insurance costs, even as value-added teas grow. Tourism & Services: Sri Lanka’s foreign employment sector faces scrutiny after claims that thousands of international agricultural job opportunities were lost due to alleged corruption and failures.

Maritime Security: Sri Lanka completed a five-day workshop in Colombo to develop Standard Operating Procedures for responding to radiological and nuclear emergencies at sea, bringing together Navy/Coast Guard units, regulators, ports, customs, disaster management and the Attorney General’s Department. Public Health: Sri Lanka vaccinated a record 1.69 million dogs in 2025 under its anti-rabies drive, with officials saying dogs account for most human exposure and deaths have fallen in recent years. Finance & Compliance: Police warned leasing and finance firms to follow the Finance Leasing Act when repossessing vehicles—no forceful seizures; if resistance occurs, courts must be approached, with police only maintaining public order when requested. Tech & Industry: Sri Lanka AI Week 2026 is underway, featuring international tech leaders and a National AI Expo aimed at boosting AI skills, innovation and industry collaboration. Trade & Exports: Sri Lanka’s tea industry faces an export shock as shipment volumes and earnings weaken, pushing a shift toward value-added teas like matcha and green tea. Governance & Labour: Sri Lanka has started recruiting over 120,000 public service workers in 2026, including teachers and rural officials, to fill vacancies. Business Climate: The National Chamber of Commerce urged the President to act on rooftop solar policy changes, warning of a potential electricity shortfall by mid-2027 and risks to investment.