The Colombo Stock Exchange declined marginally on Tuesday while the government approved several bilateral agreements and designated strategic businesses in the Port City to strengthen international cooperation and investment frameworks.
Sri Lanka's stock market closed with modest losses on Tuesday, with the All Share Price Index declining 0.08 percent to settle at 21,322.22 points. The more actively traded S&P SL20 index fell 0.34 percent to 5,989.32. Trading volume reached 2.32 billion rupees, with the Food, Beverage & Tobacco sector leading activity at 400.53 million rupees. Blue-chip stocks showed mixed performance, with Browns Investments and Singer leading gainers while John Keells Holdings and DFCC Bank recorded the largest declines.
Meanwhile, the Cabinet of Ministers approved designating 68 entities operating in the Colombo Port City as Secondary Businesses of Strategic Importance under the Port City Economic Commission Act. According to Minister Nalinda Jayatissa, the entities span information technology, consulting services, business process outsourcing, logistics, and infrastructure sectors. The government stated that this framework aims to create a transparent investment environment and remove existing bottlenecks that have hindered foreign capital inflows.
The Cabinet also approved several international agreements to strengthen bilateral relations. Sri Lanka will sign a Mutual Legal Assistance treaty with South Korea covering criminal investigations and evidence gathering, an initiative first proposed in 2023. Additionally, a bilateral immigration control agreement with China was approved to facilitate legitimate travel, support business and tourism activities, and combat transnational crime through enhanced intelligence sharing and border management cooperation. Minister Jayatissa stated this agreement is a broader institutional initiative rather than a response to specific incidents.
On the economic front, Sri Lanka's current account posted a deficit of 142 million dollars in July, marking the fourth consecutive month in deficit. The cumulative January-July deficit reached 387 million dollars compared to a surplus during the corresponding 2025 period. Higher fuel import costs, which surged 68 percent year-on-year, and a widening merchandise trade deficit contributed to the deterioration. However, worker remittances provided relief, rising 11.5 percent year-on-year to 778 million dollars in July.