Sri Lankan small-scale chemical importers and blenders who predominantly purchase their stocks in foreign currency while relying on short-term credit are increasingly exposed to compliance and cash-flow risks under the general import payment monitoring rules introduced in June 2026, according to SenFin Securities' report on the impact of chemical import regulatory changes on CSE-listed companies.

Based on Regulations No. 06 of 2026 (Gazette Extraordinary 2493/39), which has been effective since 19.06.2026,  the report said:

"Importers with high volumes, thin margins and short-term credit feel it most, because their inventory is funded on borrowed time. Exporters and cash-rich groups barely notice."

The report listed five CSE-listed companies with a higher risk on the comparative exposure matrix, namely (LCEY) Lankem Ceylon, (CHMX) Chemanex PLC, (UCAR) Union Chemicals Lanka PLC, (LLUB) Chevron Lubricants Lanka, and (AGST) AgStar PLC.

"Small importers and blenders with little pricing power. Stock is bought in foreign currency and funded on short-term credit, so the new payment checks hit their cash cycle directly," the report noted.

In diversified groups within which chemicals are 'one business among many,' the report noted that long-standing efforts in compliance and banking relationships, and buffer stock that already exists, are likely to cushion the impact of the increased compliance requirements that smaller-scale importers are more likely to bear the brunt of.

"Diversified groups where chemicals are one business among many. Compliance teams, banking relationships and buffer stock already exist, so the extra paperwork is absorbed rather than passed to margin."

It noted that though CIC Holdings PLC and Hemas Holdings PLC's agri-inputs and cosmetics businesses are to be exposed, earnings from across several segments are to buffer against any recognisable impact.

Among the least exposed, Hayleys PLC (HAYL) and its subsidiary Haycarb PLC (HAYC) were listed due to their mature diversifiers and netting maintained, which are more than likely to weather divisional impacts rather than a group-level impacts.

"HAYL is the most diversified name here, and its export earnings offset the import-payment regime, so impact lands at divisional rather than group level. HAYC sits on the other side of the trade. It exports activated carbon, so it earns foreign currency rather than spending it – the tighter forex rules work in its favour."

The report noted that with the hydrochlorofluorocarbons (HCFC) ban under the Imports and Exports (Control) Regulations No. 04 of 2026, Haycarb's filtration carbon is to see increasing demand, as it is used within substitute systems for HCFC.

"Its filtration carbon is also used in the substitute refrigerants and solvent systems companies must move to under the HCFC ban, so the phase-out can add demand."

The report classified HAYC as a "relative beneficiary" of the regulatory changes, noting that it is the least import-exposed company among the nine reviewed and that the HCFC phase-out can add demand for its activated carbon products.