News & market updates

The Sri Lankan government has launched a fresh investor drive for Mattala Rajapaksa International Airport, inviting EOIs for airside operations and landside commercial development across cargo, logistics, MRO, industrial parks, renewable energy and hospitality; EOI documents are available until 8 June with a briefing and site visit scheduled for 22 May.

Sri Lanka's Ministry of Ports & Civil Aviation has launched an EOI drive (27 Apr–8 Jun 2026) to attract local and foreign investors to Mattala Rajapaksa International Airport for airside and landside opportunities covering cargo, MRO, logistics, industrial parks, renewable energy and resort/hospitality projects.

LAUGFS Power Plc commissioned and connected a 2 MW mini-hydro plant in Polpitiya, Ginigathhena to the national grid (commissioned 26 March; formally acknowledged 29 April). The project was developed via wholly-owned subsidiary PAMS Power Ltd and is expected to supply renewable energy and support national targets.

Government will amend the National Environmental Act to introduce pollutant-based (load-based) charging, stricter industrial approvals, legally binding Environmental Management Plans and mandatory pre-project environmental clearances. The changes target manufacturing, energy, construction and chemicals firms and include fines and up to two years' imprisonment for non-compliance.

Oil prices rose about 1% as fragile U.S.-Iran talks kept supply concerns alive; Brent was $105.07/bbl and WTI $99.06. Tensions around the Strait of Hormuz, OPEC output near multi-decade lows and forecasts of U.S. stock draws supported the gains.

The Government approved an 18% electricity tariff increase for Q2–Q3 2026, saying it directly affects 7.29% of electricity users (4.06% of households) and has committed a Rs.15 billion subsidy to the National System Operator to cushion rising generation costs.

The Indian rupee fell to a record low of 95.6250 per USD as Brent crude surged ~46% after the Iran conflict, prompting central bank intervention and contributing to more than $20bn of equity outflows so far.

PM Modi urged Indians to curb fuel use, revive working-from-home, pause gold purchases and cut overseas travel to conserve foreign exchange as global oil prices rose (Brent $105.33/bbl, WTI $99.85/bbl) amid Iran war-driven Middle East tensions.

The Government has withheld over $37 million from coal suppliers—$22m in fines and $15m from performance bonds—while investigating losses linked to disputed coal shipments used for power generation. Officials say the final loss figure will be determined after the last shipment is consumed and technical and financial assessments are completed.

Government will add 250–300 MW of battery energy storage (BESS) to the national grid by year-end; 100 MW has been awarded, 160 MW is under evaluation and the Cabinet approved further allocations to bring the near-term pipeline to about 300 MW. Officials said 700–1,000 MW of renewable projects have been added since 2025.

Colombo Stock Exchange closed marginally higher, ASPI up 0.02% at 23,015.32 with turnover of Rs.3.66 billion. Real estate and transportation led turnover (Rs.495.2m and Rs.485.2m) and Abans Finance listed Rs.1.34bn five-year debentures; its shares rose 3.47%.

The Sri Lanka Export Development Board has rescheduled Sri Lanka Expo to 14–17 January 2027 at BMICH citing geopolitical uncertainty. The event is expected to host about 750 local exporters and 1,500 international participants across apparel, tea, ICT, pharma, renewable energy and other sectors.

John Keells Holdings chair Krishan Balendra will lead a 19-member Sri Lankan corporate delegation to Mumbai for the India–Sri Lanka Business Forum on 13 May to engage Indian counterparts on trade, investment and partnerships. Sri Lanka and India have also discussed a proposed $450m post-conflict reconstruction package.

Colombo market closed lower as the ASPI fell 0.23% to 23,011.72 despite net foreign inflows of Rs. 597.5m; banking sector led turnover with large SEYB crossings and gains, while COMB, CINS, DFCC and Colombo Dockyard were among top negative contributors.

Sri Lanka will pay Rs8.5 billion in compensation to 1,896 employees who accepted golden handshakes after the Ceylon Electricity Board was split into six state-owned companies. The treasury will fund payments quickly, covering 50% for some operator/transmission staff and fully for others; the CEB estimated unbundling lost economies of scale of Rs10.6bn.

Sri Lanka recorded a primary surplus of Rs. 545.42 billion in Jan-Feb 2026 (up 66% YoY) and an overall Budget surplus of Rs. 169.71 billion, with revenues rising 35.5% to Rs. 1.03 trillion while expenditure growth was contained at 1.6%.

Sri Lanka's official reserve assets fell $267m to $6.76bn in March, with foreign currency reserves down $295m to $6.54bn; the CBSL was a net seller of dollars in April (net $13m). Predetermined near-term FX obligations total $2.1bn and forward short positions amount to $3.87bn.

Colombo Stock Exchange closed lower: ASPI -0.23% to 23,011.72 and S&P SL20 -0.30%, with turnover Rs.4.92bn and banks leading at Rs.3.04bn. Movers included Melstacorp, Hemas and CDB up while Ceylinco Insurance, Commercial Bank, DFCC and Colombo Dockyard fell; Laugfs Power commissioned a 2MW mini-hydro and ACME proposed a capital reduction (EGM Jun 11).

The Ceylon Chamber will lead a senior corporate delegation to Mumbai for the India–Sri Lanka Business Forum on 13 May 2026, with leaders from John Keells, Aitken Spence, Hayleys, Sierra Cables and Vidullanka among participants to engage Indian investors on trade and investment opportunities.

The PUCSL approved an 18% electricity tariff rise for consumers using over 180 kWh, effective May 11. The regulator — after a prior 25.3% April hike — ordered the National System Operator to cover coal-shortage extra costs payable to the Electricity Generating Company, and introduced relief for low-use households, EV charging bands, and demand-charge changes for hotels and SMEs.

Sri Lanka and Vietnam set a target to increase bilateral trade to $1 billion by 2030. Discussions covered renewable energy, digital infrastructure/AI, manufacturing and agriculture; Vietnam donated 100 tonnes of fertilizer and new airline routes to Colombo are planned.

BOI says potential German investors will visit Sri Lanka for the German Business Forum (GBF) 2026 in Colombo on May 27–29. The event targets boosting FDI into export sectors (textiles, apparel, rubber) and areas like logistics, precision engineering and renewable energy.

Brent fell below $100 to $99.45 and WTI to $93.18 as markets weighed a possible U.S.-Iran deal that could reopen the Strait of Hormuz, with both benchmarks down about 2% amid volatile trade and tightening U.S. crude inventories.

FRED says the state National System Operator has halted payments since Dec 2025, leaving Rs10bn unpaid to renewable SMEs and threatening 389 plants (1,073.9 MW). Developers report scheduled curtailments, seek a Rs10bn Treasury grant and warn of rising bank NPLs and investor flight.

FTZMA urged the PUCSL to operationalise power wheeling under Section 13 of the Electricity Act and publish the regulatory framework and wheeling-charge methodology within 90 days to allow industry to buy renewable power via the grid, reduce fuel imports and save foreign exchange.

FRED warns the National System Operator has halted payments to renewable generators since Dec 2025, creating LKR 10 billion in unpaid dues as of April 2026 and threatening sector collapse without immediate government/Treasury intervention. FRED says payments are being prioritized to expensive fossil-fuel plants (thermal costs near LKR 100/kWh), risking plant shutdowns, investor flight and higher bank NPLs.

Asian stocks rose to record highs as hopes of a Middle East peace deal spurred risk-on buying and sent oil down around 8%, while the U.S. dollar slipped and the yen remained in focus amid intervention speculation.