News & market updates

Laugfs Gas consignment of about 7,000 MT of LPG was discharged from tanker ANDOVER at Hambantota International Port on 4 April, a shipment the port says can supply roughly 570,000 households and is the port's first gas consignment of 2026.

Fitch warns South and South‑East Asian banks face gradually building credit pressure from a prolonged Middle East conflict, with higher energy prices, supply‑chain disruption and weaker remittances likely to hit retail, micro‑enterprise and SME loan books first.

Parliament defeated a no-confidence motion against Energy Minister Punya Sri Kumara Jayakody, with 153 voting against and 49 in favor (a 104-vote margin). The motion cited alleged irregularities in coal procurement and indictments linked to procurement at Lanka Fertilizer Company.

ADB projects Sri Lanka's growth will slow to 4.0% in 2026 from 5% last year, and warned a prolonged Middle East conflict could cut 0.5–0.8 percentage points from 2026 growth. It said lower tourism revenues, higher energy and fertilizer import costs and possible remittance weakness could also add 3–5 percentage points to projected 5.2% inflation.

ADB forecasts Sri Lanka's GDP to moderate to 4.0% in 2026 and 4.2% in 2027, with inflation set to rise to 5.2% largely due to the Middle East conflict. The economy remained resilient in 2025 with strong private consumption, record remittances, a primary surplus and higher reserves, but higher energy costs and weaker tourism/trade pose risks.

The ADB forecasts growth in developing Asia and the Pacific will slow to 5.1% in 2026 and 2027 (from 5.4% in 2025), citing the Middle East conflict and trade uncertainty; regional inflation is seen rising to 3.6% in 2026. The report warns of risks from higher energy and food prices, shipping disruptions and tighter financial conditions.

Oil prices rebounded as doubts over a U.S.-Iran ceasefire and renewed Strait of Hormuz disruption pushed U.S. crude briefly above $102/bbl before easing to about $96, with Brent near $94. Low shipping transits and Iranian statements signaling breaches kept geopolitical risk elevated.

Colombo Stock Exchange closed up: ASPI +1.30% (284.12 pts) to 22,128.66. Top contributors included John Keells, Melstacorp and National Development Bank; turnover was Rs5.016bn and HNB Finance announced a Rs2,499,529,714 rights issue (2 for 9).

IMF Mission Chief Evan Papageorgiou said invitations were extended to all political parties for talks with its delegation, though the main opposition SJB did not attend; the IMF held discussions with MPs on fuel rationing, fiscal consolidation, under-execution of capital expenditure and anti-corruption frameworks.

The IMF and Sri Lankan authorities reached a staff-level agreement on the combined 5th and 6th reviews of the EFF that, if approved by the Executive Board, would unlock about US$700m, conditional on restoring cost‑recovery fuel and electricity pricing, financing assurances and debt restructuring. The IMF also urged rebuilding reserves with exchange‑rate flexibility, fiscal and revenue reforms, stronger social safety nets, and progress on NPLs and governance reforms.

IMF staff and Sri Lankan authorities reached staff-level agreement on the combined Fifth and Sixth Reviews of the EFF, which, if approved by the IMF Executive Board, would unlock about US$700 million in financing. Approval is contingent on restoring cost‑recovery fuel and electricity pricing and completing financing assurances and debt restructuring.

IMF, World Bank and WFP warned the Middle East war threatens global energy and food security, causing sharp increases in oil, gas and fertilizer prices and rising food insecurity. They said low‑income, import‑dependent countries will be hardest hit and pledged coordinated support to protect lives and livelihoods.

The US and Iran announced a two-week suspension of attacks and Tehran agreed to allow safe transit through the Strait of Hormuz. Iran said it could reopen the strait if a ceasefire framework is reached, a move that could ease disruptions to global oil and gas markets.

Oil tanker traffic through the Strait of Hormuz was halted after Israeli strikes on Lebanon, raising concerns about disruptions to global energy flows.

The US signalled it may ease sanctions on Iran after a two-week ceasefire, with President Trump saying Washington and Tehran are discussing tariff and sanctions relief though no terms or timeline were given. Any easing would depend on verifiable Iranian steps on uranium enrichment.

Sri Lanka's recovery from Cyclone Ditwah has slowed, with more than 149,000 people still displaced and $23.4m pledged of the $35.3m required for the humanitarian plan. OCHA warns rising fuel and energy costs, supply-chain disruptions, heat-reduced hydro output and funding gaps risk food security, livelihoods, tourism and resettlement.

Author urges Sri Lanka to expand QR digital payments and deepen economic cooperation with China (including Belt & Road) to bolster economic stability amid energy-market shocks from US–Iran tensions and shifting global currency/gold dynamics.

Dr. Sulakshana Jayawardena was appointed Acting Chairman of the Board of Investment (BOI). He brings over 23 years of public service experience with significant work in power and renewable energy, including rural electrification and energy policy.

LAUGFS Gas PLC has resumed filling at Hambantota and Mabima plants and is releasing about 30,000 LPG cylinders daily to restore market availability. The company says it will ensure uninterrupted supply over the festive season for households, hotels, restaurants and industrial users.

Oil fell below $100 a barrel after U.S. President Trump announced a two-week ceasefire with Iran; Brent dropped to $92.95 and WTI to $94.79. Analysts warn further direction depends on whether talks lead to a durable reopening of the Strait of Hormuz, with volatility likely to persist.

ASPI fell 0.45% to 21,032.46 as foreign net outflows reached Rs.1.099bn over two days (Rs.294m yesterday, Rs.805m prior). Banking led turnover (49%); key negatives included NDB, Ceylinco (CINS), Melstacorp and JKH, while Galle Face Capital (WAPO) gained.

Global equity markets traded cautiously as Brent crude held near $110/bbl amid heightened Middle East tensions and a US deadline, supporting the dollar and reducing expectations of Fed rate cuts this year.

Dr. Sulakshana Jayawardena was appointed acting Chairman of the Board of Investment (BOI) of Sri Lanka. He brings 23+ years of public administration experience with a focus on power/renewable energy and will push FDI attraction, digitalization and Industry 4.0–friendly reforms at the BOI.

Sulakshana Jayawardena was appointed acting chairman of Sri Lanka's state-owned Board of Investment (BOI). He is a veteran civil servant with 23+ years' experience and a long track record in renewable energy and strategic energy policy, and the BOI says he will work to attract higher-quality FDI.

DIMO's Power & Energy arm launched 'EVO by DIMO', introducing Siemens commercial EV chargers (11–360 kW), Sri Lanka's first dual-gun AC 22 kW IP65 chargers, a network app with tokenised payments, and plans for mobile 30 kW DC roadside charging and nationwide deployment.

ADB launched the Regional Connectivity Fund for Energy (RCF) with initial funding of about $25 million to prepare cross-border ASEAN Power Grid projects. ADB has also pledged up to $10 billion over the next 10 years to support the ASEAN Power Grid and related investments.

Sri Lanka's president said sub-standard imported coal is reducing electricity generation and causing unofficial power cuts. He said the shortfall is being met by diesel, which will raise generation costs that he claims will not be passed to consumers.

Brent rose $1.74 to $111.51/bbl and WTI rose $3.45 to $115.86/bbl as the Strait of Hormuz remained shut ahead of a U.S. deadline, with Iran rejecting a ceasefire and supply disruptions from Gulf exporters squeezing global crude flows.

Cabinet approved a competitive procurement for an additional 50 MW of BESS and 25 standalone 10 MW/40 MWh BOO projects, and PUCSL-backed plans to advance 300 MW of battery storage to 2028–29 to better balance rising solar generation with evening demand.