News & market updates

Global oil prices briefly surged past $110 per barrel after US President Donald Trump warned of strikes on Iranian infrastructure over disruptions in the Strait of Hormuz, then eased as reports of possible ceasefire talks emerged, leaving supply uncertainty and market volatility elevated.

National Development Bank's trading halt was lifted and its shares fell to Rs.115.00 from Rs.130.50 after investors reacted to a reported Rs.13.4 billion fraud. The ASPI was down 0.12% at 21,100.65 and Vidullanka authorised acquiring 100% of the 4.5MW Gurugoda mini-hydro plant.

Fitch published an 'A(lka)' National Long-Term Rating on WindForce PLC’s proposed senior unsecured redeemable debentures of up to LKR4 billion. Fitch cited structural subordination from secured subsidiary debt and significant capex—forecasting EBITDA net leverage to peak at 9.0x in FY27—while assigning a Stable outlook.

LAUGFS Gas (LGL.N0000) raised the 12.5 kg LPG cylinder price by Rs. 1,070 to Rs. 5,700; Litro raised the 12.5 kg price by Rs. 775 to Rs. 4,765. Both firms cited surging international LPG and freight costs and said shipments in transit will secure supply.

BOI held a full-day FDI promotion session with a 15-member Malaysian delegation to showcase ready projects, land and infrastructure for immediate investment, drawing interest in ICT/data centers, solar renewable energy, manufacturing, FMCG, agri-processing and tourism.

Global oil prices jumped—Brent rose 7.78% to $109.03/bbl and U.S. crude surged 11.41% to $111.54—after U.S. President Donald Trump warned of intensified action against Iran. Equities traded mixed amid volatile flows, bond yields climbed on higher rate expectations and gold fell as the dollar strengthened.

The World Bank Group and the Government of Sri Lanka launched a five-year Country Partnership Framework mobilizing more than $1 billion in IFC investment and up to $1 billion in low-interest World Bank financing to support private-sector-led job creation and growth. The program targets easier business rules, port and energy infrastructure (70% renewables by 2030, +1 GW), tourism and agriculture support, and a first $100m REVIVE project to create about 3,000 jobs in the Northern and Eastern provi

Sri Lanka and the World Bank Group launched a five-year Country Partnership Framework mobilising over $1bn in IFC investment and up to $1bn in low-interest World Bank financing, with a first approved $100m REVIVE project for the Northern and Eastern Provinces. The plan targets easier business rules, Port of Colombo expansion, 1 GW of new clean power by 2030, tourism and agriculture job creation, and climate resilience.

WindForce PLC proposed to raise Rs.4 billion by issuing 40 million listed, rated, senior, unsecured, redeemable Green Bonds at Rs.100 each, subject to regulatory approvals. As of end-December 2025 the company reported short-term borrowings of Rs.2.52bn, long-term borrowings of Rs.8.5bn and retained earnings of Rs.6.1bn; shares closed down Rs.0.20 at Rs.44.80.

Major central banks largely held interest rates in March as the Middle East conflict and volatile oil prices raised inflation risks and constrained room for policy easing. Developed markets saw 8 of 9 meetings unchanged (Australia hiked 25bp), while emerging markets were mixed, including several cuts and Colombia's 100bp hike.

Brent crude rose 5.4% to $106.66 a barrel after renewed US-Iran hostilities drove safe-haven demand and a stronger US dollar, which also pushed major currencies lower against the dollar.

Swinburne University of Technology Australia sent a delegation of academics to Sri Lanka to brief students on global opportunities and evolving education across business, health sciences, engineering and IT. They stressed adaptability, industry integration, digital/AI skills, sustainability and renewable-focused training.

ASPI fell 1.2% (258.31 pts) for the week and the S&P SL20 dropped 2% (124.30 pts); market turnover was about Rs.1.77bn with net foreign outflows of Rs.68.2m, while breadth was positive and activity was led by capital goods, banks, materials and food & beverage names.

President Anura Kumara Dissanayake told visiting IMF officials the government is taking measures to minimize the impact of the Middle East conflict while continuing the IMF-supported Extended Fund Facility. The IMF commended Sri Lanka's progress—growth, improved revenue management and stronger reserves—and the government said it has met programme targets.

Cabinet cleared the Ceylon Electricity Board to develop the Maha Oya pumped-storage hydro project at Rs243.09 billion. The project will store excess renewable energy to improve grid stability, reduce reliance on peak thermal generation and will be funded under the Public Debt Management Act No.33 of 2024.

An IMF delegation met President Anura Kumara Dissanayake to review Sri Lanka's Extended Fund Facility, noting the country has met programme targets with stronger reserves and improved revenue management. They flagged external risks from the Middle East conflict and discussed managing fuel price pressures and targeted relief.

Central Bank of Sri Lanka expects interest rates to ease and says private sector credit rose 26.3% YoY to Rs.10.3 trillion by January with the OPR held at 7.75%. New private sector borrowing fell to Rs.82.6 billion in January, the lowest in 11 months.

Cabinet approved Rs. 243.09 billion in funding for the Maha Oya Pumped Storage Hydropower Plant to be implemented by the Ceylon Electricity Board under the Public Debt Management Act. The two‑phase project aims to provide large-scale energy storage to balance renewable generation and stabilize supply at peak demand.

The IEA, IMF and World Bank have formed a coordination group to align analysis and mobilize support for countries hit by the Middle East war's energy and economic shocks, prioritizing low-income energy importers and assessing energy prices, trade flows, inflation and financing needs. The group may provide targeted policy advice, concessional financing and risk-mitigation tools.

WindForce Plc will issue up to 40 million listed green bonds to raise Rs4 billion. The company said details on tenure and interest rates will follow and noted a recent award to build a 10 MW/40 MWh BESS project costing Rs1.73 billion (80:20 debt-to-equity).

Gold fell about 1.3% to $4,694.48/oz after President Trump said the U.S. would continue the war in Iran, reversing a four-day rally; U.S. gold futures slid 1.9% to $4,723.70. Brent oil rose more than 4% and U.S. Treasury yields and the dollar advanced, weighing on bullion.

Oil jumped about 5% to $106.16/bbl and global stocks fell after President Trump said the U.S. would hit Iran "extremely hard" within weeks. The dollar strengthened and futures and Asian equities declined amid renewed worries over Strait of Hormuz supply disruptions.

Colombo Stock Exchange rose as the ASPI gained 0.55% (116.65 pts) to 21,182.83, with bank stocks leading turnover of Rs.370 million. WindForce filed to issue up to 40 million green bonds to raise Rs.4 billion; top movers included Sampath, ACL Cables and Dialog while HNB and John Keells weighed on the index.

CFA Society Sri Lanka and Frontier Research will host an evening discussion, “Resilience on the line: Evaluating Sri Lanka’s macro stability amid global shocks,” on 9 April 2026 (5–7 p.m.) at Courtyard by Marriott, Colombo City Centre. Speakers will cover risks including oil price shocks, shipping disruptions, weaker global growth and tighter financial conditions.

Cabinet approved procurement of 300 MW of battery energy storage systems (BESS), moved up to 2028–29 to stabilise renewable integration. 250 MW will come from 25 standalone 10 MW/40 MWh BOO units tied to the CEB distribution network, and 50 MW will be batteries integrated with existing solar via competitive bidding.

The Cabinet approved compensating fuel importers up to Rs.20/litre for 92 Octane petrol and up to Rs.100/litre for diesel, with Rs.20 billion allocated for the measure. It also froze fuel allowances for ministers, MPs and public officials at March 1, 2026 rates and said retail prices are expected to remain unchanged through April unless global prices rise sharply.

The UK All-Party Parliamentary Group on Sri Lanka held a briefing in Parliament on Sri Lanka’s economic outlook; ODI Global highlighted opportunities for UK investment in renewable energy and the financial sector and noted progress in macroeconomic stabilisation.

PUCSL approved an average electricity tariff increase of around 10% from 1 April; Opposition Leader Sajith Premadasa alleges the government is passing coal procurement losses onto electricity consumers. SJB MP Dr. Harsha de Silva warned the hike disproportionately affects middle-income households and flagged limited scope for continued fuel subsidies under IMF-linked reforms.

The Government ordered state institutions to switch off air conditioning by 3 p.m., require illuminated billboards to go dark by 8 p.m., and directed local authorities to limit street lighting to 6–10 p.m. as part of national energy-conservation measures; organisers of events over 100 people must use independent power and authorities also urged water conservation.

Brent crude rose over 3% to above $115/bbl as the US–Israel war with Iran entered its fifth week, while US-traded oil hit $101.62; the move coincided with sharp falls in Asian stocks (Nikkei -2.8%, KOSPI ~-3%).