News & market updates

CBSL held the policy rate at 8.75% after its Monetary Board review, citing Middle East-driven commodity price shocks; headline inflation rose to 6.8% YoY in June 2026. The bank said inflation will remain above the 5% target in the near term, stands ready to act, and noted reserves of $6.45bn with some rupee stabilisation.

CA Sri Lanka is adopting and localising the ISSB's IFRS S1 and S2 as SLFRS S1/S2 and has launched a Preparers' Guide, a Sustainability Governance Code for finance professionals and a CSRSA qualification to strengthen sustainability reporting and governance across the economy.

Companies can cut carbon footprints and reduce energy costs with low-cost steps — upgrading equipment, switching to renewables, optimizing transport, working with suppliers, reducing waste and measuring emissions to find savings.

Adopting circular economy practices can turn Sri Lanka's municipal, agricultural and industrial waste into economic value through recycling, reuse, and waste-to-energy, improving resource efficiency and creating jobs. Opportunities span manufacturing, construction, agriculture, packaging/retail, and digital technologies for material tracking and financing.

Ceylon Energy launched Apollo Energy (Delaware, USA) at its 'Energize 2026' forum, an investment platform to connect investors with curated high-yield energy and infrastructure projects across Sri Lanka and the region. The event also featured global partners discussing transmission, smart grids and digital infrastructure.

Sri Lanka's gross official reserves fell to $6.4bn from $6.8bn, with the central bank saying higher import outflows—driven by petrol and vehicle imports—caused the decline rather than FX intervention. The bank expects reserves to recover with incoming IMF, ADB and World Bank disbursements.

World Bank lead economist Dr. Harsha Aturupane warned Sri Lanka must reverse anti-export policies and reconnect with global markets to restore innovation and competitiveness. He cautioned ICT/BPM faces disruption from AI and noted low global value-chain participation (8.1% vs 26% India, 34% Vietnam).

CA Sri Lanka published a white paper urging urgent tax and investment reforms to boost FDI, proposing measures like a Qualified Domestic Minimum Top-Up Tax, refundable tax credits, targeted spend-based incentives and APA improvements. The paper prioritises tech/digital, renewable energy, export manufacturing and regional HQs and calls for institutional capacity to implement OECD-GMT–aligned reforms.

Central Bank kept the Overnight Policy Rate unchanged at 8.75%. Headline inflation rose to 6.8% in June, with higher fuel prices and Middle East tensions posing upside risks; gross official reserves were USD 6.45bn and the rupee has stabilised.

Asian stocks rose, led by a rebound in semiconductor shares as MSCI's Asia-Pacific ex-Japan index gained 1.2% and South Korea's Kospi jumped over 6%. Brent crude nudged to $91.55/bbl and markets are focused on upcoming US earnings and central bank meetings.

Oil prices rose as U.S. strikes on Iran and regional drone attacks raised fears of supply disruptions; Brent was $91.51 and WTI $84.64, with official EIA inventory data due.

The Central Bank of Sri Lanka kept the Overnight Policy Rate (OPR) unchanged at 8.75%. Headline inflation accelerated to 6.8% y/y in June 2026 driven by higher energy and food prices; gross official reserves were USD 6.45bn and the rupee has stabilised.

Sri Lanka Expo 2027 is being promoted to Kenya's renewable energy sector, with KEREA invited to Expo briefing sessions in Nairobi on 25 September and Mombasa on 2 October to explore B2B partnerships and investment opportunities.

IMF's Ranil Salgado said rising oil prices from a widening Middle East war and a weak El Niño monsoon are the biggest downside risks to India's FY27 GDP, and the IMF cut its 2026/27 growth forecast by 10 bps to 6.4%. The IMF will reassess India's national accounts after the statistics office rebases GDP to 2022/23, expected by end-2026.

Ceylon Chamber forum identified solar expansion, predictable tariffs/procurement, streamlined approvals, improved financing, net metering, and energy storage as priorities to accelerate Sri Lanka's renewable energy transition. Participants flagged barriers including policy inconsistency, land and grid constraints, and payment delays.

The Ceylon Chamber urged policy certainty, faster approvals and stronger procurement and financing frameworks to accelerate Sri Lanka's renewable energy expansion, especially solar. It also recommended net metering, feed-in arrangements, storage standards and grid upgrades to meet rising demand from digitalisation, AI, EVs and data centres.

Asian stocks rose as hopes of Middle East mediation pulled Brent down to $88.88/bbl from a one-month high, while investors awaited major tech earnings and monitored rising U.S. Treasury yields and interest-rate expectations.

Oil prices eased as reports of mediation between the U.S. and Iran offset fresh strikes; Brent fell 0.9% to $88.44/bbl and U.S. WTI dropped 0.9% to $82.50/bbl.

The Ceylon Chamber of Commerce and Sri Lanka's private sector urged a faster shift to renewables—particularly solar and energy storage—to meet rising electricity demand and reduce reliance on imported fossil fuels, calling for stable policy, streamlined approvals, financing, procurement and net metering.

Asian shares slipped as Gulf fighting pushed Brent crude above $90/bbl, stoking inflation fears and increasing the likelihood of earlier Fed rate hikes. Packed tech earnings and AI valuation worries add downside risk to equities while higher yields support fixed income.

Brent crude rose 2.37% to $90.19/bbl as US‑Iran strikes and disruptions around the Strait of Hormuz curtailed shipments, pushing prices to their highest since June 11 and extending a strong weekly gain.

The Ceylon Chamber of Commerce convened stakeholders to map priorities to accelerate Sri Lanka's renewable energy transition, prioritising solar expansion, net‑metering, procurement frameworks, financing and energy storage. Participants called for stable policy, streamlined approvals, grid upgrades and better access to finance to boost investment and delivery.

KPMG says Sri Lanka's credit rebound faces a major test after the Central Bank raised the policy rate by 100 basis points to 8.75%, a move expected to moderate private-sector credit growth. Lower fuel and vehicle imports, resilient remittances and stronger tax revenue are seen supporting a return to a current-account surplus and fiscal consolidation.

Colombo's ASPI fell 1.7% this week while turnover hit a 65-week low of about Rs. 722.64 million; top drags on the index included John Keells (JKH), PKME and NDB. Banking led turnover (notably Sampath Bank) and activity was concentrated in capital goods, food & beverage and energy names.

Oil prices rose as US-Iran hostilities intensified and Iran signalled the possibility of closing the Red Sea route, with Brent up $0.70 to $84.93/bbl and WTI up $0.81 to $79.76/bbl.

The government advanced energy infrastructure ahead of Budget 2027, ordering Delft, Analaitivu and Nainativu to be developed as Green Energy Islands and reviewing 14 petroleum projects including eight new storage tanks at Kolonnawa and Muthurajawela. Major grid works reviewed include a second 220 kV underground cable to Colombo, multiple transmission projects, a STATCOM at Padukka, rooftop solar integration, and the planned resumption of JICA-backed projects with 2027 funding.

HNB General Insurance appointed Lakshman Silva as Non-Executive/Nominee Director and Sandra De Zoysa as Independent/Non-Executive Director to its board. The appointments are intended to strengthen governance and drive digital/CX transformation as the insurer scales its platforms and customer service architecture.

The Wireless Intelligence and Innovation (WIIN) Institute of Technology was launched at TRACE Expert City to conduct research and industry training across telecommunications, energy, construction, FinTech and healthcare, including AI/ML programmes, in collaboration with University of Oulu and IIT Madras.

Oil prices slipped as traders took profits and assessed U.S. strikes on Iran and the risk of supply disruptions via the Strait of Hormuz; Brent was $84.95/bbl and WTI $79.45/bbl. Markets remain wary that further disruption to exports could push prices materially higher.

Ceylon Energy launched Apollo Energy, a Delaware-based investment platform to connect investors to high-yield energy and infrastructure projects, and hosted Energize 2026, a forum on industrial developments and technologies shaping the energy sector. Apollo Energy aims to widen investor access to renewable projects across Sri Lanka and the region.