News & market updates

Iran says it will supply fuel and other essentials to Sri Lanka if requested, as Sri Lanka faces severe fuel shortages, a 25% recent price hike, aggressive rationing and reserves estimated to last six weeks. The government has imposed a four-day public-sector week and bears roughly LKR 20 billion monthly in fuel subsidies.

Colombo Stock Exchange closed lower as the ASPI fell 1.35% to 20,360.27 and the S&P SL20 slid 1.06% to 5,691.97. WindForce rose after winning a 10 MW/40 MWh BESS contract worth Rs1.73bn and was the top positive contributor, while Colombo Dockyard and John Keells were top negatives; turnover was Rs2.37bn.

WindForce (WIND.N0000) was awarded a 10 MW/40 MWh grid-scale BESS project in Panadura on 20 March 2026, the company's 13th under Sri Lanka’s national BESS programme. The 15-year BOO project will be fully owned by WindForce with an estimated investment of ~Rs.1.73 billion financed by debt and equity, supporting grid stability.

IEA says more than 40 energy assets across nine West Asian countries have been severely or very severely damaged, risking prolonged oil, gas and fuel supply disruptions and higher energy prices. The IEA has released a record 400 million barrels from emergency reserves and may release more.

WindForce PLC has been awarded a contract to build a 10 MW/40 MWh standalone BESS in Panadura for 1.73 billion rupees under a Build–Own–Operate model. The company will hold 100% equity, finance it on an 80:20 debt-to-equity basis, and the 15-year project raises its BESS portfolio to 13 projects.

Lanka IOC revised fuel prices from midnight on 21 March in line with CPC's changes, raising Super Diesel by Rs.90 to Rs.443 and Octane 95 by Rs.90 to Rs.455. The adjustments follow wider supplier increases amid Middle East tensions that have pushed diesel up about 35%.

Economist Talal Rafi warned the Middle East war could complicate Sri Lanka's debt path as IMF program plans boost external reserves from ~$8.9bn to $13.4bn by end-2027 and envisage a $1.5bn ISB in 2027, with annual external debt servicing rising from $2bn to $3bn; he noted reform-dependent opportunities in renewables and data centres.

Asia shares fell while US 10-year Treasury yields hit an eight-month high of 4.415% as the Gulf war escalated and Brent oil traded around $112.62 a barrel, lifting inflation and pushing markets to price out rate cuts.

Secondary government bond yields rose sharply across the curve last week (selected tenors up 20–30bps; long-end approaching ~11%) as geopolitical risk, higher global rates and oil gains drove selling. T-bill auction rates held, foreign holdings fell by Rs 1.38bn, and USD/LKR closed ~Rs.311.85/312.00.

Marlbo Trading showcased FLIR thermal and acoustic imaging technologies at the INCO 2026 exhibition, demonstrating tools for early fault detection and energy-efficiency across construction, utilities and manufacturing.

Marlbo Trading will showcase FLIR thermal and acoustic inspection technologies at INCO 2026 (13–15 March, BMICH), demonstrating tools for early fault detection and leak identification across construction, utilities and manufacturing.

Speakers at an OPA seminar warned the Middle East conflict will raise global energy prices, strain fuel supplies (fuel ≈20% of Sri Lanka's import bill), and hit tourism and remittances (≈40% from the Middle East), urging price reforms, renewables, maritime and cyber security upgrades.

Government says it has no plans for power cuts despite ongoing fuel shortages. CPC chairman said the state oil firm is incurring a Rs. 204.56 loss per litre of diesel after a recent price rise of Rs. 140 and urged the public to use electricity sparingly.

Ceylon Petroleum Corporation raised fuel prices effective March 21, lifting Octane 92 to Rs.398 and white diesel to Rs.382 as petrol and diesel prices rose roughly 21–26%, with other grades also reaching levels last seen in the 2022 crisis amid rising global oil prices.

Gulf escalation and shipping disruptions have hit Sri Lanka's tourism, tea and apparel sectors, pulling the bourse down 12.7% through March 20; plantation and apparel stocks plunged (Namunukula -30.6%, Agalawatte -22%, Teejay Lanka -20.6%) while Sunshine benefits from higher palm oil prices.

Tesla is reportedly in talks to buy about $2.9 billion of solar-panel and cell manufacturing equipment from Chinese suppliers to support a plan to add 100 GW of U.S. solar capacity. Sources say some equipment would be delivered before this autumn, with shipments likely headed to Texas.

Oil prices fell as European nations and Japan offered to help secure the Strait of Hormuz and the U.S. signalled moves to boost supply; Brent was $107.29/bbl and WTI $94.22.

Strikes on ammonia plants in Iran have reduced ammonia/urea supply and helped push fertilizer prices about 40% higher in South Asian markets, risking higher rice and other agricultural prices and food-security strains. The article also highlights rodenticides market growth and Chinese space-mouse research.

President Anura Kumara Dissanayake said the government will prioritise the export sector and intervene fully to overcome current challenges, highlighting difficulties in securing fuel supplies. He met leading exporters and industry representatives to discuss measures to minimise the sector's economic impact.

Lanka IOC's Lanka OIC unit (LIOC.N0000) is part of the India–UAE–Sri Lanka tripartite plan to renovate the Trincomalee oil tank farm to expand storage; Sri Lanka has allocated about Rs.32 billion over 3 years and aims to raise storage from ~25–35 days to ~60 days.

Oil rose above $110 a barrel after reports an airstrike hit facilities on Iran's South Pars gas field, with Brent briefly at $112 and UK gas jumping to about 143.5p/therm; Iran and Qatar reported damage and fires, raising the risk of further energy-market volatility.

PUCSL will decide within March on CEB's proposal to raise electricity tariffs by 13.56% for April–June 2026, with CEB citing a Rs. 15.8 billion revenue shortfall. The regulator flagged concerns over cost assumptions, fuel supply delays and extraordinary expenses and has sought further clarifications after public consultations.

Sri Lanka's rupee was quoted at 311.25/40 per US$ while government bond yields rose across tenors (e.g., 01.07.2028 around 9.30-9.35%) as oil topped $110 after the Iran-Qatar strike; the ASPI fell about 1%.

Oil prices rose after Iran attacked multiple Middle East energy facilities, with Brent up $3.69 (3.44%) to $111.07 and WTI up $2.29 (2.38%) to $98.61, driven by regional escalation and damage to LNG and oil sites.

Global stocks fell and oil and gas prices rose sharply after a major escalation in the Middle East, while the Bank of Japan left rates unchanged and the yen hovered near 160 per dollar.

Forbes Marshall Lanka won the Gold Flame in the Energy Efficiency Improvement category at the Sri Lanka National Energy Efficiency Awards 2025. The firm reports 500+ walkthrough audits, 20+ energy-saving implementations, furnace oil savings nearing 10 million litres and firewood/biomass savings of 25,000 million yards.

Fitch warns a prolonged Middle East conflict could raise developed-market sovereign risks via higher energy prices and borrowing costs; its baseline keeps Brent near current levels then $70/bbl in 2026, while a $95–$100/bbl scenario would slow DM growth and lift inflation, hitting Italy, the UK, Japan and France hardest.

Asian shares rallied as oil prices paused—Brent fell to $102.28/bbl and WTI dropped ~1.6%—while markets turn to the U.S. Federal Reserve meeting for guidance on interest-rate paths. Attention is on the Fed’s dot plot and Powell’s comments amid geopolitical-driven oil risks.

Iraq and Kurdish authorities agreed to resume oil exports via Turkey's Ceyhan port, easing prices as Brent fell to $102.75/bbl and U.S. WTI to $95.03. Flows were expected to start at 0700 GMT at about 100,000 bpd, but wider Iran-related disruptions keep supply risks elevated.