News & market updates

Treasury Secretary said Sri Lanka has agreements covering nearly 99% of external debt and has restructured over 92%, cutting public debt to about 105% of GDP and is expected to secure an additional $350m from the IMF after the fifth review. Cyclone Ditwah caused $4.1bn in damage (with $1.62bn needed in 2026) and recovery spending has been incorporated into the 2026 Budget without derailing fiscal consolidation.

Asian stocks hit a record high as stronger-than-expected U.S. jobs data lifted Treasury yields and reduced near-term Fed rate-cut odds; oil prices rose and the dollar firmed while the yen strengthened.

Ajay Banga (World Bank) warns 1.2 billion young people will enter the workforce in the next 10–15 years while only about 400 million jobs are expected, creating a vast shortfall. The World Bank proposes a three-pillar jobs strategy (infrastructure and skills, business-friendly rules, and scaling businesses) focused on infrastructure, agribusiness, healthcare, tourism and manufacturing.

The Colombo market ended marginally higher — ASPI +0.02% to 23,655.68 — on turnover of Rs.3.35 billion with foreign net outflows of Rs.64 million. Top positive contributors included NHL, CFIN, CARG, JKH and LLUB, while Samson International, UB Finance and Sierra Cables led turnover.

Huawei hosted the 1st Global C&I Visionaries Summit with over 550 C&I customers, partners and installers from 45 countries to promote its C&I Smart PV+ESS solutions and accelerate green, low‑carbon transformation across industries.

Sri Lanka will make sustainability reporting mandatory by 2028 for private companies with revenue above Rs. 10 billion, with the top 100 CSE-listed firms required to comply from 2025 under IFRS S1/S2. Parallel National Environmental Act reforms introduce strategic environmental assessment, load-based licensing and extended producer responsibility, and require board-level ownership of climate risks.

Indian Acting High Commissioner Dr. Satyanjal Pandey said Sri Lanka can leverage India’s growing trade and investment network to boost ports, renewable energy, connectivity and integrated supply chains. He highlighted Colombo Port’s handling efficiencies and urged aligning policies with India to diversify beyond apparel and tourism.

Asian stocks surged as Japan's Nikkei jumped 4.4% after PM Sanae Takaichi's decisive win and a strong rebound in U.S. chip stocks, supported by growing bets on U.S. rate cuts; commodities moved too with gold and silver up and oil slightly lower.

ADB has appointed Shannon Cowlin as its new Country Director for Sri Lanka, and she assumed office in Colombo today. Cowlin, with 26+ years' experience including work on energy, climate and public health, said ADB will support Sri Lanka's recovery and resilience, including cyclone damage.

LAUGFS Gas PLC raised domestic LPG refill prices effective midnight 6 Feb: 12.5 kg cylinder up Rs.80 to Rs.4,330 and 5 kg up Rs.32 to Rs.1,742, applying islandwide.

Emirates Flight Catering commissioned a large-scale Power Knot LFC-3000 biodigester to process food waste, projected to avoid more than 2,000 tCO₂e annually at full capacity and biological maturity. Since December 2025 it has processed up to 3.5 t/day (capacity may reach ~6 t/day) and EKFC also cited solar generation and EV rollouts.

Cabinet approved tenders to install independent battery storage at 16 substations—10 MW/40 MWh each (total 160 MW/640 MWh) under a BOO model to boost solar integration and grid stability; 153 bids were received after the tender period was extended.

Cabinet approved the Renewable Energy Resources Development Plan 2025–2030 to target 70% of Sri Lanka’s electricity from renewables by 2030 and carbon neutrality by 2050. The plan outlines land prioritisation, a Renewable Energy Map, floating solar projects and stakeholder consultations on environmental and land-use concerns.

Asian shares wobbled as U.S. and European selloffs driven by AI-related pressure on software hit markets, while oil rose after the U.S. shot down an Iranian drone and gold rebounded from a recent rout.

US President Trump said Washington will cut tariffs on India to 18%, removing a 25% punitive levy tied to Russian oil purchases; Indian officials have not publicly confirmed the commitments. The change would mainly benefit labour‑intensive exporters such as textiles, marine and leather.

Cabinet approved awarding a contract to Singapore’s Epdesa Ltd to import five shipments (300,000 ±5% barrels) of Petrol 92 for six months from 15 March to 14 September 2026 following competitive bids.

A Sri Lanka delegation led by Deputy Minister Chathuranga Abeyasinghe met Saudi Arabia’s Public Investment Fund in Riyadh on 25 Jan 2026 to pitch investment opportunities in Sri Lanka and its capital market. PIF outlined its 2026–2030 strategic plan and both sides agreed to open follow-up channels and pursue a bilateral investment protection agreement.

The U.S. announced a deal to cut tariffs on Indian goods to 18% (from 50%) in exchange for India ending Russian oil purchases and buying large volumes of U.S. energy; the announcement gave few implementation details and timing is unclear.

Qatar Energy CEO Saad al-Kaabi said rising demand from AI/data centres and increased Asian and European gas needs could turn an expected LNG glut into a shortage by 2030. Executives at LNG2026 highlighted Asia (China, India, Southeast Asia) and data centres as major drivers of future LNG demand.

Deputy Minister Chathuranga Abeysinghe led a Sri Lankan delegation to meet Saudi Public Investment Fund officials in Riyadh to present investment opportunities, capital-market reforms and discuss a Bilateral Investment Protection Agreement; both sides agreed to continue talks.

India's 2026-27 Budget offers foreign cloud providers a 20-year tax holiday until 2047 on revenues from services sold abroad if those services are delivered from data centres located in India. It also introduces a 15% cost-plus safe harbour for related-party data-centre services and expands electronics/semiconductor incentives, while flagging power and water constraints for capacity expansion.

UNCTAD reports global FDI rose 14% in 2025 to $1.6 trillion, with much of the increase driven by financial flows through global hubs rather than new productive investment. Data centres accounted for over one-fifth of greenfield values (>$270bn) while infrastructure and renewable energy projects fell.

The SEC and Colombo Stock Exchange held an 'Invest Sri Lanka' investor forum in Dubai on 22 Jan 2026 to promote Sri Lanka's capital market and attract FDI, including strategic meetings with Mubadala and UAE banks; CSE noted ASPI >23,800 (120% growth since Oct 2024) and $976m capital raised in 2024–25.

LVL Energy Fund PLC to raise up to Rs. 507.1 million via a rights issue of up to 67,619,394 shares at Rs. 7.50 to repay outstanding debt. Lanka Ventures PLC holds a 52.48% stake; the issue is subject to CSE and shareholder approval.

Central Bank of Sri Lanka kept the Overnight Policy Rate at 7.75%. Inflation was 2.1% in Dec 2025 and is projected to move toward 5% by H2 2026 amid rising food and core inflation, strong credit growth and post-cyclone rebuilding; gross official reserves were $6.8bn at end-2025.

SEC and the Colombo Stock Exchange held the 'Invest Sri Lanka' investor forum in Dubai on 22 January 2026 to promote Sri Lanka's capital markets and meet regional investors and institutions including Mubadala and the Abu Dhabi Securities Exchange. CSE highlighted the ASPI at over 23,800 (≈120% since Oct 2024) and USD 976m raised in 2024–25, while the Central Bank discussed resuming foreign credit lines with UAE banks.

Sri Lanka is pitching tax holidays of up to 15 years and positioning Colombo Port City as a regional financial and trade hub to attract UAE investors. The government says it will streamline approvals under the new Investment Promotion Act and is targeting agriculture, tourism, maritime logistics and renewable energy.

The India Cup 2026 golf tournament was held at the Royal Colombo Golf Club on 23 January 2026 with a record number of participants. Event sponsors included Lanka Ashok Leyland, Lanka IOC, Carson Cumberbatch and Tal Lanka Hotels.

INFRACON 2026, an infrastructure and construction exhibition, will be held 3–5 July at SBMEC Colombo with about 200 exhibitors and 5,000 trade visitors; the event will showcase HVAC-R, power and energy, green grid, safe water and building materials, and promote industry collaboration.

Rights issue · 3:31 at Rs 7.50 · XD Apr 22, 2026