News & market updates

Asian stocks rallied after U.S. CPI fell 0.4% in June and annual core inflation eased to 2.6%, cutting rate-hike odds and sending two-year Treasury yields down 11bp to 4.19%. Oil steadied around $85.80/bbl and China's Q2 GDP slowed to 4.3%.

Outgoing Swedish Ambassador Jan Thesleff said Sri Lanka's improving policy stability is restoring international investor confidence and named renewable energy, ICT, apparel, healthcare and food processing as key growth sectors; a Swedish business delegation will visit in January 2027.

The National System Operator has launched an international tender for a 250 MW/1000 MWh standalone BESS, to be delivered as 25 x 10 MW/40 MWh blocks under 15-year BOO contracts; proposals are due 14 August 2026. The tender aims to improve renewable integration and support the government's 70% renewable-by-2030 and net-zero-by-2050 targets.

Cabinet approved a €924,063 German grant to fund a program promoting energy-efficient, climate-resilient buildings in Sri Lanka, to be implemented by GIZ with the Energy Ministry and the Sustainable Energy Authority.

Cabinet approved loan and grant agreements securing a $35m ADB loan plus grants of over €15.4m and $5.5m to fund a grid-based rooftop solar and virtual net metering project. The project aims to improve integration of rooftop solar into the national grid and boost small- and medium-scale renewables.

Colombo market fell to a three-month low as the ASPI slipped 0.50% (107.39 pts) to 21,424.99 and the S&P SL20 dropped 0.37% (22.04 pts) to 6,000.15. Foreign investors were net sellers of Rs.126.9m; main negative contributors included Carson, Melstacorp, Vallibel One and John Keells, while Lanka IOC, Ceylon Cold Stores and Dipped Products led turnover.

Colombo Stock Exchange rose as the ASPI gained 0.39% (83.87 pts) to 21,508.86, with banks leading turnover at Rs 41.8 million. Dilmah Ceylon Tea Company proposed a first and final dividend of Rs 25 per share for the year ended March 31.

Outgoing Swedish Ambassador Jan Thesleff said he is optimistic about Sri Lanka's recovery and rising investor confidence, noting about 80 Swedish companies operate in Sri Lanka. He highlighted opportunities in ICT, apparel exports, renewable energy, healthcare and tourism, and cited Port City progress and the need for direct flights.

The Cabinet approved a financing package to launch the "Grid-Based Rooftop Solar Power and Virtual Net Metering" project, authorizing a $35.0m ADB loan, a €15.4m EU grant and a $5.5m Japanese grant. The funding is intended to modernize the grid and support small- and medium-scale renewable energy producers.

Cabinet approved signing a tripartite agreement to implement a programme promoting energy‑efficient, climate‑resilient buildings backed by a €924,063 German grant (~Rs314m). GIZ will implement the project with progress monitored by the Ministry of Energy and the Sustainable Energy Authority.

Sri Lanka's cabinet approved about $57m in funding for the Rooftop Solar Aggregation and Virtual Net Metering Project: a $35m ADB loan, a €15.4m EU grant and a $5.5m JFJCM grant. The project aims to enhance small- and medium-scale renewable energy and rooftop solar distribution to independent power producers.

The National System Operator launched an international tender for a 250 MW / 1,000 MWh standalone battery energy storage system across 25 substations, with BOO contracts and proposals due 10:00 hrs on 14 Aug 2026.

The National System Operator (Ministry of Energy) has launched an international tender for a 250 MW / 1000 MWh standalone battery energy storage system, structured as 10 MW/40 MWh units across 25 substations. The BOO project carries 15‑year storage agreements; proposals due Aug 14 (RFP until Aug 13).

The Free Trade Zone Manufacturers' Association urged the government to operationalise power wheeling, lower industrial energy costs and set up dedicated fuel stations in Katunayake and Biyagama to protect export manufacturing competitiveness. The group also asked for a review of industrial diesel pricing.

Global markets fell sharply as Gulf tensions and Iran's claim to have closed the Strait of Hormuz drove Brent crude up 4.3% to $79.31/bbl, lifting bond yields and reviving inflation and interest-rate tightening concerns.

The ASPI fell 1.07% (233.18 points) to 21,532.38 as investors sold amid renewed Middle East conflict concerns. Market turnover was over Rs 1bn, foreign investors were net sellers of about Rs 56mn, with banks and food & beverage sectors leading activity.

Oil rose about 2% to a four-week high as the US and Iran stepped up attacks in the Strait of Hormuz and the US reinstated a naval blockade; Brent was $84.98/bbl and WTI $79.79/bbl.

Lanka IOC PLC held its 24th AGM on 09 July 2026 where shareholders approved the audited financial statements for the year ended 31 March 2026 and declared a dividend. The board highlighted strategic priorities including digital transformation, retail network expansion, growth in lubricants/petrochemicals, and pursuit of EV charging and renewable energy projects.

John Keells CG Auto signed an MOU with Green EV to expand nationwide EV charging access, adding 125+ Green EV chargers and giving BYD/Denza customers access to Green EV's 100+ DC and 70 AC chargers including 120 kW ultra-fast units.

WindForce PLC secured up to US$18 million in IFC local-currency financing to develop Sri Lanka's first utility-scale 100MW solar project. IFC also committed US$10m to New Anthoney's Farms, bringing total IFC investments advised by TWC Capital to up to US$28m across renewables and agribusiness.

TWC Capital advised WindForce PLC on an IFC commitment of up to $18m for Sri Lanka's first utility-scale 100 MW solar project, and advised New Anthoney's Farms on a separate $10m IFC financing, totalling up to $28m in development finance.

AmCham Sri Lanka led a delegation to the AmChams of Asia Pacific Washington Doorknock (21–24 June 2026) to lobby US policymakers on the US–Sri Lanka bilateral trade agreement, Section 301 issues affecting exporters (notably apparel), and to seek US investment and development finance support.

ADB lowers developing Asia and Pacific growth to 4.9% for 2026 (from 5.5% in 2025), a 0.2 percentage point downgrade from April due to prolonged energy-market disruptions. It raises regional inflation to 4.3% for this year and warns of risks from tighter financial conditions, supply-chain strains and higher fertilizer/commodity costs.

ADB retains Sri Lanka's 2026 GDP growth forecast at 4%, lowers 2027 to 4.0% from 4.2% citing the recent 100 basis-point rate hike, and raises 2026 inflation to 6% due to domestic fuel price rises and electricity tariff increases.

CSE ended an eight-session slide as the ASPI rose 0.31% to 21,765.56 and the S&P SL20 gained 0.25% to 6,081.43. Turnover topped Rs.2bn with foreign net outflows of Rs.673mn; top contributors included Ceylon Cold Stores, Haycarb, John Keells and RIL, while banks (Commercial Bank, Sampath) led turnover.

Asian stocks rose sharply, led by chip and AI firms, as investors brushed off Middle East attacks; SK Hynix priced its ADR at $149, raising about $26.5bn. Brent crude was set for a 5% weekly rise to $76.03/bbl and Japan's yen firmed after finance minister comments.

Global FDI rose 6% to $1.6 trillion in 2025, driven by a small number of megaprojects—notably AI-related data centres—while developed-economy inflows rose 11% and developing economies grew only 2% to $901bn. The recovery is narrow and concentrated, with risks from trade uncertainty, geopolitics and high financing costs for 2026.

Colombo market fell for an eighth session as ASPI dropped 0.60% (130.78 pts) to 21,697.72 amid renewed Middle East tensions, with turnover over Rs.1.4bn and foreign net outflow of Rs.91.7m. Declines were led by Commercial Bank, Melstacorp, Hayleys and John Keells, while capital goods, food & beverage and banking drove turnover.

Sri Lanka's ASPI fell 0.60% to 21,697.72 as markets slowed amid escalation in the Middle East and global instability. Seylan Bank, Lanka IOC and Malwatte Valley Plantations were among gainers while Commercial Bank, Melstacorp, Lion Brewery and Hayleys led declines; Vidullanka authorised a first gross dividend of Rs0.20 per share to be dispatched by Aug 7, 2026.

Brent crude rose 5.3% to $78.10/bbl and WTI gained 5.4% to $74.31 after renewed US–Iran hostilities, triggering a global market sell-off. Major U.S., European and Asian indices fell as investors reassessed geopolitical risks to energy supplies.