News & market updates

Parliament passed 26 Acts in 2025, including amendments to major revenue laws (Inland Revenue Act, VAT, Social Security Contribution Levy, Betting and Gaming Levy), two Appropriation Acts, the National Minimum Wage Act, Companies and Electricity Act amendments, and changes to data protection and rubber control.

Panasian Power PLC connected a 5 MW (6.76 MWp DC) ground-mounted solar plant at Baddegama to the national grid on 30 December 2025 and has commenced revenue generation via a subsidiary. The plant is the final 5 MW unit under a batch of seven PPAs and the share price closed up Rs.0.40 at Rs.23.40.

Sri Lanka’s 2025 combined IMF-backed stabilization and reform gains with a late-November setback from Cyclone Ditwah. Key items include a Central Bank rate cut (lending window to 8.25%), DFCC’s sale of a 50% Acuity stake to HNB for LKR 6.5bn, and John Keells launching the $1.2bn City of Dreams resort alongside major energy project deals and rooftop-solar grid issues.

Sri Lanka sought Chinese support to establish a nationwide EV charging network and to urgently restore railway lines and bridges damaged by Cyclone Ditwah; the Chinese ambassador said Beijing will assess the damage and convey the request to authorities.

Sri Lanka has asked China to support installation of electric vehicle (EV) charging stations nationwide, and the Chinese ambassador said he will relay the request to Beijing. The government also sought Chinese help to reconstruct flood‑damaged railway lines and bridges and assist with cyclone relief.

The Management Club will host the Northern Investment Summit 2026 on 21–22 January 2026 in Jaffna to showcase KPMG-vetted, district-specific bankable proposals aimed at unlocking investment in the Northern Province; Hatton National Bank (HNB) is the official banking partner.

Colombo Stock Exchange opened mixed: ASPI rose 0.29% to 22,132.33 while the S&P SL20 slipped 0.06% to 6,037.79 on turnover of about Rs. 3.7bn and net foreign outflows of Rs. 200.5m. Colombo Dockyard, DFCC and Richard Pieris led gains while John Keells and Commercial Bank fell.

Sri Lanka has yet to fully assess Cyclone Ditwah's economic fallout; the World Bank's rapid estimate puts direct physical damage at $4.1bn (about 4% of GDP), while the government says a comprehensive damage-and-needs assessment will take at least four weeks and likely show higher total costs.

IMF warns Cyclone Ditwah could destroy 2.5–5% of GDP, widen the balance-of-payments gap by about $700m and push average inflation to 5.4% in 2026, above the CBSL 5% limit. Agriculture and tourism are hardest hit while reconstruction may support construction but raises external and debt risks.

Vidullanka PLC was named the lowest-cost bidder on 19 Dec for a contract to expand and upgrade a 100 kW mini-hydropower facility at Buca Village, Fiji, though the final award remains pending. The company said this identification is a material step and further announcements will follow upon formal contract award or other significant developments.

TotalEnergies Marketing India has partnered with Energy Core Lanka to launch a range of automotive and industrial lubricants in Sri Lanka. The products, backed by TotalEnergies' global R&D and OEM partnerships, target mobility, industrial applications and operational efficiency.

The National Initiative for the Commercialisation of Research and Development (NIRDC) awarded over LKR 227 million to nine projects selected in Q1, with Bank of Ceylon providing funds under MoUs and disbursements tied to project KPIs. Projects span AI, energy supercapacitors, tea and cinnamon processing, coconut oil testing, kitul beverages, export knitting and soil microbial inputs.

World Bank estimates Cyclone Ditwah caused US$4.1 billion in direct physical damage in Sri Lanka, about 4% of GDP. Infrastructure losses were US$1.735bn (42% of damages), residential US$985m, and agriculture US$814m, with Kandy hardest hit (US$689m).

Vidullanka PLC (VLL.N0000) was named the lowest-cost bidder on Dec 19, 2025 for the EPC contract to expand and upgrade a 100 kW mini hydropower facility at Buca Village, Fiji; the formal contract award is pending and the company disclosed this to the Colombo Stock Exchange.

Deep Tec Engineering holds a 28% market share in solar water pumps and delivers nearly $2.0m of solar water pump projects annually with partners including the UN and World Bank to expand rural water access using solar solutions.

WindForce PLC (WIND.N0000) commissioned a 432.2 kWp rooftop solar PV project at Joy Island, Maldives on 13 Dec 2025 under an EPC contract costing US$321,000.

Sri Lanka's central bank bought $90mn in November 2025 (net $74.3mn), contributing to the rupee's fall to about 307.8/USD. The bank has bought $1,625mn in 2025 while returning only $89.3mn YTD, creating liquidity that may pressure the exchange rate unless sterilized.

SJB MP S.M. Marikkar criticised the Government's Rs. 500 billion Supplementary Estimate for post-Ditwah recovery, saying the RDA alone needs Rs. 190 b and the CEB Rs. 50 b and that unofficial infrastructure damages may exceed Rs. 900 b.

Swiss-based Geogas Trading will deliver the first LPG shipment to Sri Lanka on Jan 5 after winning a contract to supply 380,000 tonnes (±20%) to state-owned Litro Gas in 2026; the government says there will be no LPG shortage.

Regen Renewables completed a 450 kW solar PV project across 47 Colombo District sites, generating about 594,000 kWh/year, cutting approximately 445 tonnes of CO2 and offsetting Rs.37.15 million in annual electricity costs.

Pathfinder Foundation and Austrade launched two reports urging development of Sri Lanka's mineral sector and a clean-energy transition, projecting mineral exports could rise from $389 million to $778 million and the sector's GDP share from 2% to 5%. The studies call for policy reforms, value-addition, ESG compliance, technology partnerships and grid/infrastructure investment to attract investment.

WindForce PLC commissioned a 432.2 kWp rooftop solar PV project at Joy Island (Kassanfushi, Maldives) on 13 Dec 2025 at a final project cost of USD 321,000. The project was delivered under an EPC contract with Joy Resort Pvt Ltd, with capacity increased to meet revised client requirements.

WindForce PLC commissioned a 432.2 kWp rooftop solar PV project at Joy Island, Maldives on 13 December at a total cost of $321,000. The company said project capacity and cost were increased from initial plans to meet the client’s revised requirements.

Vallibel Power Erathna PLC (VPEL.N0000) said its 10 MW ground-mounted solar PV project at Dolahena Estate has commenced commercial operations effective 10 September, with the two 5 MW plants connected to the national grid and CEB confirmation.

Colombo market closed flat as the ASPI slipped 0.02% to 22,329.69 with turnover of Rs. 3.32 billion; top negatives were Commercial Bank, DFCC, Richard Pieris, Bukit Darah and John Keells while Carson Cumberbatch, Browns Investments and LOLC Finance provided support.