News & market updates

Sri Lanka expects an Indian joint working team to progress a Trincomalee tank farm and pipeline project that will include 14 tanks for Lanka IOC (LIOC.N0000). Another 61 tanks are in a CPC–Indian Oil JV, CPC owns 24, and cabinet approval and procurement for the pipeline are underway.

Sri Lanka will invite bids to build about 434 MW of wind power in the north, with approved projects including 234 MW at Pooneryn and 204 MW at Veravil and tenders for two 50 MW Mannar plants already opened; projects to proceed next year.

Sri Lanka and India will be connected by a high-voltage transmission line under a joint initiative now progressing, with governments reviewing the technical and commercial framework, the Power and Energy Minister said. He reported 800 MW of solar (mostly rooftop) connected by October and expects 900–1,000 MW by year-end.

Energy Minister Kumara Jayakody warned Sri Lanka may face solar-linked grid instability early next year as rooftop solar reaches about 800MW and could hit 900–1,000MW by end-2025. Authorities are pursuing battery storage projects (160MW/640MWh tenders, BOO price ~Rs17) and a 200,000 smart‑meter rollout to stabilise the grid.

Ceylon Electricity Board received 153 bids for a tender to install sixteen 10MW/40MWh battery energy storage systems, with the lowest indicative cost around Rs17 per kWh after charging and evaluation ongoing. CEB also received ~3.77 USc/kWh bids for a 50MW wind plant (~Rs11.60 at the quoted exchange rate) and is offering Rs45.80 for stored solar sales at night.

Sri Lanka has connected 800MW of solar to the national grid by October 2025, mainly rooftop. The minister said capacity could reach 900–1,000MW by year-end and that a 2,000MW five-year pledge would be met.

Sri Lanka received 20 expressions of interest to build a 100,000 bpd BOT refinery at Sapugaskanda; EoI evaluation is in its final stages and RFPs will be issued under the government procurement system. Land acquisition requires about Rs 785m (Rs 510m advanced) and $600,000 was spent on a feasibility study.

The Cabinet approved a new EPCC project to replace ageing Colombo–Kolonnawa petroleum pipelines, authorising construction of two onshore pipelines (18-inch and 14-inch), a 12-inch undersea link and terminal upgrades to improve safety, reliability and capacity.

A Vietnamese embassy delegation led by Ambassador Trinh Thi Tam visited Sri Lanka’s Northern Province (17–19 Nov 2025) to explore cooperation and invite Vietnamese investment in agriculture, aquaculture, agro-processing, tourism, infrastructure and renewable energy. The visit referenced the $1bn bilateral trade target and sought technical cooperation and capacity building.

National Water Supply and Drainage Board posted H1 2025 net profit of 17.7 billion rupees, up 28%, as pumping costs fell after an electricity tariff cut. The Ceylon Electricity Board recorded a gross loss of 11.2 billion rupees and net loss of 13.2 billion rupees; the Treasury injected 23.5 billion rupees into NWSDB.

SOAS (University of London) economists say Sri Lanka’s debt crisis was driven more by inflated, non-competitive Government-to-Government infrastructure contracts than macro shocks, noting about 65% of foreign debt went to transport, power, energy, water and airport projects. They cite the cancelled 250 MW Adani Mannar wind project—whose proposed tariff was about 120% higher than a comparable Gujarat project—and urge procurement reforms to attract competitive bidders and avoid G2G deals.

Alphabet CEO Sundar Pichai warned that no company would be immune if an AI investment bubble were to burst. He also flagged AI's growing energy needs (about 1.5% of global electricity) and reiterated Alphabet's £5bn commitment to UK AI infrastructure and research.

Panasian Power (PAP.N0000) connected its 5MW ground-mounted Uda Aparakke solar plant to the Matara Grid Substation on Nov 17 and begins revenue generation, adding 5MWac/6.76MWp to the national grid. It is the sixth of seven 5MW projects the company has PPAs for with the Ceylon Electricity Board.

Vidullanka PLC acquired a 30% stake in SAFE Power International for Rs. 225 million to develop a 10MW wind plant in Alankuda, Kalpitiya. SAFE Power is 51% owned by Windforce; the plant is expected to deliver 32 GWh of clean energy and will operate for 20 years.

Ceylon Electricity Board posted a 85% drop in September-quarter profit to 3.5 billion rupees, with revenues down 2% and cost of sales up 12%. A 20% tariff cut in January and denied tariff hikes have driven a nine-month loss of 9.5 billion and accumulated losses to 413 billion rupees.

Panasian Power (PAP.N0000) connected a 5MWac (6.76MWp DC) ground-mounted solar plant at Uda Aparakke to the national grid, starting commercial revenue. It is the sixth 5MW plant under seven PPAs signed in Q3 2024, with one project still under development.

Vidullanka PLC (VLL.N0000) has acquired a 30% equity stake in SAFE Power International for Rs225 million to help develop a 10MW wind power project in Alankuda, Puttalam. The company said the investment expands its renewable portfolio and does not give it control of SAFE Power.

ADB has ratified an amendment removing its lending cap, enabling a 50% increase in annual lending to more than $36 billion to developing member countries. The move aims to scale up financing including raising private-sector financing to $13 billion a year by 2030.

Cabinet approved construction of new and replacement fuel storage tanks at Kolonnawa and Muthurajawela to enable the Ceylon Petroleum Storage Terminal Company (CPSTL) to maintain a minimum 45-day petroleum stock, financed from CPSTL's own funds.

IFS showcased industry-specific Industrial AI at its Industrial X Unleashed event in New York and unveiled five partnerships to deploy IFS.ai in frontline industrial settings. Partners named include Anthropic, Boston Dynamics and Siemens Grid Software, with use cases across manufacturing, energy, construction, telecom and transport.

Opposition leader Sajith Premadasa promoted a 'Brand Sri Lanka' investment and tourism pitch, citing over 2 million tourist arrivals in 2024 with $3.1bn revenue and record exports of $16.7bn. He urged reforms and infrastructure, digital customs, tax stability and policies to attract investment across tourism, IT, renewables, logistics and manufacturing.

A Sri Lankan business delegation organised by the Ceylon Chamber will visit Cambodia from 14–18 November 2025 to explore investment opportunities in agriculture, logistics, manufacturing, renewable energy, tourism and technology and to attend CAFE 2025 and the Agricultural Investment Forum. The mission includes targeted B2B meetings and discussions with Cambodian ministries, the CDC, the Cambodia Microfinance Association and trade chambers.

A Sri Lankan business delegation will visit Cambodia from Nov 14–18 to explore trade and investment opportunities in agriculture, logistics, manufacturing, renewable energy, tourism and technology. The trip, organised by the Ceylon Chamber’s SLGMBC, includes participation in CAFE 2025, an Agricultural Investment Forum and meetings with Cambodian ministries and business bodies.

The Ceylon Chamber of Commerce will lead a Sri Lankan business delegation to Cambodia from 14–18 November 2025 to explore investment opportunities in agriculture, logistics, manufacturing, renewable energy, tourism and technology and to attend CAFE 2025 and the Agricultural Investment Forum. The delegation will hold targeted B2B meetings with Cambodian ministries, trade associations and investors to seek partnerships.

Adviser Duminda Hulangamuwa said the 2026 Budget aims to restore the private sector as the "engine of growth" by mobilising private capital, offering tax incentives and institutional reforms to boost investment. He highlighted landmark laws (PPP, SOE, Strategic Development Projects, Port City) and a land bank to unlock projects including mining, plantations and wind power.

President Anura Kumara Dissanayake's 2026 budget frames IMF-linked reforms to stabilise recovery, citing 4.8% growth in H1 2025 and reserves above $6bn while aiming to bring debt below 90% of GDP by 2032. It advances FDI-friendly rules, PPPs, SOE reform, tariff liberalisation and a $15bn digital push, keeps cost-reflective energy pricing and VAT changes, and includes measures that could hurt plantations and small businesses.

The Ceylon Chamber of Commerce said Sri Lanka's 2026 budget maintains policy predictability, fiscal consolidation and disciplined debt management, supporting low inflation, stable interest rates and investor confidence. It urged converting fiscal over-performance into productive public investment (infrastructure, digital services, tourism, energy, health, agriculture) and fast-tracking SOE/PPP and tax-administration reforms.

Macksons Solar and Macktiles unveiled Sri Lanka's largest rooftop solar installation — a 10 MW system at Macktiles' Bandaragama factory expected to generate about 12 GWh annually and cut roughly 8,000 tonnes of CO2 a year.