News & market updates

Dr. Rohantha Athukorala was awarded the 'Rotarian of the Year 2025/26' by Rotary Sri Lanka and Maldives. He is a director of Lotus Hydro Power PLC (HPFL) and has held leadership roles with Sri Lanka Tourism, the Export Development Board and several multinational and tech firms.

ADB approved a $57.4m financing package (a $35m concessional loan plus $22.4m in grants) to fund a rooftop solar aggregation and virtual net metering project in Sri Lanka, supporting about 25 MW of rooftop solar and grid modernisation for two state distribution utilities.

Government will fit communication modems to about 2,200 rooftop solar installations (each >100 kW) by year-end so the National Systems Operator can remotely disconnect generation during emergencies. As an interim measure, owners of systems >300 kW were asked to voluntarily disconnect from 27–29 June; authorities previously disconnected about 120 feeders.

Deputy Finance Minister Anil Jayantha said Sri Lanka cannot cut domestic fuel prices despite a fall in global oil prices because existing term tenders lock in future deliveries and pricing. He noted term contracts base shipments on earlier months' prices and recalled fuel prices have risen about 50% since Feb 28.

Deputy Minister Arkam Ilyas said Sri Lanka will introduce time-of-use electricity tariffs and roll out smart meters, initially targeting about 300,000–400,000 domestic consumers using over 180 units. Authorities are also evaluating proposals to accommodate home-scale battery storage.

Asian shares pulled back after Apple raised iPad and MacBook prices (Apple shares slid 6.1%), denting chip stocks and sending MSCI’s Asia‑Pacific ex‑Japan index down 3.8%; the yen hovered near 40‑year lows and Brent crude fell to $73.9/bbl.

ADB approved a $57.4m financing package to support rooftop solar aggregation and virtual net metering in Sri Lanka, backing about 25 MW of rooftop installations and helping two government-owned distribution utilities pool generation and modernize distribution networks.

Colombo Stock Exchange ASPI rose 44.99 points (0.20%) to 22,452.03 as gains in Sampath Bank, Central Finance, Colombo Dockyard and others lifted the market; turnover was Rs.349 million. Lee Hedges completed sale of land and premises to Amana Bank for Rs.2.7 billion on June 25, and both stocks traded higher.

EDB Chairman Mangala Wijesinghe said Sri Lanka aims to more than double export earnings to $36 billion and is evaluating petroleum-linked and logistics proposals to help reach that target. He said implementing NEDP reforms on trade facilitation and the export ecosystem is essential to meet the five-year export goals.

Asian equities surged after strong Micron and Qualcomm earnings eased AI-related worries, lifting MSCI Asia-Pacific ex-Japan about 1.6% with Japan's Nikkei >4% and South Korea's KOSPI +5.5%. Oil fell to roughly $72.5/bbl and gold slid below $4,000 amid a firmer dollar and lingering rate-hike expectations.

Oil prices fell as Middle East supply expectations rose, with August Brent down $1.22 to $72.52/bl and WTI down $1.02 to $69.32, hitting their lowest since Feb. 27. Reopening of the Strait of Hormuz and expected Iranian exports eased supply concerns despite low U.S. crude stocks.

Colombo Stock Exchange indices rose, with the ASPI up 0.37% (82.93 pts) to 22,291.51 and the S&P SL20 up 0.56% to 6,216.28. Top contributors included John Keells, Windforce, Ceylon Grain Elevators and Sampath Bank; market turnover was LKR110.3m, led by materials (LKR60.4m), while Brent crude fell below $73/bbl.

Asian stocks wobbled after a global tech- and semiconductor-led selloff, with MSCI’s Asia-Pacific ex-Japan index down 0.02%. Market caution was driven by concerns about higher interest rates (Fed/BoJ), falls in oil and gold, and volatility around currencies and tech sector valuations.

A Cabinet-appointed committee reviewing Sri Lanka’s Free Trade Agreements is expected to submit recommendations in July, and an India Trade Desk has been launched to help Sri Lankan firms tap the Indian market. Bilateral trade reached about $5.8bn in 2025, with Sri Lankan exports to India over $1bn and imports $4.3bn.

Headline NCPI inflation rose to 5.4% YoY in May from 4.7% in April, the third consecutive monthly increase. Rises were driven by higher petrol and LP gas prices and increases in several food items (vegetables, fish, onions), while rice, eggs and sugar eased; core inflation edged to 4.5%.

Cabinet approved steps to implement electrification of key railway corridors — Main Line (Maradana–Ragama), Kelani Valley Line (Maradana–Makumbura) and Coastal Line (Maradana–Panadura) — and upgrades to stations at Gampaha, Veyangoda, Mirigama and Polgahawela.

Colombo Stock Exchange was flat in Wednesday intraday trading: ASPI down 0.02% at 22,252.79, S&P SL20 at 6,193.16 and turnover Rs 406 million, with materials leading turnover at Rs 88.6 million. Diesel & Motor Engineering declared a final dividend of Rs 40 per share; SANASA Life plans to raise up to Rs 500 million via Tier II debentures.

The ASPI edged up 0.01% to 22,256.49 with turnover above Rs.1.56bn and foreign investors net-selling Rs.225mn. Hemas, NDB and Hayleys Fibre were top turnover contributors (Hemas and Hayleys up, Panasian Power down).

Oil prices fell about 1–1.4% as signs of restored crude flows through the Strait of Hormuz after U.S.-Iran talks eased supply concerns; Brent dropped to $76.81/bbl and WTI to $72.99/bbl.

Colombo Stock Exchange closed flat, with the ASPI up 0.01% at 22,256.49 and the S&P SL20 down 0.03% at 6,193.65. Top positives were LB Finance, National Development Bank, Aitken Spence and Nawaloka; declines came from Melstacorp, Central Finance, Sunshine and Windforce; turnover Rs 1.56bn.

Asian markets rose after Iranian and US negotiators reported progress in peace talks, helping Brent crude drop 1.9% to $79.01/bbl; at the same time a hawkish Federal Reserve outlook kept Treasury yields and the dollar firm, keeping rate risks prominent.

US dollar eased ahead of the US PCE inflation print after the Fed left rates unchanged at 3.50%-3.75% and removed guidance on additional rate moves; the DXY trades near 100.70 after a 13‑month high, with markets also watching global PMIs, oil and gold.

Deputy Minister Chathuranga Abeysinghe said Sri Lanka can reach $36bn in exports under the National Export Development Plan if urgent reforms, strategic FDI and lower energy costs are delivered. The government will prioritise digitalisation, trade facilitation, supply‑chain improvements and value addition, with focus on plantations while warning of acute skills shortages.

Colombo Stock Exchange closed down: ASPI fell 0.48% to 22,253.52 and S&P SL20 fell 0.25% to 6,199.97, with market turnover of 1.18 billion rupees. Top gainers included Vallibel Power Erathna and Hatton National Bank, while John Keells, Aitken Spence, DFCC and Commercial Bank were among the main decliners.

Sri Lanka urged Belgian and Luxembourg investors to seize opportunities in infrastructure and green energy, pointing to planned PPP and investment protection reforms and competitively priced land. Officials highlighted Port City expansion, shipbuilding, marinas and agricultural processing as priority sectors for partnerships.

A technical forum warned that safety must keep pace with Sri Lanka’s rapid rooftop solar and BESS expansion, urging stronger standards, enforcement and adoption of protections like AFCI/RSD and BMS. Experts also highlighted DC arc-fault and thermal runaway risks and called for recycling/end-of-life frameworks.

Former Finance Minister Ravi Karunanayake has asked President Dissanayake to cut the Central Bank’s inflation target to 2% ahead of the October 2026 statutory review. He cited recent inflation breaches (5.4% in April, 5.5% in May), currency weakness and fuel-driven price pressures as reasons.

Oil prices rebounded after US–Iran peace talks were postponed, with Brent back above $80/bbl and WTI at $76.28, as Switzerland confirmed the delay. Cancellation of the U.S. VP's planned attendance and IDF strikes in southern Lebanon added to geopolitical uncertainty.

Oil prices fell as tankers resumed transit through the Strait of Hormuz after a US‑Iran interim deal; Brent was $79.42/bbl (down $0.43, -0.54%) and WTI $76.43/bbl (down $0.17, -0.22%).