News & market updates

LAUGFS Gas PLC said domestic LPG prices will remain unchanged for June, keeping the Colombo District 12.5 kg cylinder at Rs. 6,245 as it absorbs higher global procurement, freight and rupee-depreciation costs. Litro Gas Lanka also held May prices for June, keeping its 12.5 kg cylinder at Rs. 4,765.

Deputy Finance Minister Anil Jayantha said Sri Lanka's rupee is returning to a normal state through market forces, with the Central Bank's buying rate between 320–330 after a near four-year low of 354; he cited export, tourism and remittance inflows and interventions stabilising fuel-driven fluctuations.

Oil prices edged down after Oman said operations at Mina al Fahal port were proceeding normally; Brent was $94.79/bbl and U.S. WTI $92.48/bbl, with both contracts set to post their first weekly gain in three weeks amid Middle East tensions.

Sri Lanka's Board of Investment extended the RFI submission deadline for green hydrogen and green ammonia project proposals to June 19 (1500 hrs SLT). Eligible projects may receive BoI facilitation including fiscal incentives, infrastructure support and regulatory facilitation.

State-owned enterprises' combined profit fell 17.6% to Rs. 444.4 billion in 2025, driven by the Ceylon Electricity Board's swing to a Rs. 38.7 billion loss. Excluding CEB, the remaining 50 SOEs posted a 21.5% rise in profits to Rs. 483.2 billion, with Bank of Ceylon the top contributor and several SOE and power-sector reforms advanced.

Windforce PLC and Vidullanka PLC won the government contract to deploy grid-forming battery storage at 13 substation sites (each BESS 40MWh storage, 10MW discharge) as part of Sri Lanka’s largest BESS programme supporting the 70% renewable target by 2030.

Colombo Stock Exchange closed flat with the ASPI down 0.07% at 21,744; market turnover was Rs.2.98bn, led by capital goods at Rs.1.26bn. HNB Finance issued a notification on rights issue application procedures for shareholders (record date June 3) and its shares closed down 1.11% at Rs.8.90.

Oil prices fell after Israel and Lebanon agreed a ceasefire, with Brent down $1.14 to $96.67 and U.S. WTI down $0.90 to $95.12. The ceasefire raised hopes of wider de‑escalation and reopening the Strait of Hormuz, while U.S. crude stocks fell 8 million barrels and Chinese demand slowed.

Treasury bill yields rose for a third consecutive week — 91-day at 9.84%, 182-day at 10.01% and 364-day at 10.02% — and the auction was undersubscribed, raising Rs.111.16bn of Rs.140bn offered (79.40% subscription). Secondary bond market remained bearish, net liquidity surplus was Rs.101.71bn and USD/LKR closed at 335.00/337.00.

HayWind One, part of the Hayleys group, received the first 25 MW (five of ten turbines) for its 50 MW Mannar wind farm at Trincomalee Port; transfers to the Mannar site will continue over the next three months. The project is expected to yield about Rs.100 billion in imported fuel savings over 20 years.

Colombo Stock Exchange will host a free online workshop on 23 June 2026 (1:00–4:30pm) to guide corporates on implementing the ISSB/IFRS Sustainability Disclosure Standards (IFRS S1 and S2). Sri Lanka adopted SLFRS S1/S2 effective 1 Jan 2025, with phased mandatory compliance across listed entities through 2027.

Hayleys' wind arm received the first 25 MW of turbines for the 50 MW Mannar wind farm, with components landing at Trincomalee Port and transfers to the Mannar site to continue over the next three months. The project is expected to deliver about Rs.100 billion in imported fuel savings over 20 years.

Oil prices rose as Middle East hostilities escalated and U.S.-Iran talks stalled; Brent was $96.81/bbl and WTI $94.67, amid Iranian missile activity, U.S. strikes, falling U.S. crude stocks and IEA warnings of low global inventories.

The EU urged Sri Lanka to develop a pipeline of bankable infrastructure projects and promoted its Global Gateway financing model—target expanded to €400bn by 2027—to fund ports, logistics, digitalisation and green infrastructure using blended finance and guarantees, stressing project preparation and regulatory predictability.

President’s Special Envoy for Foreign Investment Hanif Yusoof met US Under Secretary Jacob Helberg in Washington to promote US investment in Sri Lanka, highlighting opportunities in ports, logistics, energy and data centres.

Windforce PLC (WIND.N0000) and Vidullanka PLC (VLL.N0000) won a government tender to deploy grid-forming battery energy storage systems—each BESS 40 MWh storage/10 MW discharge—across 13 substations. The rollout is Sri Lanka's largest BESS program and supports the 70% renewable-by-2030 target.

Cabinet approved Rs. 827 million in lubricating oil contracts for the Sapugaskanda Power Plant, awarding Rs. 392.47m (316,000 litres) to Lanka IOC and Rs. 434.86m (304,000 litres) to Chevron Lubricants to cover 2026/27 operational requirements.

Cabinet approved awarding a $6.04 million contract to India's RS Infraprojects Ltd for Lot A of the Mullikulam Wind Power Transmission Project. Lot A covers the Mullikulam 220/33 kV collection grid substation and two 220 kV cable trays; Lot B was already awarded.

Power Minister Anura Karunathilaka defended the latest fuel price hike as necessary to avoid supply disruption, noting CPC's May fuel import bill was about $524m. CPC said it loses Rs129/l on diesel and Rs60/l on Octane 92, Treasury support (~Rs57bn) may run out by end-June, and the government will enforce QR quotas to cut consumption.

The LMD-PEPPERCUBE Business Confidence Index rose seven points to 148 in May. Consecutive fuel price hikes, a roughly 5% fall in the Sri Lankan rupee year-to-date, higher electricity tariffs and a US$267m drop in official reserves have kept business sentiment fragile amid geopolitical tensions and rising cybercrime concerns.

The IMF completed its combined Fifth and Sixth reviews under Sri Lanka's EFF and released US$695m, bringing total IMF disbursements to US$2.4bn. The IMF cut 2026 growth to 3.0% and warned that higher fuel costs, a sharp drop in tourism and cyclone damage have flipped the current account to a projected 0.5% of GDP deficit.

Vibhawa Consultants announced Malki Madapatha as Sri Lanka’s first female Level 2 Certified Infrared Thermographer (IRISS, USA), strengthening the firm's in-house thermography capabilities used for predictive maintenance across power, hospitality and renewable-energy sectors.

INFRACON 2026, a rebranded infrastructure and construction exhibition, will be held 3–5 July at SBMEC Colombo showcasing HVAC-R, Power & Energy, Green Grid, Safe Water and Build Materials with local and international exhibitors to promote B2B deals and industry collaboration.

Sri Lanka's government says its Rs.57 billion fuel subsidy allocation will end by June, prompting recent fuel price increases. Officials say the state has been covering about Rs.100/litre of diesel and Rs.20/litre of petrol while CPC is incurring losses (Rs.129 diesel, Rs.60 petrol).

Sri Lanka will strictly tighten enforcement of its fuel QR quota after state-run Ceylon Petroleum Corporation's fuel import bill rose to $524mn in May. Officials noted imports were $186mn in January and $97mn in February and said the move aims to curb consumption and dollar outflows.

Oil prices rose after Israeli troops expanded operations into Lebanon, with WTI up 2.88% to $89.88/bbl and Brent up 2.43% to $93.33/bbl; the escalation raises supply-risk upside even as weak Chinese factory activity dampens demand prospects.

Sri Lanka's oil import bill surged 150% YoY to $886 million in April, lifting the first four months' fuel bill 53.6% YoY to $2.16 billion. CBSL attributed the rise to higher global oil prices after the Middle East conflict and bigger import volumes, while the government and Ceylon Petroleum Corporation absorb subsidy losses as diesel is sold below cost.

Colombo headline inflation rose to 5.5% YoY in May (from 5.4% in April), led by non-food price increases in housing, electricity, gas and transport while food inflation slowed to 0.9%. The CBSL said Middle East tensions and energy price escalations keep inflation outlook uncertain and likely above 5% near term.

Sri Lanka's current account slipped into a $532.4m deficit in April, erasing the Q1 surplus and leaving a $0.9m deficit for Jan–Apr, driven by a sharply widened trade gap (imports +45.7% YoY) and weaker tourism amid higher fuel spending; reserves stood at ~$6.8b and IMF review released about $695m.

Sri Lanka's state-owned CPC raised fuel prices effective 31 May — Auto Diesel +Rs15 to Rs.407/litre, Petrol Octane 92 +Rs24 to Rs.434, after multiple hikes that have pushed fuels ~45–57% higher since late February. Fuel import expenditure surged 150% YoY to $886m in April, helping widen the merchandise trade deficit to $1.38bn.