News & market updates

Colombo Stock Exchange opened higher on Tuesday with the ASPI up 0.50% (105.68 pts) at 21,044.94 fifteen minutes after the open and turnover of Rs 421 million. Top positive contributors were Melstacorp, Sampath Bank and Colombo Dockyard.

Ceylon Chamber urged the Government to adopt measures to safeguard economic stability, prioritising continuation of the IMF programme and timely tranches. It recommended fuel measures (dynamic pricing, QR system, faster procurement), securing fertilizer and aviation fuel, prioritising FX for critical imports, and bolstering tourism, exporters and port clearance.

Arutha Research warns the Middle East war risks Sri Lanka’s energy, food, exports and remittances — the UAE supplies about 38% of petroleum imports and CPC says fuel stocks cover roughly one month. Middle Eastern markets buy $852m (≈7%) of exports and Gulf countries provide about 38% of remittance inflows.

PickMe called for higher fuel quotas for ride‑hailing firms after the introduction of a QR code rationing system to manage scarce supplies. It argued app-based shared mobility uses fuel more efficiently and should be prioritized to keep people moving and protect drivers' livelihoods.

Evolution Auto, Sri Lanka’s largest EV portfolio provider, highlights evidence (Geotab study) that EV batteries degrade about 2–3% annually—most retain >80% capacity after eight years and many remain >70% for 15–20 years—arguing EV longevity and simpler upkeep versus ICE mechanical wear.

CA Sri Lanka held a forum warning that prolonged Middle East instability could spike oil prices and disrupt remittances, tourism and tea exports, raising inflation, exchange-rate volatility and risks to the banking/financial sector.

LOLC Securities' Investor Forum said a sovereign credit rating upgrade could attract foreign inflows as CSE market capitalisation rose to about Rs.7.6 trillion (from Rs.2.9 trillion in 2022). The forum highlighted stabilised macro fundamentals, recovering exports and tourism, and sectoral opportunities in finance, construction and export-oriented industries.

Oil prices have surged (Brent and WTI up more than 40% this month) as U.S.-Israeli strikes on Iran and threats to Kharg Island have put Gulf export facilities at risk and closed the Strait of Hormuz. The IEA says global supply could fall ~8m bpd in March and agreed a 400m-barrel release.

Sri Lanka has restricted fuel supply from March 15, requiring motorists to obtain QR codes and imposing weekly quotas to curb hoarding amid Middle East geopolitical disruptions (Motorcycles 5L; Motor Cars 15L; Three-Wheelers 15L; Vans 40L; Lorries/Buses 60–200L).

Investment banks have raised oil price forecasts after Middle East supply disruptions, with some warning Brent could reach $150+/bbl (Goldman sees March >$100/bbl and Brent traded around $100.80 early Friday). Analysts say prices could spike further if the Strait of Hormuz remains closed.

Mazagon Dock Shipbuilders Ltd has secured majority control of Colombo Dockyard PLC by increasing its holding to 201,565,500 shares (about 51%) after a mandatory offer that accepted 36,649,271 shares. Colombo Dockyard's share price closed down Rs.2.25 to Rs.127.75.

Brent crude held near $100/bbl as the escalating Middle East conflict raised fears of supply disruptions; Brent was $99.32 and WTI $93.75, with both set for weekly gains. The IEA agreed to release a record 400 million barrels and the US eased some restrictions on Russian oil exports.

President Anura Kumara Dissanayake convened the Committee on Economic Surveillance to review the economic fallout from the Middle East conflict and warned Sri Lanka can guarantee uninterrupted fuel supplies for only about two months under current conditions. The committee examined rising oil prices, maritime supply-chain disruptions and trade risks and discussed urgent measures to stabilise domestic markets.

Mazagon Dock Shipbuilders acquired 201,565,500 shares (51.00% stake) in Colombo Dockyard PLC. The mandatory offer at Rs40 expired with no takers; Mazagon bought 9.27% from Onomichi and appointed three directors to the board.

The President chaired the Committee on Economic Surveillance to address risks from the Middle East conflict, highlighting rising global oil prices, maritime supply-chain disruptions and impacts on international trade and the domestic market. Attendees included the Central Bank Governor, Treasury Secretary and heads of petroleum, ports, export, tea and tourism agencies.

Asian stocks fell as Iran-related fighting kept oil around $100 a barrel and trimmed expectations for US rate cuts, lifting the dollar and raising inflation and market volatility.

The upcoming National Export Development Plan targets over 10% annual export growth and will expand focus from traditional pillars (apparel, tea, rubber, coconut) into new sectors — automotive components, electrical/electronic products, mineral-based industries, processed food & beverages, spices and gems & jewellery — while diversifying markets toward Africa, Asia and the Middle East.

The EDB convened a high-level meeting with exporters, industry associations and logistics stakeholders to address shipping and supply-chain disruptions to Middle East markets from the regional conflict and to identify coordinated support measures for exporters.

SCAD Inc., a Japan-based HR and education consulting firm, is strengthening Sri Lanka–Japan cooperation through employment support and HR development and will launch a free Metaverse-based Japanese language school in April 2026 offering courses up to JLPT N2 with visa pathways.

The Export Development Board held a high-level meeting with major export sector associations to identify support for exporters facing disruptions to shipments to Middle East markets due to the regional conflict. Participants included tea, spices, fruits & vegetables, food processors, coconut-product associations and shipping/freight forwarders, and issues will be taken to the Export Development Council of Ministers.

SLPA Chairman Dr. Parakrama Dissanayake convened a special meeting with SLPA officials, terminal operators and international shipping lines to review measures to ensure uninterrupted Port of Colombo operations amid Middle East tensions.

The Economic Monitoring Committee has started assessing the economic fallout from the Middle East crisis, flagging risks to foreign-exchange flows, higher energy costs and impacts on remittances, trade and tourism that could affect market stability.

Fitch forecasts global growth slowing slightly to 2.6% in 2026 (from 2.7% in 2025) if the recent oil-price shock is short-lived, and raises its 2026 Brent oil forecast to USD70/bbl. It also expects US growth of 2.2%, China 4.3% and anticipates two Fed cuts in 2026 under the base case.

Cabinet approved awarding a Rs. 2,197.96 million contract to Millennium I.T.E.S.P. Ltd. to supply an Oracle Exadata XIIM system and related software to Sri Lanka Customs for eight years. Three bids were received and only one bidder qualified on technical grounds.

John Keells Logistics (part of John Keells Holdings) has expanded its engagement with Colombo West International Terminal to provide inter‑terminal transport (ITT) services at the Port of Colombo, using real‑time fleet tracking and tech‑enabled operations to boost efficiency and coordination.

ASPI fell 0.12% to 22,351.55 as profit-taking dragged the Colombo market, with declines in MELS, DOCK, CARS, SPEN and LLUB; market turnover was over Rs.4.3bn and foreign investors were net sellers of Rs.21.36m.

SriLankan Airlines will add three weekly Colombo–Melbourne services to reach 10 weekly flights from 2 August 2026. The new UL608/UL609 frequencies are timed to boost leisure travel, diaspora and student connectivity and improve onward connections via Colombo to India.

Colombo Stock Exchange closed down as the All Share Price Index fell 0.14% to 22,346.09; turnover was Rs4.31 million with diversified financials contributing over Rs1 billion. Central Finance rose to Rs250.50, while Melstacorp, Colombo Dockyard and Carson Cumberbatch were among the top decliners.

The Economic Surveillance Committee met at the Presidential Secretariat to discuss urgent measures to stabilise Sri Lanka's economy amid the Middle East conflict, focusing on risks from fuel imports, remittances, trade, tourism and export links.