News & market updates

Oil prices rebounded as doubts over a U.S.-Iran ceasefire and renewed Strait of Hormuz disruption pushed U.S. crude briefly above $102/bbl before easing to about $96, with Brent near $94. Low shipping transits and Iranian statements signaling breaches kept geopolitical risk elevated.

IMF Mission Chief Evan Papageorgiou said invitations were extended to all political parties for talks with its delegation, though the main opposition SJB did not attend; the IMF held discussions with MPs on fuel rationing, fiscal consolidation, under-execution of capital expenditure and anti-corruption frameworks.

The IMF and Sri Lankan authorities reached a staff-level agreement on the combined 5th and 6th reviews of the EFF that, if approved by the Executive Board, would unlock about US$700m, conditional on restoring cost‑recovery fuel and electricity pricing, financing assurances and debt restructuring. The IMF also urged rebuilding reserves with exchange‑rate flexibility, fiscal and revenue reforms, stronger social safety nets, and progress on NPLs and governance reforms.

Colombo Stock Exchange fell midday with the ASPI down 0.72% to 21,759.64 and market turnover at 773 million rupees. National Development Bank and L B Finance were among top gainers, John Keells and HNB among decliners; Cargills Bank listed 294,200,000 shares after a rights issue raising 2,500,700,000 rupees and Colombo Dockyard appointed Capt Jagmohan chairman.

IMF staff and Sri Lankan authorities reached staff-level agreement on the combined Fifth and Sixth Reviews of the EFF, which, if approved by the IMF Executive Board, would unlock about US$700 million in financing. Approval is contingent on restoring cost‑recovery fuel and electricity pricing and completing financing assurances and debt restructuring.

IMF, World Bank and WFP warned the Middle East war threatens global energy and food security, causing sharp increases in oil, gas and fertilizer prices and rising food insecurity. They said low‑income, import‑dependent countries will be hardest hit and pledged coordinated support to protect lives and livelihoods.

The US and Iran announced a two-week suspension of attacks and Tehran agreed to allow safe transit through the Strait of Hormuz. Iran said it could reopen the strait if a ceasefire framework is reached, a move that could ease disruptions to global oil and gas markets.

Oil tanker traffic through the Strait of Hormuz was halted after Israeli strikes on Lebanon, raising concerns about disruptions to global energy flows.

The US signalled it may ease sanctions on Iran after a two-week ceasefire, with President Trump saying Washington and Tehran are discussing tariff and sanctions relief though no terms or timeline were given. Any easing would depend on verifiable Iranian steps on uranium enrichment.

Sri Lanka's recovery from Cyclone Ditwah has slowed, with more than 149,000 people still displaced and $23.4m pledged of the $35.3m required for the humanitarian plan. OCHA warns rising fuel and energy costs, supply-chain disruptions, heat-reduced hydro output and funding gaps risk food security, livelihoods, tourism and resettlement.

Secondary Sri Lankan bond yields initially fell after the US‑Iran ceasefire and a >15% drop in Brent crude, but profit‑taking and T‑bill auction results left two‑way quotes marginally lower. Weekly T‑bill yields rose for a third week (91-day 7.95%, 182-day 8.14%, 364-day 8.45%) and a Rs.100bn T‑bond auction is scheduled today.

Colombo market recorded its largest single-day gain as the ASPI rose 4.21% (885.14 pts) to 21,917.60 on Middle East ceasefire optimism; turnover was over Rs.6.6bn and foreigners were net sellers of Rs.612.4m. JKH, COMB, HNB, DIAL and DOCK were top contributors and the banking sector led turnover (24%).

Author urges Sri Lanka to expand QR digital payments and deepen economic cooperation with China (including Belt & Road) to bolster economic stability amid energy-market shocks from US–Iran tensions and shifting global currency/gold dynamics.

Purchases of Nissan Magnite and Almera through LOLC Finance Leasing qualify for up to LKR 125,000 of free fuel during 1–30 April 2026 (other purchase methods receive LKR 75,000). The offer is provided via a Fuel Touch Card in partnership with Dialog Axiata and applies to limited ex-stock units.

LAUGFS Gas PLC has resumed filling at Hambantota and Mabima plants and is releasing about 30,000 LPG cylinders daily to restore market availability. The company says it will ensure uninterrupted supply over the festive season for households, hotels, restaurants and industrial users.

Oil fell below $100 a barrel after U.S. President Trump announced a two-week ceasefire with Iran; Brent dropped to $92.95 and WTI to $94.79. Analysts warn further direction depends on whether talks lead to a durable reopening of the Strait of Hormuz, with volatility likely to persist.

Colombo Stock Exchange opened higher after a US‑Iran ceasefire: ASPI rose 4.09% to 21,891.97 while the S&P SL20 fell 4.60% to 6,100.99. Top gainers included Commercial Bank (+6.01%), John Keells Holding (+6.49%), HNB (+4.58%), Hayleys (+4.27%) and Melstacorp (+3.24%); turnover Rs1.75bn and Brent at $94/bbl.

Global equity markets traded cautiously as Brent crude held near $110/bbl amid heightened Middle East tensions and a US deadline, supporting the dollar and reducing expectations of Fed rate cuts this year.

Sri Lanka's president said sub-standard imported coal is reducing electricity generation and causing unofficial power cuts. He said the shortfall is being met by diesel, which will raise generation costs that he claims will not be passed to consumers.

Secondary bond yields held broadly steady, with the 01.05.27 at 8.70% and mid/long-dated maturities around 11.00%–11.135%; secondary Treasury trading volume was Rs.11.89bn. Net liquidity surplus was Rs.231.84bn as the Central Bank drained Rs.50bn via overnight repo at 7.58% and deposited Rs.181.84bn at the SDFR of 7.25%; USD/LKR ~315.45 and Brent crude remained elevated.

Brent rose $1.74 to $111.51/bbl and WTI rose $3.45 to $115.86/bbl as the Strait of Hormuz remained shut ahead of a U.S. deadline, with Iran rejecting a ceasefire and supply disruptions from Gulf exporters squeezing global crude flows.

President launched the National QR Payment Adoption Program and banks have waived the Merchant Discount Rate on LankaQR transactions up to Rs. 5,000. The CBSL-backed drive aims to formalise the economy and improve subsidy targeting by boosting QR uptake with zero-cost low-value and P2P QR payments and awareness campaigns.

Global oil prices briefly surged past $110 per barrel after US President Donald Trump warned of strikes on Iranian infrastructure over disruptions in the Strait of Hormuz, then eased as reports of possible ceasefire talks emerged, leaving supply uncertainty and market volatility elevated.

National Development Bank's trading halt was lifted and its shares fell to Rs.115.00 from Rs.130.50 after investors reacted to a reported Rs.13.4 billion fraud. The ASPI was down 0.12% at 21,100.65 and Vidullanka authorised acquiring 100% of the 4.5MW Gurugoda mini-hydro plant.

CBSL data: new private sector borrowings rose 74.7% month-on-month to Rs.144.3 billion in February, and private sector credit stock was up 26.4% YoY to Rs.10.44 trillion at end-February. The Central Bank said interest rates are expected to ease and credit growth to continue, noting no spike in SME NPLs despite higher fuel costs.

LAUGFS Gas (LGL.N0000) raised the 12.5 kg LPG cylinder price by Rs. 1,070 to Rs. 5,700; Litro raised the 12.5 kg price by Rs. 775 to Rs. 4,765. Both firms cited surging international LPG and freight costs and said shipments in transit will secure supply.

Bond yields rose across the curve as Middle East tensions and oil-price swings pushed yields higher; the 91-day T-bill yield increased 16 bp to 7.80%. Foreign holdings of rupee government securities fell by Rs.4.98 billion (fifth consecutive weekly outflow) and USD/LKR closed near Rs.315.35/315.40.

Hyundai Motor warned exports to Europe and North Africa are being disrupted by the Middle East conflict, choking shipping routes, raising logistics costs and delaying deliveries. Hyundai Glovis said some Middle East routes are inaccessible and cargo is being rerouted to hubs such as Sri Lanka.

Global oil prices jumped—Brent rose 7.78% to $109.03/bbl and U.S. crude surged 11.41% to $111.54—after U.S. President Donald Trump warned of intensified action against Iran. Equities traded mixed amid volatile flows, bond yields climbed on higher rate expectations and gold fell as the dollar strengthened.

Asian markets fell after US President Donald Trump’s Iran war address: Japan’s Nikkei dropped 1.4% and South Korea’s Kospi fell 2.82%, while US stock futures slid about 0.8%, as the conflict raised geopolitical uncertainty and disrupted key energy routes.