News & market updates

Oil prices fell as European nations and Japan offered to help secure the Strait of Hormuz and the U.S. signalled moves to boost supply; Brent was $107.29/bbl and WTI $94.22.

Secondary Treasury bond yields rose sharply by about 20–30 bps across the curve, with several maturities trading up to c.11.12% and total secondary Treasury turnover of Rs.51.91bn on 18 March. Money-market net liquidity surplus was Rs.283bn (CB drained Rs.100bn; SDFR deposits Rs.183.12bn) and USD/LKR spot closed near 311.50/311.65.

The International Maritime Organization called for a provisional 'safe maritime corridor' in the Gulf to evacuate stranded merchant ships and seafarers after an emergency meeting that condemned Iranian attacks.

The ASPI fell 1.82% to 20,264.01, a seven-month low, as Middle East tensions and oil above $118 pushed markets down with margin calls and net foreign selling; JKH, AEL, COMB, MELS and HAYL were top negative contributors.

Strikes on ammonia plants in Iran have reduced ammonia/urea supply and helped push fertilizer prices about 40% higher in South Asian markets, risking higher rice and other agricultural prices and food-security strains. The article also highlights rodenticides market growth and Chinese space-mouse research.

Colombo Stock Exchange rose as Brent crude fell below $110, with the ASPI up 0.85% to 20,436.53. Turnover was 682 million rupees, led by gains in Sampath Bank, Melstacorp and Dialog Axiata.

President Anura Kumara Dissanayake said the government will prioritise the export sector and intervene fully to overcome current challenges, highlighting difficulties in securing fuel supplies. He met leading exporters and industry representatives to discuss measures to minimise the sector's economic impact.

Lanka IOC's Lanka OIC unit (LIOC.N0000) is part of the India–UAE–Sri Lanka tripartite plan to renovate the Trincomalee oil tank farm to expand storage; Sri Lanka has allocated about Rs.32 billion over 3 years and aims to raise storage from ~25–35 days to ~60 days.

SLBA said banks will remain open Monday–Friday, with Wednesday hours limited to 9:00 a.m.–1:00 p.m., and urged customers to use digital and online banking channels to conserve fuel and energy.

Export Development Board will fast-track a government-backed priority program to ensure over 4,500 exporters (apparel, tea, spices and others) receive fuel stocks without delay amid escalating fuel shortages. The Ministry of Industry and Entrepreneurship is collecting exporter data and urged firms to submit information immediately.

Oil rose above $110 a barrel after reports an airstrike hit facilities on Iran's South Pars gas field, with Brent briefly at $112 and UK gas jumping to about 143.5p/therm; Iran and Qatar reported damage and fires, raising the risk of further energy-market volatility.

Colombo Stock Market lost approximately Rs. 1.14 trillion in market capitalisation between Feb 28 and Mar 18, 2026 after the Middle East conflict; the All Share Price Index fell about 13%, from 23,734.06 to 20,640.63.

PUCSL will decide within March on CEB's proposal to raise electricity tariffs by 13.56% for April–June 2026, with CEB citing a Rs. 15.8 billion revenue shortfall. The regulator flagged concerns over cost assumptions, fuel supply delays and extraordinary expenses and has sought further clarifications after public consultations.

Colombo stocks opened lower as oil topped $112/bbl, with the ASPI down 0.90% at 20,455.02 and turnover of Rs.591 million. John Keells Holdings and Hayleys were among the top negative contributors, down 2.14% and 2.34% respectively.

EDB Chairman Mangala Wijesinghe announced a government-backed fast-track programme to prioritise fuel supply for exporters, aiming to protect operations of over 4,500 exporters (apparel, tea, spices) amid fuel shortages. The Ministry is collecting exporters' data and urging immediate submissions.

Weekly T‑Bill auction was undersubscribed, raising Rs.60.79bn (50.66% of Rs.120bn) while weighted average yields held at 7.61% (91d), 7.91% (182d) and 8.23% (364d). Secondary bond yields rose amid the Middle East conflict and high oil prices; net liquidity surplus was Rs.341.21bn and USD/LKR closed at 311.30/311.50.

Sri Lanka's rupee was quoted at 311.25/40 per US$ while government bond yields rose across tenors (e.g., 01.07.2028 around 9.30-9.35%) as oil topped $110 after the Iran-Qatar strike; the ASPI fell about 1%.

Oil prices rose after Iran attacked multiple Middle East energy facilities, with Brent up $3.69 (3.44%) to $111.07 and WTI up $2.29 (2.38%) to $98.61, driven by regional escalation and damage to LNG and oil sites.

Global stocks fell and oil and gas prices rose sharply after a major escalation in the Middle East, while the Bank of Japan left rates unchanged and the yen hovered near 160 per dollar.

New feature launched March 19 lets users obtain and override a vehicle's fuel QR code by entering the vehicle number and chassis number, enabling re-registration under a new phone number and immediate deactivation of the prior account. Removing a prior registration cancels the previous user's access and doing so without legal authorization is an offense.

Forbes Marshall Lanka won the Gold Flame in the Energy Efficiency Improvement category at the Sri Lanka National Energy Efficiency Awards 2025. The firm reports 500+ walkthrough audits, 20+ energy-saving implementations, furnace oil savings nearing 10 million litres and firewood/biomass savings of 25,000 million yards.

Colombo market rebounded as the ASPI rose 1.09% (222.54 pts) to 20,640.63 on turnover of Rs.5.27bn, while foreign investors were net sellers of Rs.191.2m. Banking led turnover (34%) driven by HNB crossings of Rs.607.7m; top movers included DOCK, RIL, AEL, MELS and ACL.

Fitch warns a prolonged Middle East conflict could raise developed-market sovereign risks via higher energy prices and borrowing costs; its baseline keeps Brent near current levels then $70/bbl in 2026, while a $95–$100/bbl scenario would slow DM growth and lift inflation, hitting Italy, the UK, Japan and France hardest.

Sri Lanka's banks will operate shorter hours on Wednesdays to conserve fuel, with most branches open 9:00–13:00; Commercial Bank and Nations Trust Bank have issued islandwide notices (Commercial Bank: mini/supermarket branches 9:30–15:00, others 9:00–13:00; NTB also suspends Saturday services).

Asian shares rallied as oil prices paused—Brent fell to $102.28/bbl and WTI dropped ~1.6%—while markets turn to the U.S. Federal Reserve meeting for guidance on interest-rate paths. Attention is on the Fed’s dot plot and Powell’s comments amid geopolitical-driven oil risks.

Iraq and Kurdish authorities agreed to resume oil exports via Turkey's Ceyhan port, easing prices as Brent fell to $102.75/bbl and U.S. WTI to $95.03. Flows were expected to start at 0700 GMT at about 100,000 bpd, but wider Iran-related disruptions keep supply risks elevated.

President Dissanayake said about 30 private firms have been given temporary licences to import fuel in US dollars to directly supply exporters and the tourism sector; he added LP gas, fertiliser and grain stocks are sufficient and delayed crude shipments (two of 90,000t) are expected soon, averting a crisis.

The Cabinet approved emergency procurement of 300,000 tons (±10%) of coal for the Norochcholai (Lakvijaya) power plant and authorised flexible procurement of petroleum, LP gas and coal for three months. The coal contract was awarded to India's Taranjot Resources Ltd. amid shipping and insurance disruptions linked to Middle East unrest.

The Central Bank of Sri Lanka urged the Government to continue fiscal consolidation and strengthen external buffers, warning rising global risks — geopolitical tensions, commodity price volatility and adverse weather — could threaten macro-financial stability. The warning was issued with the release of the Financial Sector Performance 2025 report.

The Central Bank and commercial bank branches will remain open on Wednesdays from 9:00 a.m. to 1:00 p.m.; cheque deposit cutoff is 11:30 a.m. and RTGS/SLIPS/OTT instructions will be processed on the next working day.