News & market updates

Sinopec Energy Lanka opened its 15th upgraded fuel station in Srawasthipura, Anuradhapura, featuring modern fueling systems, enhanced HSE safety measures and public sanitary facilities as part of a nationwide phased station-upgrade and Clean Sri Lanka initiative.

Evolution Auto has launched the Mahindra Treo fully electric cargo three-wheelers in Sri Lanka, claiming up to Rs 1.5 million in five-year savings and prices from Rs 2.2 million + VAT. The Treo offers up to 80 km range, 3.5-hour full charge and 50 km/h top speed, targeting logistics, e-commerce and FMCG operators.

Asian shares held near a four-year peak as investors awaited U.S. tariff negotiations and a slate of corporate earnings; Fed policy expectations and a modest dip in oil prices also influenced markets.

Sri Lanka stocks closed marginally down with the ASPI slipping 0.04% to 18,876.85 and the S&P SL20 falling 0.69% to 5,628.93. Turnover dipped to 6.8 billion rupees amid early profit-taking, with Commercial Bank, Melstacorp, Sampath Bank and NDB weighing on the market and high volumes in Industrial Asphalts, Jetwing Symphony and Beruwala Resorts.

Lanka’s IOC, a unit of Indian Oil, posted a 38% fall in June 2025 quarter profits to 2.3 billion rupees. Revenues fell 14.5% to 62.53 billion rupees and pre-tax profit declined to 2.9 billion from 4.5 billion a year earlier.

Sri Lanka will amend the PUCSL Act to make the electricity regulator accountable for Ceylon Electricity Board finances, require quarterly cost-recovery pricing reports to Parliament and revise the tariff methodology by November 2025 as an IMF benchmark.

Sri Lanka will buy about US$2.5bn from FX markets over the next 11 months under an IMF program to rebuild reserves, lifting net international reserves from $322m to $949m by end-June 2026. The central bank must sterilize the resulting rupee liquidity or risk lower rates, currency depreciation and higher food and energy prices.

President Trump threatened sanctions on buyers of Russian exports unless Russia agrees a Ukraine peace deal, potentially complicating Russian oil sales to China, India and Turkey. Russia’s crude output was about 9.2 million bpd and product exports fell to 2.55 million bpd.

Sri Lanka stocks rose over 1% at the open with the Colombo All Share Index topping 19,000 while bond yields were largely steady as markets awaited direction. Traders cited lower interest rates and reduced taxes on bank savings supporting equities, with US 'secondary' tariff talk on Russian oil and a marginally firmer rupee keeping bonds rangebound.

Sri Lanka told the IMF it will press ahead with SOE reforms, settling legacy debts and limiting foreign borrowing. CPC is using a pricing margin to repay $251m of legacy obligations (about $146m remains), CEB has ~Rs.180bn legacy debt to be included in tariffs from June 2025, and a new SOE law is planned by end-2025.

President Trump has imposed a baseline 10% tariff on all US imports plus higher, product- and country-specific duties (e.g. steel/aluminum 50%, autos 25%); threatened measures include pharmaceuticals up to 200% and semiconductors 25%+, and a list of countries (Sri Lanka listed at 30%).

Tokyo Cement Group reported FY25 PAT of Rs. 3,459 million (up 43% YoY) and turnover of Rs. 50,096 million (+1%), with volumes rising 15% while industry price cuts limited revenue growth. Management cited cost savings, currency appreciation, lower freight and finance costs offsetting competitive pressures from new grinders and importers.

IMF Mission Chief Evan Papageorgiou said the 2026 Budget and SOE reforms are critical to Sri Lanka's EFF, urging cost‑reflective pricing for electricity and fuel, limits on new foreign borrowing by non‑financial SOEs, and audited accounts for the 52 largest SOEs.

Sinopec Energy Lanka marked its second anniversary and said Sri Lankan employees now make up nearly 70% of its workforce. The company held a Family Day in Hambantota, highlighted its growing filling station network and reaffirmed commitments to local engagement and long-term development.

Sinopec Energy Lanka celebrated its second corporate anniversary with a two-day Family Day in Hambantota, attended by about 75 employees and family members, and noted that Sri Lankan staff now make up nearly 70% of its workforce.

IMF says the 2026 Budget is a crucial part of Sri Lanka's EFF reform programme and will be central to the Fifth Review, calling for tax policy changes (including repeal of SVAT), revisions to tax exemptions, stronger SOE governance and cost‑recovery energy pricing. The Fourth Review unlocked US$350m, bringing total EFF disbursements to about US$1.74bn.

Tokyo Cement Group reported FY ended 31 Mar 2025 PAT of Rs. 3,459m (up 43% YoY) on turnover of Rs. 50,096m, while Q4 PAT was Rs. 664m; sales volumes rose ~15% for the year but industry price cuts limited turnover growth. Margins were supported by cost savings, currency appreciation, lower freight and finance costs amid intensifying competition.

Ceylon Petroleum Corporation (CPC) says Sri Lanka lacks capacity to store two months' fuel stocks despite having confirmed orders. The CPC raised pump prices on July 1 (Octane 92 +12 LKR to 305/L; diesel +15; kerosene +7), citing higher global oil prices and unloading/logistics issues.

CEYPETCO raised fuel prices effective midnight and Lanka IOC said it will follow: Auto Diesel +Rs15 to Rs289/l, Petrol 92 +Rs12 to Rs305/l and Kerosene +Rs7 to Rs185; Petrol 95 Octane and Super Diesel unchanged.

EMSOL, a fuel treatment manufactured by Eminent International, won Best National Industry Brand (Vehicles sector) at the National Industry Brand Excellence Awards 2024 and a Merit Award at the SLIM SME Development Awards 2024. The additive claims to cut emissions to near-zero and improve fuel efficiency by 20–25% without engine modifications.

LKIIRSS convened an emergency roundtable with government agencies and private firms to assess how Middle East tensions could disrupt Sri Lanka's fuel imports, shipping routes, foreign employment and tourism.

Ceylon Petroleum Corporation raised Octane 92 by Rs.12 to Rs.305/l, diesel by Rs.15 to Rs.289/l and kerosene by Rs.7 to Rs.185 effective July 1; Octane 95 and super diesel prices were unchanged.

Fitch forecasts world GDP growth of 2.2% in 2025 (up 0.3pp since April) but warns the global economy still faces a sharp slowdown driven by the US–China trade war; recent oil price volatility raises upside inflation risks.

LMD-PEPPERCUBE Business Confidence Index rose to a record 210 in June, up 14 points from 196 in May. The surge is tied to expectations that new government policies will stabilise the economy and higher tax inflows, though health outbreaks, a 15% electricity tariff hike and potential oil-price shocks are cited as downside risks.

Fitch forecasts world GDP growth of 2.2% in 2025 (up 0.3pp since April) but warns the global economy will still slow sharply from 2024 levels due to trade-war fallout and policy volatility. It raised its 2025 oil assumption to USD70/bbl and expects only one US rate cut in 4Q25.

Lanka IOC Plc launched Servo Futura NXT, a new synthetic petrol engine oil now available in 10W30 and 0W20 at Lanka IOC outlets and authorised distributors. The product is marketed for petrol and hybrid vehicles with claims of improved fuel economy, enhanced wear protection and extended drain intervals.

Asian stocks were muted and the US dollar slid after reports President Trump may replace Fed Chair Jerome Powell, stoking concerns about Fed independence and the timing of rate cuts; Brent crude was near $67.82/bbl as oil stabilised.

Cabinet approved forming a ministerial Sub-Committee chaired by Foreign Affairs, Foreign Employment and Tourism Minister Vijitha Herath, plus a Technical Committee of ministry secretaries, to monitor and advise on economic risks from the Middle East crisis, focusing on remittances, oil, exports and tourism.

Government has taken over $2.435bn of Ceylon Petroleum Corporation's foreign loans (Rs788.6bn equivalent), converting them to term loans and treasury bonds under Treasury guarantees. Conversions include $1,582m term loan to Bank of Ceylon, $546m to People's Bank and Rs262.58bn in treasury bonds to People's Bank.

Secondary Treasury bond yields fell after reports of an Israel–Iran ceasefire, with the 15.12.26 trading at 8.15%. The Treasury holds a Rs.65.00b T-bill auction today (Rs.25b 91-day, Rs.25b 182-day, Rs.15b 364-day) and announced a Rs.295.00b bond auction on 27 June.