News & market updates

Evolution Auto (Pvt) Ltd has launched premium EV brands AVATR, IM Motors, XPeng and RIDDARA in Sri Lanka and says vehicles are already available with VIP test drives. The cars feature tech partnerships (Huawei, Alibaba, CATL) and come with warranties including 8-year battery and 5-year vehicle/maintenance coverage.

Colombo market closed marginally higher as ASPI rose 0.01% to 19,976 on turnover of Rs.4.46bn with net foreign inflow of Rs.498.3mn. Transportation led turnover driven by Digital Mobility Solutions Lanka (PKME) which rose to Rs.105.75, while AMF, LVEF, HNB, CTC, LLUB and BERU saw notable activity.

Bank of Ceylon is expanding its Investment Banking Division—broadening debt and equity structuring, securitisation, wealth and advisory services—securing in‑principle SEC approval as a Corporate Finance Advisor and issuing Basel III‑compliant Tier II and Additional Tier I bonds.

Ceylon Electricity Board has tendered 160 MW of battery energy storage on a BOO basis (10 MW/40 MWh at 16 sites, 640 MWh total) to absorb rooftop solar; private developers get 15-year contracts with performance declining from 97.5% in year 1 to 62.5% in year 15 and will be paid a capacity charge.

Vietnam's ROX Group told President Dissanayake it is ready to make large-scale investments in Sri Lanka and seeks government help to establish an industrial zone; the delegation also expressed interest in renewable energy and real estate. The president affirmed the government's commitment to provide institutional backing for the investments.

The Cabinet approved starting procurement to hire consultants for pre-feasibility, full feasibility and environmental impact studies for floating solar projects, with about 3,000 MW earmarked across reservoirs. The move aligns with a target of 70% renewables by 2030 and notes battery storage cost challenges.

Government advances development of a green hydrogen industry: the Cabinet reviewed plans as the Power Ministry launched a National Hydrogen Road Map and is drafting a renewable hydrogen policy, with public consultations and stakeholder workshops to follow.

Cabinet approved inviting expressions of interest for private investment to develop underutilised state lands owned by agencies including LRC, Divisional Plantation Companies, NLDB, SLSP and JEDB, targeting plantation, tourism, livestock, renewable energy, industrial and fisheries projects.

Sri Lanka's cabinet approved starting procurement to hire consultants to carry out pre-feasibility, feasibility and environmental studies for floating solar plants, targeting an estimated 3,000 MW potential to help reach a 70% carbon-neutral target by 2030. The move will identify reservoir sites and the government noted challenges including battery storage costs.

Ceylon Electricity Board received bids from seven companies for a tender to build two 50 MW wind plants in Mullikulam. Minister Kumara Jayakody said all bidders are local, technical evaluation is likely finished and financial evaluation may be close; the last Mannar plant was awarded at 4.65 cents/unit.

Dipped Products PLC (DIPD.N0000) won the Overall Gold Award at the National Business Excellence Awards 2025 and received five additional honours recognising export resilience, ESG and manufacturing excellence. The company, a Hayleys Group member entering its 50th year, also highlights Hayleys PLC's group performance.

Cargills (Ceylon) PLC reported a 46.3% YoY rise in Group PAT to Rs. 2.2bn for Q1 ended 30 Jun 2025, with group revenue up 11.2% to Rs. 66.7bn and EBITDA up 11.9% to Rs. 6.5bn. Growth was driven by Retail, FMCG and Restaurants, plus store additions and expanded solar power at sites.

Commercial Bank's Rs.15 billion Green Bond issue was oversubscribed, attracting 160 applications worth Rs.21.3 billion. The Basel III-compliant Tier-2 bonds (5/7/10 year) will boost the bank's Tier-2 capital and fund green projects.

Tilak Gunawardena, MAC Holdings' Director of Finance and Group CFO, was appointed President of the Sri Lanka–USA Business Council for 2025/26. He said he will work to strengthen bilateral trade, address potential new U.S. tariffs on Sri Lankan exports, and promote IT/digital, renewable energy and health-tech links.

Dipped Products (DIPD.N0000) won the Overall Gold Award at the National Business Excellence Awards 2025, also securing five further honours including awards for ESG and corporate governance. The Hayleys Group parent (HAYL.N0000) is highlighted as DPL continues export-focused, sustainable manufacturing and capacity upgrades.

Sri Lanka posted a central government primary surplus of 859 billion rupees in June, well above the IMF target of 130 billion, driven by strong tax receipts (notably vehicle taxes) and lower capital spending. Analysts warn recent rate cuts, dollar-rupee swaps and higher upcoming revenue targets may complicate reserve collection and fiscal stability.

Dividend · Rs 0.75 · XD Aug 19, 2025

First Interim dividend of LKR 0.75/share; XD 2025-08-19; record 2025-08-19; payable 2025-09-08; FY 31.03.2026

Parliament amended Sri Lanka's electricity law to keep parts of the system permanently government-owned and reduce planned unbundling to four entities including a single distribution company. Opposition and multilateral lenders warned the changes could endanger future financing, noting the transmission arm has about $75m of revenues but needs several billion in investment and that dollar loans could cost around 11%.

Hayleys PLC’s Hayleys Mobility has signed an exclusive distribution agreement with Chery’s OMODA and JAECOO to bring EV and hybrid models to Sri Lanka and will roll out a nationwide fast-charging network in partnership with StarCharge.

Commercial Bank of Ceylon Plc (COMB.N0000) issued a Rs. 15 billion debut green bond, oversubscribed on opening day, to finance renewable energy and other sustainable projects with technical support from the Global Green Growth Institute (GGGI).

Shaktiman India launched the Shaktiman Baler and 9-ft Dhaan Mitram Rotavator in Sri Lanka at a demonstration in Kilinochchi on 31 July 2025 organized by Overseas Automotive Pvt. Ltd. The baler converts straw into bales for feed/compost/biomass (reducing field burning) and the rotavator offers wider, more fuel-efficient tilling for large paddy fields.

David Pieris Motor Company’s Ranna manufacturing complex was certified as a Net Zero Energy Facility by Control Union—the first organisation in Sri Lanka to receive this certification—after installing an advanced solar system that produces more renewable energy than it consumes.

Hayleys PLC’s Hayleys Mobility secured exclusive Sri Lanka franchise rights to distribute OMODA and JAECOO electric and plug-in hybrid vehicles and will partner with StarCharge to roll out a nationwide fast‑charging network. Initial models include the OMODA E5 and JAECOO J6 and J7.

US Ambassador Julie Chung warned Sri Lanka risks falling behind without bold structural reforms and urged business leaders to push for investor-friendly policies; MAC Holdings CFO Tilak Gunawardena was appointed president of the Sri Lanka-USA Business Council for 2025/26.

Commercial Bank of Ceylon PLC said investors oversubscribed its Rs.15 billion Green Bond issue on opening day; the offer comprised an initial Rs.10 billion Basel III-compliant Tier 2 issue with an option to issue up to a further Rs.5 billion. The bonds are Fitch-rated A(lka) and were offered to qualified investors across three tenures.

Author argues Sri Lanka can gain opportunities by partnering with China’s Belt & Road Initiative as shipping expands and ports become more valuable. The piece cites Chinese innovations — the Suhai‑1 mobile salmon farm (132,000 tonnes displacement) and China’s first pure‑ammonia bunkering in Dalian — as signs of shipping and green‑fuel trends that could boost Sri Lanka's ports and blue economy.

Seylan Bank PLC’s Islamic Banking Unit won the 'Islamic Finance Deal of the Year' at the SLIBFI Awards 2025 for sole financing via a Diminishing Musharaka of a 10 MW solar project in Batticaloa costing over LKR 2.3 billion. The SPV Sooryashakthi is owned by Solar Universe, a JV of Vidullanka PLC and Windforce PLC.

Swisstek Aluminium pledges to supply modular, corrosion-resistant solar mounting systems for Sri Lanka, offering a 10-year warranty and claiming 30+ years durability. The systems are compatible with multiple roof types, backed by international ISO and green certifications and used by over 400 solar firms.

Commercial Bank of Ceylon's Rs.15 billion Green Bond issue was oversubscribed on opening day (4 Aug 2025) after a Rs.10bn initial Basel III-compliant Tier-2 offering with an option for a further Rs.5bn; bonds rated A (lka) by Fitch. For the three months to 31 Mar 2025 the group reported PBT Rs.22.557bn and PAT Rs.14.972bn, with total assets of Rs.2.999tn.