News & market updates

LAUGFS Power PLC (via PAMS Power) has commissioned the Kehelgamu Oya 2 MW run-of-the-river mini hydro plant in Ginigathhena, expected to generate about 7–8 GWh annually and supply renewable electricity to Sri Lanka’s national grid.

Diesel & Motor Engineering (DIMO) expanded its Solar Solutions into residential markets and launched integrated Solar + Battery Energy Storage Systems (BESS) under the DIMO Solar brand, offering modular 5–16 kWh systems and partnerships with GoodWe, Huawei, Jinko and others.

Vidullanka PLC will buy a 49% stake in Storex for around 2 billion rupees to acquire a portfolio of 12 CEB‑awarded 10MW/40MWh BESS projects; WindForce holds the remaining 51% and Storex has regulatory approvals and financial closure.

Vidullanka will invest about Rs. 2 billion to acquire a 49% stake in Storex, the vehicle developing 12 CEB‑awarded 10MW/40MWh grid-scale BESS projects; WindForce retains a 51% stake. Storex has secured regulatory approvals and financial closure for the 12 projects.

John Keells CG Auto (part of the John Keells group) reached 20,000 BYD vehicle services since last year and has expanded its after-sales network to a combined daily capacity of over 200 vehicles, with 43 fast chargers and a 10,000 sqm spare parts warehouse.

HNB PLC signed an MoU with Hayleys Solar (Hayleys PLC) to offer customer financing for domestic and C&I solar installations, including flexible repayment periods of up to seven years and competitive interest rates to expand solar adoption.

DFCC Bank (DFCC.N0000) and Commercial Bank of Ceylon (COMB.N0000) won awards at Environmental Finance’s 2026 Sustainable Debt Awards for their GSS+ bond issuances; Sri Lanka’s GSS+ market has mobilised about LKR 82 billion (~EUR 216m).

Kapruka Holdings PLC subscribed Rs. 41.51 million for 883,203 ordinary shares in its wholly-owned Kapruka E-Commerce Ltd. to fund working capital and acquire electric delivery vehicles to expand and green its delivery infrastructure.

The Sri Lankan government has launched a fresh investor drive for Mattala Rajapaksa International Airport, inviting EOIs for airside operations and landside commercial development across cargo, logistics, MRO, industrial parks, renewable energy and hospitality; EOI documents are available until 8 June with a briefing and site visit scheduled for 22 May.

Sri Lanka Expo 2026 has been rescheduled to 14–17 January 2027 at BMICH in Colombo. The EDB expects about 750 local exporters and 1,500 international participants and has extended exhibitor registration to 31 July 2026, citing geopolitical uncertainties.

Sri Lanka's Ministry of Ports & Civil Aviation has launched an EOI drive (27 Apr–8 Jun 2026) to attract local and foreign investors to Mattala Rajapaksa International Airport for airside and landside opportunities covering cargo, MRO, logistics, industrial parks, renewable energy and resort/hospitality projects.

LAUGFS Power Plc commissioned and connected a 2 MW mini-hydro plant in Polpitiya, Ginigathhena to the national grid (commissioned 26 March; formally acknowledged 29 April). The project was developed via wholly-owned subsidiary PAMS Power Ltd and is expected to supply renewable energy and support national targets.

Government will add 250–300 MW of battery energy storage (BESS) to the national grid by year-end; 100 MW has been awarded, 160 MW is under evaluation and the Cabinet approved further allocations to bring the near-term pipeline to about 300 MW. Officials said 700–1,000 MW of renewable projects have been added since 2025.

SDB bank signed an MoU with Hayleys Mobility to offer structured private vehicle leasing with a notable emphasis on electric vehicle (EV) financing across Sri Lanka. The partnership intends to integrate vehicle selection and financing to improve accessibility and convenience for customers nationwide.

The Sri Lanka Export Development Board has rescheduled Sri Lanka Expo to 14–17 January 2027 at BMICH citing geopolitical uncertainty. The event is expected to host about 750 local exporters and 1,500 international participants across apparel, tea, ICT, pharma, renewable energy and other sectors.

Colombo Stock Exchange closed lower: ASPI -0.23% to 23,011.72 and S&P SL20 -0.30%, with turnover Rs.4.92bn and banks leading at Rs.3.04bn. Movers included Melstacorp, Hemas and CDB up while Ceylinco Insurance, Commercial Bank, DFCC and Colombo Dockyard fell; Laugfs Power commissioned a 2MW mini-hydro and ACME proposed a capital reduction (EGM Jun 11).

RTS Holdings' Hidellana and Avissawella tea factories received Zero Carbon Manufacturing Certification after independently audited measures and offsetting 1,020 tonnes CO₂e to reach net-zero GHG emissions. Carbon credits were sourced from a CDM-certified hydropower project and the audit followed WBCSD/WRI GHG Protocol and ISO 14064-1 standards.

John Keells' JKCG Auto launched a campaign with Bank of Ceylon and Sri Lanka Insurance to boost NEV adoption among government employees from 4 May–31 July 2026, offering financing, preferential leasing, tailored insurance, home charging access and aftersales support.

The PUCSL approved an 18% electricity tariff rise for consumers using over 180 kWh, effective May 11. The regulator — after a prior 25.3% April hike — ordered the National System Operator to cover coal-shortage extra costs payable to the Electricity Generating Company, and introduced relief for low-use households, EV charging bands, and demand-charge changes for hotels and SMEs.

Sri Lanka and Vietnam set a target to increase bilateral trade to $1 billion by 2030. Discussions covered renewable energy, digital infrastructure/AI, manufacturing and agriculture; Vietnam donated 100 tonnes of fertilizer and new airline routes to Colombo are planned.

Shermans Logistics (an Esna–McLarens JV) and India’s Glottis signed a Memorandum of Understanding in Colombo to collaborate on logistics, renewable-energy logistics, project cargo, 3PL and potential JVs to expand India–Sri Lanka trade flows.

EU-funded Green Recovery Facility has helped develop Sri Lanka's GSS+ bond market, mobilising about Rs.85 billion and contributing to regional awards for DFCC Bank and Commercial Bank of Ceylon. The initiative and a 2025 GSS Bonds Regulatory Framework aim to boost green issuances and investor confidence.

BOI says potential German investors will visit Sri Lanka for the German Business Forum (GBF) 2026 in Colombo on May 27–29. The event targets boosting FDI into export sectors (textiles, apparel, rubber) and areas like logistics, precision engineering and renewable energy.

FRED says the state National System Operator has halted payments since Dec 2025, leaving Rs10bn unpaid to renewable SMEs and threatening 389 plants (1,073.9 MW). Developers report scheduled curtailments, seek a Rs10bn Treasury grant and warn of rising bank NPLs and investor flight.

FTZMA urged the PUCSL to operationalise power wheeling under Section 13 of the Electricity Act and publish the regulatory framework and wheeling-charge methodology within 90 days to allow industry to buy renewable power via the grid, reduce fuel imports and save foreign exchange.

FRED warns the National System Operator has halted payments to renewable generators since Dec 2025, creating LKR 10 billion in unpaid dues as of April 2026 and threatening sector collapse without immediate government/Treasury intervention. FRED says payments are being prioritized to expensive fossil-fuel plants (thermal costs near LKR 100/kWh), risking plant shutdowns, investor flight and higher bank NPLs.

China has retooled its Belt and Road Initiative, with deals linked to the programme reaching a record $213 billion in 2025. The revamp emphasizes smaller projects, greater equity stakes (about 40% by 2025) and 'soft connectivity' to export standards, services and digital systems abroad.