A market brief each morning, plus company filings and news from across Sri Lanka's stock market. Filter by company, sector and theme, and use sentiment badges to quickly identify Positive or Negative news.
Central Bank Governor Nandalal Weerasinghe said the government's Rs.41 billion diesel subsidy (on top of Rs.57 billion provided April-June) and a temporary 50% surcharge on new vehicle import duty helped curb inflation. The CB raised its policy rate by 100 basis points in May; inflation hit 8% in August, above the 7% upper band.
Frontier Research forecasts the rupee will appreciate to about Rs.325/$ by end-2026 and Rs.315/$ by end-2027, with point-to-point inflation turning negative by mid-2027. It also expects 12-month T-bill yields to fall 50-100bp this year and about 100bp in 2027, and notes Brent crude movements will influence the path.
The Cabinet approved Rs.40.65 billion in subsidies to cap Auto Diesel and Industrial Diesel prices for October-December (Rs15.0bn Oct, Rs13.5bn Nov, Rs12.15bn Dec) to limit pass-through from higher global fuel prices amid the Middle East conflict.
The LMD-PepperCube Business Confidence Index rose 13 points to 162 in September (from 149). The report also notes official foreign reserves climbed to US$6.9bn and the Central Bank absorbed US$579m from the domestic FX market, while Brent crude neared US$110.
Sri Lanka's cabinet approved a Rs41 billion diesel subsidy for Oct-Dec (Rs15.0bn Oct, Rs13.5bn Nov, Rs12.15bn Dec) while petrol is excluded, minister Nalinda Jayatissa said. The CPC will set final per-litre rates; the government said CPC and Lanka IOC hold adequate import stocks.
Oil prices rose for a second session, with Brent at $106.77/barrel (up $1.49, +1.4%) and US WTI at $93.94 (up $1.34, +1.5%), driven by lingering Middle East supply disruption concerns tied to the US‑Iran standoff despite signs of higher Gulf exports.
Sri Lanka's secondary government bond market turned bearish with yields rising across maturities, for example the 15.10.34 at 12.00% and the 15.06.35 at 12.15%, as selling intensified ahead of the central bank policy decision. Bloomberg expects the CBSL to hold the policy rate at 8.75% on Sept 30 amid rising inflation from higher food and fuel and mixed FX trends.
Fuel & Energy PricesInterest RatesRupee & Forex
EconomyNext·Sep 28, 2026·Regulatory or legalNegative
Energy Minister Anura Karunathilaka said Sri Lanka is trying to keep diesel prices steady at the next fuel-price revision despite global oil near US$110/barrel, warning that otherwise the government would need to provide subsidies; the next revision is expected Wednesday.
Cabinet will decide today on a Rs.41 billion fuel subsidy covering the next three months to shield consumers from rising world oil prices; the allocation equals about Rs.13.7 billion a month versus about Rs.19 billion a month under the earlier subsidy as regional benchmarks climb.
Asian stocks slipped as Brent futures rose 2.1% to $106.49/bbl and US crude hit $93.84, while rising bond yields lifted odds of further central-bank rate hikes and kept markets on edge.
Fuel & Energy PricesInterest Rates
EconomyNext·Sep 27, 2026·Regulatory or legalNegative
Sri Lanka defended restricting new rooftop solar connections to the Net Plus scheme for applications after Sept 21, saying the move in the National Electricity Policy prevents non-solar consumers subsidising costly nighttime generation. Net Plus allows payment for daytime surplus but requires users to pay for higher-cost night power.
Fitch says global growth is holding up but real policy interest rates are rising; it raised its 2026 global GDP forecast to 2.6% (up 0.2pp). Fitch expects the US Fed to hike again in December and hold rates around 4.25% next year, citing energy-price shocks and ongoing AI/IT capex as key influences on yields and growth.
ADB forecasts growth in developing Asia and the Pacific will moderate to 5.0% in 2026 from 5.5% in 2025 and edge up to 5.1% in 2027, trims 2026 inflation to 4.2%, and warns that a strong El Niño and geopolitical risks could push up food and energy prices.
Colombo bourse ended a two-session recovery as rising global oil prices hit sentiment: ASPI fell 0.09% to 21,066.89 and S&P SL20 fell 0.08% to 5,942.78. Turnover was over Rs 1.3bn, foreigners were net sellers of Rs 162.4m; top decliners were DIAL, CINS, RICH, CIC and DIST.
Oil prices rose over 2% as US-Iran diplomatic talks showed little progress and uncertainty grew about a possible US diesel export ban; Brent was $105.51/bbl (up $2.43) and WTI $93.90/bbl (up $1.74).
Australian shares slid to a more-than-three-month low as the S&P/ASX 200 fell about 1.2% to 8,658.10 after crude oil surged nearly 4%, reviving inflation worries and boosting the prospect of further Reserve Bank rate hikes.
Energy Minister Anura Karunathilaka set a timeline for the SL2026-01 offshore oil and gas licensing round, aiming to close bids by Feb-Mar 2027 and finalise licences by end‑2027; bidders face a signature bonus of about US$5,000. The round offers four Mannar Basin blocks (~34,000 sq km) and targets commercial production by 2032.
Parliament approved a Rs. 17.2 billion supplementary estimate for the Ministry of Energy to provide electricity-bill relief. The funds were reallocated from line ministries unlikely to use them and will not change the overall expenditure ceiling or government borrowing limit; Parliament also passed the Promotion of Export Agriculture (Amendment) Bill updating the definition of notified export crops.
IMF Mission Chief Evan Papageorgiou said fiscal support amid elevated commodity and fuel prices should be temporary, carefully costed and targeted to vulnerable groups. He also noted Sri Lanka's foreign exchange reserve accumulation continued in July-August and the Central Bank remains committed to agreed reserve targets.
IMF completed its seventh EFF review and 2026 Article IV consultations, saying Sri Lanka's economy has shown resilience but downside risks remain. The IMF noted 11 consecutive quarters of growth, rising reserves and strong fiscal outturn, while urging revenue reforms, cost‑recovery energy pricing and greater exchange‑rate flexibility.
National inflation (NCPI) accelerated to 8.1% YoY in August 2026, up from 7.2% in July, with the index at 223.9 (MoM +0.26%). The rise was led by non-food items-notably Transport (petrol contributed 1.14 percentage points) and Housing-while food inflation also jumped, driven by fresh and dried fish, green chillies and onions.
Consumer Staples (FMCG)Fuel & Energy Prices
Ada Derana·Sep 23, 2026·Regulatory or legalNegative
IMF staff concluded its mission and cautioned that recently tabled amendments could weaken Sri Lanka's anti‑corruption framework and transparency. The IMF urged maintaining the 5% inflation target, stronger revenue administration, greater exchange‑rate flexibility, and energy cost‑recovery pricing.
Fitch says global growth remains resilient and has raised its 2026 GDP forecast to 2.6%, but real policy interest rates are rising as central banks tighten; Fitch expects the Fed to raise rates in December and hold them at 4.25% next year, while energy price shocks are influencing the outlook.
Frontier Research said rising global bond yields and major central-bank tightening are making it harder for Sri Lanka to attract capital, with the US 10-year at 5.04%, UK 10-year at 5.378% and Japan 10-year at 3%. Domestically, inflation hit 8% in August, the current account is in deficit and the CBSL's next policy decision is due at month-end after a May hike to 8.75%.
Global equities rose (MSCI All-World +1.03%) as technology shares climbed on surging AI infrastructure demand while oil futures eased (US crude down 4.8% to $95.49/bbl); bond yields fell modestly even as markets price further central bank rate hikes.
Fuel & Energy PricesIT & DigitalInterest Rates
EconomyNext·Sep 22, 2026·Regulatory or legalPositive
Energy Minister Anura Karunathilaka told Parliament Sri Lanka cannot legally subsidize the state Ceylon Petroleum Corporation alone or impose a maximum retail price because 2022 agreements require equal treatment of private importers such as Lanka IOC. The contracts entitle operators to a 4% margin and any price cap below costs would force the Treasury to cover deficits.
Technology stocks lifted Asian markets (MSCI Asia‑Pacific ex‑Japan rose over 1%), Brent crude steadied at $100.22/bbl and the dollar firmed as investors priced in further US interest‑rate hikes.
Oil prices rose for the first time in five sessions ahead of potential US‑Iran talks, with Brent November up $1.14 to $101.48/b and the more-active WTI November at $93.22/b. Supply drivers cited include increased shipments through the Strait of Hormuz and a Libyan Sharara outage cutting ~200,000 bpd.
The IEA forecasts global coal demand will rise 1.2% to a record 8.94 billion tonnes in 2026, driven by higher natural gas prices after reduced LNG flows through the Strait of Hormuz and stronger cooling demand from El Niño; China (~5.0bn t) and India (1.353bn t) account for most of the increase.
UN Resident Coordinator Marc-André Franche said the combined El Niño and Indian Ocean Dipole effects on Sri Lanka remain highly uncertain and urged district-level preparedness, flagging about 15-16 of 25 districts as priorities. He said the UN and FAO have prepared a detailed scenarios paper and recommended localised flood- and drought-prevention measures and clearer planting guidance.