News & market updates

Dividend · Rs 5.00

First And Final dividend of LKR 5/share; FY 2025-26

Government imposed $27 million in penalties on the first 15 coal shipments for the 900 MW Norochcholai (Lakvijaya) power station after tests found the coal's GCV below specification. Authorities say they have withheld over $37 million in total (including $22m fines and $15m in performance bonds) and will not pay demurrage; supplier named as Trident Chemphar Ltd.

Rupee weakened, closing at Rs. 326.92 per USD (previously Rs. 325.62) with spot trades ranging Rs. 327.85–328.90 as depreciation continued. Officials cited global uncertainty, Middle East tensions, higher oil prices, importer demand and delayed export conversion; Central Bank says it follows a flexible exchange rate.

US DOJ has moved to dismiss criminal fraud charges against billionaire Gautam Adani after he pledged a $10bn investment in the US, though a judge must still approve the dismissal. The US Treasury announced a $275m sanctions settlement and the SEC reached a civil settlement with Adani, both awaiting court approval.

Sri Lanka has imposed US$27mn in penalties on 15 coal shipments for wrong specifications; together with a US$15mn performance bond the recoverable amount is US$42mn. Tests found lower GCV coal supplied by Indian firm Trident Chemphar Ltd to the Norochcholai power plant; 17 of 19 term shipments arrived late but the government says no demurrage will be paid.

Asian shares were mixed and global bonds recovered after U.S. President Donald Trump paused a planned attack on Iran, sending Brent crude down over 2% to $109.41/bbl and 10-year U.S. Treasury yields easing to about 4.60%. Nvidia earnings due Wednesday will test AI-driven market sentiment.

HNB Stockbrokers says Sri Lanka's three-month fuel subsidy (Rs100/l diesel, Rs20/l petrol) will cost about Rs.57 billion and could rise to roughly Rs.150 billion if extended to year-end, risking erosion of fiscal buffers and conflicting with IMF cost-recovery pricing and targeting requirements.

IEA warns global commercial oil inventories are depleting very fast amid Middle East supply disruptions; member countries have coordinated releases of 426 million barrels from emergency reserves, with about 164 million barrels already drawn down. Airlines warn of possible jet fuel shortages ahead of the northern hemisphere summer travel season as tanker traffic through the Strait of Hormuz is disrupted.

The India–Sri Lanka Business Forum in Mumbai on 13 May 2026 highlighted renewed momentum in trade, investment and connectivity across tourism, renewable energy, ICT, logistics and infrastructure, with John Keells chair Krishan Balendra among delegates promoting deeper private‑sector ties.

Sophos' State of Identity Security 2026 found 71% of organizations suffered at least one identity-related breach in the past year, with mean recovery costs of $1.64 million (median $750,000). The report cites human error and weak non-human identity (NHI) management—exacerbated by agentic AI—as primary causes and recommends MFA, least-privilege, secrets management and ITDR/Zero Trust.

The Ministry of Energy and BOI issued a Request for Information (23 Apr 2026) inviting investors for green hydrogen and green ammonia projects, targeting $1bn annual export revenue by 2030 and 70% renewable electricity by 2030. The non-binding RFI window closes on 5 June 2026.

Asian stocks fell as drone attacks in the Gulf pushed Brent above $111/bbl and global bond yields higher (US 10-year ~4.63%), raising inflation and tightening risks; Nvidia and major retail earnings this week will test equity resilience.

Gold fell to a 1.5-month low as Middle East tensions lifted oil, raising inflation fears and higher-for-longer rate expectations; spot gold was down 1.1% at $4,488.99/oz. Markets see about a 50% chance of a Fed hike by December, and India curbed silver imports to ease rupee pressure.

Sri Lanka is likely to record a small current account deficit in 2026, the Central Bank said, as higher global crude prices push oil import bills above inflows. The country had posted surpluses from 2023–25 supported by tourism receipts and remittances.

The state-owned Ceylon Petroleum Corporation spent nearly US$1 billion on oil imports in the first four months of the year — about two-thirds of its full-year 2025 bill of US$1.5 billion. The Central Bank governor said this is boosting foreign-exchange demand as fuel is being imported at higher prices after the Middle East escalation.

Central Bank Governor told Parliament that increased imports—especially petroleum by the state fuel retailer—and slower tourism have pressured foreign exchange, contributing to a 4.5% fall in the rupee through May 15. He said oil import bills rose sharply while exports have not kept pace, though remittances are holding up.

Hayleys (via Hayleys Fentons) signed a JV with Jyoti Structures to build the Mannar–Mullikulam 220kV double-circuit transmission line, the inaugural NTNSP contract to evacuate Mullikulam wind power to the national grid. The project will support renewable integration and expands Hayleys Fentons into infrastructure.

The Sri Lankan rupee weakened, with the Central Bank's USD selling rate at Rs. 331.15 and buying rate at Rs. 323.53 on 15 May — the weakest selling rate since Dec 2023 — extending depreciation amid global shipping, energy and fertiliser shocks.

Energy Ministry and the BOI issued an RFI on 23 April 2026 inviting domestic and international investors to develop green hydrogen and green ammonia projects in Sri Lanka, targeting $1 billion in annual export revenue by 2030. The non-binding RFI (open to 5 June 2026) covers production, storage, export terminals and component manufacturing and notes potential BOI facilitation and incentives.

The government is considering ending the odd-even fuel distribution system and increasing fuel quotas, saying fuel stocks are sufficient until August 2026 and supplies are being secured for the rest of the year. Officials also discussed appointing Energy Managers, boosting renewable energy and introducing Green Building measures under the Clean Sri Lanka program.

IMF expects its Executive Board to consider Sri Lanka’s combined Fifth and Sixth EFF reviews within weeks, a move that could unlock about $700 million for the country. The review requires prior actions including restoring cost‑reflective electricity and fuel pricing with social protections; the IMF noted reform gains amid recent shocks and said debt restructuring is nearing completion.

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.

IMF reaffirmed that restoring cost recovery for electricity and fuel pricing is a required prior action for completing Sri Lanka’s Fifth and Sixth Reviews under the EFF; authorities must implement a two-part strategy while protecting vulnerable groups.

The Sri Lankan rupee has fallen more than 5% so far this year, risking higher inflation and possible monetary tightening that would raise borrowing costs; rising import, fuel and medicine prices threaten household purchasing power and could drag on growth.

CMA Sri Lanka launched national Cost Accounting Standards to strengthen costing, control and reporting across large and medium public and private institutions; the standards prioritize sectors including power, telecom, manufacturing, drugs and agricultural/tea exporters to improve efficiency, pricing transparency and competitiveness.

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.

Central Bank governor Nandalal Weerasinghe said the rupee's recent depreciation reflects global market trends rather than domestic mismanagement and that the CBSL intervenes to prevent excessive swings; the rupee closed around 326.00/327.00 to the dollar.

President Anura Kumara Dissanayake said Sri Lanka's oil import bill rose from $98m in February to $216m in March and $368m in April, with May projected at $522m, increasing FX outflows and subsidy costs. He noted diesel costs ~Rs.720/L but is sold at Rs.392 (CPC receives Rs.492), with CPC losses of Rs.84bn moved to the Treasury and electricity tariffs under pressure.

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.