News & market updates

President Dissanayake said about 30 private firms have been given temporary licences to import fuel in US dollars to directly supply exporters and the tourism sector; he added LP gas, fertiliser and grain stocks are sufficient and delayed crude shipments (two of 90,000t) are expected soon, averting a crisis.

Sri Lanka's economy expanded 5.0% in 2025, with Q4 growth slowing to 4.8% (from 5.4% in Q3). Industry led the expansion (7.8%) driven by construction, mining and manufacturing, while services grew 3.3% and agriculture 1.4%.

The Cabinet approved emergency procurement of 300,000 tons (±10%) of coal for the Norochcholai (Lakvijaya) power plant and authorised flexible procurement of petroleum, LP gas and coal for three months. The coal contract was awarded to India's Taranjot Resources Ltd. amid shipping and insurance disruptions linked to Middle East unrest.

Cabinet approved a Rs. 2,269.18 million contract to the JSL & Fentons JV (Jyoti Structure Ltd and Hayleys Fentons) to construct a 28 km 220kV double-circuit transmission line for the Mullikulam Wind Power Transmission Project, strengthening grid connectivity and renewable integration.

Opposition leader Sajith Premadasa said the NPP government has no scenario planning and blamed substandard coal procurement for electricity generation shortfalls of 130–148 MW on April 13–16, leading to expected power cuts during peak months and increased diesel use causing fuel shortages.

Secondary bond yields rose and market activity remained subdued ahead of a Rs.120 billion Treasury Bill auction (offered amount below maturing volume of ~Rs.142.44 billion). The rupee slightly appreciated to Rs.311.30/311.40 and short-tenor bills saw continued demand while longer-tenor yields moved higher.

Vista Solar Energy, a subsidiary of the Agrovista Group, won the “Best Solar Company” award at the Global Synergy Awards for its contributions to expanding solar installations and sustainable energy solutions in Sri Lanka.

Oil prices rose about 3% as the Strait of Hormuz was largely shut amid the U.S.-Israeli war on Iran, with Brent at $103.28/bbl and WTI at $96.85/bbl, stoking supply shortage and inflation concerns.

Prosoft Research's Consumer Sentiment Index fell to 86 in February 2026 from 89 in January. The firm cites remaining recovery gaps and disruptions from gas shortages and coal shipment issues, and warns sentiment could be further affected by the Middle East conflict.

The Ceylon Chamber urged the government to temporarily limit non-essential foreign currency outflows and allow licensed bunkering firms to procure fuel independently, potentially in foreign currency, to protect exports and tourism amid the Middle East crisis. It also recommended prioritising IMF tranche continuity, dynamic fuel pricing, faster fuel and fertiliser procurement, and measures to support tourism and trade efficiency.

Government declared Wednesdays a weekly holiday for public sector employees effective tomorrow (18) to reduce fuel consumption; essential services (healthcare, ports, water, customs) are exempt and four committees will oversee energy and key sectors. Private sector asked to follow where feasible and state events suspended.

US has spent $12bn on strikes against Iran since Feb 28, White House adviser Kevin Hassett said; threats to the Strait of Hormuz and ongoing regional fighting are keeping energy markets jittery and could push fuel prices higher.

Former Ceylon Petroleum Corporation Chairman Mohamed Uvais urged the government to cut fuel taxes to help stabilise prices, noting fuels were already increased by Rs.25 across categories and warning that disruptions could affect up to 35% of global oil transport.

Rights issue · 3:31 at Rs 7.50 · XD Apr 22, 2026

Brent crude rose $2.48 (2.5%) to $102.69/bbl and WTI gained $2.42 (2.6%) to $95.92 as disruptions in the Strait of Hormuz amid the U.S.-Israeli conflict with Iran raised supply-risk concerns; the UAE has cut production and the IEA urged possible extra releases from reserves.

Motorists reported continued registration problems with the government's National Fuel Pass and long queues as QR-code distribution resumed. A 35,000-tonne fuel shipment arrived; CPC said Lanka IOC placed 204 orders.

Crude oil surged above $100/bbl after US consideration of strikes on Iran’s Kharg Island (Brent $103.7, US crude ~$98.7); Asia‑Pacific equities traded mixed—Hang Seng +1.45%, Kospi +1.14%, Nikkei -0.13%, ASX200 -0.39%.

President Anura Kumara Dissanayake said the government will implement energy-management measures, including a QR system for daily fuel allocations, to ensure uninterrupted economic activity and essential services amid disruptions from the Middle East conflict; a committee was tasked to report required fuel allocations by end of today.

Ceylon Chamber urged the Government to adopt measures to safeguard economic stability, prioritising continuation of the IMF programme and timely tranches. It recommended fuel measures (dynamic pricing, QR system, faster procurement), securing fertilizer and aviation fuel, prioritising FX for critical imports, and bolstering tourism, exporters and port clearance.

Motorists reported lapses in registering for the National Fuel Pass after the government introduced QR-based fuel rationing, causing long queues, registration errors, hotline failures and fake registration sites. Some stations lacked QR readers or reportedly ignored the QR system despite limits intended to prevent queues.

Government reintroduced a national fuel QR-code rationing system on 15 March to manage depleted fuel stocks amid Middle East-driven supply disruptions, setting weekly vehicle quotas (cars 15L, motorcycles 5L, buses 60L, lorries 200L) and requiring online registration.

Sri Lanka's power mix shifted toward oil in the week ending 12 March: thermal fuel-based generation rose to 23.1% (oil-fired output 14.02 GWh on 12 March) from 19.9% in late February, while hydropower fell to 23.2% from 25.1%, raising import-cost risks as oil prices climb.

Arutha Research warns the Middle East war risks Sri Lanka’s energy, food, exports and remittances — the UAE supplies about 38% of petroleum imports and CPC says fuel stocks cover roughly one month. Middle Eastern markets buy $852m (≈7%) of exports and Gulf countries provide about 38% of remittance inflows.

Police officers have been deployed at fuel stations nationwide after the reintroduction of a QR code system for fuel distribution to manage congestion and ensure orderly allocation; authorities urged motorists not to panic as allocations will be provided by vehicle category.

President Anura Kumara Dissanayake chaired a discussion on measures to address disruptions to coal, gas and oil supplies caused by the Middle East conflict, reviewing steps and alternatives (digital quota, work-from-home, fuel-saving) to minimise economic impact and ordering continuous monitoring.

Sri Lanka's Colombo Stock Exchange opened sharply lower: All Share Index down 2.41% to 21,169.00 and S&P SL20 down 2.41% to 5,937.93, with market turnover Rs 2.4 billion, as Brent crude topped $104/bbl amid ongoing Middle East strikes and Strait of Hormuz tensions.

Asian markets were cautious as Gulf hostilities kept oil elevated (Brent $104.01/bbl), complicating the inflation outlook and likely keeping most central banks on pause this week. The Fed is widely expected to hold while the RBA may hike to 4.1%.

CA Sri Lanka held a forum warning that prolonged Middle East instability could spike oil prices and disrupt remittances, tourism and tea exports, raising inflation, exchange-rate volatility and risks to the banking/financial sector.

Oil prices have surged (Brent and WTI up more than 40% this month) as U.S.-Israeli strikes on Iran and threats to Kharg Island have put Gulf export facilities at risk and closed the Strait of Hormuz. The IEA says global supply could fall ~8m bpd in March and agreed a 400m-barrel release.

President Anura Kumara Dissanayake met with ministry secretaries to plan maintenance of essential services amid the Middle East conflict, instructing exploration of regional fuel reserves for critical sectors, a feasibility study on remote working, and prompt fixes/streamlining of the digital QR code system.