News & market updates

AmCham Sri Lanka CEO Forum 2026 convened 200+ leaders calling for reforms to restore economic confidence, targeting 7% annual growth and a 70% renewable-energy share by 2030. Panels highlighted SME support measures (Rs.300m, 'Level Up'), banking consolidation, infrastructure/port upgrades and FDI-attracting reforms.

WindForce PLC appointed Sanjay Kulatunga as an Independent, Non-Executive Director effective 3 March 2026, following the resignation of Dilshan Hettiaratchi. The company said the appointment strengthens its governance and strategic oversight.

The Central Bank of Sri Lanka will issue a review report tomorrow assessing the potential impact of the ongoing Middle East crisis on Sri Lanka’s economy, the president told Parliament; the evaluation aims to clarify possible effects on the country’s financial sector.

Fitch says Middle Eastern sovereign ratings can likely withstand a short (under one month) regional conflict but prolonged damage to energy infrastructure or extended hostilities could pressure sovereign ratings. Fitch assumes the Strait of Hormuz would be effectively closed during the conflict, weighing on oil and gas exports (notably for Bahrain, Kuwait, Qatar and Iraq) and disrupting tourism and air travel.

U.S. stocks finished narrowly mixed after U.S. and Israeli air strikes on Iran triggered volatile trading; U.S. crude rose about 6% to $71.23, boosting energy and defense while tech stocks later led gains.

Gold rose for a fifth straight session, with spot gold up 1% to $5,377.21/oz, as investors sought safe havens amid escalating U.S. and Israeli strikes on Iran and fears the conflict could widen. The reported closure of the Strait of Hormuz threatens a fifth of global oil flows, lifting other precious metals and disrupting shipping and air transport.

Oil prices rose for a third day as the widening U.S.-Israeli conflict with Iran and threats to shipping through the Strait of Hormuz raised supply disruption risks; Brent was $78.83/bbl, up $1.10 (1.4%). Insurers cancelling coverage and attacks on tankers/refineries are keeping refined product futures elevated.

Opposition Leader Sajith Premadasa has convened an urgent meeting of Opposition MPs on the Middle East crisis as Brent crude jumped as much as 13%, trading about $76.48/bbl midday Tokyo. The session will assess the safety of Sri Lankans in the region and potential knock-on effects for Sri Lanka.

U.S. and Israeli strikes on Iran sent oil sharply higher (WTI ~+8% to $72.70, Brent ~+9% to ~$79.19), dragging global equities lower and lifting gold and the dollar; bond yields fell while higher-than-expected wholesale inflation may complicate Fed rate-cut timing.

Sri Lanka expects fuel queues to disappear from March 3 after authorities moved to curb hoarding and ensure adequate supply; officials and CPC say there are over one month of fuel stocks and no QR code will be introduced.

Brent crude jumped about 10% to roughly $80/bbl after U.S. and Israeli strikes on Iran, and analysts warned prices could reach $100/bbl if the Strait of Hormuz is closed, with OPEC+ agreeing a modest 206,000 bpd output increase.

US and Israel launched strikes on Iran, raising the risk of a wider Middle East conflict that could push Brent crude (around $73) toward roughly $80 and, if supply is disrupted, possibly near $100. Markets may see heightened volatility, safe-haven flows into gold and Treasuries, and pressure on Gulf equities and airlines.

A US-Israel strike on Iran and ensuing Strait of Hormuz disruption sent Brent crude up over 7% (above US$90) and led the Ceylon Petroleum Corporation to raise diesel prices (Auto +Rs4, Super +Rs6), threatening Sri Lanka's fuel supplies, tea exports and imports of construction materials.

Portugal's Foreign Minister Paulo Rangel called for a 'new era' of structured economic partnership with Sri Lanka, highlighting cooperation in renewable energy (solar and wind), tourism, infrastructure/public works and digital development. Both countries agreed to reactivate their Joint Cultural Commission, and Portugal said it will advocate constructive engagement on Sri Lanka's GSP+ review in 2027.

Prime Minister Dr. Harini Amarasuriya said Sri Lanka welcomes investors and tourists as it moves towards sustainable growth, noting India’s USD 454 million long-term relief package and cooperation across energy, connectivity, trade, digital transformation, health and tourism.

Hayleys PLC's Advantis unit has formed a joint venture with Sarens to supply and operate heavy-lift cranes and engineered lifting services in Sri Lanka, with the JV's first contract the 50MW Haywind wind farm in Mannar. The partnership will invest in crane and transport assets and provide end-to-end turbine installation and logistics.

US Embassy Chargé d’Affaires Jayne Howell told an AmCham forum that deeper US engagement with Sri Lanka will depend on reciprocal trade, two-way FDI and predictable, transparent rules to attract American capital. She highlighted Port of Colombo expansion to 15m containers by 2027 and SelectUSA pathways for Sri Lankan firms to invest in the US.

Global debt hit a record $348 trillion at end-2025, rising by nearly $29 trillion over the year as governments added more than $10 trillion, the IIF said. The shift toward sovereign borrowing raised government debt to about $106.7tn, left emerging markets with large 2026 rollover needs, and heightens interest-rate and funding risks.

Hayleys PLC's logistics arm Hayleys Advantis has signed a strategic joint venture with Belgium-based Sarens to provide heavy-lift crane and engineered transport services for the 50MW Haywind wind power project in Mannar, including transport and installation of turbines.

Asia markets rose (MSCI Asia-Pacific ex-Japan ~+1%), led by Korean chipmakers as AI sentiment improved; investors also watched the yen and BOJ/Fed rate outlook. Traders awaited the US State of the Union while oil gained ~0.75% and gold was flat.

The government says the coal tender complied with procurement rules and has recovered over $4.27m in penalties for lower-quality coal shipments. Ten ships have arrived (eight unloaded), six discharge reports received, Cotecna was appointed for inspections and a technical committee will review reports.

Economist Talal Rafi urged a disciplined shift from stabilisation to growth, calling for trade and productivity-driven reforms alongside fiscal discipline and reserve accumulation. He noted debt-to-GDP has fallen to near 100%, IMF growth at ~2.9% (this year)/3.1% (next) and reserves projected to rise to ~$8.8bn by year-end.

Hayleys Solar (Hayleys PLC) completed a 4,036 kW solar PV installation across six Pussalla Meat Producers farm locations. The multi-site project is expected to supply a substantial portion of the farms' energy needs and reduce annual carbon emissions by about 3,392,247 tonnes.

Asian stocks slipped after a Wall Street selloff driven by uncertainty over U.S. tariff policy and AI-related risks; MSCI's Asia-Pacific ex-Japan index was down about 0.2%.

Agriculture Minister K.D. Lalkantha said inferior-quality coal was supplied under a recent tender but denied any fraud or corruption in the procurement. He said authorities will use established mechanisms to recover losses but gave no details on supplier, volumes or estimated financial impact.

Vidullanka PLC commissioned the 6MW Madampe solar plant on 21 February, adding about 9.9 GWh/year and bringing its solar segment to 36MW. The company has nearly 80MW of projects in its pipeline — including a 10MW BESS tender win and wind ventures — potentially raising capacity to ~150MW.

Sajith Premadasa alleged the ninth imported coal shipment was substandard, producing 250 MW (with a subsequent test at 275 MW) versus an expected ~300 MW, and called for accountability over procurement from a South African supplier.

Sri Lankan engineer Duleeka Sandamali Gunarathne was one of five Global South winners of the 2026 OWSD-Elsevier Foundation Award for Sustainable Energy; each recipient receives USD 5,000 and a travel grant to a leading international conference.