News & market updates

Colombo Stock Exchange rose 0.43% as the ASPI gained 100.90 points to 23,708.70, led by Dialog Axiata and gains in banks, capital goods and telcos; market turnover increased to Rs9.2bn.

Synogen commissioned a 6.4 MWp rooftop solar PV at Best Pacific Textiles Lanka's Pannala plant, now supplying a large share of daytime power and expected to generate millions of kWh annually. Synogen (a Sino Lanka–Atman JV) said it will expand C&I solar, storage and its proprietary energy monitoring platform.

US President Donald Trump said he had imposed a 25% tariff on goods from countries doing business with Iran, effective immediately, without detailing what qualifies as 'doing business'; China, Iraq, UAE, Turkey and India were named as Iran's top trading partners.

Sri Lanka said the SINOPEC Hambantota oil refinery agreement will be finalized in Q1 2026; China pledged support for cyclone recovery and to deepen cooperation on trade, investment and tourism.

Ceylon Electricity Board says un-bundling into multiple companies will cost Rs10.6 billion in lost economies of scale. The CEB projects a revenue deficit of Rs23.85 billion, reduced to Rs13.09 billion after bringing forward a prior surplus.

The Ceylon Electricity Board has requested an 11% tariff increase from the regulator, citing a depreciated rupee (using 308.65/USD vs 303.33 previously) and higher local diesel and fuel costs despite falling global crude and coal prices.

The central bank bought US$250.8m in December 2025 and sold US$28.3m, contributing to roughly a three‑unit depreciation of the rupee to about 309.5–310. Analysts say these central-bank dollar purchases monetize reserves, conflict with domestic rate anchors, and risk higher energy/food prices and strain on state utilities.

Oil prices rose in early Asian trade, with WTI around $58.27/bbl (up 0.85%), after gains driven by rising geopolitical risks including U.S. seizures of Venezuela-linked tankers and unrest in Iran.

Colombo bourse closed the week up 3.45% as the ASPI rose 0.54% yesterday to 23,654.30, with the market gaining about Rs. 264.8 billion in value for the week and daily turnover over Rs. 8.5 billion; top contributors included JKH, COMB, VONE, CARS and NTB.

Central bank lending to banks rose to Rs48 billion on Jan 08 as state banks faced a severe cash crunch, raising liquidity concerns. Analysts warned the government's 'domestic buffer' withdrawals could strain interbank markets, prompt central bank accommodation and pressure interest rates, inflation and the rupee.

India plans an execution-led economic push with Sri Lanka in 2026 emphasizing investments, connectivity, digital collaboration and concessional financing, backed by a $450m post-Cyclone Ditwah package ($350m concessional lines, $100m grants). Engineering for the India–Sri Lanka grid interconnection is complete and Colombo Dockyard’s revival with Indian support was cited as ongoing commercial engagement.

The Sri Lankan rupee fell to Rs. 310.02 per USD, its weakest level since February 2024. The currency has depreciated 5.6% in 2025 after the vehicle import ban was lifted, with vehicle imports at $281m in November and $1.7bn in the first 11 months of 2025.

Synogen commissioned a 6.4 MWp rooftop solar PV system at Best Pacific Textiles Lanka’s Pannala plant, now operational and supplying a substantial portion of the plant’s daytime electricity and expected to generate millions of kWh annually. The system includes Synogen’s energy monitoring platform for real-time optimisation and long-term performance.

Merchant Bank of Sri Lanka & Finance PLC (MBSL) recalibrated the MBSL Midcap Index effective 1 January 2026, setting the midcap market-cap range at Rs. 8.45 billion–Rs. 84.5 billion and selecting 25 constituents. New inclusions include Sierra Cables, Aitken Spence, Vallibel Finance, Lanka IOC, JAT Holdings and Prime Lands; Citizens Development, CIC, Ceylon Grain Elevators, John Keells, Hayleys Fabric, Teejay Lanka and Watawala Plantations were excluded.

The US and Venezuela agreed to export up to $2 billion of Venezuelan crude (about 30–50 million barrels) to the United States, likely reallocating cargoes from China and increasing heavy oil flows to the US Gulf; Chevron currently handles existing exports.

Sri Lanka plans to cut power generation costs to 25 rupees a unit (from about 37 rupees) by mid-2025 through competitive bidding, targeting roughly a 32% reduction. However, severe rupee depreciation is prompting renewable investors to demand US dollar tariffs, which could undermine the plan.

Global equities extended gains with US indexes hitting records on AI-led tech rallies while oil prices slipped; investors are watching upcoming US data that could influence Federal Reserve interest-rate decisions.

Sri Lanka's Cabinet awarded a Murban crude procurement for four shipments (2,800,000 +5% barrels) for 15.04.2026–14.08.2026 to Singapore-based Vitol Asia, chosen from five bids on the recommendation of a procurement committee.

Asian stocks extended a record rally as MSCI's Asia-Pacific index climbed about 0.4% to a new high, led by Japanese gains; crude eased modestly while gold and copper hovered near record levels and the dollar was steady ahead of the U.S. jobs report and Fed rate expectations.

Sri Lanka's budget deficit will rise 1.4 percentage points to 6.5% of GDP in 2026 after an extra 500 billion rupees of Cyclone Ditwah relief and recovery spending. Capital expenditure is raised to 5.0% of GDP and authorities warned of rupee depreciation and exchange-rate policy concerns.

Gold rose about 2.4% to $4,433/oz after the US capture of Venezuelan President Nicolás Maduro as investors moved into safe-haven assets; silver gained ~4.9%. Oil was little changed while energy shares rose on expectations of greater access to Venezuela’s oil reserves.

Ceylon Petroleum Corporation raised fuel prices effective last night: Auto Diesel +Rs2 to Rs279/L, Super Diesel +Rs5 to Rs323/L, Petrol Octane 95 +Rs5 to Rs340/L and Kerosene +Rs2 to Rs182/L; Petrol Octane 92 unchanged.

Ceylon Petroleum raised most fuel prices effective midnight Jan 05, 2026: Octane 95 to LKR 340/l (from 335), Auto Diesel to LKR 279/l (from 277), Super Diesel to LKR 323/l (from 318), Kerosene to LKR 182/l (from 180); Octane 92 remains at LKR 292/l.

Colombo stocks rose as the ASPI gained 1.21% to 23,292.91 and the S&P SL20 hit a six-week high of 6,379.11, led by gains in HNB, Commercial Bank, John Keells, NDB, Sampath Bank and Lanka IOC.

Colombo market rose as the ASPI gained 0.66% (150.67 pts) to 23,014.75, with market value up Rs.58.89 billion and turnover ~Rs.5.8 billion. Top contributors included Commercial Bank, ACL Cables, Dipped Products, Carson Cumberbatch, LOLC and Sampath, and foreigners were net buyers (~Rs.87.8m).

Asian stocks climbed as investors weighed U.S. intervention in Venezuela, with MSCI's Asia-Pacific ex-Japan index up 1.2% and Brent crude around $60.87. The U.S. dollar and 10-year yield rose slightly while gold gained about 1%.

President Trump said the US will 'run' Venezuela and rebuild its oil infrastructure after Venezuelan leader Nicolás Maduro was captured; Venezuela faces hyperinflation (estimated ~549%) and oil production has fallen to around a third of past levels, worsening energy-market disruption.

Panasian Power (PAP.N0000) connected its 5MW ground-mounted Baddegama solar plant to the national grid on Dec 30, with its subsidiary starting revenue generation and adding 5MWac/6.76MWp to the grid.