News & market updates

Cabinet approved the Sri Lanka National Climate Finance Strategy 2025–2030 to mobilise private capital into renewables, agriculture, fisheries and climate‑resilient infrastructure. The government says about $500m a year is needed for these investments and the national budget cannot sustain that level of spending.

PUCSL has opened public consultation on the Ceylon Electricity Board's proposed 6.8% electricity tariff increase for Q4 2025, inviting written submissions by 7 October 2025 and holding nine provincial hearings; the consultation paper is available online.

Oil prices rose after Israel struck in Doha, Qatar, with WTI up 1.37% to $63.11 and Brent up 1.32% to $66.89 as traders added a geopolitical risk premium. The strike raised concerns of wider Gulf instability that could boost energy-market volatility.

Global investment in new renewable energy projects reached a record $386 billion in 1H 2025, up 10% year‑on‑year. Asset finance for utility‑scale solar and onshore wind fell (utility‑scale solar down 19%), with revenue and policy concerns cited in markets such as China and the US.

The Institution of Engineers, Sri Lanka (IESL) at NEC 2025 urged engineers to lead Sri Lanka's industrial transformation and presented a report with sectoral recommendations across agriculture and plantations, construction, digital transformation, power and energy, transport, water, and trade.

Ceylon Petroleum Corporation has invited investors to expand its 50,000 bpd Sapugaskande refinery to 100,000 bpd or build a new refinery on-site, with the investor financing the project, taking a share with CPC and transferring the plant back at concession end.

IESL's NEC 2025 urged engineers to lead Sri Lanka’s industrial transformation, with the government as facilitator. Recommendations covered construction (national building code, development fund), digital transformation (Digital Blueprint 2030), renewables/BESS and grid upgrades, agricultural mechanisation, transport and water reforms.

Colombo Stock Exchange closed lower; ASPI fell 0.41% to 20,905.83 and S&P SL20 fell 0.82% to 5,955.36. Laugfs-related buying lifted several stocks (not in shortlist) while Windforce, C T Holdings, Hayleys and Carson Cumberbatch rose and most banks including HNB, Commercial Bank and DFCC lost ground.

Businessman Dhammika Perera is buying a 39% stake in Laugfs' holding company as founder director Thilak de Silva exits. Laugfs—which includes listed Laugfs Gas and Laugfs Power and operates LPG, shipping and power businesses—has a reported market transaction estimate of about 5–7 billion rupees.

President Anura Dissanayake flagged off construction of a US$140mn, 100MW solar farm in Monaragala. The plant is expected to generate about 219 GWh/year (~25% capacity factor) on 500 acres, with 12 approvals secured over the past 6–9 months.

Senior Economic Adviser Duminda Hulangamuwa said a State-Owned Enterprises Bill will be tabled this month and a new PPP Act is being readied to boost private participation, and that Port City Colombo has attracted about $1.5 billion in four investments.

All trade unions at the Ceylon Electricity Board began a work-to-rule campaign from midnight over planned restructuring and unresolved employee grievances tied to 16 demands, including alleged unlawful restructuring, lack of incentives and stalled promotions.

Sri Lanka completed the Habarana–Veyangoda transmission line, a Japan-funded project financed by a yen loan of about USD 65 million — the first yen-loan project finished since disbursements resumed — which increases grid capacity, reliability and reduces transmission losses/CO2.

Sri Lanka's renewable power share reached 73% in June, with renewables producing 1,091 GWh of a 1,495 GWh total. CEB hydro rose 33.8% to 626 GWh and private solar/wind/mini-hydro grew 28.7% to 413 GWh; CEB is advertising a grid-scale BESS and seeking synchronous condensers to manage intermittency.

Voyage Sri Lanka 2025 marine summit will be held on 16 October 2025 at The Kingsbury, with early-bird registration extended to 15 September for a 10% discount. Seylan Bank is the official banking partner and Lanka IOC and Hayleys Advantis are listed sponsors.

Hayleys Aventura, the industrial solutions arm of Hayleys Group, launched ASCENT 2030, an ESG roadmap to embed ESG across Industry Inputs and Power & Energy, building on a 50MW renewable portfolio (127 GWh/yr) and a new 4MW solar project.

Ethio Telecom and Huawei have commercially deployed Solar-on-Tower sites in Addis Ababa, providing up to four hours of solar power per site and reducing diesel generator use by 40% (from six to two hours). The tower-mounted PVs address urban space constraints and aim to accelerate green networks across Africa.

Ceylon Electricity Board is offering a voluntary retirement package of up to Rs 5 million to reduce excess workers. Payments range from Rs 900,000 to Rs 5 million; permanent staff with 10+ years get 2 months' pay per year plus 1.5 months compensation for early retirement, and non-permanent staff are also eligible.

The Sri Lanka–Japan Business Council held its 46th AGM and elected Athulla R F Edirisinghe as President for 2025/26, with Japan's Ambassador urging restored investor confidence and steady implementation of Japan-assisted mega projects including the BIA expansion.

Ceylon Petroleum Corporation cut fuel prices effective midnight yesterday: Auto Diesel down Rs.6 to Rs.283/L, Super Diesel down Rs.12 to Rs.313/L, and Petrol Octane 92 down Rs.6 to Rs.299/L; Petrol Octane 95 and kerosene unchanged.

Ceylon Petroleum Corporation cut Octane 92 petrol by Rs6 to Rs299/litre and auto diesel by Rs6 to Rs283/litre from midnight Aug 31; Octane 95 and kerosene were unchanged and super diesel was cut by Rs12 to Rs313/litre.

The government gazetted a voluntary retirement scheme for Ceylon Electricity Board employees: permanent staff with >10 years get 2 months' salary per service year plus 1.5 months for years foregone (min Rs.900,000; cap Rs.5,000,000); those with <10 years get 5 months per year and non-permanent staff 2 months per year (min one year's pay). Disciplinary cases are ineligible and accepting the package bars employment with successor companies.

Sri Lanka spent $506.1 million on personal vehicle imports up to July 2025 (up from $34.8 million a year earlier), with $162.2 million on commercial vehicles. Private credit has surged partly due to car loans, analysts warn rate cuts and inflationary policy could pressure reserves and the external sector; July dollar inflows were $2.6 billion.

Gross foreign reserves fell from $6,531m in March 2025 to $6,044m in July 2025 and net reserves after swaps fell from $2,791m to $2,210m, even as the central bank increased dollar swap transactions with banks, opposition MP Kabir Hashim told parliament.

The ASPI rose about 7% in August, closing the month at 20,997.36 after a 197.10-point (0.95%) gain on the final day. Top contributors included Ceylinco Holdings, Senkadagala Finance and Richard Pieris; turnover was around Rs.7.4bn, led by consumer services and financials, with foreign net inflows of Rs.184.1m.

The Global Dialogue Forum will host an international conclave on 20 September 2025 at the Galle Face Hotel in Colombo to explore practical AI applications in green energy, food security and cybersecurity.

Parliament's Sectoral Oversight Committee has called for a revision of prices for the 350 MW Kerawalapitiya Sahasdhanavi LNG power plant to reflect post-2021 fuel and FX costs, and ordered the Power and Energy Ministry to update Cabinet and submit a pricing, procurement and timeline report within two weeks. The committee urged expedited LNG procurement, wants the plant to use LNG by 2028, and noted Sobadhanavi remains diesel-only pending an LNG/FSRU supply agreement.

Colombo market closed marginally up as the ASPI rose 0.2% (47 points) on turnover of Rs.7.46 bn while the S&P SL20 fell 0.2%. Dialog, Ambeon, Bukit Darah, Carson Cumberbatch and LOLC led gains, with EB Creasy, Sierra Cables, LVL Energy Fund and Raigam Wayamba also active and recording price gains.

The Federation of Chambers of Commerce and Industry of Sri Lanka hosts the Sri Lankan Entrepreneur of the Year Awards 2025 today at 5 p.m. at Cinnamon Life, marking the 25th SLEOTY and FCCISL's 50th anniversary to recognise entrepreneurs across tourism, exports, IT and renewable energy.

The Cabinet awarded a six-month petrol supply contract to Aditya Birla Global Trading (Singapore) Ltd. to deliver 1.5 million (+/-5%) barrels of 92 Octane petrol in five shipments from 15 Sep 2025 to 14 Mar 2026.