News & market updates

SAARC CCI President Chandi Raj Dhakal met Yunnan Governor Wang Yubo in Kunming to push for expanded trade, investment and connectivity between South Asia and Yunnan, highlighting opportunities in infrastructure, tourism, logistics, digital industries, renewable energy, agriculture and manufacturing.

Rystad Energy warns oil could hit $150/barrel if hostilities between the U.S. and Iran resume, citing supply shut-ins and Strait of Hormuz disruptions. Prices spiked after recent U.S. strikes and major oil executives say inventories are nearing rock-bottom.

The United States became the world's top oil exporter, shipping about 10.5 million barrels per day in May, surpassing Russia (7.0m bpd) and Saudi Arabia (5.9m bpd). The shift is driven by high U.S. shale output, releases from strategic reserves and disruptions to Saudi and Russian flows.

Iran announced the Strait of Hormuz is closed to all vessels, pushing Brent crude above $95 and WTI above $92. The EIA and JPMorgan warn OECD inventories could fall to multi-decade lows by end-2026 and project Brent averaging around $100/bbl in a base case, rising if the blockade continues.

The India–Sri Lanka Binational Bridge and Tunnel proposal — a ~23 km link estimated to cost US$3.6–5.19bn — could lift tourism by 50–70% and cut some transport costs by up to 50%, reshaping trade, logistics and connectivity. Sri Lanka has paused advancement over technical, environmental and sovereignty concerns.

ASPI fell 0.4% (85.70 pts) to 21,461.47 as selling pressure reversed early gains; turnover was below Rs.1.7bn and foreign investors were net buyers of Rs.55.9m. Major negative contributors were C T Holdings, Melstacorp, Ambeon, Access Engineering and Central Finance, while John Keells, Chevron Lubricants and Commercial Bank were top turnover names.

Hayleys Solar (Hayleys Fentons) completed a 1.7MWp rooftop solar installation for GPV Lanka in Negombo, supplying part of the site's operational energy needs. The project supports GPV's energy-efficiency goals and Hayleys' renewable energy service activity.

Frontier Research says Sri Lanka is better placed to absorb a potential El Niño due to stronger fiscal and external buffers, but warns of short-term pains. It cites an 80% chance of El Niño in June–August 2026 (over 90% through November) and warns disruptions to agriculture, energy and supply chains that could raise inflation.

Asian stocks slid as Middle East tensions escalated and oil rose (Brent +0.9% to $92.29/bbl), amplifying inflation concerns and the prospect of further interest-rate moves. Investors are focused on upcoming U.S. CPI data and central bank responses.

Asian equities were mixed with tech stocks leading gains as oil prices eased—Brent fell to $93.84/barrel—after a prior surge linked to fighting in the Middle East; higher oil-driven inflation and rising yields are weighing on markets.

Sri Lanka's Central Bank ordered exporters to convert export dollar proceeds within one month (down from three) effective immediately to curb rupee depreciation. The move follows a $211m defence of the currency in May and a 100bp overnight policy rate hike on May 26.

Colombo Stock Exchange trended up intraday, with the ASPI +0.26% (55.89 pts) to 21,603.06 and the S&P SL20 +0.16% (9.59 pts) to 6,010.27; market turnover was LKR 511.7m, led by capital goods (LKR 32.3m). Top positive contributors included Melstacorp, Hayleys, John Keells and Lanka IOC; Commercial Bank, Malwatte Valley Plantations and Ceylon Cold Stores were top negatives.

Dividend · Rs 5.00 · XD Jul 10, 2026

First And Final dividend of LKR 5/share; XD 2026-07-10; record 2026-07-12; payable 2026-07-30; FY 2025/2026

Sri Lanka's BOI and Japanese partners held the 4th working-level Japan–Sri Lanka Committee on Business Environment on 2 June 2026 in Colombo to review and resolve investor concerns and strengthen FDI ties. The session stressed accountability and priorities such as technology transfer, green industry, manufacturing and tourism.

The IMF approved Sri Lanka’s combined Fifth and Sixth Reviews on 28 May 2026, releasing SDR 508 million (~US$695m) and bringing total EFF disbursements to SDR 1.778 billion (~US$2.4bn). The Fund said stabilisation has improved revenues, growth and reserves but warned debt sustainability remains “very high” and key structural reforms (electricity, public financial management) are unfinished.

ADB President Masato Kanda said the Pan-Asia Power Grid Initiative will mobilize $50 billion by 2035, with ADB providing half, to connect regional power systems, add 20 GW of renewables and 22,000 circuit‑km of transmission, cutting emissions and creating jobs.

Oil prices fell after Iran and Israel said they halted attacks following a U.S. appeal; Brent dropped $0.91 (1%) to $93.34/bbl and WTI fell $1.13 (1.2%) to $90.17, though both sides warned hostilities could resume.

Fitch cut its forecast for global growth in 2026 by 0.2 percentage points to 2.4% as an oil shock from the US‑Iran conflict and a prolonged Strait of Hormuz closure lifts energy prices (Brent now seen at $87/bbl for 2026). The agency said a tech investment boom cushions activity and central banks are likely to hold rates this year amid higher inflation risks.

The Ceylon Chamber will hold the 26th Sri Lanka Economic and Investment Summit on 12–13 October, focused on economic growth, competitiveness, investment and structural reforms. Sessions will cover trade and regional integration, energy security, digital transformation and healthcare.

IMF cut Sri Lanka's 2026 growth forecast to 3% and approved temporary fiscal easing under the EFF, enabling an immediate SDR 508m (~$695m) disbursement. It also lowered end‑2026 reserve projections to $8.645bn and trimmed 2026 tourism earnings to $2.5bn.

Colombo Stock Exchange slid, ASPI down 1.68% (366.31 points) to 21,377.82 at midday. Vallibel One released its annual report showing profit of 13,164,778 rupees (prev. 11,760,829) and its shares were trading down 0.41% at Rs.96.00.

Brent crude futures rose $3.20 (3.39%) to $96.24 a barrel after Israeli strikes on Lebanon and reported explosions in Iran raised Middle East tensions, with U.S. crude up $2.87 at $93.41 as supply concerns pushed prices higher.

Fitch cut its 2026 global growth forecast by 0.2pp to 2.4% and raised its 2026 Brent crude assumption to USD87/bbl (from USD70/bbl) due to an oil shock from the US–Iran war. Strong IT-related investment is partly cushioning the hit, while central banks’ policy paths have shifted with rates expected to hold this year and cuts delayed until 2027 in some cases.

The Ceylon Chamber of Commerce will hold the 26th Sri Lanka Economic and Investment Summit on 12–13 October 2026. The Summit will focus on economic growth, investment, trade, fiscal and structural reforms, energy security and sustainability, healthcare, and digital transformation.

The Ceylon Chamber of Commerce will hold the 26th Sri Lanka Economic and Investment Summit on Oct 12-13 to focus on pressing national priorities including economic growth, investment, trade, fiscal and structural reforms, energy security, healthcare and digital transformation.

Sri Lanka said it will deepen cooperation with France and the EU as AFD marks 20 years in the country, seeking expanded collaboration on sustainable development including green energy, urban and water infrastructure, digital transformation and maritime cooperation.

Indian High Commissioner Santosh Jha visited an $11m India‑funded hybrid solar-wind-diesel-battery project (≈4.3 MW) on Delft, Analaitivu and Nainativu on 3 June to review progress delivering off‑grid power to the three islands.

Colombo International Container Terminals handled a 2,241-tonne Battery Energy Storage System shipment of 54 units for Sri Lanka’s largest energy storage programme, to be deployed across 16 substations to support grid stability and a 70% renewable target by 2030.

The Board of Investment extended the deadline for its green hydrogen and ammonia RFI to 19 June (from 5 June) to gather investor proposals. The RFI requests financial, technical, land, power and water details to assess feasibility of large-scale export-oriented green hydrogen projects and related infrastructure.

The Colombo ASPI fell 2.54% for the week (S&P SL20 down 2.2%), wiping about Rs. 206 billion off market capitalisation. Major negative contributors were COMB, HAYL, JKH, WIND and SPEN, with turnover near Rs. 2.98 billion.