News & market updates

ASPI rose 0.65% (145.47 pts) to 22,695.00 while the S&P SL20 gained 0.6% to 6,244.64. Market turnover exceeded Rs. 4.8bn with Ceylon Tobacco Company dominating turnover (Rs. 2.4bn) even as foreign investors were net sellers, extending YTD foreign outflows to Rs. 27.6bn.

Oil prices rose over 3% after Iran claimed it struck a U.S. warship, pushing Brent to $111.81/bbl and WTI to $105.34/bbl. The U.S. denied the strike; OPEC+ approved a modest output rise but flows through the Strait of Hormuz remain constrained.

Emirates has restored 96% of its global network, operating to 137 destinations across 72 countries with over 1,300 weekly frequencies (75% of pre-disruption capacity); it continues three daily flights to Colombo.

Sri Lanka has seen four fuel price hikes in five weeks, the latest effective May 3 under a cost-reflective formula tied to higher global crude, driving a sharp rise in inflation and living costs. The CPI jump leaves the Central Bank weighing rate hikes against rupee depreciation risks.

Sri Lanka's current account surplus fell 43.9% YoY to $531.5m in 1Q2026. The decline was driven by a sharply wider trade deficit (up 122% YoY), weaker services/tourism inflows with March surplus collapsing 90.7% YoY to $44.6m, and a 74.7% surge in fuel import costs.

Sri Lanka Ports Authority posted group PAT of Rs. 42.8bn for FY2025, up 12.1% YoY, with group revenue rising 9.7% to Rs. 81.8bn. Port of Colombo throughput increased to 8.3m TEUs driven by a CWIT ramp-up, while SLPA-operated terminals and SAGT saw declines and CICT was broadly unchanged.

The Sri Lanka Construction PMI (Total Activity Index) was 57.1 in March 2026, indicating continued expansion at a slower pace. Respondents reported fuel and raw-material shortages, rising costs and transport delays linked to the Middle East conflict, while new orders, hiring and purchases continued to rise.

Colombo Stock Exchange closed higher Monday with the ASPI up 0.65% at 22,695.00 and turnover of 4.81 billion rupees, driven by buying in banking counters. Top contributors included NDB, Dialog, Melstacorp and Colombo Dockyard, while Ceylinco Insurance and Windforce were among decliners.

KPMG Sri Lanka Academy will host a webinar on 5 May to explain recent tax reforms — including the Social Security Contribution Levy Act, the VAT (Amendment) Bill, expanded withholding taxes and higher capital gains tax — and their compliance implications for businesses and individuals.

Spirit Airlines said it had almost completed refunding passengers and returning crew after abruptly ceasing operations over the weekend; the carrier had more than 4,000 domestic flights scheduled through May 15. The shutdown followed financial strain from a sharp rise in jet fuel costs and failed rescue financing.

AHC Group signed an MoU with the Asia Africa Chamber of Commerce and Industry to attract investment into agriculture, tourism, real estate, mining and trade and to generate employment in Sri Lanka. AHC highlighted its vermicompost programme, a 1,000-acre seed paddy initiative and will co-host a major international business conference in August.

Sri Lanka Customs exceeded its April revenue target, collecting Rs. 186.5 billion, and is accelerating digitalisation to automate workflows, reduce corruption and speed container clearance to support trade facilitation and revenue collection.

Sri Lanka's current account posted a Q1 cumulative surplus of USD 531m, even as the merchandise trade deficit widened to USD 2.3bn driven by a 74.7% jump in fuel import spending. Tourist arrivals fell 19.8% and services surplus dropped 42.4% while remittances rose 26.5% to about USD 2.3bn; gross official reserves were USD 7.0bn and the rupee was down 2.9% YTD by end-April.

Sri Lanka's rupee closed at 319.75/320.00 to the US dollar, slipping below 320 as inflation reached the central bank's 5% target; the central bank intervened around 319.50 and conducted repo operations while bond yields remained broadly steady.

Brent crude jumped to around $115 a barrel after reports the US is preparing an 'extended' blockade of Iran’s ports, raising concerns over supply via the Strait of Hormuz. The disruption has driven oil volatility and prompted forecasts of higher energy prices if conflicts persist.

Sri Lanka Customs exceeded its April revenue target, collecting 186.5 billion rupees by April 27 against a 181.3 billion target, marking the fourth consecutive monthly outperformance. Officials attribute the surge to stronger enforcement, improved valuation and a rebound in import volumes, and customs has reached 39.4% of its 2,207 billion annual target in the first 117 days.

The UAE will quit OPEC from May 1, freeing its 5 million bpd capacity and raising short-term market volatility and the risk of higher global oil prices. For Sri Lanka, a net oil importer spending nearly a fifth of its import bill on energy, this could increase the fuel import bill, pressure the rupee and drive inflation while accelerating calls for bilateral supply deals and renewables.

An ADB fact-finding mission met the Sri Lanka Export Development Board on 27 April 2026 to review progress on the National Export Development Plan 2026–2030 and agree next steps, including Cabinet approval, ADB technical assistance, a PMU and a high-level steering committee.

Rising energy costs from the Iran war are widening economic strain across emerging markets, prompting tighter monetary policy and fiscal pressure; the IMF cut growth for emerging and developing economies to 3.9% from 4.2%, with countries like Sri Lanka, Egypt and Pakistan highlighted as vulnerable.

President Anura Kumara Dissanayake directed the Inland Revenue Department to accelerate tax-reform measures and fast-track a national e-invoicing rollout, insisting the system be completed within the stipulated timeframe. Officials reviewed IRD 2026 progress and discussed institutional restructuring and digitalisation.

XPENG will launch the all-new G6 in Sri Lanka via Evolution Auto on 15 May, offering up to 480 km (WLTP) range and Level 2 autonomous driving. The premium EV targets local buyers with features including a 15.6-inch central touchscreen, 570L boot and integrated mobile app.

President Anura Kumara Dissanayake met Inland Revenue officials to push programmes to broaden the tax net, maximise compliance, recover arrears and complete national e-invoicing and IRD digitalisation on schedule. Recent reforms include VAT at 18%, repeal of SVAT and broadened withholding tax covering gig-economy service providers.

Colombo Stock Exchange All Share Price Index rose 0.20% to 22,612 as retail-driven activity lifted the market. Listed energy firm WindForce said it entered a loan agreement with IFC to obtain up to $18 million in two phases.

Government has invited local and international investors to submit EOIs to develop and operate Mattala Rajapaksa International Airport, with EOI documents available 27 Apr–8 Jun and a required proposal guarantee of $500. A pre-proposal briefing and site visit is scheduled for 22 May.

Nations Trust Bank will take over HSBC's Sri Lanka retail banking operations and the Rs.18 billion portfolio effective 1 May, with services expected to resume from midday 2 May after a system migration blackout. HSBC will suspend various services from 24 April and fully cut access from 7 p.m. on 30 April.

Activ8 Asia was awarded Platinum Excellence in Business Process Outsourcing & Customer Experience Solutions in 2026 at City of Dreams, Cinnamon Life, Colombo. The award highlights its new CRM solution that reduces CRM tagging and administrative time for outbound call agents to boost productivity and service quality.

The Asian Development Bank estimates Sri Lanka has about $6 billion of unrealised export capacity — exports could rise 47% if gaps are addressed — and says weak export growth has widened the trade deficit and pressured the rupee ahead of rising external debt repayments. Usable reserves cover roughly three months of goods imports, limiting the Central Bank's ability to defend the currency.

Hambantota International Port handled MSC Marie Leslie from 11–15 April, recording a record single-vessel throughput of 13,260 TEUs (7,968 container moves). The milestone underscores HIP's growing capacity and role as an alternative regional transhipment hub.

UNDP warns more than 30 million people could be pushed back into poverty from the economic fallout of the Iran war, driven by disruptions to fuel and fertiliser supplies and blocked shipping through the Strait of Hormuz. It said fertiliser shortages have already reduced agricultural productivity and food insecurity will peak in a few months.