News & market updates

Fitch Ratings warns elevated AI-driven credit risks are concentrated in software, media and services, with disruption risk for asset-light, intangible-driven firms and overinvestment risk largely limited to hyperscalers and select cloud providers. Firms with mission-critical functions, high switching costs, proprietary data and financial flexibility are expected to be more resilient.

The IEA has proposed the largest-ever release of oil reserves to offset supply disruptions from the war on Iran, prompting choppy oil prices (Brent $87.91/bbl; WTI $83.52/bbl). G7 leaders are discussing emergency stock releases as strikes and refinery outages have tightened supply and raised volatility.

Global markets steadied after a brief oil pullback following reports the IEA proposed the largest-ever release of reserves, with Brent at $87.89/bbl. Investors remain anxious as intensified Middle East fighting raises inflation risk, supporting the dollar and keeping bond yields and central-bank hawkishness in focus.

The Government has formed an Economic Surveillance Committee chaired by Labour Minister Dr. Anil Jayantha Fernando to monitor and recommend responses to the economic fallout from the Middle East conflict, which risks higher fuel costs, reduced remittances (about 1 million migrant workers) and FX pressures. UNCTAD warns Strait of Hormuz disruptions have pushed Brent above $90 and could raise freight and fertiliser costs, amplifying spillovers to trade and vulnerable economies.

The Ceylon Chamber Export Barometer Survey 2026 found more than half of exporters view Sri Lanka's investment climate as worse than peers, citing policy/regulatory uncertainty, labour and energy costs. The 90-respondent survey shows exporters are diversifying and seek a National Single Window, digital systems, capacity-building and FTAs to improve competitiveness.

Fitch warned the Iran conflict could raise credit risks for emerging markets such as Sri Lanka by raising energy prices and disrupting remittances, exchange rates, fiscal subsidies and access to international finance.

DP World executed cross-border logistics for the ICC Men’s T20 World Cup across India and Sri Lanka, transporting more than 55,000 kg of broadcast and match infrastructure via air and sea between Dec 2025 and Jan 2026. Shipments included 620+ packages to Delhi (25,000+ kg) and 465 packages to Sri Lanka (30,000+ kg), coordinated with customs for timely arrival.

Sri Lanka is strengthening global trade partnerships to promote Sri Lanka Expo 2026 (18–21 June 2026 at BMICH, Colombo), aiming to attract international buyers and investors across apparel, tea, spices, rubber, ICT services, food & beverages and industrial manufacturing. A high-level EDB and ministry delegation met UK, Indonesian and Korean envoys to boost participation.

The Sri Lanka Export Development Board has opened applications for Sri Lanka Expo 2026 (18–21 June at BMICH), offering 650 booths and opportunities to meet over 1,500 global buyers; applications close 31 March 2026. Sectors covered include industrial and agro-industrial products and services such as ICT, tourism, renewable energy and healthcare.

The Cabinet approved a 'Committee on Economic Surveillance' chaired by Dr. Anil Jayantha Fernando to monitor and assess potential economic impacts on Sri Lanka from the Middle East conflict. The committee will review sector risks and submit policy recommendations to the Cabinet.

UN Global Compact Network Sri Lanka launched a Country-Level Environmental and Supply Chain Sustainability Working Group strategy and held January 2026 kick-off sessions to mobilise 70+ companies across five thematic working groups. The initiative focuses on climate mitigation/adaptation, water and ocean stewardship, and supplier capacity building to advance sustainability and regulatory-aligned disclosure.

Airlines have started broad fare hikes after jet fuel surged to roughly $150–$200/barrel amid the Middle East conflict; Air New Zealand raised fares (domestic +NZ$10, short‑haul +NZ$20, long‑haul +NZ$90) and suspended its 2026 outlook. Vietnam Airlines has asked authorities to remove a jet fuel tax as travel disruption and tourism losses mount if the conflict persists.

Sri Lanka's tourism crossed 600,000 arrivals in 2026 with YTD growth of 9%, but arrivals in the first eight days of March fell 30.5% YoY due to the Middle East conflict and aviation disruptions. Officials warn a one-week Middle Eastern airspace closure could cost about $10–15m and higher fares from longer routings are expected.

Brent crude topped $119/barrel (trading around $110) after US-Israel strikes on Iran, a ~50% rise since Feb 28 that sent global stocks lower; gold benchmarks climbed above $5,400/oz, lifting the metal's estimated market value to $30–35 trillion.

The ASPI plunged 3.51% to 21,904.14 as panic selling and a >25% surge in crude to about $115/bbl on Middle East conflict hit the CSE; banking and blue-chip stocks (Commercial Bank, HNB, JKH, Sampath, C T Holdings) led declines while Lanka IOC rose.

Frontier Research warned that a sharp rise in global oil prices from the Middle East conflict could raise Sri Lanka's petroleum import costs and push up inflation via higher transport and electricity prices. The firm also flagged risks to tourism from rerouted flights and higher travel costs, which could weaken external sector earnings.

Exterminators PLC launched the portable Insect-O-Cutor Nomad UV LED mosquito killer with up to 18 hours runtime, IPX4 water resistance and ~30 m² coverage; company trials show it captures significantly more mosquitoes than leading competitors.

PR Wire and the Automobile Industry Council launched the inaugural Automobile Awards to elevate Sri Lanka’s automobile industry, attracting over 150,000 device clicks within two months of its digital launch.

Fcode Labs launched Forevate, a real-time market intelligence platform combining internal data and external signals to help firms respond faster; the solution initially targets manufacturing, logistics, retail/e‑commerce and FMCG across Asia, Europe and North America.

Sri Lanka Export Development Board has opened applications for Sri Lanka Expo 2026, a four-day international trade exhibition from 18–21 June 2026 at BMICH offering 650 booths and access to over 1,500 global buyers; application deadline is 31 March 2026.

Brent crude jumped past $110/bbl in March 2026, prompting Sri Lanka to raise diesel 7.8% and petrol 10%, which widens the import bill, pressures reserves and has devalued the rupee. The shock raises energy and transport costs, risking higher inflation and strain on fuel importers and the power sector.

The BOI will host the 'Invest in Sri Lanka' Forum on 30 March to showcase improving macroeconomic stability and attract global investors to opportunities in renewable energy, tourism, technology and infrastructure.

The Government and leading private-sector CEOs held the 'National Export Roadmap: The CEO Forum' to set strategic priorities for Sri Lanka's export sector, with the Industries Minister saying the Government will act as the main investor in industrial infrastructure. The EDB organized the forum and its outcomes will feed into a broader national export roadmap.

Fitch warns the Iran conflict could raise credit risks for emerging-market sovereigns by raising global energy prices and straining remittances, fiscal subsidies, exchange rates and access to finance; hydrocarbon exporters could benefit while importers (e.g. Pakistan, Egypt, Philippines, Ukraine) are more vulnerable.

Colombo Stock Exchange plunged with the ASPI down 3.28% to 21,957.83 as global oil prices surged above $100 a barrel amid the West Asia conflict; S&P SL20 fell 3.38% to 6,145.67 and market turnover was 1.97 billion rupees.

The Export Development Board convened a CEO Forum to unveil the National Export Roadmap targeting US$36 billion in export revenue by 2030. Officials and industry leaders emphasized a whole-of-government approach and stronger institutional partnerships to drive export-led growth.

BOI will host the 'Invest in Sri Lanka' Forum on 30 March 2026 at Cinnamon Life to showcase sustainable, technology-driven and high-value investment opportunities. The forum highlights include a 70% renewable electricity target by 2030 and prospects across hospitality, logistics, manufacturing and digital infrastructure.