News & market updates

Sri Lanka and Türkiye held their second political consultations in Ankara on May 5, focusing on defence and security cooperation and exploring expanded investments and joint ventures in pharmaceuticals, renewable energy, tourism, logistics and technology. They also discussed connectivity, maritime cooperation and education links.

EU-backed Green Recovery Facility is running a €200,000 capacity-building programme with the SEC, CSE and regulators to strengthen Sri Lanka's GSS+ bond market; recent GSS+ issuances mobilised about LKR85 billion. DFCC Bank and Commercial Bank won APAC sustainable debt awards.

Sri Lanka's Ministry of Energy and Board of Investment issued an RFI for green hydrogen and green ammonia project proposals, with submissions due 5 June 2026. The move supports the National Hydrogen Roadmap targeting 70% renewable power by 2030 and USD 1bn annual green energy exports by 2030.

Mercados Aries International S.A. was awarded a $1.49 million consultancy contract for the ADB-funded Power Grid Empowerment and Renewable Energy Integration Project after EOIs and RFP evaluations following Cabinet approval of the procurement process.

Cabinet approved obtaining ADB transaction advisory services for the 150 MW Kondachchi wind power project, with ADB providing end-to-end support and $1.2m in advisory services funded as a grant. The project will include a 150 MW wind farm with advanced battery storage to provide firmed power to the grid.

Hatton National Bank (HNB.N0000) signed an MoU with George Steuart Solution to offer solar financing for domestic installations from LKR 500,000–7,000,000 and bespoke commercial & industrial project funding, with repayment terms up to seven years and competitive interest rates.

NCINGA won the 2026 Google Cloud Partner of the Year Award for Social Impact: Community Empowerment and Resilience. The firm says it leverages Google Cloud and Google AI for digital inclusion, education, healthcare and renewable energy transition programs and directs 10% of net profits to its Foundation of Humanity.

Sri Lanka and the Maldives pledged deeper economic cooperation at the Maldives–Sri Lanka Business Forum in Colombo, with Maldives announcing investment‑friendly reforms and leaders urging expansion of bilateral trade (US$137m in 2025), tourism, infrastructure and sector partnerships.

Sri Lanka's Ministry of Power and Energy is implementing technical reforms — procuring RE-desk software, operating a renewable forecasting system, and installing battery energy storage systems and a synchronous condenser — to prevent a repeat of the Feb 9, 2025 nationwide outage. The Ceylon Electricity Board has been ordered to implement 12 recommendations, update protection parameters and load-shedding settings, and a four-member committee will monitor progress.

Maxtherm Lanka won the Silver Award for Best Energy Efficiency Service Provider at the National Energy Efficiency Awards 2025. Its biomass boiler conversions can cut fuel costs by up to 75% and the company estimates its interventions delivered about $66m in national cost savings and a ~40m kg CO₂ reduction over three years.

Sampath Bank appointed Dilshan Hettiaratchi as a Non-Executive Independent Director. He is a finance professional with over 30 years' experience, currently MD of Faber Capital and formerly head of Debt Capital Markets at Standard Chartered.

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.

Commercial Bank of Ceylon (COMB.N0000) was named the Asia Pacific regional winner of Global Finance’s Circular Economy Commitment award, recognising its green financing and circular-economy initiatives. The bank is developing a Climate Transition Plan with IFC and uses IFC's CAFI tool to quantify climate impact.

HDFC Bank (HDFC.N0000) launched 'HDFC Green Leasing' to finance EVs and green projects and simultaneously conducted a nationwide tree-planting across 39 branches, planting 500 trees. The initiative focuses on environmental awareness and planting jackfruit and pomegranate to support local food security.

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.

IFC will invest up to $18 million via a local‑currency loan in WindForce PLC to develop Sri Lanka’s first 100 MW utility‑scale solar plant, expected to generate about 220 GWh/year. The project includes advisory support, enables future battery storage, and is projected to create over 3,000 jobs and lower electricity costs.

Sampath Bank’s proposed LKR10 billion Basel III-compliant subordinated green bond was assigned an expected National Long-Term Rating of 'A(EXP)(lka)' by Fitch. The five- and seven-year bonds, which include a non-viability conversion clause, will be listed on the CSE to strengthen Tier 2 capital and finance green projects.

Sri Lanka faces structural energy insecurity—hydro-dependent, import-reliant thermal generation and an ageing grid—while rooftop solar reached about 9.5% of supply in 2025 but is constrained by grid saturation and high battery costs. Recommended near-term policy fixes include storage subsidies, community microgrids, time-of-use tariffs and accelerated smart meter rollout.

WindForce PLC secured a loan facility of up to $18 million from the IFC, with $10m allocated for its equity contribution to a 100MW Siyambalanduwa solar park and $8m earmarked for battery storage and other renewable investments.

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.

Commercial Bank of Ceylon (COMB.N0000) was named the Asia-Pacific regional winner of Global Finance's Circular Economy Commitment award, recognising its green financing strategy and leadership in sustainable and climate-resilient lending.

WindForce PLC has agreed a loan facility with the IFC for up to the LKR equivalent of USD 18 million, approved by its board on 20 April 2026. Up to USD 10m will fund its equity in the 100MW Siyambalanduwa solar park (Rividhanavi) and up to USD 8m is for battery storage or other renewable projects.

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.

Sri Lanka's apparel exports fell 8% in Q1 2026 year-on-year, worsening from a 3% decline in January to 11% in February and March. The sector cites higher operating costs—fuel and electricity adding nearly USD 3m monthly—and calls for energy reform, GSP+ renewal, U.S. engagement and expanded India access.

WindForce PLC (WIND.N0000) has entered a loan agreement with IFC for up to $18m in two phases—$10m for equity in the 100MW Siyambalanduwa solar park and $8m for battery energy storage or other renewable projects.

JB Securities says vehicle import values fell to $148.4m in February from $240.9m in December 2025, signalling a tapering contribution from vehicle imports to growth and fiscal revenues. It also warns fuel prices will rise on 1 May (diesel more) and expects higher EV demand and rooftop solar uptake.

Volt Charge’s charging data estimates a 72-hour interpolated national EV charging peak of about 3.13 MW, with modeled 50–70% simultaneous charging raising demand to ~80–115 MW and an extreme all-vehicles-charging scenario reaching ~165 MW. The piece says EV demand is manageable and that smart charging and time-of-use tariffs can shift load to off-peak/daytime solar to support grid stability.