News & market updates

Sri Lanka received 38,000 metric tons of fuel from India, President Anura Kumara Dissanayake said, thanking PM Narendra Modi and Dr. S. Jaishankar for the swift delivery.

Government launches five-month 'Surakimu Lanka' program to promote voluntary energy conservation to manage potential fuel and electricity supply risks from the Middle East conflict and possible El Niño. It urges reduced peak-time use (6–10pm), shifting energy-intensive activities to daytime and highlights hydropower management.

A government monitoring committee warned current fuel quotas are insufficient and could trigger price increases for essential goods ahead of the Sinhala and Tamil New Year; five CPC officials will be appointed to assess needs and a QR-code system for fuel issuance will be introduced.

Secondary bond market closed the week broadly unchanged across the belly to long end after choppy trading driven by the Middle East conflict and oil-price swings, while the very short end rose modestly. Weekly T-Bill yields increased (91d 7.64%, 182d 7.95%, 364d 8.32%), foreign holdings saw a net outflow of Rs.8.68bn and USD/LKR weakened to about 315.

Asian stocks slumped as Brent crude rose 3% to $115.98, bringing monthly gains near 60% and raising inflation and recession risks. Markets have priced in higher Fed tightening and sovereign yields have jumped, pressuring energy, manufacturing, logistics, retail and financial sectors.

Colombo Stock Exchange closed down 1.33% as Brent crude stayed above $115/bbl; ASPI fell 283.49 pts to 21,092.24 and S&P SL20 dropped 91.03 pts to 5,908.96. Turnover was Rs 4.76bn with diversified financials contributing Rs 1.612bn; JKH and Sampath saw crossings.

Colombo Stock Exchange fell, with the ASPI down 0.86% to 21,192.24 as Brent crude climbed past $115/bbl. Turnover was Rs 1 billion; top gainers were Bukit Darah (up 8.96%) and Browns Investments (up 8.77%), while Hayleys, Commercial Bank and NDB were among the biggest losers.

Ceylon Petroleum Corporation said Sri Lanka could reduce fuel prices if it secures a Murban crude shipment, noting no crude has arrived since the Feb 28 attacks; a shipment in April would allow price cuts and profit-sharing with the public.

India sharply cut special excise duties on petrol to 3 INR/litre (from 13) and diesel to 0 INR/litre (from 10) to ease domestic costs, while Vietnam suspended environmental protection and special consumption taxes on petrol, diesel and jet fuel until April 15 amid rising global oil prices.

Opposition Leader Sajith Premadasa urged the government to cut fuel taxes after India reduced excise duties; President Dissanayake said the government is reviewing the matter, noting monthly fuel tax revenue is about Rs.20 billion and diesel generated Rs.240 billion last year.

Government rolled out a special fuel distribution mechanism for manufacturing firms and has forwarded 2,551 manufacturing fuel requests to the Ceylon Petroleum Corporation. Firms needing <400 litres will get supplies from provincial stations, 400–6,600 litres via SLTB depots, and >6,600 litres directly from CPC; CEB/CPC instructed to ensure uninterrupted supply.

The Lanka Confectionery Manufacturers Association pledged to keep prices of biscuits, chocolates and ice cream unchanged through May (Sinhala & Tamil New Year), citing rising utility and imported-input costs and urging government support on fuel distribution and customs delays.

World Bank will provide immediate financial relief and policy support to countries hit by the Middle East conflict as commodity and shipping disruptions push up costs—crude oil ~+40% Feb–Mar, LNG to Asia ~+66%, and nitrogen fertilisers ~+50% in March.

Iran's Islamic Revolutionary Guard Corps said it prohibits shipping to and from ports of US- and Israeli-allied countries and declared the Strait of Hormuz closed, warning vessels will face harsh measures; three container ships were blocked today.

ASPI rose 3.56% for the week but closed yesterday down 0.21% at 21,375.73 as the bourse ended a volatile week; foreign investors were net sellers of over Rs.1.2 billion and market turnover was about Rs.2.7 billion.

The Lanka Confectionery Manufacturers Association said prices of biscuits, ice cream, chocolate and other confectionery will not be increased until May. The group warned rising gas, electricity and ingredient costs, plus customs delays and higher shipping charges, could force price revisions after May.

Secondary Treasury bond yields rose, with mid-to-long maturities trading around 9.55%–11.00% and total secondary volume at Rs.37.60bn. Net liquidity surplus was Rs.247.29bn as the CB drained Rs.100bn via overnight repo; USD/LKR closed 314.30/314.70 and Brent rebounded above $104/bbl.

Colombo market fell 2.05% (ASPI -448.91 pts to 21,419.94), wiping out Rs.173 billion after oil rose ~2% to ~$104/bbl amid escalating Mideast tensions. HNB, MELS, COMB, CTHR and JKH were the top negative contributors; turnover was near Rs.3.3 billion.

Russia has agreed to supply fuel to Sri Lanka and is ready to immediately provide refined petroleum products, the Ceylon Petroleum Corporation said. CPC added fuel stocks are sufficient until May; a vessel with 35,500 mt of diesel has arrived and two more shipments are expected this month.

OECD cut its global growth outlook, projecting GDP growth of 2.9% in 2026 and 3.0% in 2027 as higher energy and fertiliser prices linked to the Middle East conflict drive up inflation and weigh on demand.

Fitch says an adverse Iran conflict through mid-2026 would reduce global real GDP by about 0.8% after four quarters versus its March baseline, driven mainly by higher oil prices and falling equity markets; inflation across the 'Fitch 20' would be ~1.3pp higher after four quarters.

Asian countries including Vietnam, Thailand, the Philippines, Indonesia and Sri Lanka are lining up to buy Russian oil as the Iran war blocks Middle East supplies, raising the risk that demand may exceed Russian export capacity. India and China already take about 80% of Russian exports and Ukrainian drone strikes have cut roughly 40% of Russia's oil-exporting capacity.

A presidential tourism task force chaired by Tourism Minister Vijitha Herath met to shield the sector after arrivals fell 5.15% in the first 15 days of March amid Middle East conflict-related flight cancellations (447 arrivals, 451 departures). The industry faces heavy losses (estimated $80–100m/month) even as cumulative 2026 arrivals topped 708,348 year-to-date.

Russian Deputy Energy Minister Roman Marshavin said Moscow is prepared to support Sri Lanka in the energy sector and provide technical and machinery assistance during his official visit to Colombo.

Sri Lanka's ASPI fell 2.05% to 21,419.94 on Thursday amid uncertainty over US‑Iran talks and Brent crude rising above $100. Hatton National Bank, Melstacorp, Commercial Bank and C T Holdings were top negative contributors; Commercial Bank announced scrip dividend allocations of 14,236,941 voting and 984,260 non‑voting shares.

ADB pledged an additional $100m in budget support to help Sri Lanka mitigate economic shocks from the West Asia conflict, raising its planned 2026 support to $480m. It is also fast-tracking a $200m emergency loan for cyclone reconstruction and backing port, transport and logistics projects while scaling annual programs to over $1bn.

Gold held steady at $4,503.29/oz as investors awaited clearer signs on Middle East ceasefire talks; crude oil rose above $100/bbl and markets have priced out Fed easing this year.

Asian stocks struggled as Middle East ceasefire talks and widening conflict sent Brent crude to $103.35/bbl, stoking a surge in oil prices. The move lifted the dollar, pushed out expectations of Fed rate cuts and left MSCI Asia ex-Japan lower amid heightened market caution.

Central Bank Governor Nandalal Weerasinghe said imposing forex or trade controls is not the right response to Middle East conflict fallout, with the central bank keeping interest rates on hold and the government raising fuel prices to balance external and domestic demand. He added remittances remain strong, tourism is down, and the CB is using repo operations to mop up excess liquidity while warning that permanent sterilization is needed to avoid excess imports and pressure on the rupee.

CBSL Governor Nandalal Weerasinghe said the central bank does not see justification to grant a financial moratorium or suspend the parate law for MSMEs at this stage. He added the banking sector is healthy and current indicators do not point to a spike in NPLs.