News & market updates

Contract for six new petroleum storage tanks at the Kolonnawa Petroleum Storage Complex was awarded to Indo East Engineering – Ceylex Engineering JV for Rs.3.7 billion, due for completion in 24 months (by Sept 2027). President Dissanayake said the expansion and other modernization steps aim to boost energy security and avoid repeat fuel-queue crises, noting CPC earned Rs.18.2 billion in the past eight months.

Sri Lanka expects China’s Sinopec to start work this year on a $3.7 billion, 200,000 bpd refinery near Hambantota and is negotiating allowing up to 40% of output to be sold locally. The government also plans about $3 billion to expand its state refinery from 38,000 bpd to 150,000 bpd, with work due to start next year.

COPE found Magampura Port Management Company, the SLPA's fuel supplier at Hambantota Port, has an outstanding $18.82m bank loan and is in liquidation. The committee urged expedited repayment, an internal inquiry, disciplinary action where needed and stronger SLPA oversight.

Energy Minister Kumara Jayakody urged Ceylon Electricity Board employees to accept newly approved reforms that would split CEB into four state-owned entities and gave staff two months to express their views. The changes aim to make the sector more bankable for multilateral financing, but critics say they may weaken regulatory independence and employee protections.

Vallibel Three acquired a further 10.4% of Laugfs Holdings, taking its total stake to 50%. Laugfs founder W K H Wegapitiya transferred 10% and Laugfs Holdings owns listed Laugfs Power and Laugfs Gas.

Cabinet approved a committee to draft a national electricity policy to drive CEB unbundling, introduce market competition and improve governance. The report notes volatile CEB results (Rs.58bn in 2023, Rs.144bn in 2024, Rs.18bn loss in Q1 2025 after a 20% tariff cut) and legacy debt cited at Rs.182–301bn, raising fiscal and bank exposure concerns.

Sri Lanka's state-run Ceylon Electricity Board has sought a 6.8% tariff increase. The regulator said the rise is mainly due to higher demand met by thermal generation, plus finance and penalty costs related to renewable suppliers, and would be spread evenly across consumer groups.

PUCSL has opened public consultation on the Ceylon Electricity Board's proposed 6.8% electricity tariff increase for Q4 2025, inviting written submissions by 7 October 2025 and holding nine provincial hearings; the consultation paper is available online.

Oil prices rose after Israel struck in Doha, Qatar, with WTI up 1.37% to $63.11 and Brent up 1.32% to $66.89 as traders added a geopolitical risk premium. The strike raised concerns of wider Gulf instability that could boost energy-market volatility.

LAUGFS Gas and LAUGFS Power shares surged (LAUGFS Gas voting +65.42% to Rs.66.50; LAUGFS Power non-voting +63% to Rs.14.20) after reports of a 50:50 partnership with Vallibel Three (Dhammika Perera). Meanwhile the ASPI fell 0.4% to 20,906 with declines led by HNB, COMB, DFCC, CINS and JKH; turnover leaders included RIL, CTHR and EBCR.

Ceylon Petroleum Corporation has invited investors to expand its 50,000 bpd Sapugaskande refinery to 100,000 bpd or build a new refinery on-site, with the investor financing the project, taking a share with CPC and transferring the plant back at concession end.

Government breaks ground on the $140m Rividanavi Solar Power Park, a 100 MW project expected to add 219 GWh/yr to the grid and save Rs.21bn in diesel imports; the project is implemented by Rivi Danavi, a JV including WindForce PLC, and targets Q1 2027 completion.

Businessman Dhammika Perera is buying a 39% stake in Laugfs' holding company as founder director Thilak de Silva exits. Laugfs—which includes listed Laugfs Gas and Laugfs Power and operates LPG, shipping and power businesses—has a reported market transaction estimate of about 5–7 billion rupees.

Senior Economic Adviser Duminda Hulangamuwa said a State-Owned Enterprises Bill will be tabled this month and a new PPP Act is being readied to boost private participation, and that Port City Colombo has attracted about $1.5 billion in four investments.

Ceylon Petroleum Corporation cut fuel prices effective midnight yesterday: Auto Diesel down Rs.6 to Rs.283/L, Super Diesel down Rs.12 to Rs.313/L, and Petrol Octane 92 down Rs.6 to Rs.299/L; Petrol Octane 95 and kerosene unchanged.

Ceylon Petroleum Corporation cut Octane 92 petrol by Rs6 to Rs299/litre and auto diesel by Rs6 to Rs283/litre from midnight Aug 31; Octane 95 and kerosene were unchanged and super diesel was cut by Rs12 to Rs313/litre.

Sri Lanka spent $506.1 million on personal vehicle imports up to July 2025 (up from $34.8 million a year earlier), with $162.2 million on commercial vehicles. Private credit has surged partly due to car loans, analysts warn rate cuts and inflationary policy could pressure reserves and the external sector; July dollar inflows were $2.6 billion.

Gross foreign reserves fell from $6,531m in March 2025 to $6,044m in July 2025 and net reserves after swaps fell from $2,791m to $2,210m, even as the central bank increased dollar swap transactions with banks, opposition MP Kabir Hashim told parliament.

Parliament's Sectoral Oversight Committee has called for a revision of prices for the 350 MW Kerawalapitiya Sahasdhanavi LNG power plant to reflect post-2021 fuel and FX costs, and ordered the Power and Energy Ministry to update Cabinet and submit a pricing, procurement and timeline report within two weeks. The committee urged expedited LNG procurement, wants the plant to use LNG by 2028, and noted Sobadhanavi remains diesel-only pending an LNG/FSRU supply agreement.

The Cabinet awarded a six-month petrol supply contract to Aditya Birla Global Trading (Singapore) Ltd. to deliver 1.5 million (+/-5%) barrels of 92 Octane petrol in five shipments from 15 Sep 2025 to 14 Mar 2026.

Sri Lanka's Cabinet approved awarding a six-month contract to Aditya Birla Global Trading (Singapore) to supply 1.5 million barrels of Octane 92 starting 15 September.

Ceylon Petroleum Corporation and Petroleum Storage Terminals Ltd launched phase one of expanded bunkering capacity at Colombo Port South Jetty, adding new pipelines and fuelling facilities to ease previous berth and pipeline bottlenecks and enable CPC to start private-sector bunkering operations.

Ceylon National Chamber of Industries chairman Kevin Edwards said manufacturers are broadly satisfied with the government's move to cut reciprocal US tariffs to 20% from 44% but warned uncertainty over which sectors will open to US competition and that imported inputs and energy costs may rise.

Sri Lanka's electricity generation rose 7.7% in May 2025 to 1,531 GWh and is up 3.7% year-to-date to 7,167 GWh, reflecting an economic recovery supported by price cuts, higher petrol sales and tourism.

Matheendra De Zoysa has been appointed to lead Omera Petroleum's two companies, Omera LPG and Omera Cylinders Ltd. He previously served as Chief Operating Officer for LAUGFS Gas PLC and has over 25 years of industry experience.

Samson International PLC reported a 158% profit increase in Q1 (quarter ended 30 June) with revenue up 19% to Rs. 648 million, driven by a 43% rise in export sales. Management attributed the turnaround to market diversification and strategic initiatives implemented over the past year.

Fitch warns that recent US reciprocal tariffs (25% from 7 Aug 2025, plus a 25% levy on certain oil imports from 27 Aug) raise risks for Indian corporates: while direct exposure is currently limited, higher or additional tariffs could hit pharmaceuticals, autos, chemicals and oil marketing companies and weigh on FY26 growth.

Tokyo Cement reported Q1 (ended 30 Jun 2025) turnover of Rs. 12,544 million and PAT of Rs. 668 million, versus turnover of Rs. 11,665 million and PAT of Rs. 707 million a year earlier. Turnover rose on volume and new construction activity; the Group cites 4 Mn MT capacity not fully utilised.

Putin praised Trump and their Alaska meeting made no mention of 'secondary sanctions,' raising hopes the US will not impose additional tariffs or sanctions on countries (including India) importing Russian oil.