News & market updates

Colombo Stock Exchange jumped 2.54% after President Trump announced an Iran-Israel ceasefire, with the ASPI up 425.80 points to 17,191.20 and the S&P SL20 up 2.86% to 5,133. The rise was led by gains in Commercial Bank, John Keells, Melstacorp, Hayleys and LOLC, with turnover at 5.2 billion.

LAUGFS Gas PLC launched the 'Dara Kadulu' public awareness campaign on World LPG Day 2025 to highlight health risks of indoor air pollution from firewood and promote LPG as a cleaner alternative. The company offered a 25% discount on new LAUGFS Gas cylinders and a loyalty-point donation option to its Project Life CSR program.

Global stocks rose and oil fell after President Trump said a ceasefire was implemented between Israel and Iran, easing geopolitical risk. Brent crude slid about 4–5% toward $68 a barrel while S&P 500 futures rose roughly 0.8%.

Iran launched a retaliatory missile attack on the US Al Udeid Air Base in Qatar, with flares and explosions reported and Qatar temporarily closing its airspace to ensure safety.

Sri Lanka's Foreign Affairs Ministry issued a statement urging all parties in the Middle East conflict to take immediate concrete steps to de-escalate and return to dialogue to restore peace and stability.

Global shares rallied and oil plunged after U.S. President Trump said Iran and Israel had agreed a ceasefire, sending U.S. crude down 3.4% to $66.15/bbl. The dollar weakened, 10-year U.S. yields moved slightly and market attention shifted toward trade/tariff risks and Fed timing.

The National Chamber of Exporters will hold a third seminar on 3 July at the BMICH to address the government's removal of the SVAT system. The Chamber warned the change could strain exporters' cash flows and urged a tested digital, risk-based VAT refund mechanism to avoid delays and higher borrowing costs.

Sri Lanka stocks fell 1.89% as Iran threatened to close the Strait of Hormuz, with the ASPI down 322.55 points to 16,765 and the S&P SL20 down 2.02% to 4,991. Banks and major conglomerates — Sampath Bank, Commercial Bank, John Keells, Melstacorp and Hayleys — weighed on the index amid fears of higher crude prices.

Major Asian share indexes slipped and oil briefly hit five-month highs on fears of Iranian retaliation after U.S. strikes on nuclear sites; Brent traded around $78.07/bbl and U.S. crude at $74.88/bbl. The dollar strengthened and there was little rush into Treasuries as Fed-cut odds remained slim.

Murban crude, Sri Lanka's preferred refinery feed, moved above Brent at $78.49/bbl versus Brent $77.85 as Middle East fighting escalated. Sri Lanka's refinery needs light crudes and, built for Iranian light, has had to source alternatives after US sanctions.

Sri Lanka's Tourism Deputy Minister warned Middle East airspace closures from the Israel–Iran conflict could hurt winter bookings; Europe supplies 50.67% of tourists and Dubai/Doha/Chennai account for 31.05% of arrivals. Airline rerouting is raising fuel costs and may push up fares, dampening demand.

The World Bank Group approved a $150 million program to support Sri Lanka’s clean energy transition, aiming to add 1 GW of solar and wind and including $40 million in guarantees; the program is expected to mobilise over $800 million in private investment and support Ceylon Electricity Board reforms and grid upgrades.

Iran’s parliament approved a measure to block the Strait of Hormuz, a chokepoint carrying about 20% of global oil flows. Final approval rests with the Supreme National Security Council and the Supreme Leader amid heightened tensions after recent US strikes.

The National Chamber of Exporters will hold a seminar on 3 July at BMICH to address exporter concerns over the government's removal of the SVAT system. Speakers from KPMG and the IRD will explain the legal/financial impact and the new digital risk-based VAT refund registration process.

World Bank approved a $150 million program to support Sri Lanka's clean energy transition, targeting 1 GW of new solar and wind, mobilizing over $800 million in private investment and providing $40 million in guarantees to de-risk projects and CEB payment obligations.

World Bank approved a $150m program to finance 1,000 MW of solar and wind capacity and strengthen Sri Lanka's grid to avoid blackouts. The package includes $40m in guarantees to lower private investor risk and is expected to mobilize over $800m in private investment toward a 70% renewables target by 2030.

Lazard's Levelized Cost of Energy+ analysis finds renewable power (solar and onshore wind) is the cheapest and quickest to deploy, with utility-scale solar at $38–$78/MWh versus $48–$107/MWh for natural gas combined-cycle plants; gas-plant build costs are at a 10-year high amid record electricity use and equipment backlogs.

Opinion piece proposes creating a Sri Lanka Sovereign Wealth Fund with an initial capitalization target of $500 million and staged AUM targets of $2 billion (by 2028) and $5 billion (by 2030). It recommends funding via cess reform, tourism levies, diaspora bonds and SOE proceeds and governance aligned with the Santiago Principles.

Oil prices rose as the Iran-Israel conflict entered its sixth day, with Brent at $76.64/bbl and WTI at $75.07/bbl on supply-disruption fears after tanker collisions and reported navigation interference. Markets are also watching US Fed deliberations for their impact on the interest-rate outlook.

Sri Lanka has revived a tender to build a liquefied natural gas (LNG) terminal, with LNG supply planned to start in 2028, the Power and Energy Minister said. The tender — for an FSRU on a BOO/BOO-like model called by the Ceylon Petroleum Corporation and Ceylon Electricity Board — has been reactivated and committees re-established.

The government said Sri Lanka has adequate fuel reserves to meet national demand for two and a half months. The Energy Ministry added CPC holds sufficient stocks for about two months and that advance procurement arrangements are in place, urging the public not to panic-buy.

Foreign Minister Vijitha Herath warned Sri Lanka could face lower remittances from more than 20,000 Sri Lankans working in Israel and higher oil prices after Israel's June 13 attack on Iran. Brent crude rose amid the conflict, raising risks to fuel costs and foreign inflows.

Cabinet Spokesman Nalinda Jayatissa said Sri Lanka has adequate fuel storage and has ordered enough refined and crude oil for the next two-and-a-half months. He urged people not to panic after reports of queues amid fears following Middle East hostilities.

Evolution Auto Pvt Ltd launched Mahindra electric three-wheelers in Sri Lanka, offering models with ranges of 110–150 km and claiming average driver savings of about Rs. 34,980 per month. Models include the Treo (110 km), Treo Plus (150 km) and cargo variants, with 3-year/80,000 km vehicle warranties and a 5-year battery warranty.

Energy Minister Kumara Jayakody said Sri Lanka will call international tenders for large renewable power projects to boost competition and reduce electricity costs. He cited generation cost ranges: hydro 1–12.69 LKR/unit, wind ~12.27, coal 20.80, solar 27.26–35.50 and other thermal 45.52–174.27.

IMF Executive Board will evaluate Sri Lanka's fourth EFF review on July 1; the IMF said Sri Lanka has made substantial progress with inflation falling from 70% to -0.7% and FX reserves rising to $6.5bn. The IMF cautioned about global uncertainty and urged fiscal discipline and governance reforms.

Sri Lanka manufacturing activity recovered in May as the central bank's PMI rose to 55.5 from April's 40.1. The rebound was driven by textiles and wearing apparel, though respondents warned about higher electricity tariffs and tensions in the Middle East.

ASPI fell 0.4% and the S&P SL20 fell 0.7% as Colombo stocks extended losses amid heightened Israel‑Iran tensions. Turnover was Rs.3.15bn; top negative contributors included HNB, COMB, LOLC, HAYL and CTC, while CDB, Hemas, LVL Energy Fund and Lanka IOC saw notable buying/turnover.

Colombo's ASPI fell 0.38% (66.89 pts) to 17,360.19 amid continued Israel-Iran conflict, with S&P SL20 down 0.59% as turnover and volumes slipped and HNB, Commercial Bank, LOLC, Hayleys and Ceylon Tobacco were among the top decliners.

President Anura Kumara Dissanayake told IMF officials that recent U.S. tariffs and other global trade shocks could threaten Sri Lanka's export-driven recovery, noting about 25% of exports go to the U.S. and 23% to the EU under GSP+. He also warned of risks from ongoing conflicts and rising oil prices and urged policies to boost investor confidence.