News & market updates

PUCSL is seeking public comments on a proposed provincial electricity tariff increase after state-run CEB requested an 18.3% revenue-raising hike; CEB reported a Rs 18 billion loss following an earlier 20% tariff cut. PUCSL will hold provincial meetings from May 23–June 3.

Sri Lanka’s central bank is expected to hold policy rates unchanged for a third consecutive meeting to support growth amid benign inflation. Policymakers also face uncertainty from suspended U.S. tariffs on about $3bn of exports and must raise power prices to secure IMF approval.

Colombo Stock Exchange fell 0.37% as profit taking and concern over a proposed 18.3% electricity tariff hike weighed on markets, with the ASPI down 61.43 points to 16,336.25 and banking names notably weaker; turnover slipped to 1.5 billion rupees.

Asian stocks rose (MSCI Asia ex-Japan +0.36%) as traders weighed U.S. debt concerns after Moody's downgrade and steadier U.S. Treasury yields. Investors also monitored interest-rate moves (Fed, RBA, China's rate cut), bond yields and oil prices amid stalled trade talks.

CBSL officials said the recent brief deflation is temporary and growth momentum is continuing into 2025, citing private-sector credit expansion of Rs. 274.6 billion in the first three months and attributing deflation mainly to lower electricity tariffs and fuel prices.

Secondary Treasury bond yields rose on 16 May amid profit-taking and ahead of an advanced monetary policy meeting, with near-term maturities around 9.64%-9.73%, 2029 maturities about 10.10%-10.18% and longer maturities at 10.63%-11.00%; secondary volume was Rs.20.68bn. USD/LKR closed weaker at 299.85/300.05.

DIMO delivered a KALMAR DCU80 Empty Container Handler (8-ton capacity) to IWS Logistics, enhancing yard throughput and space management while reducing fuel use and CO₂ emissions.

Sri Lanka's overall budget deficit narrowed to 234.5 billion rupees in Q1 2025 from 281.3 billion a year earlier, with tax revenue up ~17% to 1,066 billion rupees while current spending rose 21% to 587 billion rupees, and interest costs increased to 597.2 billion rupees.

Ceylon Electricity Board has sought an 18.3% tariff increase to raise revenues and recover losses after a regulator-ordered 20% cut that contributed to an Rs 18bn loss and left a Rs 42.19bn deficit. CEB projects Rs 230bn revenue versus Rs 276bn costs for Jun–Dec 2025.

Sinopec held a 'Clean Sri Lanka' Open Day on 16 May 2025 at its newly upgraded Nawala Dilly fuel station, marking its formal participation in the government Clean Sri Lanka Project and the 14th filling station upgraded since Sinopec's entry into Sri Lanka. The upgrade features HSE improvements (precision pumps, vapour capture, emergency shut-offs) and island-wide staff training on safety and customer service.

Ceylon Electricity Board posted an 18.2 billion rupee gross loss in the March 2025 quarter after a regulator-enforced tariff cut, with revenues down 44% to Rs93.9bn and cost of sales at Rs112.1bn. The tariff cut has delayed an IMF program and complicates borrowing for grid upgrades to absorb more renewables.

Dividend · Rs 5.00 · XD Jun 20, 2025

First And Final dividend of LKR 5/share; XD 2025-06-20; record 2025-06-22; payable 2025-07-09; FY 2024/25

Colombo market jumped as the ASPI rose 215 points (1.35%) to 16,131, reclaiming the 16,000 level with turnover of Rs.3.3bn. HNB, COMB, CFIN, SAMP, SPEN and JKH were among the top drivers and foreign investors were net buyers (Rs.25.5m).

SLT Group reported PAT of Rs. 2,001 million for Q1 ended March 31, 2025, up from Rs. 156 million a year earlier, driven by Mobitel revenue growth and cost optimization. Group revenue rose 3.4% to Rs. 27,851 million and EBITDA increased 13% to Rs. 10,443 million; Mobitel turned to a net profit of Rs. 477 million.

SLT Group reported PAT of Rs.2,001 million for Q1 ended 31 March, up from Rs.156 million a year earlier. Mobitel drove revenue growth and turned a net loss into a net profit of Rs.477 million, with group EBITDA rising 13% to Rs.10,443 million.

US CPI rose 2.3% year‑on‑year in April 2025, with core inflation up 2.8% y/y; the Federal Reserve kept its policy rate unchanged while continuing to withdraw excess liquidity.

Fitch warns the global trade war will cut emerging-market growth, forecasting global growth below 2% this year and Chinese growth under 4%, and lowered its 2025 Brent oil assumption to $65/bbl. It said higher US yields raise financing risks for EMs, though a weaker dollar has eased some exchange-rate/debt pressures.

Fitch warns the global trade war will hit emerging-market growth, forecasting global growth below 2% this year and Chinese growth under 4%, with tariff shocks and higher US yields risking EM credit. A weaker US dollar and a lower 2025 Brent assumption ($65/bbl) partly ease some pressures.

The Cabinet approved exploration and potential production of petroleum and natural gas in four offshore Mannar Basin blocks and the engagement of a marketing consultant to attract investors. The move follows 2011 Cairn Lanka findings of two natural gas deposits that confirmed a working hydrocarbon system in the Basin.

LAUGFS Holdings appointed Dr. Ravi Edirisinghe as Group Managing Director and Group CEO, effective 2 May 2025. He will lead a business revival and transformation across LAUGFS’s energy, retail, manufacturing and hospitality operations.

Sri Lanka plans a new licensing round for offshore oil and gas exploration in the Mannar basin and is seeking a marketing consultant to run the program. Cairn Sri Lanka's 2011 drilling in the M2 block found two natural gas deposits, indicating a viable hydrocarbon system.

LAUGFS Holdings appointed Dr. Ravi Edirisinghe as Group Managing Director and Group CEO, effective 2 May 2025. He succeeds Piyadasa Kudabalage and will lead the group's business revival and transformation across its energy, retail, manufacturing and hospitality operations.

US buyers are negotiating with Sri Lankan exporters to share a 10% import tax, which exporters say will likely reduce margins; exporters are also pursuing cost cuts and note easing energy and cotton prices may lower input costs.

CEYPETCO cut fuel prices across categories — Petrol 92 down Rs.6 to Rs.293, Petrol 95 down Rs.20 to Rs.341, Auto Diesel down Rs.12 to Rs.274, Super Diesel down Rs.6 to Rs.325, Kerosene down Rs.5 to Rs.178 — and LIOC aligned its prices. LAUGFS Gas said it will not revise LP gas prices for May 2025.

Government reaffirmed commitment to cost-reflective electricity tariffs as an IMF structural benchmark, but quarterly implementation has lagged due to data and timing challenges. The IMF says the automatic pricing mechanism isn't fully functioning and prior actions on cost-recovery are needed to complete the review and unlock the next tranche.

Sri Lanka adopted a strategic, non‑committal stance in talks with the US to preserve competitive access for exporters (notably apparel and rubber) and flagged energy as a priority for deeper trade ties. A 44% reciprocal tariff was suspended for three months with a 10% baseline; further discussions are expected.

IMF’s new mission chief said more progress is needed on Sri Lanka’s state-owned enterprise reforms after the government halted prior divestments, noting the 2025 budget set aside 20 billion rupees to pay some SriLankan Airlines debt. The IMF urged faster action on publishing SOE financials, limiting FX guarantees and restraining new FX borrowing.

National Development Bank PLC (NDB.N0000) is promoting Avurudu offers with up to 70% discounts at 400+ merchants and 0% installment plans up to 36 months on NDB Cards. Offers include 0% installments for education, health, home appliances, travel benefits and zero fuel surcharges.

Sri Lanka is awaiting a US response to proposals it handed over to address the US trade deficit and reduce import barriers, including recommending energy imports as a fast way to bridge the deficit. Officials said the proposals were presented in talks with the US Trade Representative and noted decisions are constrained by the IMF programme.