International news

Companies rush to Iran as sanctions are lifted

Sunday January 31, 2016 8:11 am

Jan 30 (Reuters) – Major international companies are rushing to establish a position in Iran as the Islamic Republic re-opens for business after the lifting of international sanctions.

So far, deals worth a total of at least $37 billion have been announced in sectors such as construction, aviation and car manufacturing. Companies include Europe’s Airbus, French car maker Peugeot and Italian steel firm Danieli.

Dozens more have said that they are in talks or have signed provisional agreements with Iranian partners.

With a population of 80 million and annual output of some $400 billion, Iran is the biggest economy to rejoin the global trading system since the Soviet Union broke up over two decades ago.

DONE DEALS:

AIRBUS

Iran has agreed to buy 118 Airbus jets worth $27 billion at list prices, including a dozen A380 superjumbos. The planemaker said the deal was conditional on getting U.S. export licenses because more than 10 percent of Airbus jetliner parts come from the United States.

CONDOTTE D’ACQUA

Italian infrastructure company Condotte d’Acqua said on Monday it would sign agreements for projects with Iranian companies worth as much as 4 billion euros ($4.3 billion), a company spokesman said.

DANIELI

Italy’s Danieli & C Officine Meccaniche signed a joint venture and agreed orders worth in total about 5.7 billion euros. The venture "Persian Metallics," with an estimated worth of 2 billion euros, involves a group of international and Iranian investors.

Other agreements relating to supply of machines and plants to produce steel and aluminum to be signed with Iranian companies are worth about 3.7 billion euros, the company said.

HELLENIC PETROLEUM

Greece’s biggest oil refiner Hellenic Petroleum agreed on Friday to buy crude oil from the National Iranian Oil Company (NIOC), the first European refiner to restart trade relations with Iran after the lifting of international sanctions. The company had been a major buyer of Iranian crude before sanctions were imposed.

NORINCO INTERNATIONAL

China’s Norinco International Cooperation Ltd said on Wednesday its consortium had signed an agreement for a railway project in Iran for 2.3 billion yuan ($350 million).

PEUGEOT CITROEN

The French car maker and Iran Khodro have announced a 50/50 joint venture to build Peugeot cars in Iran. Peugeot says venture could invest 400 million euros in production, research and development in the next five years.

SINOSTEEL

China’s Sinosteel Engineering & Technology Co said one of its units has signed a contract worth 3.1 billion yuan ($471 million) with Iran’s Bafgh Kasra.

MEMORANDUM SIGNED OR IN TALKS:

ALSTOM

Alstom has signed a memorandum of understanding for the development of mainline and urban transport in Iran, the company said on Friday.

AUDI

The Volkswagen-owned German carmaker said its representatives had traveled to Iran for talks with possible importers, seeing growing potential for luxury car sales.

AUTONEUM

Swiss automotive supplier Autoneum is in talks with French carmakers Renault and <PSA PEUP.PA> about cooperating on potential business in Iran, the Swiss paper Handelszeitung quoted its chief executive as saying on Thursday.

BUCHER

Swiss machinery maker Bucher expects sizeable new orders from Iran within months, its chief executive said. Revenue from pent-up demand in Iran could potentially top the 20 million to 30 million Swiss francs ($20-30 million) his firm reaped there annually before sanctions, he said.

COMMERZBANK

Commerzbank, Germany’s number two lender, said it was considering the possibility of returning to Iran, less than a year after agreeing to pay $1.45 billion to U.S. authorities for violating sanctions.

DAIMLER

Daimler said its trucks division had signed letters of intent with joint venture partners in Iran as part of the German company’s re-entry into the country.

HERRENKNECHT

Herrenknecht, a German tunneling company which helped build the Tehran metro in the 1990s, is ready to bid for projects in Iran, said the company’s chairman. He plans to travel to Iran in the next two months to talk to former business partners.

INTERNATIONAL AIRLINES GROUP

British Airways, part of IAG, hopes to start flying to Tehran in the near future, said the airline group’s chief executive on Monday.

LUKOIL

Top management of Russia’s oil major Lukoil visited Iran and reached an agreement on the firm’s possible participation in several oil projects in the Islamic Republic, Russian Deputy Energy Minister Anatoly Yanovsky said on Friday.

NATIONAL ALUMINIUM CO

India’s state-run National Aluminium Co Ltd (NALCO) is interested in setting up a $2 billion smelter complex in Iran, its chairman said, and will send a team of experts there to explore the opportunity.

OMAN

An Omani sovereign wealth fund has signed an understanding with Iran Khodro to study a proposal for a $200 million auto plant in Oman, a fund official said on Wednesday.

POSCO

South Korea’s POSCO plans to sign a preliminary agreement with Iranian steelmaker PKP in March to buy a stake in a $1.6 billion steel mill project, a source with knowledge of the matter said on Wednesday.

SAIPEM

Italy’s Saipem signed a memorandum of understanding on Monday to cooperate on major oil and gas projects in Iran. Controlled by Eni and Italian state lender fund FSI, Saipem said the MoU had been signed with the Parsian Oil & Gas Development Co and involved the revamping and upgrading of the Pars Shiraz and Tabriz refineries.

It gave no financial details.

OTHER ITALIAN FIRMS

Ansaldo Energia, Fincantieri, and Itinera also signed deals with various Iranian companies in front of reporters on Monday. Not all the details were given.

The following day, the international arm of Telecom Italia Group, Ti Sparkle, said it had signed a MoU with an Iranian telecom firm.

Italian state railways said Ferrovie dello Stato (FS) will provide technical assistance for the construction of a high speed line and the electrification of another. No terms or conditions were revealed.

SCHLUMBERGER

The world’s biggest oilfield services company Schlumberger is in talks to buy back its former Iranianian unit, the managing director of ex-subsidiary Well Services of Iran was cited as saying in the Wall Street Journal.

TURKCELL

Turkey’s largest mobile operator Turkcell is looking for deals to enter the Iranian market and is in touch with the country’s fixed line and mobile operators, its chief executive said.

ZURICH INSURANCE

Zurich Insurance said it would look into insurance cover for corporate customers doing business with Iran.

Bonds & Forex

Sri Lanka rupee closes at 332.53/59 to US dollar spot, bond yields edge up

Monday November 9, 2026 5:05 pm

ECONOMYNEXT – Sri Lanka’s rupee closed at 332.53/59 to the US dollar spot on Monday, from 332.55/60 the previous day, while bond yields closed higher, dealers said.

A bond maturing on 15.09.2029 closed at 190/98 percent, up from 10.85/95 percent.

A bond maturing on 01.08.2030 closed at 11.07/12 percent, up from 11.05/10 percent.

A bond maturing on 01.02.2031 closed at 11.30/40 percent, up from 11.10/15 percent.

A bond maturing on 15.12.2032 closed at 11.65/70 percent, up from 11.55/65 percent.

A bond maturing on 01.11.2033 closed at 11.95/12.00 percent, up from 11.90/95 percent.

A bond maturing on 15.10.2034 closed at 12.10/15 percent, up from 12.05/12 percent.

A bond maturing on 15.08.2036 closed at 12.40/50 percent, up from 12.30/40 percent. (Colombo/Nov9/2026)

Markets

Sri Lanka stocks close up 1.37-pct, banks lead turnover

Monday November 9, 2026 3:29 pm

ECONOMYNEXT – Sri Lanka’s Colombo Stock Exchange closed up on Monday, CSE data showed, with the benchmark All Share Price Index moving up 1.37 percent.

The ASPI was up 291.72 points at 21,531.37, while the more liquid S&P SL20 was up 1.67 percent, or 100.96 points, at 6,146.34.

Positive contributors to the ASPI were Commercial Bank of Ceylon (up 2.86 percent at 216.00 rupees), Hatton National Bank (up 1.52 percent at 399.75 rupees), Asiri Hospital Holdings (up 12.86 percent at 31.60 rupees), Tokyo Cement Company (up 5.22 percent at 84.70 rupees), and Access Engineering (up 3.93 percent at 81.90 rupees).

Carson Cumberbatch (down 4.24 percent at 712.00 rupees), Richard Pieris and Company (down 2.43 percent at 28.10 rupees), LOLC Holdings (down 0.62 percent at 400.00 rupees), Renuka Holdings (down 2.63 percent at 37.00 rupees), and Chevron Lubricants Lanka (down 0.61 percent at 204.25 rupees) were top negative contributors.

Market turnover was 3.33 billion rupees. The S&P/CSE Banks Industry Group led turnover with 667.76 million rupees.

The session saw heavy crossings, according to Raynal Wickremeratne, Head of Research and Strategy at NDB Securities. Significant crossings included Keells (23 million rupees), Distilleries Company (27.7 million rupees), Sunshine Holdings (30.6 million rupees), Commercial Bank (32.4 million rupees), Ceylon Tobacco Company (35.6 million rupees), Hatton National Bank (39.5 million rupees), Prime Lands (40.5 million rupees), and HAS Holdings (41.5 million rupees).

In corporate news, Hayleys Retail Holdings Ltd announced it has partnered with supply chain software provider Blue Yonder to build and scale an AI-native grocery supermarket chain across Sri Lanka. (Colombo/Nov09/2026)

Information Technology

Sri Lanka’s Hayleys Retail to launch supermarket chain with Blue Yonder

Monday November 9, 2026 3:12 pm

ECONOMYNEXT — Hayleys Retail Holdings Ltd has selected supply chain software provider Blue Yonder to build its grocery retail operations from the ground up, the two companies said in a joint statement.

Hayleys Retail, a member of Sri Lanka’s diversified conglomerate Hayleys Group, plans to open several stores in the near future to serve consumers across the country. The agreement marks Blue Yonder’s first retail customer in Sri Lanka.

“Our entry into supermarket retail is about bringing that same commitment to quality and reliability closer to everyday Sri Lankan consumers,” Mohan Pandithage, Chairman and Chief Executive of Hayleys PLC said.

“With Blue Yonder, our teams will have AI-driven insight to deliver a seamless, consistent shopping experience across every store,” he said.

Hayleys, which accounts for approximately 5 percent of Sri Lanka’s export income and operates across 17 business sectors, is entering the large-scale supermarket space by drawing on its group strengths in manufacturing, logistics, and services.

The company selected Blue Yonder to connect its data across merchandising and shelf space, deploy artificial intelligence agents to catch operational issues early, and scale its business into a national network without changing platforms.

The rollout will begin with merchandise operations to manage suppliers, items, costs, and pricing, followed by machine learning capabilities to forecast demand and balance store inventory during seasonal peaks.

“Hayleys Retail is choosing one where AI is the foundation rather than an add-on—connected data and agentic AI built into core merchandising operations, and planning that learns as the business grows,” Antonio Boccalandro, President, APAC at Blue Yonder said.

The retailer plans to use the platform to automate routine store tasks and adjust inventory according to real-time sales and local market trends as its store footprint grows. (Colombo/Nov09/2026)

Stocks & Companies

Sri Lanka’s Citrus Leisure extends Lotus Tower management pact

Monday November 9, 2026 1:16 pm

ECONOMYNEXT – Sri Lanka listed hospitality firm Citrus Leisure said it has extended an agreement to manage consumer-facing and entertainment spaces at the Colombo Lotus Tower, which includes revolving restaurant Blue Orbit, until June next year.

The initial agreement signed between Citrus Leisure and Colombo Lotus Tower Management Company (Private) Limited (CLTMC) is due to expire on December 11.

“The Board of Directors of CLTMC at meeting held on 2nd November 2026 has resolved to extend the term of the Management Agreement and continue the existing Management Agreement until 30th June 2027, to which the company has given its concurrence,” the company said in a market filing.

Citrus Leisure Plc opened its revolving restaurant at the Lotus Tower in December 2023.

The company signed a 3-year agreement with CLTMC in May 2023 to provide services in the management of (l) the banquet hall 1 on the 25th floor, (2) the banquet hall 2 on the 26th floor, (3) the revolving restaurant on the 27th floor, (4) the 6 suites situated on the 28th floor and the kitchen in the basement floor of the Colombo Lotus Tower.

The 350-meter or 1,150-feet tower, the tallest in South Asia, was built at a cost 104.3 million US dollars with 80 percent of the money borrowed from Exim Bank of China.

Located in the commercial heart of Colombo, the tower has been called a symbolic landmark of Sri Lanka as well as a colossal white elephant and has been mired in controversy for years. (Colombo/Nov9/2026)

Markets

CIC Holdings Sept quarter net profit rises 20-pct to Rs1.7bn

Monday November 9, 2026 11:50 am

ECONOMYNEXT — Sri Lanka conglomerate CIC Holdings recorded a net profit of 1.66 billion rupees for the quarter ended September 30, rising 20.3 percent from 1.38 billion rupees in the same quarter last year, interim accounts showed.

The group posted basic earnings per share of 0.87 rupees for the September quarter, up from 0.73 rupees a year earlier.

Quarterly revenue grew 3.4 percent to 20.89 billion rupees from 20.20 billion rupees, supported by broad-based growth across industrial solutions, livestock, and healthcare segments, which counterbalanced relative demand moderation in agricultural inputs.

Cost of sales rose 5.3 percent to 15.20 billion rupees, outpacing revenue growth and causing gross profit to contract marginally by 1.2 percent to 5.68 billion rupees.

Results from operating activities dropped 7.3 percent to 2.66 billion rupees from 2.87 billion rupees, impacted by higher operating overheads.

Selling expenses expanded 6.8 percent to 2.15 billion rupees, and general and administrative expenses climbed 5.8 percent to 1.07 billion rupees, while other operating income dropped 29.6 percent to 117.40 million rupees.

However, operating profits were cushioned by an impairment reversal on trade receivables of 85.83 million rupees, turning around from an impairment provision of 23.38 million rupees in the corresponding quarter last year.

Net finance costs climbed 35.4 percent to 712.25 million rupees from 526.01 million rupees.

The increase was driven by a 30.8 percent rise in finance expenses to 771.46 million rupees, primarily reflecting higher interest expenses on loans to finance elevated working capital and inventory requirements.

The quarter’s bottom line was strongly bolstered by CIC’s equity-accounted investment in John Keells Holdings PLC (JKH).

Share of profit from equity-accounted investees surged more than fourfold to 590.50 million rupees from 257.87 million rupees, driven by JKH’s strong profit expansion during the period.

The group also recognized a gain on bargain purchase of 55.59 million rupees during the quarter resulting from additional share purchases in JKH where the proportionate net asset value exceeded acquisition cost, compared to no such gain a year earlier.

With associate income gains offsetting operating margin contraction and higher borrowing costs, group pre-tax profit held virtually flat at 2.59 billion rupees, down 0.11 percent.

Income tax expense fell 29.4 percent to 606.24 million rupees from 858.71 million rupees, driving total group profit for the period up 14.1 percent to 1.98 billion rupees.

Total group assets stood at 108.58 billion rupees as of September 30, up from 99.75 billion rupees at the end of March 2026.

Group net asset value per share increased to 25.52 rupees from 22.10 rupees a year earlier.

CIC Holdings’ ordinary voting shares closed at 27.80 rupees at the end of September.(Colombo/Nov09/2026)