ECONOMYNEXT – Sri Lanka will announce the launch  of its licensing round for oil and gas exploration this year, the island nation’s state-run Petroleum Development Authority (PDASL) said. 

“The licensing round is a strategic initiative to invite global energy companies to explore and produce oil and gas offshore Sri Lanka,” it said. 

“Exploration work done up to date has confirmed the presence of viable gas accumulations offshore west coast. Timely development of these resources would ensure energy security to the nation as well as it would be a catalyst for its industrial growth.”

The Petroleum Development Authority will announce the details about the new round of licencing on Tuesday,

Sri Lanka’s pursuit of offshore oil and gas exploration began in the late 1960s, initially focusing on shallow offshore areas in the Gulf of Mannar and the Cauvery Basin. 

Early exploratory drilling yielded limited technical successes until 2011, when Cairn Lanka, a subsidiary of Cairn India at that time, made a breakthrough by discovering significant natural gas accumulations in two offshore wells within the deepwater Mannar Basin. 

These discoveries established the presence of commercially viable natural gas and condensate deposits. 

However, due to complex deepwater extraction dynamics, a lack of domestic natural gas infrastructure, and global energy market shifts, commercial production failed to materialize, leading Cairn to exit the block in 2015.

Following years of stagnation, Sri Lanka modernized its regulatory setup by enacting the Petroleum Resources Act of 2021 and establishing the Petroleum Development Authority of Sri Lanka (PDASL) to manage exploration rights and update offshore acreage block maps. 

To revitalize foreign investment and lower its heavy reliance on coal and oil imports, the country introduced new joint-study regulations and structured new licensing frameworks. 

These efforts aim to attract international oil and gas majors to explore and commercialize the estimated hydrocarbon potential across its three major prospective sedimentary basins: the Mannar, Cauvery, and Lanka Basins. (Colombo/August 23/2026) 

ECONOMYNEXT – Sri Lanka’s rupee appreciated to close at 329.40/50 to the US dollar in the spot market on Friday, from 330.10/20 the previous day, while bond yields held broadly steady, dealers said.

A bond maturing on 15.09.2027 closed at 9.50/65 percent, down from 9.60/80 percent.

A bond maturing on 15.03.2028 closed at 10.00/10 percent, up from 9.98/10.05 percent.

A bond maturing on 15.10.2028 closed at 10.15/30 percent, up from 10.10/20 percent.

A bond maturing on 01.08.2030 closed at 10.70/80 percent, down from 10.80/90 percent.

A bond maturing on 01.02.2031 closed at 10.90/95 percent, down from 10.90/11.00 percent.

A bond maturing on 15.12.2032 closed flat at 11.15/25 percent.

A bond maturing on 01.11.2033 closed flat at 11.40/50 percent.

A bond maturing on 15.10.2034 closed at 11.65/70 percent, down from 11.70/80 percent.

A bond maturing on 15.08.2036 closed flat at 11.95/12.00 percent.

A bond maturing on 01.07.2037 closed at 11.95/12.05 percent, from 11.95/12.00 percent. (Colombo/Aug21/2026)

ECONOMYNEXT – Sri Lanka’s Cabinet has approved a plan to provide interest-free loans of up to 25 million rupees each for small and medium-scale rice millers to purchase paddy at government guaranteed prices, the minister of agriculture said.

Speaking during a parliamentary debate on a 7.5 billion rupee supplementary estimate, minister Lal Kantha said that the Paddy Marketing Board (PMB) lacks the capacity to purchase the country’s entire harvest.

“We do not have the complete capacity to purchase the paddy produced by the farming community at a fair price solely through the Paddy Marketing Board,” Lal Kantha stated, noting that the PMB’s purchasing program is insufficient to meet demand. 

While the government declared guaranteed prices of Rs. 120 per kg for Nadu, Rs. 130 for Samba, and Rs. 140 for Keeri Samba, Lal Kantha said that Rs. 120 is inadequate for farmers in low-yield areas producing only 60 to 80 bushels per acre. 

“The only answer to this is to increase the yield in lands where the harvest is low,” he added.

Opposition Leader Sajith Premadasa criticized the pricing formula as an economic disaster for farmers. 

Drawing on government figures estimating Red Nadu production costs at Rs. 70 per kg, Premadasa calculated that a farmer’s seasonal profit amounts to approximately Rs. 100,000 per acre. 

“How can a farmer live on Rs. 16,666 to maintain their family?” Premadasa asked, arguing that this monthly equivalent is unlivable. 

Premadasa also pointed out that despite a domestic rice production surplus of 3.2 million metric tons against a national requirement of 2.5 million, the government has imported rice. (Colombo/August21/2026)

ECONOMYNEXT – Sri Lanka’s Colombo Stock Exchange indices closed up on Friday morning, CSE data showed, with the benchmark All Share Price Index moving up 0.05 percent.

The ASPI was up 10.99 points at 21,416.61, while the more liquid S&P SL20 was up 0.19 percent, or 11.50 points, at 6,030.75.

Positive contributors to the ASPI were Citizens Development Business Finance (up 5.07 percent at 39.40 rupees), Sierra Cables (up 6.13 percent at 34.60 rupees), Hemas Holdings (up 1.27 percent at 31.80 rupees), Dialog Axiata (up 0.64 percent at 47.00 rupees), and Sampath Bank (up 0.36 percent at 140.00 rupees).

Richard Pieris and Company (down 4.03 percent at 26.20 rupees), RIL Property (down 2.43 percent at 24.10 rupees), Commercial Development Company (down 4.75 percent at 36.10 rupees), and Ceylon Cold Stores (down 1.00 percent at 124.00 rupees) were top negative contributors.

Market turnover was 1.22 billion rupees. Capital goods led turnover with 480.7 million rupees.

Melstacorp announced its Board of Directors has decided to convene the Annual General Meeting for the financial year ended March 31, 2026, on Tuesday, September 15, 2026, via Zoom. (Colombo/August21/2026)

ECONOMYNEXT – Foreign diplomatic missions in Sri Lanka were briefed on the upcoming Sri Lanka Economic and Investment Summit (SLEIS) 2026 to encourage greater international engagement with the country’s investment and business agenda.

The briefing provided representatives of diplomatic missions an overview of SLEIS 2026, organised by The Ceylon Chamber of Commerce, which will be held on October 12 and 13.

“The programme will look beyond the immediate concerns of economic stabilisation to issues that will shape Sri Lanka’s next phase of growth, including investment, trade, competitiveness, economic policy and the country’s position within a changing global economy,: the chamber said.

The summit is expected to draw policymakers, business leaders, investors, economists and international stakeholders to examine Sri Lanka’s economic direction and emerging opportunities.

Deputy Minister of Foreign Affairs Arun Hemachandra asked diplomatic missions to carry the message to their respective business communities, investment promotion agencies, investors and chambers of commerce.

Chairperson of the Ceylon Chamber of Commerce Krishan Balendra said the Summit would support efforts to reposition Sri Lanka as a destination with a clearer growth story and opportunities for investment, while giving international and local stakeholders a space to engage directly on the country’s economic direction.

The briefing also highlighted the role of SLEIS as a platform for international business engagement.

With participation expected from international investors, business leaders, policymakers and other economic stakeholders, the Summit will provide opportunities to exchange perspectives, build connections and examine areas where Sri Lanka can compete more effectively in the global economy.

Registrations are now open at https://sleis.chamber.lk/. For more information, contact Alikie on 011 558 8805 (alikie@chamber.lk) or Shanuka on 0701082541 (events.division@chamber.lk). (Colombo/Aug21/2026)