Sri Lanka's Cabinet approved long-term fuel supply contracts while the stock market gained ground and worker remittances surged 11.5 percent in July, reflecting cautious economic recovery signs.
Sri Lanka's Cabinet of Ministers has awarded long-term contracts for petrol, diesel, and crude oil supplies to international trading firms, according to minister Nalinda Jayatissa. Aditya Birla Global Trading secured contracts for 1.2 million barrels of Petrol 92 Unl over six months starting September and 2.8 million barrels of Murban crude oil for four months from November. Vitol Asia Pte Ltd won the tender for 1.12 million barrels of diesel over the same four-month period beginning September. The Ceylon Petroleum Corporation had received multiple bids for each category before making the selections.
On the financial markets, activity remained positive on Tuesday as the Colombo Stock Exchange's All Share Price Index rose 0.16 percent. Major gainers included Citizens Development Business Finance, which climbed 5.43 percent, and Richard Pieris and Company, up 4.04 percent. The rupee appreciated to 334.90/335.00 against the US dollar, while bond yields fell further on shorter-dated securities, reflecting strong market sentiment.
Worker remittances rebounded significantly, rising 11.5 percent to US$777.6 million in July following weakness in June related to Middle East tensions. The cumulative remittances for the first seven months of 2026 reached US$5,382.4 million, representing 21.4 percent growth year-on-year. Officials attributed the July recovery to rupee stability after recent currency pressures. The Central Bank continued its foreign reserve accumulation strategy, purchasing a net US$348.6 million in July as part of broader efforts to meet International Monetary Fund commitments and prepare for sovereign debt repayments scheduled for 2028.
