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Ukraine's Zelenskiy visits Sweden for 'aviation' news

By Simon Johnson

Reuters

UPPSALA, Sweden, May 28 (Reuters) - Sweden's Prime Minister Ulf ‌Kristersson will host Ukrainian President ‌Volodymyr Zelenskiy in Sweden in Thursday, where the ​they will present news related to aviation, the government said.

Kristersson and Zelenskiy signed a letter of intent last ‌year that ⁠could see Sweden sell up to 150 of its newer ⁠Gripen E fighter jets to Ukraine. But with deliveries several years ​away, there ​have been discussions ​about transfer of ‌existing, C/D model Swedish Gripens.

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The planes are a priority for Ukraine's fighter fleet and the country's defence minister said in May that a deal ‌for Gripen E ​could be signed "within months" ​after the ​European Union approved a ‌90 billion euro loan to ​Ukraine.

Shares ​in Saab rose following the announcement and were up 4.86% at ​0817 GMT.

(Reporting ‌by Simon Johnson, Johan Ahlander, Louise ​Rasmussen and Essi Lehto; editing ​by Niklas Pollard)

Ukraine's Zelenskiy visits Sweden for 'aviation' news

By Simon Johnson UPPSALA, Sweden, May 28 (Reuters) - Sweden's Prime Minister Ulf ‌Kristersson will host Ukrainian President ‌...
How “Reno 911!: Miami” traumatized Paul Rudd's child

Actor Paul Rudd remembered the first time his kids saw his movies during a recent podcast appearance.

Entertainment Weekly Paul Rudd stars in 'Reno 911!: Miami'Credit: 20th Century Fox

Key Points

  • He said his son, Jack, was upset by Reno 911! Miami.

  • Daughter Darby's first viewing experience was Clueless.

Paul Ruddis delightful, sure, but being his kid isn't always easy.

"There's one time I had done aReno 911!movie," Rudd said Wednesday on Jake Shane'sTherapusspodcast. "My son, when he was really little turned on the TV, and thisReno 911!movie was on television, and it was right at a moment when Patton Oswalt is — it's ridiculous — he's shooting me with a machine gun. It's bloody. And he saw me getting murdered, and he was a little kid, and it really traumatized him. He didn't like it."

Paul Rudd and wife Julie Yaeger with children Jack and Darby in 2015Credit: Albert L. Ortega/Getty

Rudd shares son Jack, who was born in 2006, and daughter Darby, who was born in 2010, with wife Julie Yaeger. The couple married in 2003.

Rudd's performance in the 2007Reno 911!movie followed his appearances on the Comedy Central series, whose cast included Thomas Lennon, Niecy Nash, Robert Ben Garant, Cedric Yarbrough, Kerri Kinney, and Wendi McLendon-Covey.

TheWet Hot American Summer actor's daughter had her own interesting experience seeing her dad on film for the first time. For starters, he wasn't even there.

"It's funny. I've never showed my kids any of the stuff," Rudd said and then spoke to Darby in the audience. "But it was you. It was one time when you were little, a babysitter showed you."

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Shane commented that was a strange situation: "A babysitter showed youCluelesswithout your dad's permission."

"Yeah," Rudd recalled, "I was a little bummed out, I'll be honest. I was like, 'Wait a minute. Hold on. You can't do that.' She’s never seen anything I had done."

In November 2021, Rudd said he was rewatching hisFriendsperformances, which originally aired between 2002 and 2004, with his daughter. Rudd played Mike, the husband of Lisa Kurdrow's Phoebe, over a 16-episode arc.

Paul Rudd and Lisa Kudrow in 'Friends' episode

"I hadn't really revisited many of those episodes," the then-reigning Sexiest Man Alive oldPEOPLE. "But now that she's watching it, it's like, 'Oh, I remember this,' and I tell her some story about it," Rudd said. "I'm far enough away from some things now that I can allow myself to be a little nostalgic about it."

His daughter was more of a fan of Matt LeBlanc's character: "But then she'll just be like, 'Well, you're not Joey.'"

Episodes ofTherapussare available onSpotify(above) andNetflix.

Read the original article onEntertainment Weekly

How “Reno 911!: Miami” traumatized Paul Rudd's child

Actor Paul Rudd remembered the first time his kids saw his movies during a recent podcast appearance. Key Points H...
When does the new 'Dutton Ranch' episode come out? How to watch

Warning: This article contains spoilers from Episodes 1-3 of "Dutton Ranch," now streaming on Paramount+.

USA TODAY

"Yellowstone"fan-favorite coupleRip Wheeler (Cole Hauser) and Beth Dutton (Kelly Reilly) are riding straight into the action as they arrive in South Texas from Montana after losing everything. However,Beth did grab Elsa Dutton's knifebefore leaving their home, which was ultimately destroyed in a fire.

As the couple attempts to rebuild their life again with their teenager, Carter (Finn Little), "far from the ghosts of Yellowstone − they collide with brutal new realities and a ruthless rival ranch that will stop at nothing to protect its empire," according to the series' synopsis.

In Texas, the Duttons are outnumbered as they facea new rival family ranch owner,Beulah Jackson (Annette Bening)and her sons Rob-Will Jackson (Jai Courtney) andJoaquin Jackson (Juan Pablo Raba).

"We had to pluck these characters off a world they knew into a new one to start again and grow them in a different direction," Reilly told USA TODAY.

"Dutton Ranch" director and executive producerChristina Alexandra Voros previously told USA TODAYthe couple's Texas chapter is "a new beginning, the kind of heartbeat and story of the American West."

The spinoff hasset new records for Paramount+with the premiere episodes reaching 12.9 million views globally over seven days, marking the biggest original series launch for the streamer. The former champion was in the family,Taylor Sheridan's "The Madison,"which reached more than eight million views during its first 10 days on the platform after premiering on March 14.

The Paramount Network"Dutton Ranch" launchscored on linear TV as well, delivering 2.9 million total viewers on premiere night across its two-episode debut (garnering 1.9 million viewers on Episode 1). It's the biggest series premiere on cable since 2023.

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Here's what to know about when new episodes of "Dutton Ranch" release and who from "Yellowstone" is in the cast.

Exclusive interview:Cole Hauser, Kelly Reilly hit Texas heat, 275 snakes in 'Dutton Ranch'

Kelly Reilly as Beth Dutton and Cole Hauser as Rip Wheeler in Season 1 of

When and how to watch new 'Dutton Ranch' episodes?

Episode 4 of "Dutton Ranch" will release on Friday, May 29, at 3 a.m. ET / 12 a.m. PT on Paramount+, with new episodes dropping weekly on Fridays through July 3. The episodes will also air on the Paramount Network at 8 p.m. ET / PT on Fridays.

Episodes of "Dutton Ranch" will be available to stream Fridays on Paramount+, starting Friday, May 15, at 3 a.m. ET / 12 a.m. PT. They will also air on the Paramount Network at 8 p.m. ET / PT on Fridays.

Annette Bening as Beulah Jackson in Season 1 of

'Dutton Ranch' episode schedule

The show is listed to have nine episodes. With three episodes out, here's what the remaining schedule looks like:

  • Episode 4 "Start With a Bullet": May 29

  • Episode 5 "Peaceful Find Peace": June 5

  • Episode 6 "A Cowboy Saint": June 12

  • Episode 7 "Den of Sin": June 19

  • Episode 8 "Whiskey Limits": June 26

  • Episode 9 "El Padrino": July 3

Watch 'Dutton Ranch' trailer

'Dutton Ranch' cast

The cast for "Dutton Ranch," according to Paramount Television Studios, includes:

  • Kelly Reilly as Beth Dutton

  • Cole Hauser as Rip Wheeler

  • Finn Little as Carter

  • Juan Pablo Raba as Joaquin

  • Jai Courtney as Rob-Will

  • J.R. Villarreal as Azul Ramos

  • Marc Menchaca as Zachariah

  • Natalie Alyn Lind as Oreana

  • Ed Harris as Everett McKinney

  • Annette Bening as Beulah Jackson

Contributing: Bryan Alexander, USA TODAY

Saman Shafiq is a trending news reporter for USA TODAY. Reach her at sshafiq@usatodayco.com and follow her on X and Instagram @saman_shafiq7.

This article originally appeared on USA TODAY:'Dutton Ranch' Episode 4 release date, time, how to watch

When does the new 'Dutton Ranch' episode come out? How to watch

Warning: This article contains spoilers from Episodes 1-3 of "Dutton Ranch," now streaming on Paramount+. "Yellowst...
Exclusive-Senior Ukrainian commander sees imminent 'turning point' in war

By Dan Peleschuk

Reuters Servicemen of the 148th Separate Artillery Zhytomyr Brigade of the Armed Forces of Ukraine fire a BM-21 Grad multiple launch rocket system towards Russian troops, amid Russia's attack on Ukraine, in Dnipropetrovsk region, Ukraine May 25, 2026. REUTERS/Anatolii Stepanov Brig. Gen. Andriy Biletsky of the Third Army Corps of the Ukrainian Armed Forces poses for pictures after an interview, amid Russia's attack on Ukraine, at an undisclosed location in the Kharkiv region, Ukraine, May 21, 2026. REUTERS/Thomas Peter

Ukrainian servicemen fire a multiple launch rocket system in Dnipropetrovsk region

KHARKIV REGION, Ukraine, May 27 (Reuters) - Ukraine has a six-month window in which to seize the battlefield initiative from Russia and strengthen its hand for peace talks, a senior commander told Reuters, predicting a "turning point" was imminent after more than four years of war.

Russian forces have made grinding gains since their full-scale invasion of Ukraine ‌in February 2022, but the advances have slowed this year and Ukrainian troops are increasing pressure on the battlefield to try to push them back.

Brigadier General Andriy Biletsky, who commands ‌Ukraine's Third Army Corps, one of Ukraine's most respected fighting forces, told Reuters in an interview that he believes Russia's army is exhausted and incapable of making major breakthroughs.

If Ukraine's military can build and maintain momentum over several months, it can gain ​the initiative along the frontline and push Russia to abandon its designs on the last part of the Donetsk region in eastern Ukraine that it does not yet occupy, he said.

"I believe the next six to nine months are a turning point," Biletsky said at an undisclosed underground location in the northeastern Kharkiv region.

"More precisely, I think the next six are the most critical," he said.

The issue of who controls Donetsk has been a stumbling block in U.S.-backed peace talks that have stalled, with Russia wanting the entire region and Ukraine refusing to withdraw from territory that Moscow's troops have been unable to conquer.

"We need to define those ‌directions where we can improve our positions, take some strategic points, and ⁠then speak with the Russians from a position of strength - not weakness - about a truly stable truce," said Biletsky, a right-wing political leader who founded the battle-hardened Azov Battalion and now commands tens of thousands of troops.

"From a military point of view, this is realistic."

Russia's Defence Ministry did not immediately respond to a request ⁠for comment for this story. Russian President Vladimir Putin has vowed victory in Ukraine and said this month he thinks the war is nearing an end.

'CRITICAL' MONTHS AHEAD

Russia's advances have been complicated by a decision by billionaire Elon Musk to deny Moscow's forces access to his Starlink satellite-based internet service. Kyiv has meanwhile stepped up medium-range drone attacks on Russian air defences and logistics, helping more long-range strikes get through to hit oil and military facilities ​in ​Russia.

President Volodymyr Zelenskiy said last week Ukraine had retaken nearly 600 square km (230 square miles) of territory in 2026. ​Reuters could not independently verify the figure. Moscow currently controls almost one-fifth of ‌Ukrainian territory.

Assessing the military situation, John Helin of the Finland-based Black Bird conflict-analysis group echoed Biletsky in saying fatigue was a problem for Russian forces, while Ukraine's war effort is hampered by a manpower shortage.

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"It does seem like, four or five months into this year, it's much more likely that the Russians will get exhausted before the Ukrainian problems come to a breaking point," he told Reuters.

On Monday, the U.S.-based Institute for the Study of War said Kyiv's forces were now "actively challenging the positional character of the war" and could soon be capable of staging limited mechanised assaults.

'FORTRESS BELT'

Russian troops are bearing down on eastern Ukraine's "Fortress Belt" where fighting is raging inside the strategic city of Kostiantynivka, its southern end.

The constellation of heavily fortified cities anchors Ukrainian defences. Capturing it would position Russia to threaten the rest of the ‌Donbas.

Biletsky, whose forces hold over one-tenth of the total front line, said his troops were firmly holding the flank ​around Sloviansk, the belt's northern bastion, and forcing Russia to attack the city head-on.

Such costly assaults have helped drain Russian ​forces and led to heavy losses of field commanders, he said, in what he described ​as a professional degradation of Moscow's military.

"The lack of personnel no longer allows them to advance the way they did, for example, a year ago," said Biletsky.

Biletsky ‌said it was too early to draw conclusions from Kyiv's recent success, but ​that Ukraine could capitalise on it by continuing mid-range ​attacks and advancing "carefully".

Moscow is "radically losing" in battlefield communications because of Musk's crackdown on use of Starlink, Biletsky said.

But he described the sides at parity in evolving technology - with Ukraine leading in unmanned ground vehicles (UGVs) and heavy bomber drones, and Russia winning the race for fibre-optic drones, which cannot be jammed.

A potential blueprint for a modernised Ukrainian army, his corps has led efforts ​to transform training and integrate new technology such as UGVs as an important ‌part of its battlefield strategy.

Biletsky's units lead the way in deploying stealthy kamikaze drones and robots armed with machineguns or rocket launchers to replace significant portions of infantrymen, ​aiming for 30% by 2027, he said.

The next "revolution" will allow commanders to stage more "creative" combined assault operations while conserving precious troops, Biletsky said.

"It will happen this year, and I ​think we'll show how our corps is a vivid example of it," he said.

(Editing by Timothy Heritage)

Exclusive-Senior Ukrainian commander sees imminent 'turning point' in war

By Dan Peleschuk Ukrainian servicemen fire a multiple launch rocket system in Dnipropetrovsk region KHARKIV REGION, Ukraine, Ma...
Behind the Scenes of This Year's Indy 500 with PEOPLE's Janine Rubenstein and e.l.f. Cosmetics: 'Fastest Weekend Ever!'

PEOPLE's Janine Rubenstein goes behind-the-scenes at the 2026 Indy 500

People Janine Rubenstein at Indy 500Credit: Janine Rubenstein

NEED TO KNOW

  • Inside e.l.f. Cosmetics' jam-packed weekend celebrating Katherine Legge, the race's only woman driver as she attempted The Double, a history-making feat

  • From riding along in an actual IndyCar to a relaxing massage and top dining experience, Rubenstein got to do it all over race weekend

I didn't know I had a need for speed until this past weekend.

When I first learned that PEOPLE was teaming up with e.l.f. Cosmetics for this year'sIndy 500— and to help celebrateKatherine Legge, the race'sonly woman driverwho was attempting to make history driving in both the IndyCar series and a Nascar race on the same day — I was pretty excited. That said, I had no idea what I was getting myself into.

I felt the magnitude of the occasion immediately upon landing in Indianapolis for the first time. Everywhere you turned there were signs, billboards, and even life-size IndyCar replicas commemorating what I soon learned is the single biggest event in all of sports, not just motorsports.

Thus, I got to work documenting every wild twist and turn with the help of the e.l.f. team, who curated a weekend full of events to take me behind-the-scenes of it all. Below, check out a full recap of my time in the racing capital of the world.

Janine Rubenstein poses with a replica of Katherine Legge's car, Janine Rubenstein interviewing Katherine LeggeCredit: Janine Rubenstein (2)

FRIDAY - Meeting and Toasting to Katherine Legge

After dropping my things off at my unique hotel (which was built inside of Indianapolis's Historic Union Station train center - I swear, everything in this city has wheels) I high-tailed it over to Indianapolis Motor Speedway for the first time to meet the woman of the weekend. That place is massive in a way I wasn't expecting and I definitely got my steps in making my way over to e.l.f.'s distinctive pop-up right in the center of the track.

There were a ton of different brands and sponsors around, but nothing was remotely like e.l.f.'s space. It was equal parts fierce and feminine, chrome and pink. And with a deejay spinning as fans got makeup touch-ups and were gifted chromed oute.l.f. Glow Reviver Slipsticks, their footprint had the longest line around, full of women and girls. It's there that I met Katherine Legge who I peppered with questions as she stood in front of a wall full of handwritten notes of support and well-wishes.

e.l.f. Cosmetics and PEOPLE Kickoff Party for Indy 500 Weekend, Indianapolis, Indiana - 22 May 2026 Katherine LeggeCredit: Timothy Hiatt / Shutterstock

"Overwhelmed is probably the best way to describe it," she told me of her emotions going into the back-to-back races. "I'm trying to keep a level head and just control the things that I can control and let the rest go and enjoy the moment because it's pretty fantastic."

After the interview headed over to her garage to check out the car her team was diligently working on to get ready to roar that Sunday. According to Andy O'Gara, Legge's crew chief who'd just won IndyCar's Clint Brawner best mechanic award earlier that day, the team was hard at work on an electrical fix to increase the top speed capability. As for Legge, "she's gonna give it 110% on Sunday," he said.

e.l.f. Cosmetics and PEOPLE Kickoff Party for Indy 500 Weekend, Indianapolis, Indiana - 22 May 2026 Patrick O'Keefe, Katherine Legge and Janine RubensteinCredit: Timothy Hiatt / Shutterstock

But not before she found time to make a pit stop at PEOPLE and e.l.f.'s party in her honor that night. Serving as host I had the pleasure of welcoming a room full of stars, influencers and fans to sleek and sexy Dusk Lounge in Downtown Indianapolis where Legge was feted.

Attendees were treated to a variety of race-inspired party moments, from photo ops modeled after Katherine’s bold, pink-and-chrome e.l.f. Cosmetics Chevrolet race car, to signature race day cocktails and mocktails while DJ Mae kept the energy high, incorporating songs frome.l.f. Cosmetics’ GRWM album.

Janine Rubenstein holding an e.l.f. lipstick, Photo of Janine RubensteinCredit: Janine Rubenstein (2)

"They've changed the face of racing, and all of the women at the racetrack will tell you the same thing," Legge said of e.l.f.'s support during her remarks to the crowd. "They finally feel represented, they feel seen." After that, Legge jetted off to focus on trying to make history.

Janine Rubenstein at Indy 500Credit: Janine Rubenstein

SATURDAY - From Super Fast to Relaxingly Slow

I headed back to the race track bright and early the next morning for the ride of a lifetime. I got the greenlight to do a lap in an actual IndyCar with an actual IndyCar driver at a speed I couldn't imagine. After suiting up in a fire suit I headed over to the cars with excited and a healthy amount of fear.

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The cars already taking off were deafening. As the attendants handed me what looked to be a ski mask and gloves I noticed Colts safety (and hubby toSimone Biles)Jonathan Owenssuiting up one line over. Lining up side-by-side with the NFL star gave the confidence boost I needed to throw the helmet on and hop in to the extremely snug race car for my victory lap.

Janine Rubenstein at Indy 500Credit: Janine Rubenstein

The driver took our car to over 180 mph on the 2.5 mile lap, but honestly it was all just a thrilling blur. Thankfully I took the advice I got from someone on the e.l.f. team who warned me to stay loose and go full on limp on the turns. That apparently saved me a sore neck. In all it was awesome, but I don't know if I need to do it again. Something about needing head-to-toe fire-resistant attire makes it feel like just a one-time risk for me.

Alex Teri, Janine Rubenstein and Maddie Bartlett at Indy 500Credit: Janine Rubenstein

The team and I grabbed some juicy corn dogs on the way out and then I rushed off to slow down, heading to get a massage at The Conrad Hotel. The wild juxtaposition of these two activities is not lost on me, but I loved every minute of the contrast. Getting to fully unwind and sink into the bed was so peaceful I fell asleep mid-massage.

Janine Rubenstein at the spaCredit: Janine Rubenstein (2)

It was just what I needed before heading to dinner with Team e.l.f. and their guests atThe Dining Room of RH Indianapolis located at the DeHaan Estate. I can't fully describe how stunning this place was. It felt as though we'd driven 20 minutes outside of the city and wound up in Versailles. From gorgeous columns and statues to sweeping views of a private lake and its surrounding greenery, we were all transfixed.

PEOPLE, e.l.f. teams and guests at Indy 500 weekendCredit: Janine Rubenstein

It got even better when our waitress shared the history of the stately venue, built by timeshare and hospitality mogul Christel DeHaan, a woman who lived alone in the 60-room palatial estate she commissioned, until her death in 2020.

Janine Rubenstein at RH Indianapolis, food at The Dining Room RHCredit: Janine Rubenstein (2)

The story perfectly lent itself to the weekend's theme of female empowerment and I couldn't help but imagine how much of a boss she must have been, as we all dined on delicious steak and salmon. It was hands-down the best meal, and food for thought, of the weekend. I returned to my hotel full and feeling fabulous.

SUNDAY - Race Day

The big day kicked off at the crack of dawn when we hopped in a car at 6 a.m. to head over to the track with the help of a police escort. Given the 350,000 people descending on the speedway for the race that morning, we needed all the help we could get making it through the miles traffic. Once there, we headed straight to the elevated performance center that gave us an overhead view of one of the main turns of the track. We also got a good view of the Snake Pit stage whereZeddkept the EDM party raging all day.

Janine Rubenstein, Team PEOPLE at the Indy 500Credit: Janine Rubenstein (2)

Before the race kicked off I headed back the the onsite e.l.f. experience to grab a few interviews with fans stopping by. One of my favorites was a mom and her two young daughters who had on matching DIY e.l.f. outfits in honor of Legge. Everyone I chatted with couldn't have been more excited for what was to come.

After an epic opening that includedJordin Sparkssinging the National Anthem as roaring fighter jets darted across the sky, the race was underway. But not long after it started it would end for Legge on the 18th lap, when she hit a wall trying to avoid the spin out of another driver.

Felix Rosenqvist celebrates after winning the NTT IndyCar Series 110th Running of the Indianapolis 500 on May 24, 2026 in Indianapolis, Indiana.Credit: Justin Casterline/Getty

Though she wouldn't be able to officially complete The Double, she kept her head high and headed straight from the track to the plane to Charlotte, NC, where she landed in time to suit up and compete in Nascar's Coca Cola 600 as planned. There she'd finish the race, coming in 31st. A truly incredible feat and as I watched her race on TV later that night I thought, 'Janine, you gotta push myself a little more!'

In all it was a mind-blowing experience from start to finish. To say I left Indianapolis inspired is an understatement. I'm still not over all of the amazing things I saw and did, and the deep sense of female empowerment I'll carry with me from this epic weekend. Probably the fastest weekend ever!

Read the original article onPeople

Behind the Scenes of This Year's Indy 500 with PEOPLE's Janine Rubenstein and e.l.f. Cosmetics: 'Fastest Weekend Ever!'

PEOPLE's Janine Rubenstein goes behind-the-scenes at the 2026 Indy 500 NEED TO KNOW Inside e.l.f. Cosmetics...
Sri Lanka stuns with 100-bp rate hike as Iran war rattles currency, fuels inflation

By Uditha Jayasinghe

Reuters

COLOMBO, May 26 (Reuters) - Sri Lanka's central bank stunned markets by raising its policy rate by an outsized 100 basis points on Tuesday, the biggest hike in three years, and signalled more tightening as surging energy costs whip up inflation ‌and batter its currency.

Economic growth in the South Asian nation, only just recovering from a devastating 2022 financial crisis that left businesses ‌and households deeply scarred, is expected to take a hit from the turmoil in the Middle East.

The Central Bank of Sri Lanka (CBSL) raised the overnight policy rate to 8.75% from 7.75%, ​blaming higher inflation and a depreciating rupee due to the U.S.-Israeli war with Iran.

Seven out of a dozen economists and analysts polled by Reuters had forecast only a 25 basis-point or slightly higher change to the rate, citing the deepening impact on foreign reserves from the conflict and the rupee currency's 8.7% tumble since early March.

"Today’s sharp increase in interest rates in Sri Lanka highlights the country’s vulnerability to the crisis in the Middle East, and is unlikely to be ‌the last unless the crisis subsides soon," Capital Economics' ⁠senior Asia economist Gareth Leather said.

At a post-policy press conference, Governor P. Nandalal Weerasinghe said the hike "will help stabilise exchange rates and inflation."

He said the central bank "will take action to curb demand side pressures" after assessing incoming economic data ⁠and emerging risks.

The CBSL expects economic growth and inflation to maintain a "reasonable" pace, he added.

Sri Lanka, fully reliant on imported fuel, has been battered by the Iran war-driven energy shock that has forced a 40% fuel price hike, rationing, and even public holidays on Wednesdays.

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Annual inflation has jumped from 2.2% in March to 5.4% last month, ​although ​that is well below the 70% peak during the crisis.

Headline inflation is likely to ​remain above the target of 5% in the period ahead, ‌before easing and stabilising around it, the CBSL said in a statement.

Sri Lanka's stock market was down 0.75% after the policy announcement, while the currency hugged tight ranges to fetch 321 rupees per dollar.

BIGGEST HIKE SINCE MARCH 2023, GROWTH RISKS RISE

Tuesday's rate hike - the first change since a 25-basis-point cut in May 2025 aimed at boosting growth - marked the largest increase since a similarly sized move during the depths of the financial crisis in March 2023.

"This 100bps rate hike suggests the CBSL is shifting gears from supporting growth to defending price stability," said Udeeshan Jonas, strategy head at Colombo-based equity research ‌firm CAL. He has cut his 2026 growth forecast to 3.0% from 4.2% following the ​move.

The central bank and finance ministry had forecast growth of between 4% and 5% in ​January. Governor Weerasinghe said Sri Lanka could still grow at the "lower ​band of the 4%-5%" projection.

Emerging economies are bearing the brunt of the Iran war as soaring energy prices, supply ‌disruptions, and capital outflows threaten to trigger stagflation. India, which ​depends heavily on overseas crude imports, is ​grappling with a sharp decline in the rupee, forcing the central bank to step in to defend the currency.

Sri Lanka's reserves decreased 3.8% to $6.7 billion in April after it spent $1.5 billion on fuel imports in the first four months of the year, with the fuel bill ​surging 77% in March alone.

The island, backed by a $2.9 ‌billion International Monetary Fund programme, is clawing its way out of the 2022 upheaval triggered by a severe shortage of dollars. ​The IMF board meets on Wednesday to decide on a $700 million tranche to Sri Lanka under the programme, which would help ​bolster its reserves.

(Reporting by Uditha Jayasinghe; Editing by YP Rajesh and Shri Navaratnam)

Sri Lanka stuns with 100-bp rate hike as Iran war rattles currency, fuels inflation

By Uditha Jayasinghe COLOMBO, May 26 (Reuters) - Sri Lanka's central bank stunned markets by raising its policy rate by an ou...
Explainer-What's involved in talks to end the Iran war?

LONDON/DUBAI, May 26 - U.S. Secretary of State Marco Rubio said on Tuesday that negotiating a deal with Iran could "take a few days," dimming hopes for an imminent end to the conflict after the U.S. conducted what it called defensive strikes in southern Iran.

Reuters

Iran's foreign ministry spokesperson said earlier that conclusions had been reached on ‌many topics discussed in a potential 14-point memorandum of understanding, but this did not mean a deal to end the war would be reached soon.

AT WHAT STAGE ARE THE DISCUSSIONS?

Following ‌a ceasefire in early April, the two sides have remained at odds on difficult issues including Iran's nuclear ambitions, Israel's war in Lebanon with the Iranian-backed Hezbollah militia and Tehran's demands for the lifting of sanctions and the release of frozen ​assets.

After weeks of mainly indirect talks, both sides say they have made progress on a memorandum of understanding that would halt the war and give negotiators 60 days to reach a final deal.

The framework is focused on an end to the war and a U.S. naval blockade, in exchange for Tehran taking steps to ensure safe transit in the Strait of Hormuz, according to the Iranian foreign ministry spokesperson, Esmaeil Baghaei.

Senior Iranian diplomat Hossein Nooshabadi told ISNA news agency that the possible framework deal included the end of the war on all fronts including Lebanon, the release of blocked Iranian assets, the lifting of the U.S. ‌naval blockade and the opening of the Strait of Hormuz, the ⁠withdrawal of U.S. forces from the vicinity of Iran and freedom to sell Iranian oil.

Nooshabadi said Iran's draft for an initial agreement contained no commitments on Iran's nuclear programme.

A senior official in U.S. President Donald Trump's administration, speaking on the condition of anonymity, said Iran had agreed "in principle" to open the Strait ⁠of Hormuz, in exchange for the U.S. lifting its naval blockade, and to dispose of Tehran's highly enriched uranium.

Iranian sources said a framework deal is only about ending the war on all fronts, establishing a 30-day framework for movement through Hormuz and shipping, and possibly providing some financial relief.

It would then be followed by negotiations on the more difficult issues, such as the status of Iran’s highly enriched uranium and details concerning the Strait, ​and ​the sequencing of the many points mentioned in the preliminary deal such as sanctions relief and security measures.

HOW COULD ​A DEAL MOVE FORWARD?

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If Iran's Supreme National Security Council approves the memorandum of ‌understanding, it will then be sent to the country's supreme leader for final approval.

The U.S. understood Supreme Leader Ayatollah Mojtaba Khamenei had endorsed the broad template of the deal, the senior U.S. official said.

If the first phase of the agreement progressed, the nuclear issue could be reviewed and negotiated during the 60-day period, Baghaei and Nooshabadi said.

The last deal over the nuclear programme - struck in 2015 and torn up by U.S. President Donald Trump in 2018 - took years of negotiations between large teams of technical experts.

WHAT ARE THE MAIN ISSUES?

HORMUZ AND GULF BLOCKADE - Tehran sees its control of Hormuz and Washington views its blockade of Iranian ports as their chief points of leverage.

NUCLEAR - The United States believes Iran wants to build a nuclear bomb. Iran has always denied this, saying its atomic programme is for ‌peaceful purposes only. The focus is on its enrichment of uranium, which generates fuel for nuclear power but can ​also make material for a warhead. An agreement may eventually be possible including a lengthy moratorium on enrichment and the export ​or dilution of the stockpile.

The nuclear question is extremely complicated. Iran might eventually agree to ​dilute part of its highly enriched uranium in a friendly country into uranium enriched to 5% purity and then have it returned, Iranian sources said.

But many ‌other issues would still need to be addressed: how long the nuclear program ​would be halted, whether nuclear sites would be dismantled ​during that period, what happens to stockpiles of uranium enriched to 20% and 5%, and the future of Iran’s advanced centrifuges and research and development programs, among others.

BALLISTIC MISSILES - A main U.S. demand before the war was that Iran limit the range of its ballistic missiles so that they could not reach Israel. Iran has always refused to discuss its ​ballistic missiles, saying its right to conventional weapons cannot be on the ‌table and that it still has a large arsenal.

SANCTIONS AND FROZEN ASSETS - Iran's economy has been hurt by sanctions for years, contributing to the nationwide unrest in January. ​Tehran badly needs them to be lifted and tens of billions of dollars of Iranian oil revenues frozen in foreign banks to be released. It also wants reparations ​for war damage.

(Reporting by Parisa Hafezi; Writing by Angus McDowall and Michael Georgy; Editing by Aidan Lewis)

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