News & market updates

Central Bank Governor told Parliament that increased imports—especially petroleum by the state fuel retailer—and slower tourism have pressured foreign exchange, contributing to a 4.5% fall in the rupee through May 15. He said oil import bills rose sharply while exports have not kept pace, though remittances are holding up.

Tourism earnings in April fell 39% YoY to $157.1m, the weakest monthly inflow since 2023. Cumulative earnings for Jan–Apr declined 19.4% YoY to $1.11bn amid weaker arrivals (April down 22.3%), lower per‑capita spending and global geopolitical headwinds.

Sri Lanka was ranked 31st in Travel And Tour World’s Top 50 Wellness Destinations for 2026. The report highlights a nearly USD 1 trillion global wellness tourism market and praises Sri Lanka’s Ayurveda, yoga and meditation offerings as drivers of wellness travel demand.

The Hotels Association of Sri Lanka warned the Government against introducing a new tourism Act, saying it would recreate bureaucracy and delay urgent reforms and urged immediate amendments to the existing law with stakeholder consultation. It also criticised political appointments and civil-service pay scales that hinder attracting skilled tourism professionals.

THASL warned liquor licence fees for key permits have risen 80–100%, with some annual fees increasing from Rs.500,000 to Rs.1 million, saying the hikes raise costs, hurt competitiveness and encourage informal/unlicensed operators; it urged fee reform and digital renewals.

Prime Minister Dr. Harini Amarasuriya inaugurated Sancharaka Udawa 2026 at BMICH, an expo featuring over 250 exhibitors and 300 stalls aimed at boosting Sri Lanka's tourism recovery and international market access. The two-day event includes foreign hosted buyers, workshops and industry networking to generate partnerships and bookings.

WTTC forecasts global travel and tourism will contribute $12 trillion to global GDP in 2026 (9.9% of world GDP), expand 3.2% and support 376 million jobs; it says investment in smart infrastructure, digital innovation and AI is critical to sustain growth.

Branding in Sri Lanka is shifting toward people-centered co-creation supported by AI—with nearly 90% of digital content ignored—offering opportunities for firms (e.g., Dialog Axiata) and hotel, tea and consumer brands to use community-driven storytelling and creator networks.

One Love Reggae Festival 2026 will be held 7–9 August 2026 at Bentota Beach and will feature nine international reggae headliners. Flat-rate tickets and curated hotel packages with early-bird offers go on sale from the first week of May 2026.

Colombo Stock Exchange closed down, the ASPI dipped 0.09% to 22,899. Vallibel Finance listed 29,431,675 ordinary voting shares from its rights issue, raising 2,119,080,600 rupees.

US dollar strengthened to Rs. 323.95 on May 14, with the selling rate rising to Rs. 329.92 — the highest since Dec 28, 2023; the buying rate increased to Rs. 322.28.

Sri Lanka and Nepal launched cross-border QR payment connectivity on 12 May, enabling Nepali travellers to make real-time payments at more than 400,000 LankaQR merchants in Sri Lanka using Nepali payment apps (including connectIPS). The arrangement, announced in Colombo by central banks and payment operators, aims to enhance regional digital payment interoperability and merchant access.

Sri Lanka's Ambassador to Türkiye met the President of the Istanbul Chamber of Commerce to explore trade and investment cooperation aimed at boosting the Türkiye–Sri Lanka bilateral trade target of USD 500 million. They discussed Turkish investment, tourism promotion, air/maritime links and agreed on a virtual B2B session for traders/exporters.

Colombo Academy of Hospitality Management held the Grand Finale of the CAHM – 7 Star Junior Chef Competition Season 01 on 9 May at SLIIT Malabe; Shamha Nazim was crowned winner and awarded LKR 100,000 plus a LKR 2.5 million scholarship to study at CAHM under the William Angliss Institute pathway.

Sri Lanka and Nepal launched cross-border QR payment connectivity on 12 May 2026, allowing Nepali users to pay at more than 400,000 LankaQR merchants in Sri Lanka using Nepali payment apps. The interoperability is expected to ease payments for travellers and expand digital acceptance for local merchants and SMEs.

The Sri Lankan government has launched a fresh investor drive for Mattala Rajapaksa International Airport, inviting EOIs for airside operations and landside commercial development across cargo, logistics, MRO, industrial parks, renewable energy and hospitality; EOI documents are available until 8 June with a briefing and site visit scheduled for 22 May.

Sri Lanka welcomed 922,883 tourists from Jan–10 May 2026, a 2.22% YoY decline despite crossing the 900,000 mark. Early-May arrivals softened, and Parliament approved visa-free entry for travellers from 40 countries to support recovery.

The Cabinet approved signing three bilateral agreements with Belarus on aviation, higher education and health ahead of Foreign Affairs Minister Vijitha Herath's visit from 12–15 May, including an Air Services Agreement to enable enhanced aviation links and MoUs on education and health cooperation.

Sri Lanka Expo originally planned for 2026 has been postponed to January 14-17, 2027 because of geopolitical uncertainties affecting trade and travel, the Export Development Board said. The event is expected to host about 750 local exporters and 1,500 international participants, and exhibitor registration is extended to July 31, 2026.

Sri Lanka's Embassy in Türkiye met with the Istanbul Chamber of Commerce to explore trade and investment cooperation aiming to raise bilateral trade to USD 500 million under the Türkiye–Sri Lanka Joint Economic Cooperation framework. Discussions covered air connectivity, maritime cooperation, tourism and a planned virtual B2B session.

ONE LOVE Reggae Festival 2026 will run 7–9 August in Bentota and has partnered with the Ruhunu Ring initiative to create a music-led experiential tourism corridor across Sri Lanka’s southern coastline, aiming to boost destination tourism and longer stays.

Sri Lanka Expo 2026 has been rescheduled to 14–17 January 2027 at BMICH in Colombo. The EDB expects about 750 local exporters and 1,500 international participants and has extended exhibitor registration to 31 July 2026, citing geopolitical uncertainties.

Vietnam President To Lam made a four-day state visit to China and rode China's high-speed rail, including a 2,400 km Beijing–Nanjing trip, highlighting plans for China-assisted high-speed rail in Vietnam. The article urges Sri Lanka to use BRI technical know‑how to rebuild and modernize its rail network to boost connectivity.

Sri Lanka's Ministry of Ports & Civil Aviation has launched an EOI drive (27 Apr–8 Jun 2026) to attract local and foreign investors to Mattala Rajapaksa International Airport for airside and landside opportunities covering cargo, MRO, logistics, industrial parks, renewable energy and resort/hospitality projects.

PM Modi urged Indians to curb fuel use, revive working-from-home, pause gold purchases and cut overseas travel to conserve foreign exchange as global oil prices rose (Brent $105.33/bbl, WTI $99.85/bbl) amid Iran war-driven Middle East tensions.

Sri Lankan Australian business networks — exemplified by Arjuna (Arj) Samarakoon — are helping connect Australia, Sri Lanka and Southeast Asia, supporting market entry, trade and investment, illustrated by his meeting with Cambodian Prime Minister Hun Manet.

China Duty Free Group opened CDF Duty Free at Port City Colombo in September 2024 with a USD 5 million investment and has served nearly 120,000 travelers. The downtown store offers international brands and a digital Customs-verified 'Pre-Order & Collection' service for pickup at Bandaranaike International Airport, serving arriving/departing passengers and diplomats.

The Sri Lanka Export Development Board has rescheduled Sri Lanka Expo to 14–17 January 2027 at BMICH citing geopolitical uncertainty. The event is expected to host about 750 local exporters and 1,500 international participants across apparel, tea, ICT, pharma, renewable energy and other sectors.

John Keells Holdings chair Krishan Balendra will lead a 19-member Sri Lankan corporate delegation to Mumbai for the India–Sri Lanka Business Forum on 13 May to engage Indian counterparts on trade, investment and partnerships. Sri Lanka and India have also discussed a proposed $450m post-conflict reconstruction package.

Colombo market closed lower as the ASPI fell 0.23% to 23,011.72 despite net foreign inflows of Rs. 597.5m; banking sector led turnover with large SEYB crossings and gains, while COMB, CINS, DFCC and Colombo Dockyard were among top negative contributors.