News & market updates

Cabinet approved submitting draft regulations to Parliament to roll out a six-month free visa programme for passport holders of 39 countries to boost tourism. The move could forgo about $66m a year in visa revenue but is expected to spur wider spending across hotels, transport and related sectors.

Sri Lanka and Brazil agreed to elevate bilateral trade to $1 billion by 2030. They also committed to finalising MoUs and technical cooperation projects in areas including dairy/livestock, sugarcane, agriculture, ports and shipping, and traditional/Ayurvedic medicine.

UAE stock markets in Dubai and Abu Dhabi lost about $120 billion in market value since the start of the US–Israel war on Iran, with the DFM down ~16% and ADX down ~9%. The conflict has also hit travel and tourism, causing widespread flight cancellations that weigh on the sector.

LankaPay partnered with Weixin Pay to enable cross-border Weixin Pay QR acceptance at LANKAQR merchants, allowing Weixin Pay users to pay at over 400,000 merchants across Sri Lanka. The move is intended to improve payment convenience for inbound tourists and support local merchants and tourism-sector receipts.

The Government ordered state institutions to switch off air conditioning by 3 p.m., require illuminated billboards to go dark by 8 p.m., and directed local authorities to limit street lighting to 6–10 p.m. as part of national energy-conservation measures; organisers of events over 100 people must use independent power and authorities also urged water conservation.

CAASL says Sri Lanka has about 34,000 tonnes of Jet A-1 at CPC plus 15,000t from the refinery and 43,000t on order, providing roughly a 57-day fuel buffer; a 35,000t shipment and an additional 8,000t are arriving. Flight disruptions have eased to about 30–35% from 50–60%.

The war in the Middle East is driving higher energy prices and major supply‑chain disruptions, which are boosting inflation and tightening global financial conditions. Energy importers, food and fertilizer‑dependent agriculture, tourism, manufacturing and banks face the greatest strain.

Russell Peters performs tonight (31) at 6 p.m. at the Lumina Ballroom, Cinnamon Life at City of Dreams, Colombo as the grand finale of his 'Relax' World Tour. The one-night show is presented by AMC with partners including Cinnamon/City of Dreams and Nations Trust Bank; tickets from Rs.25,000.

Colombo Fashion Week will host the BRICS Fashion Summit (South Asian Edition) on April 3 during CFW Summer 2026 at City of Dreams Sri Lanka, featuring over 30 designers and international participants. The summit aims to open markets and deepen ties for designers and apparel supply chains across BRICS and South Asia.

Tourist arrivals to Sri Lanka fell 18.1% in the first 25 days of March 2026 to 151,693, hit by Middle East escalation and flight suspensions that disrupted key transit hubs. The decline threatens the tourism-driven foreign exchange recovery and could pressure the rupee and import financing.

Escalating Middle East tensions pushed Brent crude above $100/bbl in March, prompting two domestic fuel price hikes and a drop in the LMD-PEPPERCUBE Business Confidence Index to 168. Tourism, remittances and domestic energy supply (gas) face downside risks that could keep confidence subdued.

A government monitoring committee warned current fuel quotas are insufficient and could trigger price increases for essential goods ahead of the Sinhala and Tamil New Year; five CPC officials will be appointed to assess needs and a QR-code system for fuel issuance will be introduced.

IndiGo launched direct Delhi–Colombo flights from 29 March 2026, operating six times a week with A320s to boost travel and trade. The airline now runs over 55 weekly flights to Colombo from five Indian cities and also links Chennai and Tiruchirappalli to Jaffna.

Global Harvest (Pvt) Ltd has been appointed sole Sri Lankan importer and distributor for Canada's Tropical Link to supply Snow Farms dried berries (cranberries, blueberries, tart cherries), launching via Gusta and rolling out to supermarkets and HORECA in retail 120g and bulk packs.

Agoda highlighted Galle, Sri Lanka, as one of its top slow travel destinations in Asia, noting attractions within Galle Fort, restored villas, galleries, quieter beaches and local artisans.

ITC Ratnadipa will host an Easter brunch at the Indian Ocean Pavilion on 5 April (12:30–15:30), priced at LKR 9,500 nett per person with kids at half rate. The brunch offers an international buffet with signature dishes, live cuisine theatres and children’s activities including an egg hunt and face painting.

ASPI rose 3.56% for the week but closed yesterday down 0.21% at 21,375.73 as the bourse ended a volatile week; foreign investors were net sellers of over Rs.1.2 billion and market turnover was about Rs.2.7 billion.

IndiGo will launch direct Delhi–Colombo flights from 29 March 2026, operating six weekly A320 services. The addition raises IndiGo's Colombo frequencies to over 55 weekly flights from five Indian cities and is expected to boost trade and tourism between India and Sri Lanka.

Shenelle Rodrigo was appointed Sri Lanka’s first Destination Correspondent for Lonely Planet; her Sheneller platform, reaching over 3 million viewers, says it helped protect about $800,000 in tourism revenue. She will highlight lesser-known Sri Lankan stories and is expanding via Sheneller Ventures and a new Holivate platform to link hotels and content creators.

Tourist arrivals in Sri Lanka in 2026 have surpassed 700,000, totaling 708,348; 151,693 arrived between March 1–25 with 26% (39,424) from India. European arrivals declined in March amid the Middle East conflict.

Galle City Center opens tomorrow: a 135,000 sq ft, nine-storey complex featuring six floors of premium retail and a four-star, 35-room hotel with rooftop banquet and restaurant. The development is expected to boost retail and tourism activity in the Southern Province.

John Keells Hotels (KHL.N0000) will host an Easter Brunch at Quizine on April 5 at Cinnamon Life at City of Dreams, featuring an extensive buffet, family activities and seasonal Sweet Labs treats.

BrandRadar (Roar Global) launched the Sri Lanka AI Visibility Index and hosted the country's first AI Visibility Summit to benchmark how brands appear in AI-driven discovery platforms (ChatGPT, Gemini, Perplexity, etc.). Initial coverage includes hospitality, banking/finance, insurance, retail/e-commerce, automotive and real estate.

A presidential tourism task force chaired by Tourism Minister Vijitha Herath met to shield the sector after arrivals fell 5.15% in the first 15 days of March amid Middle East conflict-related flight cancellations (447 arrivals, 451 departures). The industry faces heavy losses (estimated $80–100m/month) even as cumulative 2026 arrivals topped 708,348 year-to-date.

Over 800 international guests attended a four-day destination wedding at Shangri-La Hambantota, with stays averaging 5–7 nights, providing a boost to Sri Lanka’s tourism. The Sri Lanka Tourism Promotion Bureau, Sri Lanka Convention Bureau and government ministers officially endorsed the event to promote the country as a global wedding destination.

Central Bank Governor Nandalal Weerasinghe said imposing forex or trade controls is not the right response to Middle East conflict fallout, with the central bank keeping interest rates on hold and the government raising fuel prices to balance external and domestic demand. He added remittances remain strong, tourism is down, and the CB is using repo operations to mop up excess liquidity while warning that permanent sterilization is needed to avoid excess imports and pressure on the rupee.

The Central Bank held the OPR at 7.75% in its 2nd MPC review for 2026, leaving SDFR/SLFR and reserve requirements unchanged. Weekly T‑bill yields rose (91d 7.64%, 182d 7.95%, 364d 8.32%) in an undersubscribed auction; secondary bond market volatile and the rupee firmed slightly to ~Rs.313.8/314.5 with gross official reserves at $7.3bn.

Asia Capital agreed to buy a 22.13% stake in Wadduwa Resorts from Japan Capital for Rs.75 million, with the purchase to be finalised in September 2026; Asia Capital and its subsidiaries will then hold 100% of Wadduwa Resorts.