News & market updates

Emirates resumed a limited number of flights from Dubai after regional strikes, while UAE airspace has only partially reopened; 78.13% of UK-to-UAE flights remained cancelled on Tuesday, per Cirium.

Dubai International Airport recorded just 20 aircraft movements (16 take-offs, 4 landings) on March 2, 2026 after regional airspace closures tied to Iran strikes, a near standstill versus its usual >1,200 daily movements. Diversions and cancellations continue, affecting routes from India and elsewhere.

SriLankan Airlines cancelled multiple Colombo–Middle East flights scheduled for 03 after parts of Middle East airspace remained closed due to the conflict. Passengers were advised to contact the airline or visit its website for updates.

Sri Lanka's external current account recorded a $369.7m surplus in January 2026, up 271% YoY, driven by 9.1% export growth, strong remittances and a narrower trade deficit. Gross official reserves were $6.8bn, foreign inflows into gov't securities were $16.6m while CSE saw a $21.9m net outflow; the LKR was 0.2% stronger YTD to end-February.

The Central Bank of Sri Lanka will issue a review report tomorrow assessing the potential impact of the ongoing Middle East crisis on Sri Lanka’s economy, the president told Parliament; the evaluation aims to clarify possible effects on the country’s financial sector.

Fitch says Middle Eastern sovereign ratings can likely withstand a short (under one month) regional conflict but prolonged damage to energy infrastructure or extended hostilities could pressure sovereign ratings. Fitch assumes the Strait of Hormuz would be effectively closed during the conflict, weighing on oil and gas exports (notably for Bahrain, Kuwait, Qatar and Iraq) and disrupting tourism and air travel.

Colombo Stock Exchange plunged at Tuesday open and trading was halted after the S&P SL20 fell 5.53% (to 6,269) and the ASPI dropped 5.27% (to 22,483.76). The halt ran from 09:31–09:36 with an auction until 10:01; brokers blamed Middle East tensions and possible supply-route disruptions.

Over 3,400 flights were cancelled after Gulf airspace and several major Middle Eastern hubs closed, disrupting global travel; SriLankan Airlines suspended 10 Colombo–Middle East services and the government granted a free 14-day visa extension for foreigners in Sri Lanka.

U.S. stocks finished narrowly mixed after U.S. and Israeli air strikes on Iran triggered volatile trading; U.S. crude rose about 6% to $71.23, boosting energy and defense while tech stocks later led gains.

Gold rose for a fifth straight session, with spot gold up 1% to $5,377.21/oz, as investors sought safe havens amid escalating U.S. and Israeli strikes on Iran and fears the conflict could widen. The reported closure of the Strait of Hormuz threatens a fifth of global oil flows, lifting other precious metals and disrupting shipping and air transport.

Geoffrey Bawa Trust will support the restoration of the Seema Malaka at Colombo's Gangaramaya Temple, aiming to restore Bawa's original design. The Trust is working with Venerable Dr. Kirinde Assaji Thero and Channa Daswatte will undertake renovation of a later extension.

Fairway Colombo was named "Most Technologically Advanced Hotel – Sri Lanka 2025" by World Business Outlook. The hotel highlighted innovations such as service robots, motion-sensor smart rooms, IPTV guest management and mobile key/digital check-in, and has new leadership under Virath De Alwis.

Walkers Tours launched a dedicated sports tourism brand, Walkers Sports, at IRONMAN 70.3 Colombo (19–22 Feb 2026). The brand will provide sports travel logistics, tournament coordination, team and corporate travel, and aims to grow Sri Lanka's sports tourism offering.

Level Bite creator Abdul Azeez is using his TikTok platform to highlight Ramadan dining across Sri Lanka, guiding followers to iftar buffets, temporary Ramadan stalls and late-night suhoor spots. He emphasizes experience, atmosphere and family-friendly deals to help people discover places to gather.

High Commissioner M. Rizvi Hassen said Sri Lanka will work to restore and deepen engagement with the Maldives, citing Bank of Ceylon’s 44-year presence and a goal to return to pre-2019 levels of 20,000–30,000 Maldivian visitors/residents. He highlighted opportunities across tourism, financial services, construction, agriculture and healthcare.

U.S. and Israeli strikes on Iran sent oil sharply higher (WTI ~+8% to $72.70, Brent ~+9% to ~$79.19), dragging global equities lower and lifting gold and the dollar; bond yields fell while higher-than-expected wholesale inflation may complicate Fed rate-cut timing.

Emirates has extended suspension of flights to and from Dubai until 1500 hrs UAE time on 3 March 2026 due to regional airspace closures. Affected passengers can rebook for travel on or before 20 March 2026; Dubai city check-in facilities remain closed.

Global airline shares plunged after U.S. and Israeli strikes on Iran disrupted travel and sent oil prices roughly 7% higher, forcing closures of major Middle Eastern hubs (Dubai, Doha) and causing widespread flight cancellations and rerouting.

Government grants a free two-week (14-day) visa extension to tourists in Sri Lanka and has established 24-hour operations centres and hotlines to support tourists and Sri Lankan migrant workers amid unrest in the Middle East.

Emirates will operate a limited number of flights from the evening of March 2 due to ongoing airspace disruptions; earlier bookings will be prioritised and passengers can rebook or request refunds for travel on or before March 20, while other flights and Dubai city check-ins remain suspended.

SriLankan Airlines cancelled several scheduled flights today (02) — including services to Dubai, Doha, Dammam, Riyadh and Kuwait — due to continued closure of parts of Middle East airspace; passengers were advised to contact the airline for assistance.

US and Israel launched strikes on Iran, raising the risk of a wider Middle East conflict that could push Brent crude (around $73) toward roughly $80 and, if supply is disrupted, possibly near $100. Markets may see heightened volatility, safe-haven flows into gold and Treasuries, and pressure on Gulf equities and airlines.

MTI Consulting CEO Hilmy Cader warned the Gulf war escalation could stress-test Sri Lanka’s economy by disrupting about 140 scheduled weekly Gulf flights and Gulf airspace. He said this would reduce hotel bookings, disrupt cargo and time-sensitive exports, and affect nearly 1 million Gulf-based workers and roughly US$1.5bn of exports to the Middle East.

The Ministry of Foreign Affairs and related agencies advised about one million Sri Lankan nationals in the Middle East to exercise heightened vigilance and avoid non-essential travel and large gatherings. Diplomatic missions have activated 24-hour emergency hotlines and provided contact numbers for families in Sri Lanka.

SriLankan Airlines cancelled multiple flights today (01) on routes between Colombo and Dubai, Doha, Dammam, Riyadh and Kuwait City due to continued Middle East airspace closures; passengers were advised to contact the airline for assistance.

SriLankan Airlines cancelled multiple flights to and from key Middle Eastern destinations today (28) due to airspace closures; affected routes include Riyadh, Kuwait, Dammam, Dubai and Doha (both outbound and inbound). Passengers were advised to contact the airline via its hotline, WhatsApp, travel agents or the official website for assistance and updates.

Sri Lanka issued its first Digital Nomad Visa to Ukrainian national Darya Gordiyenko and her spouse and will launch a 2026 Digital Nomad promotional campaign to attract remote professionals. Reactivated on 14 Feb 2026, the scheme is being operationalised by SLTPB with immigration, Central Bank and ICTA oversight to boost foreign exchange and local services.

SalamAir has suspended all international flights and services to Masirah for 24 hours from 28 February 2026 citing the evolving regional situation. Affected passengers will be contacted and are advised to check Salamair.com or contact the airline's 24/7 support for updates.

Sri Lanka Tourism Promotion Bureau will lead a delegation of 72 local companies to ITB Berlin (3–5 Mar 2026) to promote Sri Lanka in Germany, aiming to boost German arrivals and tourism revenue.