News & market updates

Prime Minister Harini Amarasuriya said Sri Lanka welcomes increased Indian investment and tourist arrivals and welcomed India's $454 million long-term relief package; she highlighted cooperation across trade, energy, connectivity, digital transformation and health.

The EU has allocated an additional €1 million (over Rs 370 million) to support humanitarian relief and basic services for communities affected by Tropical Cyclone Ditwah in Sri Lanka, adding to prior €2.35m and other EU partner assistance.

Colombo stock market closed February lower: ASPI fell 47 points (0.2%) and the S&P SL20 dropped 74 points (>1%) with turnover of Rs.7 billion. Banks, conglomerates and blue-chips (COMB, JKH, HNB, CTC, LLUB) weighed on the index while Renuka Agri Foods rose and foreign investors were net sellers of Rs.363.8m.

Portugal's Foreign Minister Paulo Rangel called for a 'new era' of structured economic partnership with Sri Lanka, highlighting cooperation in renewable energy (solar and wind), tourism, infrastructure/public works and digital development. Both countries agreed to reactivate their Joint Cultural Commission, and Portugal said it will advocate constructive engagement on Sri Lanka's GSP+ review in 2027.

Prime Minister Dr. Harini Amarasuriya said Sri Lanka welcomes investors and tourists as it moves towards sustainable growth, noting India’s USD 454 million long-term relief package and cooperation across energy, connectivity, trade, digital transformation, health and tourism.

CEMS‑Global's 15th Textile Series will be held 5–7 March 2026 in Colombo to connect global suppliers and support Sri Lanka’s apparel export drive, aligning with government targets to raise total exports to $36bn by 2030 and apparel to over $8bn; apparel earned about $5.3bn last year.

Global Biz Connect 2026 will be held in Colombo at Cinnamon Life on 3 March 2026, bringing diplomats, trade bodies, multinationals and investors together to connect Sri Lankan enterprises with international markets. Panels will cover industries including value-added tea, confectionery, hospitality and medical tourism.

AIDAdiva made its maiden call at Hambantota International Port on 12 Feb 2026 carrying about 2,000 passengers and 620 crew; Aitken Spence Shipping Ltd served as port agent and roughly 1,400 passengers disembarked for organised excursions.

SriLankan Airlines plans to expand India services in 2026, adding Ahmedabad as its tenth Indian destination and projecting Indian passenger traffic to rise by up to 12% this year. India accounts for about 30% of its passengers and the airline operates close to 90 weekly flights between the countries.

Sri Lanka's tourist arrivals topped 505,751 year-to-date as of Feb 22, a 10.7% YoY increase. The first 22 days of February saw 228,424 visitors (+12% YoY) and Colombo hotels reported near 100% occupancy amid the ICC Men's T20 World Cup.

Opposition MP Harsha de Silva warned arrivals are rising while tourism revenue is falling, blaming unlicensed operators on tourist visas and overseas payment platforms that leak income abroad. He urged stronger licensing, enforcement and a shift to sustainable, higher-value tourism to protect sites like Yala and Sigiriya.

Economist Talal Rafi urged a disciplined shift from stabilisation to growth, calling for trade and productivity-driven reforms alongside fiscal discipline and reserve accumulation. He noted debt-to-GDP has fallen to near 100%, IMF growth at ~2.9% (this year)/3.1% (next) and reserves projected to rise to ~$8.8bn by year-end.

Aitken Spence PLC has appointed Executive Chairperson Stasshani Jayawardena as interim Managing Director effective 1 April 2026. Jayawardena also chairs Aitken Spence Hotel Holdings and holds board roles at Lanka Milk Foods, Melstacorp and Distilleries Company of Sri Lanka.

Aitken Spence Hotel Holdings PLC appointed C.M.S. Jayawickrama as Managing Director effective 1 April 2026. He was previously an Executive Director, is MD of Aitken Spence Hotel Managements Ltd and has over three decades' experience in the group's hotel operations.

Casons Rent a Car purchased a fully owned fleet of brand-new luxury vehicles for its premium services, and will deploy them for short-term rentals, corporate assignments and high-end travel.

Nestlé Professional signed an MoU with the Chefs Guild of Lanka and the Sri Lanka Hospitality Graduates Association to organize the island‑wide Nestlé Golden Chef’s Hat and Junior Competitions 2026, with eight regional professional rounds and regional junior rounds at hotel schools.

Emirates will hold a recruitment roadshow in Colombo on 10 March 2026 to hire Workshop Technicians as part of a global drive to onboard 17,300 staff across 350 roles; attendees will be briefed on roles, remuneration, benefits and can apply online.

Tourist arrivals to Sri Lanka reached 505,751 between January 1 and February 22, 2026. Early-February weekly arrivals exceeded 70,000 and the ICC Men’s T20 World Cup, plus strong flows from India (16%) and the UK (11%), boosted February numbers.

IMF Resident Representative Dr. Martha Woldemichael said sustaining reform momentum is critical for Sri Lanka to move from crisis stabilisation to transformation, noting four of eight EFF reviews completed and about $1.74bn disbursed. She urged trade liberalisation, digitalisation, labour-market reform, fiscal credibility and Central Bank independence to bolster investor confidence; reserves stood at $6.8bn and inflation was 2.3% YoY in Jan 2025.

Gulf Air has increased flights between Bahrain and Colombo to 10 per week (including double daily services on Tuesdays, Thursdays and Fridays) to meet strong Ramadan and Eid travel demand. The expanded schedule also increases cargo capacity, benefiting exporters and logistics.

Batik Air will relaunch Colombo–Kuala Lumpur flights from 30 March with four weekly services, restoring direct connectivity. Officials say the route will support tourism, trade and export cargo flows, and Malaysia aims to increase Sri Lankan arrivals by 10–15% in 2026.

Cinnamon Hotels & Resorts (John Keells Hotels) signed an MoU with the National Olympic Committee naming Cinnamon as Official Hospitality Partner and Walkers Tours as Official Transportation Partner, offering preferential rates and hosting/transport services for visiting teams. The partnership includes joint promotions to boost Sri Lanka's sports tourism.

Court of Appeal granted interim orders restoring the prior legal position that foreign tourists may drive tuk‑tuks using International Driving Permits together with local covering permits. The orders preserve existing permits and businesses pending a full hearing on the directive’s legality.

Gulf Air will increase flights between Bahrain and Colombo from daily service to 10 weekly flights from 19 February 2026. The added frequencies target Ramadan/Eid travel demand and expand cargo capacity, improving connectivity for passengers and exporters.

The Court of Appeal granted interim orders preserving the legal framework that allows foreign tourists with international driving permits, together with Sri Lankan covering permits, to drive tuk‑tuks. The legality of the disputed directive will be decided by the court in due course.

Nüwa at City of Dreams Sri Lanka hosted a Valentine's Day celebration featuring curated handcrafted desserts and intimate luxury experiences for couples. Guests were served items such as heart-shaped pralines, strawberry-adorned creations and delicately detailed petit fours.

Sri Lanka will promote tourism at ITB Berlin (3–5 Mar 2026) with an SLTPB delegation including 72 local companies and SriLankan Airlines to boost German arrivals, develop business partnerships and showcase Sri Lankan products.

Mirissa Beach was ranked 5th and Bentota Beach 7th on Tripadvisor's 2026 Travelers' Choice 'Best of the Best' list for Asia's beaches. The accolade reflects destinations that receive a significant volume of exceptional reviews from the Tripadvisor community over a 12-month period.

Mozambique has launched a VFS Global‑powered e‑Visa platform allowing travellers from 183 countries, including Sri Lanka, to apply online for multiple visa categories with stays up to two years. The cloud-based system offers automated processing, secure payments and 24/7 support to boost tourism and investment.