News & market updates

Sri Lanka was ranked the most affordable retirement haven in Asia by the Annual Global Retirement Index, with retirees reporting comfortable living for about $2,200/month and some managing on as little as $1,000/month thanks to low housing, food, transport and healthcare costs.

Experts at a CEPA/ODI panel urged Sri Lanka to stick with the IMF program and invest in tourism-related infrastructure to sustain recovery, warning the rebound is fragile after Cyclone Ditwah caused about $4.1bn in damage (around 4% of GDP).

Marriott Bonvoy signed a multi-year deal to be the International Cricket Council’s Official Accommodation Partner through 2029, covering ICC men's events including the 2026 T20 World Cup in India and Sri Lanka. The partnership will leverage Marriott’s 450+ properties in event markets to host fans and offer exclusive hospitality packages.

Sri Lanka held a "Sri Lanka Is Ready" networking evening in Guangzhou, reaffirming that tourism has fully recovered and noting over 132,000 Chinese visitors in 2025. The event highlighted direct air links (four weekly SriLankan flights, daily Cathay Pacific) and urged continued China–Sri Lanka travel collaboration.

COPA ordered the Department of Archaeology to submit a proposal for a centralised digital database within three months and to urgently fill IT vacancies after finding only 1 of 12 approved IT officers in post. It also demanded a one-month report on the 48% of archaeological sites that remain ungazetted and urged website updates and UNESCO nomination proposals.

Turkish Airlines has introduced an Airbus A350-900 on the Istanbul–Colombo route, increasing capacity and improving passenger comfort and fuel efficiency. The upgrade is expected to strengthen Colombo's role as a regional aviation gateway and expand travel options for inbound and outbound passengers.

Sri Lankan exports to Saudi Arabia rose 19% in Jan–Sep 2025 versus the same period in 2024, while total bilateral trade increased 9%. Embassy-led trade promotion, business delegations, product launches (eg Ceylon Biscuits Ltd.) and a new Saudi–Sri Lanka Joint Business Council were cited as drivers.

Trans Asia Hotels PLC and Asian Hotels & Properties PLC appointed Hishan Singhawansa as a Non-Independent Non-Executive Director on their boards. Singhawansa is CEO of Cinnamon Hotels and Resorts and an Executive VP at John Keells Group; the article highlights Cinnamon Life, a $1.2bn integrated resort project.

Sri Lanka Expo 2026 will feature 750 exporters and an investor forum targeting 1,500 foreign buyers, investors and media to help boost exports to $36bn by 2030. The event (June 18-21) will showcase 24 product/service categories with thematic pavilions including sustainable/green solutions and ICT, and offer discounted travel and accommodation for qualified buyers.

Emirates will expand Premium Economy to 10 new cities and add extra A350-operated frequencies, including a second daily to Copenhagen from 1 June and third dailies to Phuket and Cape Town from 1 July, to boost capacity ahead of peak summer travel.

India plans an execution-led economic push with Sri Lanka in 2026 emphasizing investments, connectivity, digital collaboration and concessional financing, backed by a $450m post-Cyclone Ditwah package ($350m concessional lines, $100m grants). Engineering for the India–Sri Lanka grid interconnection is complete and Colombo Dockyard’s revival with Indian support was cited as ongoing commercial engagement.

The Sri Lankan rupee fell to Rs. 310.02 per USD, its weakest level since February 2024. The currency has depreciated 5.6% in 2025 after the vehicle import ban was lifted, with vehicle imports at $281m in November and $1.7bn in the first 11 months of 2025.

Access Engineering PLC completed piling work for Home Lands’ Bayfonte Marina in Negombo one month ahead of schedule, deploying five piling machines to finish the high-quality work; piling completion allows the project construction to proceed in full swing.

Saffron Aviation, operator of Cinnamon Air, said an amphibian aircraft experienced a landing incident at Lake Gregory; there were no passengers or injuries, the company has launched an internal review and CAASL is conducting an on-site assessment.

Gem Sri Lanka 2026 opened in Colombo (7–9 Jan), featuring over 100 stalls of gemstones and jewellery to promote trade, sourcing and exports. Government officials, including the Prime Minister, highlighted regulatory reforms and import-policy changes expected to increase gemstone volumes and support the sector’s global positioning.

USD/LKR spot rate rose above Rs.310 to Rs.310.02 on Jan 7 (CBSL). The CBSL showed dollar buying/selling rates at Rs.306.28/313.81 and said the rupee depreciated 5.6% against the dollar during 2025.

SLTDA will launch a tourism leakage survey at the end of this month to measure how much of the revised average daily tourist spending of $148 remains in Sri Lanka. The study will analyse supply chains, ownership structures, import dependence and spending patterns to quantify outflows.

Cabinet approved calling for EOIs to lease 24 former ministerial bungalows on 30-year PPP leases. An officers' committee recommends repurposing them for embassies, diplomatic missions, high-end hotels, restaurants and other investment projects to ensure productive use.

Cinnamon Hotels & Resorts reports female workforce participation of 19.5% and 22% female leadership, targeting 30% workforce representation by 2030. The group highlights the appointment of Thanuja Mudiyanselage as Resort Manager at Trinco Blu as a leadership milestone supporting inclusion and empowerment initiatives.

FACETS Sri Lanka 2026 concluded at Cinnamon Life with over 4,500 registered visitors, including about 450 foreign buyers and more than 100 exhibitors showcasing gemstones and jewellery. Organisers said the turnout reinforced international confidence and announced FACETS 2027 for 5–7 Jan 2027.

The Grand Kandyan hosted a lavish New Year’s Eve gala dinner dance to welcome 2026, featuring a black-and-gold themed ballroom, live music, raffle prizes, a 'Grand Kandyan Queen' crowning and an international buffet attended by local and foreign guests.

Singapore Airlines will add three daytime Colombo–Singapore flights from 6 January 2026, increasing services to ten weekly flights and improving connectivity via Changi to support inbound and outbound tourism and business travel.

Sri Lanka is targeting 3 million tourist arrivals in 2026, up from a record 2.36 million in 2025, to boost revenue and support recovery from Cyclone Ditwah. Tourism earned $3.2bn in 2025 and the government is eyeing about $500m in tourism investment for 2026.

Foreign Affairs Minister Vijitha Herath says Sri Lanka-US trade talks are about 95% complete but ongoing as Sri Lanka seeks further tariff relief after the US imposed reciprocal tariffs (now reduced to 20%), a measure that risks apparel and rubber exports and has drawn ADB warnings.

Gem Sri Lanka 2026 will take place on 7–9 January at the Shangri-La Colombo, featuring over 100 exhibitors and organisers expect double the foreign buyer footfall. Prime Minister Dr. Harini Amarasuriya will inaugurate the event, billed as the largest presentation of coloured gemstones in Sri Lanka.

Sri Lanka recorded a record 2,362,521 tourist arrivals in 2025, a 15.1% increase year-on-year and surpassing the 2018 high. December 2025 also saw the highest monthly arrivals since 2018 with 258,928 visitors, led by 56,715 tourists from India.

Sri Lanka's rupee depreciated 5.6% against the US dollar in 2025. Analysts say the move reflects a more flexible exchange rate, normalising import demand and external-debt outflows with the IMF warning the current account could widen by about $700m over the next 12 months.

Avenra Hotels has appointed Shohan Chandiram as its new Chief Executive Officer to lead the group's hotel portfolio, including properties in Negombo, Hikkaduwa and Wennappuwa, focusing on governance, leadership and consistent guest experience.

Sri Lanka opened a pavilion at the Muscat Festival on 1 January 2026 to promote tourism and Sri Lankan goods, featuring 10 stalls showcasing tea, jewellery, cosmetics, batik and traditional food. The month-long festival is Oman’s largest, drew over 4 million visitors last year and includes cultural performances and a fashion show.

FACETS Sri Lanka 2026 opened with Sri Lanka Gem and Jewellery Association president Akram Cassim urging urgent implementation of reforms to simplify regulations and streamline import–export to boost gem exports and foreign exchange. He also promoted linking sapphires with tourism (mine-to-museum journeys) to add value and jobs.