News & market updates

Sri Lankan authorities pledged to enforce the law against tuk-tuk gangs using violence to intimidate PickMe and Uber drivers, warning the tactics threaten the island's tourism safety brand.

FACETS Sri Lanka 2026, the 33rd edition of Asia’s premier gem and jewellery exhibition, opened at Cinnamon Life in Colombo, drawing international buyers and highlighting sustainable sourcing. The event occupies two floors and is expected to support hotel bookings and broader tourism activity in Colombo.

Sri Lanka is targeting 3.0 million tourist arrivals in 2026 after reaching close to 2.4 million in 2025, the Sri Lanka Tourism Development Authority chairman said. He also aims for $5 billion in revenue and said the authority will increase destination marketing next year after limited campaigns in 2025.

Central Bank Governor Nandalal Weerasinghe said Sri Lanka's economy could exceed 5% growth in 2026 driven by reconstruction spending after Cyclone Ditwa, including an extra Rs 500 billion on top of about Rs 1.4 trillion in public investments. He warned the stimulus could raise inflation and strain foreign exchange reserves unless offset by higher exports, remittances, tourism and external financing.

Sri Lanka's current forex inflows from exports, remittances and gross services exceeded imports by US$504mn in November 2025. Total gross current inflows were US$2,282mn; exports US$1,047mn, remittances US$673mn, services US$560mn (tourism US$251mn), while intermediate imports fell to US$952mn and apparel inputs to US$203.2mn.

Ranyan Industries' Amami brand won the Silver Award and Top Achiever Award (Small Category) at the CNCI Achievers Awards 2025. Amami supplies Ayurvedic and herbal hotel amenities to major Sri Lankan hotels and emphasizes locally sourced raw materials and export expansion.

Colombo Coffee Company and the Embassy of Italy held the 'La Dolce Tazza' masterclass in Colombo, showcasing Italian coffee brands and techniques and reinforcing Colombo Coffee Company's role as Sri Lanka's largest importer and distributor of premium Italian coffee.

ITC Ratnadipa was awarded a 5-Star Classification Certificate by the Sri Lanka Tourism Development Authority. The Luxury Collection hotel, which opened in Colombo on April 25, 2024, emphasizes sustainability-driven luxury hospitality.

Port City Colombo has commissioned public utility connections to Colombo’s main grid and attracted over $1bn in land development investments as it moves into full commercial operations. Browns Investments PLC (part of the LOLC group) has broken ground on a $120m Luxury Marina with berthing for 200 vessels.

Passenger movements in Jan–Nov 2025 rose 15.2% YoY to 9.23m, with international aircraft movements up 14.6% to 58,454 and tourism-linked air arrivals up 16.7% to about 2.1m. The Ports and Civil Aviation Ministry attributed the gains to improved connectivity, rising tourist inflows and renewed policy focus under the new government.

Booking.com Regional Head Santosh Kumar urged a collective rebranding of Sri Lanka to move from recovery to high-value, year-round tourism, calling for unified branding and stronger digital visibility. He said Booking.com will support this shift with data, technology and global reach.

President Anura Dissanayake urged unity in rebuilding Sri Lanka, noting 2025 recorded the lowest budget deficit since 1977, the first-ever primary surplus and nearly USD 17 billion in export earnings.

Deputy ministers said Sri Lanka posted record State and tax revenue in 2025, with total government revenue exceeding Rs. 4.5 trillion and foreign reserves topping $7 billion (expected to pass $7.24 billion by year-end). They added that IRD, Customs and Excise all beat targets and the primary balance turned positive at 3.2%.

Sri Lanka Tourism chairman projects 3 million tourist arrivals and $5 billion in tourism revenue for 2026. He said 2025 should close with about 2.35 million arrivals and $3–4 billion revenue, surpassing the 2018 arrivals record despite Cyclone Ditwah.

The Cabinet approved installation of four automatic passenger clearance gates at the departure terminal of Bandaranaike International Airport. The move is part of ongoing 2023 upgrades under an IOM–Japan cooperation funded by a ¥1,170m grant, and four gates have already been installed at arrivals.

Sri Lanka’s 2025 combined IMF-backed stabilization and reform gains with a late-November setback from Cyclone Ditwah. Key items include a Central Bank rate cut (lending window to 8.25%), DFCC’s sale of a 50% Acuity stake to HNB for LKR 6.5bn, and John Keells launching the $1.2bn City of Dreams resort alongside major energy project deals and rooftop-solar grid issues.

Emirates carried 55.6 million passengers in 2025 and placed orders for 73 new aircraft. The airline expanded its A350 network, rolled out Starlink across 232 planes, broadened Premium Economy to 100+ aircraft and launched Emirates Courier Express across 10 markets.

Sri Lanka Tourism is hosting Australian influencer Luana Ostling on a 10-day luxury tour (26 Dec–4 Jan) to promote Sri Lanka's luxury travel offerings and restore international visitor confidence, supported by hospitality partners including Jetwing, KK Collection, Marriott and Cinnamon Life.

The Colombo stock market gained Rs.84 billion as the ASPI rose 1.42% to 22,445.89. Top contributors included Colombo Dockyard, Melstacorp, Hatton National Bank, Richard Pieris and Commercial Bank, with capital goods, banking and materials driving turnover and hotel stocks seeing buying interest.

Cyclone Ditwah has inflicted widespread damage in Sri Lanka, with reconstruction costs estimated up to US$7 billion and GDP growth seen slowing to about 3% in 2026. Business confidence fell (BCI down from 189 to 164) and the government has sought US$200m in IMF emergency aid.

The Ministry of Public Administration launched an online booking facility for tourist bungalows and resorts on its official website, enabling mobile reservations. The move is part of the government's digital initiatives to expand public access to services.

George Steuart & Company joined a CWEIC delegation to Nigeria and Kenya to explore trade and expansion opportunities across tea, pharmaceuticals, FMCG, digital trade and other sectors. The visit included the Manufacturing Africa CEO Forum, KIAC meeting, an Equity Group roadshow and meetings with Lagos officials and industry partners.

Port City Colombo marks 11 years as CHEC reiterates progress, announcing commissioning of public utility connections to Colombo’s grid and citing over USD 1bn in land development investments, including a USD 120m marina by Browns Investments (LOLC group).

BRICS Chamber of Commerce India and BRICS Chamber of Commerce Sri Lanka signed an MoU in New Delhi to cooperate on promoting trade, services, investment and tourism.

The Management Club will host the Northern Investment Summit 2026 on 21–22 January 2026 in Jaffna to showcase KPMG-vetted, district-specific bankable proposals aimed at unlocking investment in the Northern Province; Hatton National Bank (HNB) is the official banking partner.

Colombo Dockyard and banking shares lifted the CSE All Share Price Index 0.29%, with the ASPI closing at 22,132.33 and Colombo Dockyard the top gainer at 171.75 rupees. Market turnover fell to 3.7 billion rupees and the exchange recorded a net foreign outflow of 200.46 million rupees led by John Keells.

Sri Lanka recorded 2,333,797 tourist arrivals in 2025, the highest annual total on record. The figure surpasses the previous 2018 record of 2,333,796, with India remaining the leading source market.

Sri Lanka crossed 2.3 million tourist arrivals on 26 December, with year-end arrivals now expected around 2.35–2.4 million (below the aggressive December target and short of the 3m optimistic scenario). India remains the largest source market (~520,000 YTD) and forecasts point to ~2.4m arrivals and $3.4bn in tourism earnings for 2025.