News & market updates

Sri Lanka Customs collected 212.4 billion rupees in February 2025, exceeding its 160.2 billion-rupee target by 28% (46.4 billion rupees). Officials attribute the jump to stronger enforcement, improved valuation and a rebound in imports alongside currency movements.

President says the Central Bank submitted a scenario analysis on the Middle East conflict's economic impact to the government and that the worst-case outcome is unlikely. Authorities are preparing contingency plans affecting tourism, tea exports and port logistics and are seeking Indian support for the tea sector.

Sri Lanka Shippers’ Council warned the Middle East conflict is disrupting global shipping routes, with carriers adjusting schedules, suspending routes, applying surcharges and rerouting cargo, raising freight costs and causing delays for Sri Lankan exporters and importers.

Fitch says the effective closure of the Strait of Hormuz is likely temporary and, coupled with global oil market oversupply and ample inventories, should limit oil-price rises; it does not expect significant upside to its Dec-2025 assumption of average Brent at USD63/bbl for 2026.

Emirates resumed flight operations and advised passengers with confirmed Saturday (07) afternoon bookings and transit connections to proceed to the airport. City check-in points in Dubai remain temporarily closed; Emirates is offering rebooking or refunds for bookings made 28 Feb–31 Mar, allowing travel through 30 Apr.

The CSE fell, with the ASPI down 4.34% (1,032.15 points) for the week as index-heavy banking and diversified holdings stocks dragged the market. Foreign investors were net sellers (week net outflow Rs.791.2m); large declines came from JKH, HNB and SAMP while ACL, CINS and RAL saw heavy off‑board turnover.

EDB officials, led by CEO Mangala Wijesinghe, met German business leaders and IHK Bremen on 27 Feb 2026 in Bremen to promote Sri Lanka Expo 2026 (18–21 June 2026) and invited an IHK Bremen delegation; German firms showed interest in logistics and tourism and follow-up talks were agreed.

Emirates carried about 30,000 passengers out of Dubai on 6 March and expects to operate 106 daily return flights to 83 destinations—around 60% of its network—by 7 March as it restores services following partial regional airspace reopening.

Sri Lanka's tea industry may lose USD 10-15 million per week as the Middle East conflict has halted shipments to the region. About 52% of exports go to the Middle East; auction prices fell ~Rs.50/kg overall and ~Rs.75/kg for low-grown tea, and exporters are seeking government support for cash-flow and added freight/insurance costs.

Fitch says the effective closure of the Strait of Hormuz after Feb 28 is likely temporary and global oil-market oversupply should limit price rises, leaving its December-2025 Brent assumption of USD63/bbl for 2026 largely intact. High inventories and spare OPEC+ capacity reduce near-term disruption risk.

Fitch says the duration of Middle East aviation disruption after the 28 Feb attacks will determine effects on airlines, airports, lodging, insurers and lessors — more than 15,000 flights were cancelled between 28 Feb and 5 Mar, affecting over 1.5m passengers. Fitch's baseline expects the conflict to last under a month limiting rated issuers' exposure, but a prolonged disruption would raise costs (longer routings, higher fuel, accommodation) and hit smaller or less diversified firms.

Government will invest Rs. 46.7 billion from 2025–2028 to expand fuel storage and pipelines, allocating Rs. 31.96 billion for tank construction/refurbishment and funding projects including 24 tanks in Trincomalee (300,000 tons), Jet A1 facilities and pipelines due by 2027–28.

Emirates will operate more than 100 flights on March 5–6 as regional airspace partially reopens, resuming passenger services and transporting cargo including perishables and pharmaceuticals; it will gradually rebuild its schedule subject to airspace availability and safety.

President Anura Kumara Dissanayake convened high-level meetings to review economic risks from the Middle East conflict and ordered monitoring and contingency measures for fuel supplies, tourism, exports and migrant workers. He also asked the Finance Ministry to study a technology-sector investment relief package.

Norway's Deputy Foreign Minister Andreas Motzfeldt Kravik urged rule-of-law and investment-climate reforms to attract Norwegian capital and signalled plans to deepen trade, maritime cooperation, fisheries monitoring, renewable-energy and technology partnerships with Sri Lanka.

Cabinet approved phased removal of cess on 2,634 import Combined Classification Codes over 2026–2029, with cuts staged at 25%, 50% up to 100% (265 textile-related goods to see removal in 2026; 697 intermediate goods phased 2026–28). The measure is aimed at lowering production costs, easing exporters' cost pressures and improving supply-chain efficiency.

Emirates will operate a limited flight schedule from March 5 until 23:59 UAE time on March 7, 2026, due to regional airspace closures. Affected passengers are being offered rebooking (travel on or before March 27) or refunds (for bookings through March 12) and are urged to check flight status and notifications.

Fitch says Middle Eastern sovereign ratings broadly have buffers to withstand a short regional conflict if it lasts under a month and energy infrastructure avoids lasting damage. It warns closure of the Strait of Hormuz or damage to Gulf export infrastructure would be the main channel for rating pressure and expects temporary slowdowns in tourism, aviation and consumer activity.

Oil prices rose as the U.S.–Iran war widened and the Strait of Hormuz was largely closed: Brent gained $1.67 (2.05%) to $83.07/bbl and WTI rose $1.94 (2.60%) to $76.60. Shipping disruptions, Iraq output cuts (~1.5m bpd) and Qatar's LNG force majeure tightened supply.

Government unveiled structural reforms at the AmCham CEO Forum aiming for 7% annual growth and a LKR 200 billion economy, including a 70% renewable-energy target by 2030, bank consolidation, port upgrades and support for IT, pharma and SME finance (LKR 300m ITIA allocation).

Sri Lanka's 60+ population is over 18% and could reach 25% by 2041, creating opportunity for a 'Silver Economy' if jobs, savings and care services expand. Low labour participation, limited pensions and a projected 149,076 care-worker shortfall by 2037 require policies on retirement, pensions, insurance and scaled elder-care.

M One Group won 22 honours at the 2025 Effie Awards, with M One Integrations and Thinkfinity securing multiple Bronze awards and Finalist placements. Notable recognized campaigns included work for SLTMobitel, Sustagen and Jellegen.

The ASPI rose 0.60% (134.03 pts) to 22,577.41 on bargain hunting after a prior session plunge, with turnover ~Rs.4.7bn and foreign net outflow of Rs.95.1m. Capital goods led turnover (Rs.1.5bn) while banking and diversified financials also drove gains.

Civil Aviation Ministry said all airlines have agreed to allow passengers stranded by Middle East-related flight suspensions to receive full refunds or rebook journeys without extra charges.

The Sri Lanka Export Development Board held a Regional Exporters Networking Forum in Matara to identify Southern Province exporters' challenges and explore new export opportunities, with nearly 250 exporters and senior officials participating. The EDB collected issues beforehand to focus discussions and aims to reduce regional export disparities.

The Sri Lankan Embassy and BELGOLUX–Sri Lanka Business Council held a business evening in Brussels on 24 Feb 2026 with over 55 Belgian participants to promote trade and investment, highlighting opportunities in ports, logistics and tourism. A BELGOLUX business delegation to Sri Lanka is scheduled for 17–21 June 2026 including a forum, B2B meetings, Expo participation and a Colombo Port City visit.

President Anura Kumara Dissanayake reviewed national measures to protect tourists and migrant workers amid the Middle East conflict, with 24-hour embassy emergency services active and no serious injuries reported. Authorities logged 19 visa-expiry inquiries, 42 immigration/emigration issues and 1 financial request, sought grace-period extensions for returning workers, and SriLankan Airlines said flights are normalizing.