News & market updates

Sri Lanka and Türkiye held their second political consultations in Ankara on May 5, focusing on defence and security cooperation and exploring expanded investments and joint ventures in pharmaceuticals, renewable energy, tourism, logistics and technology. They also discussed connectivity, maritime cooperation and education links.

Emirates Group reported record profit before tax of AED 24.4 billion for the year ended 31 March 2026. The group also recorded AED 150.5 billion in revenue, AED 59.6 billion in cash assets, declared an AED 3.5 billion dividend to its owner, and noted the UAE corporate tax rate rose to 15%.

Colombo bourse rebounded as the ASPI rose 0.69% (155.47 pts) to 22,739.77 after Middle East developments pushed oil below $100, with turnover over Rs. 4.1bn and net foreign inflow of Rs. 62.4m. JKH, MELS and RIL were among top positive contributors while LIOC fell and REEF gained.

The US dollar selling rate in Sri Lanka climbed above Rs.324 to Rs.324.03 (buying Rs.316.40, spot Rs.319.78), and the rupee has depreciated 2.9% against the dollar year-to-date to April 30, 2026.

Economist Ganeshan Wignaraja said Sri Lanka could position itself as an Indian Ocean hub for finance, trade, aviation and services if it maintains macroeconomic stability and implements reforms. He urged considering an 18th IMF programme as the current one ends mid-2027 and warned rising oil/gas/fertilizer prices and war-linked tourism and remittance disruptions pose risks.

The Government's proposal to ban e-cigarettes and vaping devices in Sri Lanka has drawn ire from the tourism industry, which says the move could deter vape-using visitors. The industry noted tourism grew 15% to 2.36M in 2025 and cited high vaping rates in key source markets such as the UK and Europe.

Tempest PE Partners completed three deals: a minority investment in Acentura (enterprise software), a majority acquisition of The Grand Surf Hotel (leisure/beach club) and a RM30m raise for Malaysian-listed PTT Synergy to scale smart warehousing. Tempest will play an active advisory role supporting governance, KPIs and regional expansion.

Global Innovation & Leadership Summit in Colombo flagged untapped Indian outbound travel potential—32.7m Indians traveled abroad in 2025 while only 531,000 visited Sri Lanka—and urged deeper India–Sri Lanka integration to boost tourism, agriculture, marine and creative sectors.

Hilton Colombo will host 'Seoulful Flavors at Graze,' a 10-day Korean culinary showcase from 14–23 May 2026, with dinner buffets priced at LKR 10,888 nett per adult and LKR 5,444 nett per child. The event, in collaboration with Conrad Seoul, features guest chefs Jeong Hun Han and Young Hun Hwang presenting authentic Korean dishes.

Cinnamon Life at City of Dreams is offering a lineup of May dining events across its venues, including a Mother's Day Ocean Elegance brunch (10 May), custom cakes (8–10 May), Dragon Boat Festival specials (17 May–21 Jun), Hajj dinners (28–30 May) and a Sake masterclass (23 May).

Sri Lanka and the Maldives pledged deeper economic cooperation at the Maldives–Sri Lanka Business Forum in Colombo, with Maldives announcing investment‑friendly reforms and leaders urging expansion of bilateral trade (US$137m in 2025), tourism, infrastructure and sector partnerships.

Melstacorp Plc and Aitken Spence Hotel Holdings are offering to buy minority shares of Browns Beach Hotels at LKR 30 per share ahead of the company's planned delisting from the Colombo Stock Exchange. The acceptance period runs from May 5 to June 5; Browns Beach cited sustained tourism-related losses since 2019.

Sri Lanka tourist arrivals fell 22.3% YoY to 135,643 in April 2026, the weakest month so far as winter seasonality and Middle East-linked aviation disruptions cut travel. Year-to-date arrivals are down 2.3% to 876,277 and average daily arrivals dropped to 4,521.

Private taxi operators at Bandaranaike International Airport are requesting temporary relief, asking for a 50% reduction in monthly rent for three months after paying over Rs.4 million/month and facing low tourist arrivals and unfair competition from meter operators. They warn of staff layoffs and loss of luxury transport capacity if relief is not granted.

Melstacorp (MELS.N0000) and Aitken Spence Hotel Holdings (AHUN.N0000) opened an unconditional Rs.30-per-share exit offer today for minority shares in Browns Beach Hotels PLC ahead of its planned CSE delisting; the offer closes on 5 June with settlement by 12 June.

City of Dreams Sri Lanka appointed Chef Ye Panwang as Chef de Cuisine at its Spice 8 restaurant, bringing over two decades of international experience in Chinese and Pan-Asian cuisine.

Kandy Hotels Company (Kandy Myst by Cinnamon) hosted an exclusive meet-and-greet with former New Zealand All Blacks captain Kieran Read. The event gathered Sri Lankan rugby legends and dignitaries and offered guests insights into his leadership and career.

Table by Nyne at Lake Lodge, Colombo is offering a month-long Mother's Day High Tea every Sunday in May starting 10 May, with mothers dining free and the High Tea priced at LKR 8,000 nett per person; advance reservations required.

ASPI rose 0.65% (145.47 pts) to 22,695.00 while the S&P SL20 gained 0.6% to 6,244.64. Market turnover exceeded Rs. 4.8bn with Ceylon Tobacco Company dominating turnover (Rs. 2.4bn) even as foreign investors were net sellers, extending YTD foreign outflows to Rs. 27.6bn.

Emirates has restored 96% of its global network, operating to 137 destinations across 72 countries with over 1,300 weekly frequencies (75% of pre-disruption capacity); it continues three daily flights to Colombo.

Beruwala Resorts PLC has closed The Palms Hotel Beruwala from May 1 until August 30, 2026 for refurbishment and operational upgrades and expects to reopen on September 1, 2026. The board said the closure is not expected to have a material long-term impact and cost management measures will be applied.

Sri Lanka's current account surplus fell 43.9% YoY to $531.5m in 1Q2026. The decline was driven by a sharply wider trade deficit (up 122% YoY), weaker services/tourism inflows with March surplus collapsing 90.7% YoY to $44.6m, and a 74.7% surge in fuel import costs.

City of Dreams Sri Lanka is a USD 1.3 billion, 4.5 million sq ft integrated luxury resort developed by Melco Resorts and John Keells, combining Nüwa (113 rooms) and Cinnamon Life (687 rooms) with major entertainment, retail and MICE facilities to strengthen Colombo's tourism offering.

SriLankan Airlines won two South Asia awards at the PAX International Readership Awards 2026 — Best Overall Passenger Experience and Most Improved Airline. The airline highlighted ongoing end-to-end enhancements, including digital/AI upgrades and expanded self-check-in and bag drop facilities.

Manipal Hospitals announced the first-ever couple open-water swim from Talaimannar, Sri Lanka to Dhanushkodi, India — a roughly 32 km crossing by Danish Abdi and Vrushali Prasade scheduled for May 6, 2026. Manipal said it will provide clinical support and frame the event as reinforcing India–Sri Lanka health-connect and wellness ties.

MillenniumIT ESP appointed Harendra Samarasinghe as CEO; he brings 20+ years in global technology and will lead the firm's transformation and global growth, with emphasis on cloud, AI and enterprise solutions for banking, travel and healthcare.

Solo Sri Lankan was awarded the Platinum Excellence 2026 in Tourism Business Growth & Market Expansion at City of Dreams – Cinnamon Life, Colombo. The award recognizes the company's international market expansion driven by strategic marketing and global partnerships.

Colombo Stock Exchange rose with the ASPI up 0.47% and banks leading turnover at Rs.467 million. Nations Trust Bank completed the transfer of HSBC Sri Lanka's retail banking (effective May 1), Beruwala Resorts will close May 1–Aug 30 for refurbishment, and Sampath Bank appointed an independent director.