News & market updates

SriLankan Airlines cancelled several scheduled flights today (02) — including services to Dubai, Doha, Dammam, Riyadh and Kuwait — due to continued closure of parts of Middle East airspace; passengers were advised to contact the airline for assistance.

US and Israel launched strikes on Iran, raising the risk of a wider Middle East conflict that could push Brent crude (around $73) toward roughly $80 and, if supply is disrupted, possibly near $100. Markets may see heightened volatility, safe-haven flows into gold and Treasuries, and pressure on Gulf equities and airlines.

MTI Consulting CEO Hilmy Cader warned the Gulf war escalation could stress-test Sri Lanka’s economy by disrupting about 140 scheduled weekly Gulf flights and Gulf airspace. He said this would reduce hotel bookings, disrupt cargo and time-sensitive exports, and affect nearly 1 million Gulf-based workers and roughly US$1.5bn of exports to the Middle East.

The Ministry of Foreign Affairs and related agencies advised about one million Sri Lankan nationals in the Middle East to exercise heightened vigilance and avoid non-essential travel and large gatherings. Diplomatic missions have activated 24-hour emergency hotlines and provided contact numbers for families in Sri Lanka.

SriLankan Airlines cancelled multiple flights today (01) on routes between Colombo and Dubai, Doha, Dammam, Riyadh and Kuwait City due to continued Middle East airspace closures; passengers were advised to contact the airline for assistance.

SriLankan Airlines cancelled multiple flights to and from key Middle Eastern destinations today (28) due to airspace closures; affected routes include Riyadh, Kuwait, Dammam, Dubai and Doha (both outbound and inbound). Passengers were advised to contact the airline via its hotline, WhatsApp, travel agents or the official website for assistance and updates.

Sri Lanka issued its first Digital Nomad Visa to Ukrainian national Darya Gordiyenko and her spouse and will launch a 2026 Digital Nomad promotional campaign to attract remote professionals. Reactivated on 14 Feb 2026, the scheme is being operationalised by SLTPB with immigration, Central Bank and ICTA oversight to boost foreign exchange and local services.

SalamAir has suspended all international flights and services to Masirah for 24 hours from 28 February 2026 citing the evolving regional situation. Affected passengers will be contacted and are advised to check Salamair.com or contact the airline's 24/7 support for updates.

Sri Lanka Tourism Promotion Bureau will lead a delegation of 72 local companies to ITB Berlin (3–5 Mar 2026) to promote Sri Lanka in Germany, aiming to boost German arrivals and tourism revenue.

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.

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.

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.

City of Dreams Sri Lanka will host "Signature Holi Rush", a three-day Holi celebration from 6–8 March 2026 featuring celebrity performances, DJs, vibrant pool décor and a Holi-themed dining experience.

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.

Cabinet approved contracts for SriLankan Airlines at Paris CDG: a €7.73m, three-year passenger and ramp handling contract to Groupe Europe Handling from 1 April 2026, and a €1.90m, three-year cargo handling contract to France Handling Cargo from 1 February 2026.

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 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.

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.

SriLankan Engineering signed a long-term line maintenance agreement with Batik Air Malaysia to support the carrier's flights to Colombo, providing comprehensive line maintenance services to boost aircraft readiness, safety and operational efficiency.

Colombo Racing Club will hold the “Würth Drag Wars” night-time drag racing event on 28 March 2026 from 3pm at Katukurunda Racing Track, with Würth Lanka as title sponsor supporting the 2025/26 Drag Racing Championship.

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.