News & market updates

Open House Colombo returns in March 2026, hosted by the Geoffrey Bawa Trust across three weekends (March 6–29) with over 25 architecture studios, artists’ spaces and workshops open to the public; the edition was postponed from December 2025 after Cyclone Ditwah.

Hilton Colombo will host a month-long Middle Eastern‑themed Iftar at Graze Kitchen from 17 February to 18 March 2026, priced at Rs. 10,888 nett per adult and Rs. 5,444 nett per child. The buffet features Middle Eastern mezze, rice dishes and desserts, while Café Kai offers curated Iftar selections for sharing or takeaway.

A temporary technical glitch in Sri Lanka’s ETA system affecting UK applicants may cause short-term disruptions to tourist arrivals from the UK, Sri Lanka’s second-largest source market (212,277 arrivals in 2025). Travellers who applied can board without the ETA notice and verification will be done on arrival at BIA while authorities work to restore services.

Belluna Lanka and Sanken Overseas will invest about Rs.4 billion (US$12.5m) to develop the 60-key Granbell Hotel Ella in Uva Province. Sanken will co-invest and act as turnkey contractor, with construction from mid-2026 and completion targeted for 2028.

Airport and Aviation Services (Sri Lanka) Ltd. said Sri Lanka's airports handled a record 1,045,097 passengers in January 2026, surpassing the previous record of 1,034,687 in January 2018. AASL said this reflects the sustained recovery and expansion of the country's aviation and tourism sectors.

Belluna Lanka and Sanken Overseas have launched Project Granbell Hotel Ella, a planned LKR 4 billion (USD 12.5m) 60-key hotel in Uva Province with construction due to start mid-2026 and completion targeted for 2028. Sanken will co-invest and act as turnkey contractor, with the project positioned to support regional tourism and local employment.

IMF Managing Director Kristalina Georgieva said Sri Lanka has made "tremendous progress" with macro stability restored, inflation sharply down and growth returning. She urged sustained reforms, stronger FX reserves and prudent fiscal policy, noted over $200m in IMF emergency aid and that debt restructuring is nearing completion.

President Anura Kumara Dissanayake said UK Deputy PM David Lammy's visit reinforces international confidence and welcomed the UK's decision to grant zero-tariff access for Sri Lankan textile exports. He flagged tourism, exports and FDI as priority areas, urged sustained forex inflows and outlined post-Cyclone Ditwah reconstruction measures.

Airport & Aviation Services Sri Lanka (AASL) handled 1,045,097 passengers in January 2026, a new single-month record, surpassing the previous high of 1,034,687 in January 2018.

SLTDA said 159,339 foreign tourists arrived in the first 15 days of February 2026, including 34,879 over the final weekend around the India–Pakistan T20 match. Airfares to Sri Lanka and Colombo hotel rates rose, and total tourist inflows up to mid‑February reached 436,666.

Sri Lanka's manufacturing PMI was 56.1 and services PMI 64.5 in January 2026, indicating continued expansion in both but at a slower pace than December 2025 (60.9 and 67.9). Growth was driven by higher new orders, production and employment in manufacturing and strong wholesale/retail, accommodation and financial services activity in services.

Government issued new Strategic Development Projects regulations granting tiered corporate tax holidays (generally 5–10 years) with investment thresholds starting at >$50m and import-duty/VAT/PAL/CESS exemptions during implementation. Categories cover infrastructure/tourism, manufacturing and agriculture/ICT; motor vehicles excluded.

Nearly 40,000 tourists arrived in Sri Lanka over the weekend for the India‑Pakistan T20 match, lifting first-15-day February arrivals to 159,339 (up 19% YoY) and YTD arrivals to 436,666 (up 13% YoY). Fifteen private jets landed and Colombo hotels reported full occupancy, boosting short-term sports tourism demand.

IMF Managing Director Kristalina Georgieva arrived in Sri Lanka (Feb 16–18, 2026) to meet government officials, assess Cyclone Ditwah damage and discuss IMF support for recovery and building greater resilience.

Over a dozen international franchisors attended the Sri Lanka Franchise Expo 2026, and Franglobal signed an agreement with Fat Crab (part of Don Stanley Holdings) to expand into southern India with plans for up to 25 outlets by 2028. Government and industry bodies highlighted franchising's potential to drive jobs, SME development and support recovery in urban and tourist commercial districts.

China will allow UK and Canadian nationals visa-free entry for up to 30 days from 17 February (initially until 31 December). The policy covers tourism, business and family visits and is intended to boost people-to-people exchanges and ease business travel.

Cinnamon Life at City of Dreams has appointed Kamal Munasinghe as General Manager effective 15 February 2026. He will continue as Senior Vice President – Colombo Hotels at Cinnamon Hotels & Resorts and brings over 30 years of international and local hospitality experience.

Radisson Blu Resort Galle, Radisson Hotel Colombo and Radisson Hotel Kandy are introducing a fleet of electric vans supplied by Evolution Auto to electrify operations and reduce emissions. The fleet (KYC and King Long vans) will support staff, guest and logistics movements, include charging facilities, and cut fuel and maintenance costs.

City of Dreams Sri Lanka will host a Lunar New Year celebration from 17 February to 3 March featuring cultural showcases (lion and fan dances), appearances by Gods of Fortune, themed décor across Level 6 and Spice8, and a special Chinese New Year buffet at Spice8.

The BOI, with the EU, ADB and ESCAP, will host the Sri Lanka Investment Forum on 30 March 2026 at Hotel Cinnamon Life to promote the country for high-value, sustainable and technology-driven investment.

Cinnamon Bentota Beach (John Keells Hotels) donated and installed two air-conditioning units for the smart classroom at Bentota Gamini National School. A handover ceremony was held with school and hotel representatives as part of the resort's community engagement to support digital learning.

Soho Hospitality will open its Charcoal Tandoor Fire Grill in Colombo later this year, marking the brand's first expansion into South Asia and locating on the 50th floor of Capitol Twin Peaks. The group cited Colombo's tourism growth and rising consumer sophistication as key reasons for the entry.

Around 15 private jets, mostly from India, arrived in Colombo for the India‑Pakistan T20 match, filling city hotels and creating spillover demand in Mount Lavinia and Negombo. Feb 1–12 data show India led arrivals with 18,819 visitors (15% of total), underscoring a tournament-driven tourism boost.

John Keells Hotels (KHL.N0000) appointed Kamal Munasinghe as General Manager of Cinnamon Life at City of Dreams, effective 15 Feb 2026. He will continue as Senior VP – Colombo Hotels at Cinnamon Hotels & Resorts and brings over three decades of hospitality experience.

SriLankan Airlines won the Plate Winners title at the World Airline Cricket Tournament 2026 in Dubai (1–8 Feb); Dasees Ishanthamaal was named MVP and Asitha Waduarachchige Best Batsman.

The Board of Investment will host the Sri Lanka Investment Forum 2026 on 30 March at Cinnamon Life, Colombo, focusing on green transition and sector-led investments including renewable energy, green finance, services, manufacturing, infrastructure and leisure. The EU, ADB and ESCAP are supporting the event, which includes parallel sector sessions and a closed-door EU–SL investor dialogue.

At the 27th EU–Sri Lanka Joint Commission in Colombo the EU stressed time-bound delivery of Sri Lanka's commitments under the GSP+ scheme, urging alignment of anti-terror legislation; both sides also discussed investment opportunities under the EU's Global Gateway and cooperation on trade, fisheries and education.

Tourist arrivals in Sri Lanka for the first 12 days of February rose 19% YoY to 124,460, lifting YTD arrivals to 401,787 (up 12.5%) and the daily average to 10,372; city hotels are reported fully booked ahead of the India-Pakistan T20 World Cup match in Colombo.

The Defence Ministry announced a comprehensive, multi-layered security framework for the T20 Cricket World Cup — covering match venues, team hotels, training facilities, airports, fan zones, airspace surveillance, CCTV monitoring, and emergency response teams to ensure safety throughout the tournament.

The ninth Boat & Marine Show Sri Lanka was held 30 Jan–1 Feb 2026 at Port City, Colombo, showcasing marine tourism and boat-building (50 exhibitors, 90 stalls) to promote exports and B2B links with international buyers. The event aimed to boost nautical tourism and attract investment into boat-building and related services.