News & market updates

Sri Lanka recorded a record 2.36 million tourist arrivals in 2025, with non-traditional markets driving growth—Pakistan +65.75%, Bangladesh +50.58%, Italy +30.27%, Malaysia +29.71% and Netherlands +28.03% YoY. The government plans a free-visa rollout for 40+ countries and targets 3m arrivals and $5bn revenue in 2026.

IRONMAN 70.3 Colombo will be held on 22 February 2026 at Port City Colombo with Shangri‑La as host, expected to boost tourism, hotel, retail and services spending; Asiri Health is the event's official medical partner.

AirAsia has added three weekly Colombo–Bangkok flights for Winter 2025/26, taking its total on the route to 10 weekly services. The new Wed/Fri/Sun FD142/143 flights (A320) complement the upgraded daily A321 service and boost connectivity for tourism and trade.

BOI reports USD 1,057 million FDI inflows in 2025, a 72% increase from 2024. Manufacturing accounted for 46% of inflows, port development 26% and tourism 11%; 24 new projects contributed USD 134m and BOI approved 146 projects worth USD 1,906m toward 2026 targets.

Sri Lanka's outgoing ambassador said discussions are ongoing with Ethiopian Airlines to start direct flights between Addis Ababa and Colombo. Launching the route would make Colombo Ethiopian's ninth South Asia destination and could boost tourism, air cargo and bilateral trade.

BOI reports $1,057 million FDI inflows in 2025, a 72% YoY increase, with manufacturing attracting 46% and port development 26% of inflows. Singapore was the largest source (30%) and the BOI aims for a $1.5 billion FDI target in 2026 backed by new projects and institutional reforms.

Emirates is developing new plant-forward, minimally processed vegan dishes to be introduced onboard in 2027. The airline already offers 488 vegan recipes across 140 destinations and serves about 500,000 vegan meals annually, with vegan options across all classes and lounges.

Sri Lanka's Tourism Promotion Bureau, together with 15 local travel companies, showcased the country's tourism offerings at the Vakantiebeurs Fair in Utrecht from 7–11 Jan 2026. The delegation held B2B meetings and networking to strengthen partnerships and attract more European tourists.

EFC's National Best Employer Awards 2025 honoured SPEN.N0000, COMB.N0000, DIAL.N0000, HNB.N0000, HAYL.N0000, HHL.N0000, JKH.N0000 and others as Best Employer winners; honourable mentions included CTC.N0000, LLUB.N0000 and LION.N0000.

Colombo will host the FICAC South Asia Conference from 1–4 February, bringing Honorary Consuls to showcase Sri Lanka's tourism, trade and investment opportunities. The event aims to raise the country's profile and attract tourism and foreign investment through forums, networking and official meetings.

The Northern Province hosted the Northern Investment Summit on 21–22 Jan, where BOI chairman Arjuna Herath announced plans for a four-lane highway, Jaffna airport runway extension, Kankesanthurai port upgrade and three strategic industrial zones to attract investment. The summit highlighted priority sectors including IT, tourism, manufacturing, agriculture and healthcare and called for public–private partnerships and diaspora engagement.

The EDB held an orientation for newly appointed Heads of Sri Lanka Missions to strengthen collaboration on export promotion, market access and to mobilize support for Sri Lanka Expo 2026. Officials reviewed export priorities, market opportunities and the Missions' role in buyer linkages and trade facilitation.

President Anura Dissanayake called for a national policy and a new statutory Authority to coordinate protection and rebuilding of Sri Lanka's Central Highlands after Cyclone Ditwah. He met ADB, UNDP and officials to design an integrated framework, with calls for a dedicated financial fund.

Government has consolidated MSME financial facilities into a single digital Rs.95 billion framework and the NCGI will issue Rs.7,000 million in credit guarantees in 2026 to unlock about Rs.10,000 million in MSME lending. Sixteen banks, including HDFC, Commercial Bank, NDB, HNB, Sampath, Seylan, DFCC, Nations Trust and Cargills Bank, will participate in channeling concessional and disaster-relief loans.

The government said no Chinese firm withdrew from the proposed Ambuluwawa cable car project but suspended all development there pending a technical evaluation after NBRO flagged increased landslide risks. A technical committee will inspect on 10 February; BOI had earlier approved a $4.5m Amber Adventures Ltd plan.

ASPI closed at an all-time high of 23,806.32, up 0.77% (182.58 pts) on turnover above Rs.9.8bn. Gains were led by Hayleys, Colombo Dockyard and Sampath Bank, with the capital goods and banking sectors among the top contributors.

Hilton Colombo will host 'From Spain to Graze,' a Spanish culinary showcase at Graze Kitchen from 28 Jan–7 Feb 2026, offering a nightly dinner buffet priced at Rs. 10,888 nett per adult and Rs. 5,444 nett per child.

The Northern Investment Summit 2026 (21–22 Jan) set out plans to transform Sri Lanka’s Northern Province into an investment hub, proposing infrastructure upgrades (a four‑lane highway, Jaffna runway extension, KKS port upgrade) and three industrial zones at KKS, Paranthan and Mankulam.

PFEC Global will host the World Study Fair 2026 on 31 January at the Galadari Hotel, Colombo, featuring access to over 150 international institutions, on-the-spot offers, zero application fees and Malaysia Airlines discounts up to 30% to support Sri Lankan students pursuing study abroad plans.

Classic Travel (Expolanka Leisure Cluster) was named the No.1 Overall partner at the Qatar Airways Awards 2026 in Colombo, taking top positions in both corporate and premium travel solutions.

The Sri Lanka–Germany Business Council held its 26th AGM and elected Gerard Victoria as President for 2025/26; Aitken Spence group companies were elected to the Executive Committee and the council highlighted priorities including strengthening tourism cooperation and promoting bilateral investment in energy, logistics, manufacturing and digital services.

Siddhalepa Ayurveda (Hettigoda Group) opened a new retail outlet at the Departure Terminal of Bandaranaike International Airport (BIA) in Katunayake. The outlet offers a curated selection of Siddhalepa products for travellers as a final pre-departure experience.

Prime Minister Dr. Harini Amarasuriya highlighted tourism as a tool of soft power and urged long-term investment in Sri Lanka’s tourism sector at a Davos forum on Jan 20. She said Sri Lanka has shown recovery with record tourist arrivals despite crises and called for green, inclusive tourism policies.

Standard Chartered says Sri Lanka's sovereign ratings outlook is likely to shift from Stable to Positive as debt-to-GDP falls below 100% by 2027. It expects external debt service under $3bn in 2026, reserves around $7.5bn by end-2026 and policy rates to stay on hold.

The private sector minimum monthly wage has been raised to Rs. 30,000 from Rs. 27,000 (an increase of Rs. 3,000) effective 1 January. The change, under the National Minimum Wage (Amendment) Act, requires employers to base statutory payments (EPF, ETF, overtime, gratuity, maternity, leave) on the revised wage and disallows counting most allowances toward the minimum; employees can lodge complaints with the Labour Department for non-compliance.

Siddhalepa Ayurveda (Hettigoda Group) opened a new outlet at Bandaranaike International Airport's Departure Terminal in Katunayake, offering curated Siddhalepa products to departing passengers.

The Sri Lanka–Germany Business Council elected Gerard Victoria as President at its 26th AGM and set priorities to strengthen tourism cooperation and promote bilateral investment in energy, logistics, manufacturing and digital services. Aitken Spence units were elected to the Council's Executive Committee.

Vietnam opened its 14th Party Congress, targeting average annual GDP growth of 10% or higher for 2026–2030 and a per capita GDP of around $8,500 by 2030, prioritising technology-led, private-sector-driven and green economic transformation.

Standard Chartered forecasts Sri Lanka GDP growth of 3.5% in 2026 (from 4.5% in 2025), expects policy rates to remain unchanged and the rupee near 315 USD/LKR by end-2026; it warns of risks from cyclone damage, limited fiscal space and strained external financing.

The Government of Sri Lanka will divest its 100% stake in Canwill (parent of Sinolanka and Helanco) via the Ministry of Finance, with Deloitte Touche Tohmatsu India as transaction advisor; Expressions of Interest are due 16 Feb 2026 at 14:00 SLT. Sinolanka is a 47-storey oceanfront development with 458 rooms and 100 serviced apartments on 2.32 acres; the superstructure is complete and remaining work will be completed by the investor.