News & market updates

Colombo Stock Exchange was flat midday with the ASPI up 0.03% at 22,229.37 and banks leading turnover at LKR 279.8m; Singer Finance said its total assets surpassed LKR 100 billion in Q1 2026/27.

Lago Italian Bistro at Colombo City Centre will host a one-night Father's Day dining experience with Chef Derrick Kwa where each table picks seven words from a 12-word menu concept to create a unique, three-wave sharing-plate meal.

GITA, together with the Indo‑Lanka Chamber of Commerce and Industry, has launched an India Trade Desk in Colombo to provide end-to-end, one-to-one advisory and market-entry support for Sri Lankan firms seeking to expand into India. The service targets SMEs and larger firms across textiles, food processing, ICT/BPM, tourism, pharma, logistics, manufacturing and renewable energy.

Visa says its Click to Pay solution will simplify Sri Lankan online checkout by removing manual card entry and using tokenisation to reduce fraud, aiming to increase conversion rates for merchants across retail, travel and digital services.

The Sri Lanka–Germany Business Council held its Members' Day, with Germany reaffirming bilateral partnership and participants highlighting trade and investment opportunities in logistics, manufacturing, renewable energy/green tech, digital transformation and tourism; SLGBC also announced a CSR project and networking initiatives.

The Hotels Association of Sri Lanka welcomed BookRetreats.com naming Sri Lanka the world's top trending wellness destination for 2026 and called for greater focus and promotion of Ayurveda-based wellness to boost tourist flows and foreign exchange earnings.

UN Global Compact Network Sri Lanka held CATALYZE 2026: Social on 24 June with Jetwing Symphony/Lighthouse Hotel PLC Chairman Hiran Cooray as a keynote speaker. Listed partners and patrons included Elpitiya Plantations, Hemas Holdings, Commercial Bank and Sampath Bank.

German Ambassador Felix Neumann urged continued trade facilitation to boost Sri Lanka–Germany ties, highlighting opportunities in logistics, manufacturing, renewable energy, digital transformation and tourism. He delivered the keynote at the Sri Lanka–Germany Business Council Members' Day to promote investment and collaboration.

Sri Lanka's tourist arrivals fell 9.9% in June 2026 to 124,551, bringing year-to-date arrivals to 1,146,573. India was the top source with 43,423 visitors (35%), followed by the UK (10,474) and China (8,710).

The World Bank reclassified Sri Lanka from lower-middle-income to upper-middle-income effective July 1; 5.0% real GDP growth in 2025 and small population and exchange-rate effects pushed GNI per capita over the threshold. The WB warned the status is fragile due to high public debt and slowing growth.

Tourist arrivals in Sri Lanka fell 10% YoY in June to 124,551, the lowest monthly inflow so far in 2026. India remained the largest source market but fell 28% MoM to 43,423; cumulative 2026 arrivals are about 1.14m, 1.8% below the same period in 2025.

Melco Resorts & Entertainment is launching City of Dreams Sri Lanka in Colombo, billed as South Asia's first integrated resort, featuring the luxury Nüwa hotel plus dining, retail, entertainment and leisure offerings. The project brings Melco's integrated-resort expertise to Sri Lanka's tourism sector.

BookRetreats.com ranked Sri Lanka the world's top trending wellness destination for 2026, recording a 100% year-on-year traffic increase. The ranking spotlights demand for Hela-Ayurveda and luxury wellness resorts, potentially supporting inbound tourism and foreign-exchange earnings.

International Distillers Limited was the official industry partner of the 31st National Bartenders Competition Grand Finale on 26 June 2026 at Cinnamon Grand Colombo, supporting training and professional development for hospitality staff. Winners included representatives from Waters Edge, Jazzeble Colombo, Hilton Yala, Cinnamon Wild and Kai Ahangama.

Adhitya Ayurveda ran a wellness knowledge-sharing program in South Korea with Shriveda Ayurveda Korea led by Dr. Kasun Gunawardhana, covering detoxification, Panchakarma, pulse diagnosis and lifestyle practices. The organiser operates Sri Lankan Ayurvedic retreats including Mangata and Adhitya Ayurveda Colombo as it expands internationally.

FitsAir has been named a Gold Partner of the Sri Lanka Institute of Directors through a formal MoU to support corporate governance and director development. The partnership will provide platforms for professional development, cross-industry engagement and leadership exchange.

eMarketingEye will host EME Level Up: AI Hospitality Connect Sri Lanka 2026 on 14 July 2026 at Shangri-La Colombo, an invitation-only conference expected to bring over 180 hospitality delegates. Sessions will focus on AI-driven marketing, generative search, direct bookings, social media and hotel technology.

iPay supported the Central Bank's LankaQR Awareness Programme in Trincomalee on 5–6 June 2026 to promote LankaQR digital payments among tourism merchants in Trincomalee, Uppuveli, Nilaveli and Alles Garden. The company showcased iPay Business solutions and noted its market footprint (50% JustPay share, 1.2m downloads, ~1.8m monthly transactions).

Government and the Urban Development Authority agreed to accelerate the 'Temple City' project to transform the area around Hunupitiya Gangaramaya Temple and Beira Lake into an international tourism and cultural hub, including a pedestrian walkway, landscaping and enhanced visitor facilities.

Sri Lanka's current account recorded a US$194 million deficit in May 2026, the second consecutive monthly deficit and leaving a US$97 million deficit for January–May. The trade gap widened to US$4.7bn (Jan–May), fuel import spending rose 112% YoY in May, tourist earnings fell 5.1% YoY in May, remittances rose 26% YTD, reserves were US$6.9bn and the rupee was down 7.9% YTD.

Sri Lanka's current account posted a US$194m deficit in May 2026, the second consecutive monthly deficit, driven by a wider trade gap and a smaller services surplus despite higher remittances. The cumulative trade deficit reached US$4.7bn Jan–May 2026, fuel imports rose 112% YoY in May, and gross official reserves were US$6.9bn at end-May.

Around 35–40 investors have expressed interest in partnering with the state to operate Mattala Rajapaksa International Airport, with EOI proposals due by 9 July. The government says MRIA has been renovated and cleared for safe operations; it handled 140,614 passengers in 2025 but has run annual losses of about Rs. 3 billion.

The Shoppes at City of Dreams Sri Lanka hosted Cake Date on 27 June, drawing over 200 guests, about 55 bakers and more than 100 cakes. The community retail event involved partners such as Dilmah and awarded prizes including LKR 50,000 (Elegant Charms) and LKR 100,000 (Spa Ceylon).

The Council for Business with Britain elected Ameena Ziauddin as President at its 26th AGM and named a 2026–27 committee including Aitken Spence Travels, Hayleys, John Keells and invited Commercial Bank's CEO to serve. The UK Developing Countries Trading Scheme and rising British tourist arrivals were highlighted as opportunities for exporters and tourism.

The Ceylon Chamber met IMF staff during the fund’s recent visit to discuss sustaining macroeconomic stability and priorities for H2 2026, focusing on improving the investment climate, export expansion, tourism and agriculture support, energy-sector reforms and accelerating digitalisation.

IMF staff completed a June 24–30 visit, noting inflation rose from 1.6% y/y in Feb to 5.5% y/y in May after energy price increases and that authorities responded with a 100 bps policy rate hike and temporary on-budget relief (fuel, electricity, fertilizer, cash transfers). The IMF said sustaining reforms is critical and the Seventh Review of the EFF will assess program progress in the fall.

John Keells Foundation ran substance-abuse awareness and training sessions across John Keells Group businesses, covering 644 staff at Cinnamon Grand, 218 staff at Cinnamon Myst/Citadel, and rollouts across 145 Keells supermarket outlets; JKF says over 36,000 people have been reached since 2016.