News & market updates

ITC Ratnadipa, Colombo will host 'Flavours of Eid' buffet at the Indian Ocean Pavilion on 28 May 2026, with lunch priced at LKR 8,000 nett and dinner at LKR 9,500 nett per person. The event features Eid specialties, live stations and an international buffet.

Sri Lanka's Foreign Minister Vijitha Herath will open the Sri Lanka High Commission in Wellington during his May 26–June 3 visit to New Zealand and Australia and hold bilateral talks with counterparts Winston Peters and Penny Wong; the visit is expected to strengthen relations and enhance cooperation in areas of mutual interest.

The Ceylon Chamber of Commerce delegation led by Chairman Krishan Balendra held high-level economic engagements in Mumbai on 13–14 May, culminating in the renewal of an MoU with the Indian Merchants' Chamber. Discussions targeted technology, manufacturing, healthcare, renewable energy and digital transformation to boost bilateral trade and investment.

President Anura Kumara Dissanayake said Sri Lanka faces external pressures from the Middle East conflict—higher oil and import costs and rupee depreciation—but rejected a repeat of the 2022 collapse, noting Central Bank reserves near $7bn and a $700m inflow expected; he assured no shortages of fuel, gas, milk powder or fertiliser.

Deputy Finance and Planning Minister Dr. Anil Jayantha Fernando defended Sri Lanka's flexible exchange rate and independent monetary policy amid rupee pressure, noting the interbank rate averaged Rs.330/USD (bids Rs.327, offers Rs.332). He warned fuel import costs could hit $521m in May, forecast remittances above $9b and expected IMF tranche approvals.

ITAK MP Shanakiyan Rasamanickam called for a bipartisan national response and proposed expanding Aswesuma, transport subsidies, temporary VAT relief on essentials and measures to stabilise the rupee after it weakened about 6% to Rs.327.60 by 18 May 2026. He also urged curbs on luxury imports, criticised untargeted fuel subsidies and proposed a Sri Lanka Development Fund to boost tourism and FDI.

Sri Lanka's Board of Investment pitched a pipeline of 30 project-ready opportunities to Vietnamese investors as the economy rebounds — GDP grew 5.0% in 2024 and 2025 and FDI rose to US$1.063bn in 2025. Projects span manufacturing, logistics and port services, tourism, pharma, and mixed infrastructure developments.

CT Smith says Sri Lanka's current pressures are driven mainly by an external energy shock, with near-term multilateral inflows of about $1.38–1.4bn (IMF $700m, ADB $480m, World Bank $200m) expected to help stabilize the rupee. The firm notes the rupee has weakened ~6.2% YTD to Rs329.64, inflation rose to 5.4% in April, and the CBSL policy decision is due 26 May (base case: rates held at 7.75%).

US SaaS platform Review Craze has partnered with Sri Lankan tea and hospitality brand Tea Avenue to roll out its review-management and customer analytics platform across Tea Avenue outlets. Tea Avenue plans to expand to 40–45 outlets by end-2026 and will use the system for real-time feedback and sentiment analysis.

Jeff Hoffman (Staynex chairman, Priceline co-founder) urged smaller nations such as Sri Lanka to 'leapfrog' larger competitors by rapidly adopting AI, personalisation and other travel technologies to transform their tourism industries.

Global tourism leaders at Sancharaka Udawa 2026 urged Sri Lanka to pivot from chasing visitor numbers to a high-value, experience-driven tourism economy, calling for stronger branding, infrastructure, sustainability and skilled talent. Speakers flagged opportunities in wellness, culinary and experiential travel and warned of a hospitality talent drain.

Sri Lanka's tourist arrivals reached 951,742 year-to-date through 17 May, a 1% YoY decline, with arrivals in the first 17 days of May down 1% to 75,465. India remained the largest source market, providing 32,035 visitors (42%) in early May and 221,953 YTD (about 23%).

CBSL Governor Nandalal Weerasinghe defended Sri Lanka’s flexible exchange rate at a Committee on Public Finance hearing, saying rupee depreciation does not change external debt in dollar terms and that exchange-rate flexibility aids reserve rebuilding and competitiveness. He urged strengthening dollar earnings via exports and remittances and stressed the CBSL's mandate on price and financial stability.

The Cabinet approved plans to draft Sri Lanka’s first inbound labour migration policy to regulate recruitment and oversight of foreign skilled and semi-skilled workers; a Steering Committee will be appointed to prepare the draft framework to address sectoral labour shortages and centralise monitoring.

Sri Lankan rupee depreciated further, with the US dollar selling rate rising to Rs. 354.03 (buying Rs. 342.63), surpassing Rs. 350 for the first time since March 2023. The currency has come under pressure amid global and domestic factors, including uncertainty linked to the ongoing Middle East conflict.

Sri Lanka told an SCO delegation it is keen to join Shanghai Cooperation Organization initiatives and sought support to promote tourism and investment, highlighting Port City and Free Trade Zones. Talks focused on boosting engagement in tourism, transport, logistics and agriculture.

Nyne Hotels LUXE is offering a Weekend Escape at its ANUPRIT and ANUGRAH properties in Bentota, priced at LKR 60,000 nett per person. The package includes curated dining, a 10% saving on beverages, and leisure activities such as pickleball, beach tennis and beach gym access.

SLTDA and SLTPB have endorsed the 'ONE LOVE' Reggae Festival (7–9 Aug 2026 in Bentota; after-party 10 Aug at Port City Colombo), an event expected to boost hotel occupancy, F&B revenue, transport demand, jobs and international tourism exposure.

Ambeon Capital PLC reported consolidated PAT of LKR 3,242 million for FY2025/26, up 104% YoY. Group revenue was LKR 19 billion (+12%), with strategic moves including increased stakes in DFCC (9.91%) and Seylan (9.93%), a 13.33% holding in Ceylon Hotels and a planned controlling stake in Harischandra Mills.

Economist Ganeshan Wignaraja said Sri Lanka should plan for an 18th IMF programme as the current programme ends in mid-2027 and large debt repayments fall due from 2028. He warned Cyclone Ditwah and the Middle East war have raised oil prices, hit remittances and tourism, and pushed the economy toward a slower-growth, higher-inflation scenario.

Nine major Middle East airports lost an estimated $900m–$1bn in revenue over March–April 2026, a 55% shortfall after a 27m passenger decline (54% YoY) and steep cargo drops. Jet fuel costs nearly doubled and average scheduled capacity fell to ~53%, pressuring operators' cash flows.

IEA warns global commercial oil inventories are depleting very fast amid Middle East supply disruptions; member countries have coordinated releases of 426 million barrels from emergency reserves, with about 164 million barrels already drawn down. Airlines warn of possible jet fuel shortages ahead of the northern hemisphere summer travel season as tanker traffic through the Strait of Hormuz is disrupted.

The India–Sri Lanka Business Forum in Mumbai on 13 May 2026 highlighted renewed momentum in trade, investment and connectivity across tourism, renewable energy, ICT, logistics and infrastructure, with John Keells chair Krishan Balendra among delegates promoting deeper private‑sector ties.

Classic Travel won the Golden WAU Award at the Malaysia Airlines Trade Elevation Summit on 14 May 2026 in Kota Kinabalu, marking consecutive years of recognition for its sales performance and partnership with Malaysia Airlines.

The Ceylon Chamber of Commerce will host the Sri Lanka Climate Summit 2026 on 9 June 2026 at Taj Samudra, shifting focus to implementation, technical readiness and climate-linked finance. Platinum sponsors include Commercial Bank and Dilmah Tea; strategic sponsors include Nestlé Lanka, Cargills and Colombo Stock Exchange.

A fireside panel positioned Sri Lanka as a high-value tourism and innovation hub, urging focus on quality tourism, digital/AI infrastructure and long-term investment; Sri Lanka welcomed about 2.36 million international visitors in 2025, surpassing pre‑pandemic levels.

Binod Chaudhary said he remains a long-term investor in Sri Lanka and is encouraged to expand his group's businesses after meeting President Anura Kumara Dissanayake. He urged the government to be flexible and aggressive in promoting the private sector, citing hospitality and financial services interests.

Sri Lanka's services sector contracted in April 2026, with the CBSL PMI falling to 46.7 from 59.4 the previous month, driven by higher fuel prices, post-festive seasonal slowdown and weaker tourist arrivals.

Sri Lanka's tourism earnings for Jan–Apr 2026 were US$1.11 billion, a 19.4% decline from US$1.37 billion in Jan–Apr 2025. April 2026 earnings were US$157.1 million versus US$256.7 million in April 2025.

Sri Lanka is likely to record a small current account deficit in 2026, the Central Bank said, as higher global crude prices push oil import bills above inflows. The country had posted surpluses from 2023–25 supported by tourism receipts and remittances.