News & market updates

Sri Lanka's current account posted a Q1 cumulative surplus of USD 531m, even as the merchandise trade deficit widened to USD 2.3bn driven by a 74.7% jump in fuel import spending. Tourist arrivals fell 19.8% and services surplus dropped 42.4% while remittances rose 26.5% to about USD 2.3bn; gross official reserves were USD 7.0bn and the rupee was down 2.9% YTD by end-April.

PUCSL opened a public consultation on proposed electricity tariff adjustments for Q2–Q3 2026 after the National System Operator estimated a Rs.38 billion generation-cost deficit. The government will provide a Rs.15 billion subsidy from 10 May and PUCSL aims to decide on 9 May.

Over 300 boutique hotel properties and international buyers attended B2B Luxury Connect Sri Lanka 2026, highlighting Sri Lanka's push to promote boutique and luxury tourism. Deputy Minister Ruwan Ranasinghe emphasized the segment's role in attracting high-yield travelers and urged higher service standards and sustainable, community-centered growth.

City of Dreams Sri Lanka hosted "Signature Velvet Dreams", an immersive night of world-class entertainment, glamour and high-energy performances. The event highlights the resort's role as South Asia's first integrated luxury resort and its focus on elevating nightlife and hospitality in Colombo.

Hilton Colombo will host a Mother's Day brunch, 'Graze Her with Love', at Graze Kitchen on 10 May 2026 (12:00–15:00) priced at LKR 12,888 nett per adult and LKR 6,444 per child. The event includes live entertainment, a raffle with Sothys Sri Lanka gifts and vouchers for attendees.

Hilton Colombo Residences will host a Mother's Day brunch at FLOW on 10 May 2026, priced at Rs. 8,888 net per person (Mom dines free with every family of four). The 12:00–15:00 event features signature cocktails by CocktailswithValerie, a buffet and a complimentary framed family photo.

Arshed Refai, General Manager of Sun Siyam Pasikudah, was elected President of the Eastern Coast Hotel Association on 10 April 2026. He aims to raise Pasikudah’s profile, improve coordination among member properties and promote sustainability to grow the East Coast tourism destination.

Russel’s (Pvt) Ltd recognised its March top-performing staff in its monthly awards programme, naming winners for Employee of the Month, Outstanding Steward, Outstanding Stewardess, Best Catering Supervisor, Most Hardworking Staff and Best Chef to reinforce service standards.

One Love Reggae Festival 2026 will be held 7-9 August at Bentota Beach, featuring nine international headline reggae artists. Flat-rate tickets and curated hotel packages go on sale in the first week of May via www.onelove.lk; performances start daily from 5:00 p.m.

Government has initiated plans for cable car projects at Sri Pada and other tourist sites and will implement visa-free entry for citizens of 40 countries from 25 May to boost arrivals. Feasibility studies, sanitation upgrades in national parks and a new coastal tourist zone were also discussed.

ITC Ratnadipa celebrated its second anniversary on 25 April with a staff-and-guest event featuring musical and dance performances, marking two years of operation and continued presence in Colombo's hospitality scene.

Rising energy costs from the Iran war are widening economic strain across emerging markets, prompting tighter monetary policy and fiscal pressure; the IMF cut growth for emerging and developing economies to 3.9% from 4.2%, with countries like Sri Lanka, Egypt and Pakistan highlighted as vulnerable.

F Entertainment, a subsidiary of Fairway Holdings, has partnered with AHK Sri Lanka to host the AHK Sri Lanka Oktoberfest by Fairway in Colombo from 14–17 October, featuring an original German oompah band and Bavarian food and beer.

DoubleTree by Hilton Weerawila Rajawarna Resort won multiple awards at the 2026 Haute Grandeur Global Excellence Awards, including Best Wedding Resort in Asia and Best Destination Resort in Sri Lanka.

The Event Management Association, with the Ministry of Industry and Entrepreneurship Development, launched the official Sri Lanka Event Calendar — a centralized digital platform to showcase major international and local events and boost tourism. They also announced a Diploma in International Event Management and Marketing Studies to build industry skills.

Deputy Minister Prof. Ruwan Ranasinghe concluded an official visit to Sichuan Tourism College on April 23, 2026, where Sri Lanka and Sichuan reached preliminary agreements on joint initiatives including a Sichuan Cuisine Academy, a China–Sri Lanka Joint Research Center for Mountain Tourism, a cultural tourism cooperation platform and expanded Sri Lankan student enrollment. The cooperation focuses on tourism education, vocational training and digital empowerment under the Belt and Road framework.

Browns Beach Hotels PLC will cease trading on the CSE today (27) ahead of formal delisting, with majority shareholders Melstacorp (MELS.N0000) and Aitken Spence Hotel Holdings (AHUN.N0000) offering minority shareholders LKR 30.00 per share. The delisting follows sustained losses, failure to meet public float rules and a negative net asset position.

Sri Lanka received 99,777 visitors between 1–22 April, a 26% YoY decline; YTD arrivals to 22 April stood at 840,411, down 2.4% YoY. The slowdown reflects seasonal tapering and Middle East tensions affecting flight connectivity, with India the largest source market.

Government has invited local and international investors to submit EOIs to develop and operate Mattala Rajapaksa International Airport, with EOI documents available 27 Apr–8 Jun and a required proposal guarantee of $500. A pre-proposal briefing and site visit is scheduled for 22 May.

Yazu at the Beach opened at Radisson Blu Resort Galle, marking Yazu's first international expansion into Sri Lanka. The Pan-Asian lifestyle dining concept is positioned to strengthen Galle's premium hospitality and tourism offering.

Emirates' A380 is the first aircraft fitted with next‑generation Starlink Wi‑Fi — three antennas delivering more than 2 Gbps of total aircraft bandwidth — and Emirates will accelerate installations across its fleet through 2026.

SLITHM held the "Pedal for Tourism & Sustainability" bicycle parade on 26 April 2026 with about 100–150 participants to promote sustainable tourism and environmental awareness; ProBike sponsored 100 bicycles and safety equipment.

The Asian Development Bank estimates Sri Lanka has about $6 billion of unrealised export capacity — exports could rise 47% if gaps are addressed — and says weak export growth has widened the trade deficit and pressured the rupee ahead of rising external debt repayments. Usable reserves cover roughly three months of goods imports, limiting the Central Bank's ability to defend the currency.

The "Flavours of Sri Lanka" Food Week ran 12–18 April 2026 at MYNT Restaurant, Vivanta Kathmandu, showcasing Sri Lankan cuisine to promote culture and hospitality in Nepal. Organized with the Sri Lankan Embassy, the event featured dishes by Chef Prashantha Gunasekara and drew diplomatic and business attendees.

Hawaiian Airlines has joined the oneworld alliance as its newest member, becoming the third US-based carrier and adding Honolulu as a global hub, expanding oneworld’s Pacific network and access to nearly 1,000 destinations.

IN10NT Digital has launched Island Impact, a digital branding initiative to reposition Sri Lanka in the global tourism market as arrivals topped 2.3 million in 2025. The program offers complimentary digital brand audits for tourism SMEs and focuses on data-led audience strategy, performance marketing and creator storytelling.

La Bamba! The Song of Veracruz opens in Colombo today at Cinnamon Life (City of Dreams), running April 24–27 with multiple performances and a mix of international and local cast; tickets available via cinnamonboxoffice.com.

The Colombo market closed lower as the ASPI fell 0.32% (73.23 pts) to 22,566.58, with foreign investors a thin net buyer of Rs. 3.4m. Top negatives included Bukit Darah, Ceylon Beverage, RIL Property and Sampath; turnover was led by food & beverage while Ceylon Cold Stores and Nawaloka gained and Access Engineering and Softlogic Capital fell.

WFP warns the Middle East conflict is threatening Sri Lanka's recovery by driving fuel costs up 33–40%, raising food and fertiliser import bills (Sri Lanka imported $2.5bn of food in 2025) and risking remittances (around 80% originate in the Gulf). These shocks could push inflation higher, weaken the rupee, strain reserves and hit tourism and household food security.