News & market updates

The Central Bank of Sri Lanka kept the Overnight Policy Rate at 7.75% and said low inflation (1.6% y/y in Feb) provides space to absorb higher energy costs, forecasting inflation will reach 5% in Q2-2026. It noted USD 7.3bn reserves, some rupee depreciation pressure and risks to tourism, trade and remittances.

Monetary Policy Board kept the Overnight Policy Rate unchanged at 7.75%. Inflation was 1.6% y-o-y in Feb 2026 and is expected to reach 5% in Q2-2026; the board cited higher global energy prices, Middle East conflict risks, and FX reserves of USD 7.3bn as key considerations.

ADB announced a financial support package including fast-disbursing budget support and reactivated trade and supply-chain finance (including for oil imports) to help developing member countries manage economic fallout from the Middle East conflict. The bank will use countercyclical resources and monitor energy, inflation and financial conditions.

Charcoal Tandoor Fire Grill (Soho Hospitality) will open its Sri Lanka debut on the 50th floor of Capitol TwinPeaks in Colombo, co-owned by Bathiya Jayakody, Santhush Weeraman and Mevan Gunatilleke. The celebrity-backed standalone venue targets a premium dining destination outside hotel settings.

Shangri-La Hambantota hosted 27 golfers from Belarus for an international golf tour from 18–23 March 2026, culminating in a tournament on 22 March; the event, attended by Deputy Minister Prof. Ruwan Ranasinghe, is intended to strengthen Sri Lanka's position as a golf tourism destination.

Sri Lanka's ASPI rose 3.38% to 21,784.11 and the S&P SL20 climbed 3.63% to 6,123.82; market turnover was Rs.2.3bn. Top contributors included Hatton National Bank, Commercial Bank, John Keells, Melstacorp and Dialog, while food, beverage & tobacco led turnover (Rs.834m).

The ASPI rose 3.47% (706.26 pts) to 21,071.23, recovering Rs. 244 billion on reports of a possible de‑escalation in the Middle East; the S&P SL20 gained 3.91% to 5,909.23. Market turnover exceeded Rs. 4.2 billion with gains led by Commercial Bank, Sampath Bank, John Keells and Colombo Dockyard while foreigners were net sellers.

Sarrah Sammoon was appointed IMC Field Officer for Sri Lanka by the Investment Migration Council in December 2025 to help align the country's investor visa and residency processes with global investment-migration standards as policy reforms are considered.

ADB announced a financial support package to help its developing member countries mitigate economic and financial impacts from the Middle East conflict, including fast-disbursing budget support and reactivated trade and supply-chain finance for oil imports. The bank will mobilize countercyclical lending and TSCFP support to address energy price volatility, supply disruptions, inflationary pressures and risks to tourism and trade.

Sri Lanka and Brazil agreed to elevate bilateral trade to USD 1 billion by 2030. They also committed to finalise pending MoUs (including on traditional/Ayurvedic medicine), and to sign Dairy Livestock and Sugarcane technical cooperation projects while exploring cooperation in agriculture, ports and tourism.

Asian currencies weakened as the South Korean won fell to a 17-year low, closing at 1,517.3 per USD amid volatility from the Middle East crisis. Other regional currencies including the rupiah, rupee, peso and baht also saw pressure, with some central bank intervention stabilising markets.

The SLID-KPMG Audit Committee Forum (9 Mar 2026) urged audit committees to oversee ESG reporting under SLFRS S1/S2; panellists from Aitken Spence, MAS, Lion Brewery and DFCC discussed governance, data controls, implementation and sustainable financing.

Sri Lanka recorded 5% GDP growth in 2025, with GDP surpassing $106.8bn; the services sector contributed 54.6% and industries 25.4%, while tourism and construction were cited as significant contributors to the recovery.

Uber and PickMe jointly urged the government to grant higher fuel quotas for their most-engaged drivers and delivery partners, saying the recent quota increase from 21 March remains insufficient to sustain operations. They said enhanced weekly allocations would help maintain essential services, livelihoods and tourism support.

Uber and PickMe jointly urged the Government to allocate higher weekly fuel quotas for their most engaged drivers and couriers, saying the recent regular quota increase from 21 March remains insufficient to sustain operations. They said enhanced allocations would support mobility, deliveries and tourism while platforms will monitor trip volumes to use fuel efficiently.

Port City Colombo is proposed as a strategic South Asian hub aimed at driving construction and infrastructure development and boosting trade, tourism and IT-enabled services in the region.

Speakers at an OPA seminar warned the Middle East conflict will raise global energy prices, strain fuel supplies (fuel ≈20% of Sri Lanka's import bill), and hit tourism and remittances (≈40% from the Middle East), urging price reforms, renewables, maritime and cyber security upgrades.

Gulf escalation and shipping disruptions have hit Sri Lanka's tourism, tea and apparel sectors, pulling the bourse down 12.7% through March 20; plantation and apparel stocks plunged (Namunukula -30.6%, Agalawatte -22%, Teejay Lanka -20.6%) while Sunshine benefits from higher palm oil prices.

Sri Lanka has held preliminary talks with Emirates and Qatar Airways to position Mattala Rajapaksa International Airport (HRI) as an alternative hub. The government hopes the move could revive tourism hit by Middle East conflict-related flight cancellations, though airline interest is described as preliminary.

IMF says Sri Lanka’s reform programme has made very significant progress: economy grew ~5% in 2025, inflation about 1.6% and reserves are rising with debt restructuring nearly complete. The IMF warned Middle East tensions could hurt trade, remittances and tourism and will send a review mission Mar 26–Apr 9.

John Keells is presenting the international West End production La Bamba at The Forum, Cinnamon Life in Colombo this April, produced with the John Keells Foundation and in association with Nations Trust Bank. The run includes seven performances and a 10% early-bird discount for Nations Trust Bank AmEx and Mastercard holders.

Hilton Colombo’s Emperor’s Wok is offering an 'Endless Dim Sum' weekend feast at Rs. 9,888 nett per person, available weekends and Poya Days from 12:00 pm to 2:30 pm. The menu features Cantonese and Szechuan dumplings including Pak Choi, Truffle Oil Crystal, Crystal Prawn and Steamed Lamb dumplings.

Cabinet approved amendments allowing arriving passengers to shop twice at the duty-free complex in Colombo Port City within four days while keeping the annual duty-free entitlement at $2,000; the regulations were gazetted (No. 2475/28, 13 Feb 2026) and will be presented to Parliament.

All companies on the Colombo Stock Exchange Main Board must adopt sustainability reporting under SLFRS S1 and S2 effective 1 January 2026. A seminar on ‘Sustainability Reporting for Corporates’ will be held 26 March 2026 at The Kingsbury to brief directors and senior executives.

Weekly T‑Bill auction was undersubscribed, raising Rs.60.79bn (50.66% of Rs.120bn) while weighted average yields held at 7.61% (91d), 7.91% (182d) and 8.23% (364d). Secondary bond yields rose amid the Middle East conflict and high oil prices; net liquidity surplus was Rs.341.21bn and USD/LKR closed at 311.30/311.50.

Sofia Colombo has become Sri Lanka’s first GSTC-certified hotel after certification by Control Union, aligning the property with global sustainable tourism standards. The hotel says the accreditation will boost its long-term commercial potential and notes many markets (notably the EU) will prioritise certified hotels from 2027.

Sri Lanka's rupee strengthened to 311.25/35 per US dollar while bond yields were broadly steady and a 120,000 million rupee Treasury bill auction was ongoing. The ASPI opened up 0.79% at 20,578.50.