News & market updates

Sri Lanka has restricted fuel supply from March 15, requiring motorists to obtain QR codes and imposing weekly quotas to curb hoarding amid Middle East geopolitical disruptions (Motorcycles 5L; Motor Cars 15L; Three-Wheelers 15L; Vans 40L; Lorries/Buses 60–200L).

An 11-member Japanese delegation coordinated by Connaissance De Ceylan visited Sri Lanka to study its history and culture and promote tourism, meeting officials at the Presidential Secretariat and touring sites including Colombo, Anuradhapura, Sigiriya and Kandy.

Investment banks have raised oil price forecasts after Middle East supply disruptions, with some warning Brent could reach $150+/bbl (Goldman sees March >$100/bbl and Brent traded around $100.80 early Friday). Analysts say prices could spike further if the Strait of Hormuz remains closed.

Sri Lanka recorded record tourist arrivals of 556,655 in Jan–Feb 2026 (up 12.9% y/y) but tourism earnings fell 4.9% to USD 730.3m. January arrivals were 277,327 (up 9.7%) and February 279,328 (up 16.2%); revenues were USD 378.3m in Jan (−5.6%) and USD 352.0m in Feb (−4.2%).

President Anura Kumara Dissanayake convened the Committee on Economic Surveillance to review the economic fallout from the Middle East conflict and warned Sri Lanka can guarantee uninterrupted fuel supplies for only about two months under current conditions. The committee examined rising oil prices, maritime supply-chain disruptions and trade risks and discussed urgent measures to stabilise domestic markets.

Profood Propack & Agbiz Knowledge Hub 2026 will be held 21–23 Aug 2026 at BMICH, Colombo, with SLFPA and LECS planning an expanded exhibition focused on food processing, packaging, agriculture and SME support; Cargills Ceylon PLC is listed as a platinum sponsor and Hayleys’ agri unit featured among awardees.

Cinnamon Hotels (part of the John Keells group) has partnered with FitsAir and City of Dreams Sri Lanka to operate direct Ahmedabad–Colombo flights, running three times weekly. Curated Cinnamon holiday packages for the route start from INR 55,555, including return airfare and two nights at Cinnamon Life.

Dividend · Rs 1.00 · XD Mar 24, 2026

First Interim dividend of LKR 1/share; XD 2026-03-24; record 2026-03-24; payable 2026-04-16; FY 2025/26

The President chaired the Committee on Economic Surveillance to address risks from the Middle East conflict, highlighting rising global oil prices, maritime supply-chain disruptions and impacts on international trade and the domestic market. Attendees included the Central Bank Governor, Treasury Secretary and heads of petroleum, ports, export, tea and tourism agencies.

John Keells Hotels PLC will sell its 98.39% stake in Kandy Walk Inn Limited (owner of the Cinnamon Citadel, Kandy) to Lavendish Leisure for Rs. 2.777 billion. The hotel will continue to be managed under the Cinnamon brand for at least 12 months and proceeds will fund portfolio upgrades under an asset-light strategy.

The Colombo All Share Price Index fell 1.44% to 21,672.42 as Brent crude topped $100/bbl. Commercial Bank, Hayleys and Hatton National Bank were top negative contributors, and John Keells Holdings said its unit is selling a 98.39% stake in Kandy Walk Inn (Cinnamon Citadel).

John Keells Hotels (KHL.N0000) agreed to sell its 98.39% stake in Kandy Walk Inn Ltd, owner of the Cinnamon Citadel Kandy, to Lavendish Leisure for Rs. 2.777 billion, with completion expected by 31 March. The hotel will remain managed under the Cinnamon brand for at least 12 months and proceeds will be used for capital allocation and upgrades.

A policy brief warns the SLTDA’s plan to lease 3,000 acres for tourism could repeat Kalpitiya’s experience of stalled resort projects and idle land after 15 years. The study cites severe infrastructure shortfalls (water meets only 54% of demand, ~3.5m litres/day deficit), weak EIAs, governance gaps and community conflict undermining investability.

The Embassy of Sri Lanka in Brussels hosted “Explore the Treasures of Sri Lanka” on 5 March 2026 to promote the country to Belgian luxury travel specialists, with Andrews the Travel Company showcasing curated luxury accommodation, wellness, MICE and leisure offerings.

TikTok is reshaping how Ramadan is experienced in Sri Lanka by enabling visible coordination of Zakat, public sharing of fasting practices, and by highlighting businesses' adjustments to hours and workplace policies. This increases reach for small food entrepreneurs and makes accommodation practices more publicly observable.

VFS Global-supported Project VISA concluded in Kandy after four training batches, certificating 123 participants in sustainable tourism skills. The NCPC Sri Lanka/ASSIST initiative reported 25% female participation and linked trainees with tourism operators to support employment.

The Sri Lanka Tourism Promotion Bureau is hosting three Serbian celebrity divers from 6–19 March to document and promote the country's underwater diving and shipwreck sites; the new footage will be launched on 12 March on the Sri Lanka Navy and SLTPB websites.

City of Dreams Sri Lanka and Cinnamon Hotels & Resorts (John Keells Hotels group) have partnered with FitsAir to launch direct Ahmedabad–Colombo scheduled flights operating three times weekly, boosting Indian leisure connectivity; curated Cinnamon holiday packages start from INR 55,555.

John Keells Hotels sold a 98.39% stake in Kandy Walk Inn (owner of the Cinnamon Citadel, Kandy) to Lavendish Leisure for Rs2.777 billion. The deal is expected to close by March 31; John Keells will retain branding/management for at least one year and reinvest proceeds to upgrade its remaining hospitality portfolio.

Ceylon Chamber of Commerce hosted a high-level networking evening at the Cinnamon Grand that brought nearly 50 foreign missions together with business and government leaders to promote trade, exports and public–private–diplomatic collaboration. Minister Arun Hemachandra highlighted Sri Lanka’s steady economic recovery and strengthened fiscal management.

SriLankan Airlines will increase Colombo–Melbourne services to 10 flights per week from 2 August by adding three scheduled flights, citing rising passenger demand to strengthen its presence in the Australian market.

The Economic Monitoring Committee has started assessing the economic fallout from the Middle East crisis, flagging risks to foreign-exchange flows, higher energy costs and impacts on remittances, trade and tourism that could affect market stability.

FitsAir will launch thrice-weekly Ahmedabad–Colombo flights from May 15, with travel packages bundled with Cinnamon Hotels stays (including Cinnamon Life at City of Dreams), expected to boost inbound leisure demand to Cinnamon's Colombo properties.

SLFPA and LECS will stage Profood Propack & Agbiz Knowledge Hub 2026 at BMICH, Colombo from 21–23 August 2026. The sector-wide expo, endorsed by the Ministry of Industries, focuses on food processing, packaging and agri innovation and lists Cargills (Ceylon) Plc among its platinum sponsors.

Colombo Fashion Week, presented by Mastercard, is planned for 1–4 April at City of Dreams Sri Lanka and will feature the BRICS Fashion Showcase and a new Batik Collective for emerging designers.

Asia Securities convened 150+ investors and corporate leaders at the Sri Lanka Investor Conference 2026 to present a constructive capital-market outlook, with speakers citing roughly 4% GDP growth prospects for 2026. Panels highlighted construction, banking/finance, consumer and digital sectors as key growth drivers and projected strong corporate earnings expansion.

SriLankan Airlines will add three weekly Colombo–Melbourne services to reach 10 weekly flights from 2 August 2026. The new UL608/UL609 frequencies are timed to boost leisure travel, diaspora and student connectivity and improve onward connections via Colombo to India.

The Economic Surveillance Committee met at the Presidential Secretariat to discuss urgent measures to stabilise Sri Lanka's economy amid the Middle East conflict, focusing on risks from fuel imports, remittances, trade, tourism and export links.