News & market updates

Cabinet approved free 14-day visa extensions for foreign nationals stranded in Sri Lanka due to flight cancellations through West Asia, with a further 14-day extension possible if cancellations continue, to allow them to remain legally while awaiting new travel.

Fitch warned the Iran conflict could raise credit risks for emerging markets such as Sri Lanka by raising energy prices and disrupting remittances, exchange rates, fiscal subsidies and access to international finance.

Geoffrey Bawa Trust's Bawa Space in Colombo is hosting 'Ways of Knowing', a multi-sensory, accessible exhibition running until the end of March with public programming (workshops, tours, talks) and support from the British Council and Kohler India.

ACP Asset Management launched the first Sri Lanka-focused UCITS fund, seeded with $10m and expecting a further $25m within 30 days, targeting $100m AUM in 6–12 months. The fund will invest in Sri Lankan equities, sovereign eurobonds and liquid treasury instruments and aims to draw foreign capital into sectors including banking, construction, F&B and tourism.

Colombo market rebounded as the ASPI rose 2.17% (474.38 pts) to 22,378.52 after global oil prices fell below $95/bbl, with gains led by banks and blue-chips including HNB, SAMP, COMB and DIAL and turnover of about Rs.4.48bn.

The Sri Lanka Export Development Board has opened applications for Sri Lanka Expo 2026 (18–21 June at BMICH), offering 650 booths and opportunities to meet over 1,500 global buyers; applications close 31 March 2026. Sectors covered include industrial and agro-industrial products and services such as ICT, tourism, renewable energy and healthcare.

Colombo Stock Exchange's ASPI rose 2.17% to 22,378.52 on Tuesday as global oil fell below $100/bbl. Hatton National Bank, Sampath Bank, Commercial Bank and Dialog Axiata were top positive contributors; Softlogic Holdings (up 47.22% after six crossings) and Renuka Hotels saw notable turnover.

UN Global Compact Network Sri Lanka launched a Country-Level Environmental and Supply Chain Sustainability Working Group strategy and held January 2026 kick-off sessions to mobilise 70+ companies across five thematic working groups. The initiative focuses on climate mitigation/adaptation, water and ocean stewardship, and supplier capacity building to advance sustainability and regulatory-aligned disclosure.

Airlines have started broad fare hikes after jet fuel surged to roughly $150–$200/barrel amid the Middle East conflict; Air New Zealand raised fares (domestic +NZ$10, short‑haul +NZ$20, long‑haul +NZ$90) and suspended its 2026 outlook. Vietnam Airlines has asked authorities to remove a jet fuel tax as travel disruption and tourism losses mount if the conflict persists.

Sri Lanka's tourism crossed 600,000 arrivals in 2026 with YTD growth of 9%, but arrivals in the first eight days of March fell 30.5% YoY due to the Middle East conflict and aviation disruptions. Officials warn a one-week Middle Eastern airspace closure could cost about $10–15m and higher fares from longer routings are expected.

Frontier Research warned that a sharp rise in global oil prices from the Middle East conflict could raise Sri Lanka's petroleum import costs and push up inflation via higher transport and electricity prices. The firm also flagged risks to tourism from rerouted flights and higher travel costs, which could weaken external sector earnings.

City of Dreams Sri Lanka and the Sri Lanka Institute of Tourism & Hotel Management hosted an International Women’s Day forum 'Give to Gain' to empower the next generation of women leaders in Sri Lanka’s tourism and hospitality sector. The event included keynote and panel sessions on mentorship, workplace policy, digital transformation and cybersecurity.

Sri Lanka's cabinet approved free 14-day visa extensions for foreign nationals stranded by West Asia flight cancellations, with a further free 14-day extension available if cancellations continue.

The ONE LOVE Reggae Music Festival 2026 in Bentota, originally scheduled for end-March, has been postponed and rescheduled for August 2026. Organisers cited Middle East tensions and air-travel disruptions, artist safety, and completion of venue works as reasons.

Sri Lanka Export Development Board has opened applications for Sri Lanka Expo 2026, a four-day international trade exhibition from 18–21 June 2026 at BMICH offering 650 booths and access to over 1,500 global buyers; application deadline is 31 March 2026.

ITC Ratnadipa is offering an Iftar buffet, 'A Feast for the Senses', at the Indian Ocean Pavilion from 18 February to 19 March (6:00 p.m.–11:00 p.m.) at LKR 9,500 nett per person. The menu includes traditional kanji (mutton and chicken), biryanis, shawarma, slow-cooked curries and Arabic desserts.

Aitken Spence (SPEN.N0000) via Aitken Spence Travels facilitated shore excursions for about 700 passengers from the Viking Sky cruise that called at Colombo Port. The visitors took curated city, cultural and scenic tours promoting Destination Sri Lanka.

The BOI will host the 'Invest in Sri Lanka' Forum on 30 March to showcase improving macroeconomic stability and attract global investors to opportunities in renewable energy, tourism, technology and infrastructure.

Mercedes‑Benz Fashion Week Sri Lanka unveiled a three‑year roadmap through 2028 and confirmed strategic partners, naming DIMO as a powering partner, Sampath Bank Private Banking as Official Banking Partner, and Cinnamon Life at City of Dreams as Official Host Venue.

Thailand Week 2026 concluded after a three-day fair that highlighted bilateral trade reaching $649m last year, a 48% increase from $438m in 2024. The event showcased 30 Thai firms across food, cosmetics and household goods, and officials urged full implementation of the Sri Lanka–Thailand FTA to attract investment.

Fitch warns the Iran conflict could raise credit risks for emerging-market sovereigns by raising global energy prices and straining remittances, fiscal subsidies, exchange rates and access to finance; hydrocarbon exporters could benefit while importers (e.g. Pakistan, Egypt, Philippines, Ukraine) are more vulnerable.

SriLankan Airlines will resume daily flights to Riyadh tonight (09) and to Dubai from tomorrow (10); scheduled services include UL265/UL266 (Colombo–Riyadh) and UL231/UL232 (Colombo–Dubai) with authorities continuing to monitor the Middle East situation.

Singer’s “Take the Load Off Her Head” campaign won a Bronze Effie in the Home Furnishings & Appliances category via Ogilvy Digital. Ogilvy Group overall secured six metals at the 2025 SLIM Effie Awards for campaigns linked to sustainability and tourism.

The Shoppes at City of Dreams will launch its first-ever Eid Festive Souq, a two-day seasonal market on 14–15 March. The family-friendly event on the mall's 8th floor will feature festive fashion, handcrafted vendors, kids' activities, iftar facilities and complimentary mehendi with free entry.

The ONE LOVE Reggae Music Festival 2026 has been postponed from end-March to August 2026. Organisers cited Middle East tensions, air-travel disruptions and venue completion/approval delays; new artist line-up, exact dates and ticket details will be announced in due course.

Sigiriya, Galle Fort and Kandy's Sacred Temple of the Tooth were named among Travel and Tour World's Top 50 heritage sites for 2026, highlighting Sri Lanka's strength in heritage tourism. TTW notes heritage tourism grew 6.4% year‑on‑year, boosting visitor demand, conservation investment and local economic activity.

BOI will host the 'Invest in Sri Lanka' Forum on 30 March 2026 at Cinnamon Life to showcase sustainable, technology-driven and high-value investment opportunities. The forum highlights include a 70% renewable electricity target by 2030 and prospects across hospitality, logistics, manufacturing and digital infrastructure.

City of Dreams Sri Lanka highlights women occupying critical operational and leadership roles across South Asia’s first integrated resort. The property says it supports inclusion through equal-opportunity hiring, mentorship, leadership training and maternity support.

President says the Central Bank submitted a scenario analysis on the Middle East conflict's economic impact to the government and that the worst-case outcome is unlikely. Authorities are preparing contingency plans affecting tourism, tea exports and port logistics and are seeking Indian support for the tea sector.

Emirates resumed flight operations and advised passengers with confirmed Saturday (07) afternoon bookings and transit connections to proceed to the airport. City check-in points in Dubai remain temporarily closed; Emirates is offering rebooking or refunds for bookings made 28 Feb–31 Mar, allowing travel through 30 Apr.