News & market updates

Sri Lanka Tourism Development Authority hosted a special brunch for foreign tourists stranded by Middle East flight disruptions, and provided assistance including a free 14-day visa extension and a 24-hour tourist hotline (1912).

EDB officials, led by CEO Mangala Wijesinghe, met German business leaders and IHK Bremen on 27 Feb 2026 in Bremen to promote Sri Lanka Expo 2026 (18–21 June 2026) and invited an IHK Bremen delegation; German firms showed interest in logistics and tourism and follow-up talks were agreed.

Emirates carried about 30,000 passengers out of Dubai on 6 March and expects to operate 106 daily return flights to 83 destinations—around 60% of its network—by 7 March as it restores services following partial regional airspace reopening.

Fitch says the duration of Middle East aviation disruption after the 28 Feb attacks will determine effects on airlines, airports, lodging, insurers and lessors — more than 15,000 flights were cancelled between 28 Feb and 5 Mar, affecting over 1.5m passengers. Fitch's baseline expects the conflict to last under a month limiting rated issuers' exposure, but a prolonged disruption would raise costs (longer routings, higher fuel, accommodation) and hit smaller or less diversified firms.

Maqara Sri Lankan Restaurant, a subsidiary of the Chinese Dragon Cafe Group, has become a popular dining spot in front of the World Trade Center, drawing locals and tourists with authentic Sri Lankan breakfast, customizable rice-and-curry lunches, dinner options and free delivery including bulk orders.

National Development Bank PLC partnered with Cinnamon Lakeside Colombo as Exclusive Banking Partner for Chinese New Year celebrations (25 Feb–1 Mar), offering NDB PRV Signature/Infinite cardholders 25% and Platinum cardholders 15% savings on the dinner buffet.

Emirates will operate more than 100 flights on March 5–6 as regional airspace partially reopens, resuming passenger services and transporting cargo including perishables and pharmaceuticals; it will gradually rebuild its schedule subject to airspace availability and safety.

President Anura Kumara Dissanayake convened high-level meetings to review economic risks from the Middle East conflict and ordered monitoring and contingency measures for fuel supplies, tourism, exports and migrant workers. He also asked the Finance Ministry to study a technology-sector investment relief package.

Emirates will operate a limited flight schedule from March 5 until 23:59 UAE time on March 7, 2026, due to regional airspace closures. Affected passengers are being offered rebooking (travel on or before March 27) or refunds (for bookings through March 12) and are urged to check flight status and notifications.

Fitch says Middle Eastern sovereign ratings broadly have buffers to withstand a short regional conflict if it lasts under a month and energy infrastructure avoids lasting damage. It warns closure of the Strait of Hormuz or damage to Gulf export infrastructure would be the main channel for rating pressure and expects temporary slowdowns in tourism, aviation and consumer activity.

The Attorney General told the Court of Appeal that the Sri Lanka Tourism Development Authority has decided not to promote or develop LGBTIQ tourism and has withdrawn a prior supportive letter; the petitioner subsequently withdrew the writ petition.

Saliya Pieris warned Sri Lanka faces economic fallout from the Middle East war, citing rising global oil prices and curtailed gas output, FX volatility, potential drops in European and Middle Eastern tourist arrivals, disruptions to tea exports and risks to remittances, and urged early policy responses.

Oman-based SalamAir is operating a special additional Colombo–Muscat flight (OV1438) today, departing Bandaranaike International Airport at 18:15 and arriving Muscat at 21:00 on an Airbus A320 to accommodate passenger demand.

Dubai authorities asked hotels to support guests stranded by recent airspace closures by facilitating extensions to stays; the UAE issued over 15,000 visas and the GCAA will cover accommodation and sustenance for affected passengers.

Cinnamon Life at City of Dreams is offering two curated wellness experiences at Kurundu Wellness this March: a 90-minute "Celebrate Her – Moments Together" spa (available 8–15 Mar) and a "Spa Day Surprise" voucher valid for three months from purchase.

Civil Aviation Ministry said all airlines have agreed to allow passengers stranded by Middle East-related flight suspensions to receive full refunds or rebook journeys without extra charges.

The Sri Lankan Embassy and BELGOLUX–Sri Lanka Business Council held a business evening in Brussels on 24 Feb 2026 with over 55 Belgian participants to promote trade and investment, highlighting opportunities in ports, logistics and tourism. A BELGOLUX business delegation to Sri Lanka is scheduled for 17–21 June 2026 including a forum, B2B meetings, Expo participation and a Colombo Port City visit.

President Anura Kumara Dissanayake reviewed national measures to protect tourists and migrant workers amid the Middle East conflict, with 24-hour embassy emergency services active and no serious injuries reported. Authorities logged 19 visa-expiry inquiries, 42 immigration/emigration issues and 1 financial request, sought grace-period extensions for returning workers, and SriLankan Airlines said flights are normalizing.

President Anura Kumara Dissanayake led a high-level discussion to assess the potential impact of the Middle East war on Sri Lanka’s economy and instructed urgent measures, including a relief package to promote investment in modern technology and data centres. Officials reviewed risks to fuel and gas supplies, stockpiles, tourism, ports, food security and inflation.

The LMD-PEPPERCUBE Business Confidence Index fell 11 points to 171 in February (from 182), signalling a renewed decline in corporate optimism. The slide follows Cyclone Ditwah disruptions and comes amid improved CPI rankings, rising daily cancer cases and Nipah concerns, and a slight 0.2% drop in reserves to US$6.824bn.

Sri Lanka's Tourism Development Authority reported 279,328 tourist arrivals in February 2026, the highest monthly total on record and up 16.2% year-on-year. Top sources were India (47,679), the UK (30,788), Russia (23,099) and Germany (22,566); the busiest day was Feb 12 with 12,731 arrivals.

Sri Lanka recorded a record 279,328 tourist arrivals in February, a 16.3% YoY increase and the highest monthly figure on record, bringing YTD arrivals to 556,655 (up 13% YoY). Industry stakeholders warn March arrivals may face headwinds from Middle East tensions and flight disruptions.

ASPI plunged 1,290.68 points (-5.4%) to 22,443.38 on Feb 3 after Middle East tensions triggered panic selling and a 30-minute circuit breaker; the S&P SL20 fell 322.32 pts (-4.9%). Turnover was Rs.9.6bn (up 62.9%); foreign investors net sold Rs.59.6m; decliners included COMB, SAMP, HNB, JKH and HAYL, while LIOC, CFLB, BOPL, MRH and MADU were among gainers.

City of Dreams Sri Lanka hosted Lunar New Year festivities with lantern displays, a ceremonial lion dance and themed entertainment and dining promotions. The resort aimed to engage Chinese patrons and reinforce its position as a regional lifestyle and entertainment destination.

The EDB chairman and Sri Lanka's Foreign Minister held a business promotion programme in Bremen on 27 Feb 2026 to promote Sri Lanka Expo 2026 (18–21 June) and invite German businesses to participate. Discussions focused on export and investment prospects, logistics, tourism and follow-up virtual engagement.

Sri Lanka Insurance Corporation General launched Adventure Plus, a USD 8 per person, 30-day personal accident cover for tourists that includes medical, accident and emergency evacuation for adventure activities; developed with the SLTDA and planned for future airport-counter rollout.

SriLankan Airlines has temporarily suspended all Colombo–Middle East services until 23:59 on 04 March 2026, affecting flights including UL225/226, UL217/218, UL253/254, UL265/266 and UL229/230. Flight UL231 is scheduled to depart Colombo for Dubai at 14:30 today, with the return as UL232 later tonight.

Cinnamon Bentota Beach – Signature Selection will host Indian mixologist Ami Shroff for a Signature Bar Takeover from 9–11 March 2026, with the main event on 10 March at Fuze Bar. A bartending training session for the resort team is scheduled for 11 March.

City of Dreams Sri Lanka hosted 'Signature Latin Affair', a high-energy Latin-themed night with showgirl glamour and carnival-inspired performances that drew a lively crowd. The event underscores the property's push for international-style live entertainment to enhance Colombo's nightlife.

Flights between Sri Lanka and the Middle East resumed at Bandaranaike International Airport: FitsAir flight 8D-821 departed for Dubai with 47 passengers and 10 crew, and Air Arabia flight G9509 left for Sharjah with 44 passengers and 10 crew; more services expected to resume.