News & market updates

The SEC and SLAASMB signed a Memorandum of Understanding to formalize cooperation on oversight of financial reporting and auditing for SEC‑licensed entities, including listed companies, establishing information‑sharing, referrals and joint awareness initiatives.

SLID held a directors' accountability session on Sri Lanka's PDPA on 30 Jan 2026, warning that stronger enforcement increases regulatory, financial, reputational and personal risks for boards. A repeat session is scheduled for 5 Mar 2026.

Deputy Minister Prof. Ruwan Ranasinghe said the government is keeping ownership options open for Mattala Rajapaksa International Airport (MRIA) but first wants the airport operationalised; MRIA handled a record 140,614 passengers and 703 international flights in 2025.

Sri Lanka Police have launched a special operation in the Southern Province targeting foreign nationals driving without valid licences and warned legal action against vehicle owners and rental operators who breach the Motor Traffic Act. Police cited five foreign driver deaths, seven serious accidents, 78 minor accidents and six vehicle damage incidents this year.

Colombo Active Week 2026, featuring the KAYA Expo (19–21 Feb), IRONKIDS (21 Feb) and IRONMAN 70.3 Colombo (22 Feb), has launched in Colombo to promote sport, wellness and boost tourism, attracting participants from over 49 countries.

Sri Lanka is targeting $4 billion in tourism revenue in 2026 and will launch a Rs.2 billion interim PR and digital campaign in April targeting 12–15 key source markets. The country welcomed 2.36 million tourists in 2025, arrivals were up over 13% year-on-year to Feb 15, and five-star room rates during the ICC T20 rose from about $300 to nearly $500.

Tourism Minister Vijitha Herath said tourism earnings have not fallen and that a revised SLTDA methodology lowered the estimated average per-day tourist spend from $171 to $148. Sri Lanka posted a record 2.36m arrivals in 2025 while tourism income rose 1.6% YoY to $3.2bn, with an SLTDA study estimating $1.13bn in annual leakages.

Sri Lanka Tourism Chairman Buddhika Hewawasam said Mattala Rajapaksa International Airport will be positioned as a tourism gateway via joint marketing and operational strategies to attract more airlines and develop routes. Authorities and aviation bodies are addressing past safety/awareness issues and plan airline engagement, with further technical and financial assessments before expanding services.

The Consulate General of Sri Lanka and the Pudong Shangri-La Shanghai held the first Sri Lankan Food Festival in Shanghai from 9–13 February 2026. The five-day event showcased Sri Lankan dishes and Ceylon tea, attracting celebrities, media and international food lovers.

Green Cabin partnered with Michelin-selected Frangipaani (The Olive Tree Group) to present a two-night “Coast to Coast” 4-hands dinner in Kuala Lumpur on 7–8 February. The event showcased Sri Lankan coastal flavours and aimed to raise Green Cabin’s profile in ASEAN fine-dining and export markets.

AmCham Sri Lanka will convene its CEO Forum 2026 on 25 Feb 2026 in Colombo to drive actionable policy and private-sector coordination for the country’s economic recovery; Hatton National Bank is the Title Partner, signalling private-sector confidence.

Luxury Brands introduced DIAGEO’s World Class bartending competition to Sri Lanka for the first time, with Akash Rajapaksha of Colombar (Cinnamon Lakeside) winning the national final and advancing to the regional stage. The programme covered training and mentorship for over 100 bartenders to raise service standards across the hospitality sector.

Hayleys PLC won the Gold Award for Overall Excellence in Corporate Reporting at CA Sri Lanka's TAGS Awards 2025 for the fourth consecutive year, with the Group securing 21 awards including 14 Golds. Several listed firms on the shortlist also won sector awards, including Haycarb, Kelani Valley, Singer, Dipped Products, Alumex, Talawakelle, Horana and Kingsbury.

Hilton Colombo will host a month-long Middle Eastern‑themed Iftar at Graze Kitchen from 17 February to 18 March 2026, priced at Rs. 10,888 nett per adult and Rs. 5,444 nett per child. The buffet features Middle Eastern mezze, rice dishes and desserts, while Café Kai offers curated Iftar selections for sharing or takeaway.

A temporary technical glitch in Sri Lanka’s ETA system affecting UK applicants may cause short-term disruptions to tourist arrivals from the UK, Sri Lanka’s second-largest source market (212,277 arrivals in 2025). Travellers who applied can board without the ETA notice and verification will be done on arrival at BIA while authorities work to restore services.

Belluna Lanka and Sanken Overseas will invest about Rs.4 billion (US$12.5m) to develop the 60-key Granbell Hotel Ella in Uva Province. Sanken will co-invest and act as turnkey contractor, with construction from mid-2026 and completion targeted for 2028.

Airport and Aviation Services (Sri Lanka) Ltd. said Sri Lanka's airports handled a record 1,045,097 passengers in January 2026, surpassing the previous record of 1,034,687 in January 2018. AASL said this reflects the sustained recovery and expansion of the country's aviation and tourism sectors.

Belluna Lanka and Sanken Overseas have launched Project Granbell Hotel Ella, a planned LKR 4 billion (USD 12.5m) 60-key hotel in Uva Province with construction due to start mid-2026 and completion targeted for 2028. Sanken will co-invest and act as turnkey contractor, with the project positioned to support regional tourism and local employment.

IMF Managing Director Kristalina Georgieva said Sri Lanka has made "tremendous progress" with macro stability restored, inflation sharply down and growth returning. She urged sustained reforms, stronger FX reserves and prudent fiscal policy, noted over $200m in IMF emergency aid and that debt restructuring is nearing completion.

Dr. Parakrama Dissanayake has been appointed Chairman of the Sri Lanka Ports Authority (his third stint) and has resigned as Deputy Chairman and Managing Director of Aitken Spence PLC to take the new post on an honorary basis.

President Anura Kumara Dissanayake said UK Deputy PM David Lammy's visit reinforces international confidence and welcomed the UK's decision to grant zero-tariff access for Sri Lankan textile exports. He flagged tourism, exports and FDI as priority areas, urged sustained forex inflows and outlined post-Cyclone Ditwah reconstruction measures.

Chinthaka Jayaweera was appointed Independent Non-Executive Director of Ceylon Guardian Investment Trust (GUAR.N0000) and Ceylon Investment PLC (CINV.N0000). He previously led internal audit at A.P. Moller Maersk and has held independent directorships at Bukit Darah, Carson Cumberbatch, Equity Two and Pegasus Hotels.

Airport & Aviation Services Sri Lanka (AASL) handled 1,045,097 passengers in January 2026, a new single-month record, surpassing the previous high of 1,034,687 in January 2018.

SLTDA said 159,339 foreign tourists arrived in the first 15 days of February 2026, including 34,879 over the final weekend around the India–Pakistan T20 match. Airfares to Sri Lanka and Colombo hotel rates rose, and total tourist inflows up to mid‑February reached 436,666.

Sri Lanka's manufacturing PMI was 56.1 and services PMI 64.5 in January 2026, indicating continued expansion in both but at a slower pace than December 2025 (60.9 and 67.9). Growth was driven by higher new orders, production and employment in manufacturing and strong wholesale/retail, accommodation and financial services activity in services.

Government issued new Strategic Development Projects regulations granting tiered corporate tax holidays (generally 5–10 years) with investment thresholds starting at >$50m and import-duty/VAT/PAL/CESS exemptions during implementation. Categories cover infrastructure/tourism, manufacturing and agriculture/ICT; motor vehicles excluded.

Nearly 40,000 tourists arrived in Sri Lanka over the weekend for the India‑Pakistan T20 match, lifting first-15-day February arrivals to 159,339 (up 19% YoY) and YTD arrivals to 436,666 (up 13% YoY). Fifteen private jets landed and Colombo hotels reported full occupancy, boosting short-term sports tourism demand.

IMF Managing Director Kristalina Georgieva arrived in Sri Lanka (Feb 16–18, 2026) to meet government officials, assess Cyclone Ditwah damage and discuss IMF support for recovery and building greater resilience.

Over a dozen international franchisors attended the Sri Lanka Franchise Expo 2026, and Franglobal signed an agreement with Fat Crab (part of Don Stanley Holdings) to expand into southern India with plans for up to 25 outlets by 2028. Government and industry bodies highlighted franchising's potential to drive jobs, SME development and support recovery in urban and tourist commercial districts.

China will allow UK and Canadian nationals visa-free entry for up to 30 days from 17 February (initially until 31 December). The policy covers tourism, business and family visits and is intended to boost people-to-people exchanges and ease business travel.