News & market updates

Melstacorp (MELS.N0000) and Aitken Spence Hotel Holdings (AHUN.N0000) have arranged to buy back minority shares as Browns Beach Hotels seeks delisting from the Colombo Stock Exchange with an exit offer of Rs.30 per share. The move follows sustained losses, non-compliance with minimum public holding and is subject to regulatory and shareholder approval.

CBSL PMI: Manufacturing PMI 60.9 and Services PMI 67.9 in December 2025, indicating sharp expansion despite Ditwah weather disruptions. Manufacturing was led by food & beverages and higher new orders, while services were driven by wholesale & retail and accommodation/F&B with rising employment and optimistic near‑term expectations.

A liquidator has invited offers to invest in or buy the Krrish Building mixed-use project in Colombo, valued at $712m with about $85m of work completed; proposals including finance credentials are due by 28 February.

Icon V Talpe, a 17-level twin-tower oceanfront development by Odiliya Group in Talpe near Galle, comprises 227 fully furnished sea-facing apartments and has attracted strong interest from overseas Sri Lankans and international investors, with many units already sold or reserved.

Sri Lanka's services PMI rose to 67.9 in December 2025, signaling expansion driven mainly by wholesale and retail trade amid festive demand. The new-business index climbed to 64.6 and employment increased as firms expanded year-end workforces.

Sri Lanka welcomed 131,898 tourists in the first 15 days of January, a 9.43% year-on-year increase, according to provisional SLTDA figures. India was the top source market (23,786 arrivals, 18%), followed by Russia and the UK.

Cabinet approved calling for expressions of interest to find investors to develop selected areas of the Pelwatte Sugar Factory into tourist attractions under a PPP; the Pelwatte factory is owned by Lanka Sugar Company Ltd.

Brazil–Asia Chamber of Commerce has shown interest in participating in Sri Lanka Expo 2026 and began talks with Sri Lankan officials to boost trade and investment in tea, cinnamon and Port City projects; bilateral trade is about $150m. Follow-up meetings will involve the Tea Board, Spices and Allied Products Marketing Board, Colombo Port City Economic Commission and the EDB, which highlighted apparel, rubber, IT and machinery sectors.

World Bank projects Sri Lanka real GDP growth to slow to 3.5% in 2026 (3.1% in 2027), down from an estimated 4.6% in 2025, citing structural weaknesses and weaker external demand. It says the external position has improved due to strong remittances, a tourism recovery and lower global oil prices supporting a current account surplus.

An IMF staff team will visit Sri Lanka from January 22–28, 2026 to assess damage from Cyclone Ditwah and its economic impact; the mission's findings will inform discussions on resuming the IMF Extended Fund Facility and shaping recovery support.

Emirates has named world No.1 Aryna Sabalenka as its first tennis ambassador and unveiled an A380 with a tennis-inspired livery celebrating its sponsorship of all four Grand Slams. The partnership aims to deepen Emirates' engagement with tennis fans and enhance its travel offerings.

Agoda named Colombo its recommended destination for May 2026, highlighting Vesak festival lantern displays, temple observances and evening processions as reasons to visit; the monthly guide helps travelers time trips for cultural events and favorable weather.

SriLankan Airlines unveiled an international branding initiative by applying a Nawam Maha Perahera livery to an Airbus A320neo to promote the Colombo Nawam Maha Perahera 2026 and Sri Lanka as a cultural tourism destination.

The Finance Ministry will divest its entire 100% stake in Canwill Holdings, holding a virtual pre-EOI meeting on 21 Jan and setting an EOI deadline of 16 Feb for a two-stage competitive sale. Canwill is the parent of Sinolanka and Helanco, including the stalled Grand Hyatt Colombo project, and has prior forensic-audit findings and Rs.18.5bn of equity funding.

Walkers Tours will be the Official Travel Partner for IRONMAN 70.3 Colombo on 22 February 2026, providing athlete airport transfers, accommodation and curated race travel services as the event returns to Sri Lanka for the first time since 2019.

Aitken Spence Hotel Holdings plans to issue up to 50 million debentures to raise Rs5 billion (Rs100 each), initially issuing 30 million with an option for a further 20 million; the listed, unsecured senior redeemable debentures are subject to regulatory approvals and will be listed on the Colombo Stock Exchange.

Amber Adventures warns it may pursue legal action to recover USD 3.5Mn after the Central Environmental Authority ordered suspension of development of the BOI-approved Ambuluwawa Cable Car project pending a site inspection. The company says it has invested about USD 3.5m of the approved USD 12.75m, denies landslide claims and urges BOI intervention.

FM Derana was announced as the Official Radio Broadcaster in Sri Lanka for the ICC Men’s T20 World Cup 2026, providing islandwide live coverage on 92.2 and 92.4 FM for 55 matches from 7 Feb–8 Mar 2026.

John Keells Hotels' Cinnamon Lakeside will host the HSBC Ceylon Literary & Arts Festival Edition 3 from 13–15 February 2026. The HSBC-sponsored event, supported by the John Keells Foundation, highlights cultural tourism and should benefit John Keells Hotels and parent John Keells Holdings.

CSE ended flat for a second straight session: ASPI down 0.71 pts to 23,607.80 and S&P SL20 down 0.12% to 6,494.76. Top negatives included JKH, DOCK, DFCC, SFCL and HHL while Sierra Cables, Commercial Bank, CDB and RIL recorded gains; turnover ~Rs.4.9bn and foreign net inflow Rs.22m.

Sri Lanka's cabinet approved calling for expressions of interest to develop Pelwatte Sugar Factory premises as tourist attractions under a public-private partnership. The Pelwatte Sugar Factory is owned by the Lanka Sugar Company (Pvt.) Ltd.

Emirates will launch a daily Helsinki–Dubai service from 1 October 2026, the only year-round direct link between Finland and the UAE, operated with A350 aircraft offering Premium Economy and about 16 tonnes of belly cargo capacity per flight.

Walkers Tours will be the Official Travel Partner for IRONMAN 70.3 Colombo on 22 February 2026. The event, returning after a break since 2019, is positioned to attract international athletes and boost Sri Lanka's sports tourism and related visitor spending.

Tripadvisor named Galle, Sri Lanka the No.5 Honeymoon Destination in its 2026 Travelers' Choice Best of the Best Destinations list.

Sri Lanka said the SINOPEC Hambantota oil refinery agreement will be finalized in Q1 2026; China pledged support for cyclone recovery and to deepen cooperation on trade, investment and tourism.

Sri Lanka Tourism Development Authority reports 67,762 tourist arrivals in the first eight days of 2026, with a peak of 9,275 on Jan 6. Top source markets were India (11,367; 17%), Russia (8,425), the UK (6,067), Germany (5,306) and Australia (3,285).

ODI Global and CEPA launched the report 'Sustaining Transformative Growth in Sri Lanka (2025–2030)' on 8 Jan 2026, offering a six-point policy roadmap to lock in macro stability and drive transformative growth through 2025–2030. The study notes renewed growth and lower inflation but high poverty, and highlights priorities including supply-chain integration, factor-market reforms and targeted sector policies with opportunities in tourism, digital, niche manufacturing and agriculture.

Sri Lanka's tourism earnings rose only 1.6% to $3.2bn in 2025 despite arrivals increasing 15% to 2.36m; daily per-tourist spending was revised down to $148 (from $171) and December revenue fell 14.8% YoY to $308.6m.

Sri Lanka received 33,076 tourists from 1–4 Jan 2026, a 3% YoY increase from 25,620, led by India (5,065 arrivals). The strong start aligns with targets of at least 3 million visitors and $5 billion in revenue for 2026 after 2025's record 2.36 million arrivals and $3.2 billion earnings.

John Keells Hotels PLC's Cinnamon Life at City of Dreams is offering a series of curated January dining experiences across its restaurants, including a Thai Pongal thali (9–18 Jan), Winter Teishoku (all January), 'Smoke and Spirit' (5 Jan–2 Feb) and unlimited pizza on the deck (23 Jan–31 Mar).