News & market updates

Hambantota International Port commissioned a new six-hectare RoRo yard (Stage I of Phase II), increasing vehicle parking to 4,500 units per terminal to speed vessel turnarounds. HIP handled 726,153 vehicles in 2025, is targeting ~1 million annual RoRo capacity, and has Stage II due in Q2 with two new NYK services announced.

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.

Fitch says a prolonged Iran conflict disrupting Gulf energy and shipping would lift prices and cash flows for upstream APAC energy exporters while squeezing margins and working capital for downstream refiners, chemicals, fertiliser and some metals producers. Australian and Indonesian exporters and gold miners are likely near-term beneficiaries, while refiners with regulated fuel prices face heightened cash-flow risk.

The IMF said on 3 April that Middle East tensions are disrupting trade, triggering surges in energy prices and financial-market volatility and raising global uncertainty; it will provide a fuller assessment in the April World Economic Outlook.

First Capital Research says March 2026 Iran conflict risks could push Brent to $95–110/bbl and raise Sri Lanka's inflation, external deficits and market volatility, complicating monetary policy. It notes shipping diversions may boost Colombo's transshipment role and that equity corrections could offer selective entry points.

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.

Colombo Stock Exchange midday: ASPI rose 1.41% (317.14 pts) to 22,760.52 and S&P SL20 gained 1.29% to 6,394.97. Top contributors were Commercial Bank (+2.74% at Rs215.75), Sampath Bank (+2.60% at Rs158.00) and Hayleys (+2.82% at Rs236.75); Colombo Dockyard reported a Rs1.93bn loss for the Dec-2025 quarter (stock at Rs142.00).

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.

AmCham Sri Lanka CEO Forum 2026 convened 200+ leaders calling for reforms to restore economic confidence, targeting 7% annual growth and a 70% renewable-energy share by 2030. Panels highlighted SME support measures (Rs.300m, 'Level Up'), banking consolidation, infrastructure/port upgrades and FDI-attracting reforms.

The Sri Lanka Export Development Board unveiled 'Edges of Sri Lanka' national branding alongside the official launch of Sri Lanka Expo 2026 to showcase the country's export and investment value proposition; the Expo will run 18–21 June 2026 at BMICH, Colombo.

Dubai International Airport recorded just 20 aircraft movements (16 take-offs, 4 landings) on March 2, 2026 after regional airspace closures tied to Iran strikes, a near standstill versus its usual >1,200 daily movements. Diversions and cancellations continue, affecting routes from India and elsewhere.

SriLankan Airlines cancelled multiple Colombo–Middle East flights scheduled for 03 after parts of Middle East airspace remained closed due to the conflict. Passengers were advised to contact the airline or visit its website for updates.

Sri Lanka's external current account recorded a $369.7m surplus in January 2026, up 271% YoY, driven by 9.1% export growth, strong remittances and a narrower trade deficit. Gross official reserves were $6.8bn, foreign inflows into gov't securities were $16.6m while CSE saw a $21.9m net outflow; the LKR was 0.2% stronger YTD to end-February.

Fitch says Middle Eastern sovereign ratings can likely withstand a short (under one month) regional conflict but prolonged damage to energy infrastructure or extended hostilities could pressure sovereign ratings. Fitch assumes the Strait of Hormuz would be effectively closed during the conflict, weighing on oil and gas exports (notably for Bahrain, Kuwait, Qatar and Iraq) and disrupting tourism and air travel.

Colombo Stock Exchange plunged at Tuesday open and trading was halted after the S&P SL20 fell 5.53% (to 6,269) and the ASPI dropped 5.27% (to 22,483.76). The halt ran from 09:31–09:36 with an auction until 10:01; brokers blamed Middle East tensions and possible supply-route disruptions.

Over 3,400 flights were cancelled after Gulf airspace and several major Middle Eastern hubs closed, disrupting global travel; SriLankan Airlines suspended 10 Colombo–Middle East services and the government granted a free 14-day visa extension for foreigners in Sri Lanka.

Gold rose for a fifth straight session, with spot gold up 1% to $5,377.21/oz, as investors sought safe havens amid escalating U.S. and Israeli strikes on Iran and fears the conflict could widen. The reported closure of the Strait of Hormuz threatens a fifth of global oil flows, lifting other precious metals and disrupting shipping and air transport.

Oil prices rose for a third day as the widening U.S.-Israeli conflict with Iran and threats to shipping through the Strait of Hormuz raised supply disruption risks; Brent was $78.83/bbl, up $1.10 (1.4%). Insurers cancelling coverage and attacks on tankers/refineries are keeping refined product futures elevated.

Walkers Tours launched a dedicated sports tourism brand, Walkers Sports, at IRONMAN 70.3 Colombo (19–22 Feb 2026). The brand will provide sports travel logistics, tournament coordination, team and corporate travel, and aims to grow Sri Lanka's sports tourism offering.

High Commissioner M. Rizvi Hassen said Sri Lanka will work to restore and deepen engagement with the Maldives, citing Bank of Ceylon’s 44-year presence and a goal to return to pre-2019 levels of 20,000–30,000 Maldivian visitors/residents. He highlighted opportunities across tourism, financial services, construction, agriculture and healthcare.

Emirates has extended suspension of flights to and from Dubai until 1500 hrs UAE time on 3 March 2026 due to regional airspace closures. Affected passengers can rebook for travel on or before 20 March 2026; Dubai city check-in facilities remain closed.

Global airline shares plunged after U.S. and Israeli strikes on Iran disrupted travel and sent oil prices roughly 7% higher, forcing closures of major Middle Eastern hubs (Dubai, Doha) and causing widespread flight cancellations and rerouting.

US and Israel launched strikes on Iran, raising the risk of a wider Middle East conflict that could push Brent crude (around $73) toward roughly $80 and, if supply is disrupted, possibly near $100. Markets may see heightened volatility, safe-haven flows into gold and Treasuries, and pressure on Gulf equities and airlines.

MTI Consulting CEO Hilmy Cader warned the Gulf war escalation could stress-test Sri Lanka’s economy by disrupting about 140 scheduled weekly Gulf flights and Gulf airspace. He said this would reduce hotel bookings, disrupt cargo and time-sensitive exports, and affect nearly 1 million Gulf-based workers and roughly US$1.5bn of exports to the Middle East.

A US-Israel strike on Iran and ensuing Strait of Hormuz disruption sent Brent crude up over 7% (above US$90) and led the Ceylon Petroleum Corporation to raise diesel prices (Auto +Rs4, Super +Rs6), threatening Sri Lanka's fuel supplies, tea exports and imports of construction materials.

SriLankan Airlines cancelled multiple flights to and from key Middle Eastern destinations today (28) due to airspace closures; affected routes include Riyadh, Kuwait, Dammam, Dubai and Doha (both outbound and inbound). Passengers were advised to contact the airline via its hotline, WhatsApp, travel agents or the official website for assistance and updates.

The EU has allocated an additional €1 million (over Rs 370 million) to support humanitarian relief and basic services for communities affected by Tropical Cyclone Ditwah in Sri Lanka, adding to prior €2.35m and other EU partner assistance.

Cabinet approved contracts for SriLankan Airlines at Paris CDG: a €7.73m, three-year passenger and ramp handling contract to Groupe Europe Handling from 1 April 2026, and a €1.90m, three-year cargo handling contract to France Handling Cargo from 1 February 2026.

The U.S. Supreme Court invalidated the use of IEEPA for broad tariffs, cutting the effective tariff rate sharply, and the administration moved to a temporary replacement (announced at 10% then 15% under Section 122). The ruling creates trade and fiscal uncertainty, including an estimated USD240bn revenue impact and potential USD175bn in refund risk.

Hayleys PLC's Advantis unit has formed a joint venture with Sarens to supply and operate heavy-lift cranes and engineered lifting services in Sri Lanka, with the JV's first contract the 50MW Haywind wind farm in Mannar. The partnership will invest in crane and transport assets and provide end-to-end turbine installation and logistics.