News & market updates

Colombo Fashion Week will host the BRICS Fashion Summit (South Asian Edition) on April 3 during CFW Summer 2026 at City of Dreams Sri Lanka, featuring over 30 designers and international participants. The summit aims to open markets and deepen ties for designers and apparel supply chains across BRICS and South Asia.

Moose Clothing Company opened its third exclusive store at Galle City Centre, expanding its retail footprint beyond Colombo and Kandy. The store offers menswear, womenswear, kidswear and official cricket merchandise and aims to attract both local shoppers and tourists.

Sampath Bank launched its SampathCards 'Swipe a Memory for Life' Avurudu campaign, offering discounts of up to 60% at partner merchants through 30 April 2026. The promotion covers categories including retail, supermarkets, dining, travel and hotel stays to drive cardholder engagement.

Tourist arrivals to Sri Lanka fell 18.1% in the first 25 days of March 2026 to 151,693, hit by Middle East escalation and flight suspensions that disrupted key transit hubs. The decline threatens the tourism-driven foreign exchange recovery and could pressure the rupee and import financing.

Escalating Middle East tensions pushed Brent crude above $100/bbl in March, prompting two domestic fuel price hikes and a drop in the LMD-PEPPERCUBE Business Confidence Index to 168. Tourism, remittances and domestic energy supply (gas) face downside risks that could keep confidence subdued.

A government monitoring committee warned current fuel quotas are insufficient and could trigger price increases for essential goods ahead of the Sinhala and Tamil New Year; five CPC officials will be appointed to assess needs and a QR-code system for fuel issuance will be introduced.

IndiGo launched direct Delhi–Colombo flights from 29 March 2026, operating six times a week with A320s to boost travel and trade. The airline now runs over 55 weekly flights to Colombo from five Indian cities and also links Chennai and Tiruchirappalli to Jaffna.

Global Harvest (Pvt) Ltd has been appointed sole Sri Lankan importer and distributor for Canada's Tropical Link to supply Snow Farms dried berries (cranberries, blueberries, tart cherries), launching via Gusta and rolling out to supermarkets and HORECA in retail 120g and bulk packs.

Agoda highlighted Galle, Sri Lanka, as one of its top slow travel destinations in Asia, noting attractions within Galle Fort, restored villas, galleries, quieter beaches and local artisans.

ITC Ratnadipa will host an Easter brunch at the Indian Ocean Pavilion on 5 April (12:30–15:30), priced at LKR 9,500 nett per person with kids at half rate. The brunch offers an international buffet with signature dishes, live cuisine theatres and children’s activities including an egg hunt and face painting.

IndiGo will launch direct Delhi–Colombo flights from 29 March 2026, operating six weekly A320 services. The addition raises IndiGo's Colombo frequencies to over 55 weekly flights from five Indian cities and is expected to boost trade and tourism between India and Sri Lanka.

Shenelle Rodrigo was appointed Sri Lanka’s first Destination Correspondent for Lonely Planet; her Sheneller platform, reaching over 3 million viewers, says it helped protect about $800,000 in tourism revenue. She will highlight lesser-known Sri Lankan stories and is expanding via Sheneller Ventures and a new Holivate platform to link hotels and content creators.

Tourist arrivals in Sri Lanka in 2026 have surpassed 700,000, totaling 708,348; 151,693 arrived between March 1–25 with 26% (39,424) from India. European arrivals declined in March amid the Middle East conflict.

Russia has agreed to supply fuel to Sri Lanka and is ready to immediately provide refined petroleum products, the Ceylon Petroleum Corporation said. CPC added fuel stocks are sufficient until May; a vessel with 35,500 mt of diesel has arrived and two more shipments are expected this month.

Galle City Center opens tomorrow: a 135,000 sq ft, nine-storey complex featuring six floors of premium retail and a four-star, 35-room hotel with rooftop banquet and restaurant. The development is expected to boost retail and tourism activity in the Southern Province.

John Keells Hotels (KHL.N0000) will host an Easter Brunch at Quizine on April 5 at Cinnamon Life at City of Dreams, featuring an extensive buffet, family activities and seasonal Sweet Labs treats.

BrandRadar (Roar Global) launched the Sri Lanka AI Visibility Index and hosted the country's first AI Visibility Summit to benchmark how brands appear in AI-driven discovery platforms (ChatGPT, Gemini, Perplexity, etc.). Initial coverage includes hospitality, banking/finance, insurance, retail/e-commerce, automotive and real estate.

Commercial Bank of Ceylon (COMB.N0000) launched an Avurudu card promotion offering up to 70% discounts at more than 579 merchant partners and over 4,000 outlets nationwide through 30 April 2026. The campaign covers clothing, supermarkets, jewellery, hotels, dining and online merchants with in-store and online offers.

Pointlabs Technologies launched 'Anya', Sri Lanka's first AI-powered voice concierge for Standard Chartered Priority customers on 18 March 2026, offering voice-enabled travel and lifestyle recommendations, bookings, itinerary management and real-time concierge support.

SriLankan Airlines recorded a 13% revenue increase after implementing an AI/ML-powered Origin & Destination revenue management platform (PROS RMA and Amadeus RAAV). The system enables dynamic pricing and inventory optimisation and was credited as a growth driver, earning two industry awards.

Home Lands has commenced construction of Canterbury Crest Resort Apartments, the final phase of Canterbury Golf City featuring 96 apartments. The resort-style development offers two- and three-bedroom units with amenities and is located about 20 minutes from Colombo.

A presidential tourism task force chaired by Tourism Minister Vijitha Herath met to shield the sector after arrivals fell 5.15% in the first 15 days of March amid Middle East conflict-related flight cancellations (447 arrivals, 451 departures). The industry faces heavy losses (estimated $80–100m/month) even as cumulative 2026 arrivals topped 708,348 year-to-date.

Over 800 international guests attended a four-day destination wedding at Shangri-La Hambantota, with stays averaging 5–7 nights, providing a boost to Sri Lanka’s tourism. The Sri Lanka Tourism Promotion Bureau, Sri Lanka Convention Bureau and government ministers officially endorsed the event to promote the country as a global wedding destination.

Central Bank Governor Nandalal Weerasinghe said imposing forex or trade controls is not the right response to Middle East conflict fallout, with the central bank keeping interest rates on hold and the government raising fuel prices to balance external and domestic demand. He added remittances remain strong, tourism is down, and the CB is using repo operations to mop up excess liquidity while warning that permanent sterilization is needed to avoid excess imports and pressure on the rupee.

The Central Bank held the OPR at 7.75% in its 2nd MPC review for 2026, leaving SDFR/SLFR and reserve requirements unchanged. Weekly T‑bill yields rose (91d 7.64%, 182d 7.95%, 364d 8.32%) in an undersubscribed auction; secondary bond market volatile and the rupee firmed slightly to ~Rs.313.8/314.5 with gross official reserves at $7.3bn.

Asia Capital agreed to buy a 22.13% stake in Wadduwa Resorts from Japan Capital for Rs.75 million, with the purchase to be finalised in September 2026; Asia Capital and its subsidiaries will then hold 100% of Wadduwa Resorts.

The Central Bank of Sri Lanka kept the Overnight Policy Rate at 7.75% and said low inflation (1.6% y/y in Feb) provides space to absorb higher energy costs, forecasting inflation will reach 5% in Q2-2026. It noted USD 7.3bn reserves, some rupee depreciation pressure and risks to tourism, trade and remittances.

Monetary Policy Board kept the Overnight Policy Rate unchanged at 7.75%. Inflation was 1.6% y-o-y in Feb 2026 and is expected to reach 5% in Q2-2026; the board cited higher global energy prices, Middle East conflict risks, and FX reserves of USD 7.3bn as key considerations.

ADB announced a financial support package including fast-disbursing budget support and reactivated trade and supply-chain finance (including for oil imports) to help developing member countries manage economic fallout from the Middle East conflict. The bank will use countercyclical resources and monitor energy, inflation and financial conditions.