News & market updates

The ONE LOVE Reggae Music Festival 2026 has been postponed from end-March to August 2026. Organisers cited Middle East tensions, air-travel disruptions and venue completion/approval delays; new artist line-up, exact dates and ticket details will be announced in due course.

Sigiriya, Galle Fort and Kandy's Sacred Temple of the Tooth were named among Travel and Tour World's Top 50 heritage sites for 2026, highlighting Sri Lanka's strength in heritage tourism. TTW notes heritage tourism grew 6.4% year‑on‑year, boosting visitor demand, conservation investment and local economic activity.

BOI will host the 'Invest in Sri Lanka' Forum on 30 March 2026 at Cinnamon Life to showcase sustainable, technology-driven and high-value investment opportunities. The forum highlights include a 70% renewable electricity target by 2030 and prospects across hospitality, logistics, manufacturing and digital infrastructure.

Sri Lanka Chamber of Small and Medium Industries will hold a special SME Forum later this month to connect entrepreneurs with authorities on finance, regulation, market access and operational challenges; interested SMEs are asked to register by 20 March 2026.

City of Dreams Sri Lanka highlights women occupying critical operational and leadership roles across South Asia’s first integrated resort. The property says it supports inclusion through equal-opportunity hiring, mentorship, leadership training and maternity support.

President says the Central Bank submitted a scenario analysis on the Middle East conflict's economic impact to the government and that the worst-case outcome is unlikely. Authorities are preparing contingency plans affecting tourism, tea exports and port logistics and are seeking Indian support for the tea sector.

Emirates resumed flight operations and advised passengers with confirmed Saturday (07) afternoon bookings and transit connections to proceed to the airport. City check-in points in Dubai remain temporarily closed; Emirates is offering rebooking or refunds for bookings made 28 Feb–31 Mar, allowing travel through 30 Apr.

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.

SriLankan Airlines will operate an additional Colombo–London flight on 8 March 2026 (UL1205 departs Colombo 06:50, UL1206 returns from London 15:05) to assist passengers disrupted by cancellations related to the situation in the Middle East.

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.