News & market updates

Seylan Bank PLC fully disbursed Rs. 1.2 billion under the government Seylan Atha Hitha MSME loan programme in 2025 and has received a Rs. 1 billion allocation for the first tranche of 2026. Loans of up to Rs. 25 million are offered at a concessional 5% p.a., with tenors up to 10 years and an 80% credit guarantee for eligible women-led enterprises.

City of Dreams Sri Lanka hosted Lunar New Year festivities with lantern displays, a ceremonial lion dance and themed entertainment and dining promotions. The resort aimed to engage Chinese patrons and reinforce its position as a regional lifestyle and entertainment destination.

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.

Sri Lanka Insurance Corporation General launched Adventure Plus, a USD 8 per person, 30-day personal accident cover for tourists that includes medical, accident and emergency evacuation for adventure activities; developed with the SLTDA and planned for future airport-counter rollout.

SriLankan Airlines has temporarily suspended all Colombo–Middle East services until 23:59 on 04 March 2026, affecting flights including UL225/226, UL217/218, UL253/254, UL265/266 and UL229/230. Flight UL231 is scheduled to depart Colombo for Dubai at 14:30 today, with the return as UL232 later tonight.

Cinnamon Bentota Beach – Signature Selection will host Indian mixologist Ami Shroff for a Signature Bar Takeover from 9–11 March 2026, with the main event on 10 March at Fuze Bar. A bartending training session for the resort team is scheduled for 11 March.

City of Dreams Sri Lanka hosted 'Signature Latin Affair', a high-energy Latin-themed night with showgirl glamour and carnival-inspired performances that drew a lively crowd. The event underscores the property's push for international-style live entertainment to enhance Colombo's nightlife.

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.

Emirates resumed a limited number of flights from Dubai after regional strikes, while UAE airspace has only partially reopened; 78.13% of UK-to-UAE flights remained cancelled on Tuesday, per Cirium.

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.

CBSL’s H1 2026 Systemic Risk Survey of 147 firms found short-term confidence in the financial system remained positive but medium-term confidence softened, with respondents reporting a higher perceived probability of high-impact negative events amid natural hazards and recent geopolitical tensions and oil-price shocks.

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.

The Central Bank of Sri Lanka will issue a review report tomorrow assessing the potential impact of the ongoing Middle East crisis on Sri Lanka’s economy, the president told Parliament; the evaluation aims to clarify possible effects on the country’s financial sector.

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.

U.S. stocks finished narrowly mixed after U.S. and Israeli air strikes on Iran triggered volatile trading; U.S. crude rose about 6% to $71.23, boosting energy and defense while tech stocks later led gains.

Geoffrey Bawa Trust will support the restoration of the Seema Malaka at Colombo's Gangaramaya Temple, aiming to restore Bawa's original design. The Trust is working with Venerable Dr. Kirinde Assaji Thero and Channa Daswatte will undertake renovation of a later extension.

Seylan Bank PLC fully disbursed LKR 1.2 billion across 90 loans under the government-funded 'Atha Hitha' MSME programme in 2025 and has been allocated LKR 1 billion for the first tranche of 2026. Loans are available up to LKR 25 million at a concessionary 5% p.a., with tenors up to 10 years and an 80% credit guarantee for eligible women-led businesses.

Fairway Colombo was named "Most Technologically Advanced Hotel – Sri Lanka 2025" by World Business Outlook. The hotel highlighted innovations such as service robots, motion-sensor smart rooms, IPTV guest management and mobile key/digital check-in, and has new leadership under Virath De Alwis.

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.

Level Bite creator Abdul Azeez is using his TikTok platform to highlight Ramadan dining across Sri Lanka, guiding followers to iftar buffets, temporary Ramadan stalls and late-night suhoor spots. He emphasizes experience, atmosphere and family-friendly deals to help people discover places to gather.

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.

U.S. and Israeli strikes on Iran sent oil sharply higher (WTI ~+8% to $72.70, Brent ~+9% to ~$79.19), dragging global equities lower and lifting gold and the dollar; bond yields fell while higher-than-expected wholesale inflation may complicate Fed rate-cut timing.

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.

Government grants a free two-week (14-day) visa extension to tourists in Sri Lanka and has established 24-hour operations centres and hotlines to support tourists and Sri Lankan migrant workers amid unrest in the Middle East.

Emirates will operate a limited number of flights from the evening of March 2 due to ongoing airspace disruptions; earlier bookings will be prioritised and passengers can rebook or request refunds for travel on or before March 20, while other flights and Dubai city check-ins remain suspended.