News & market updates

Tourist arrivals to Sri Lanka reached 505,751 between January 1 and February 22, 2026. Early-February weekly arrivals exceeded 70,000 and the ICC Men’s T20 World Cup, plus strong flows from India (16%) and the UK (11%), boosted February numbers.

IMF Resident Representative Dr. Martha Woldemichael said sustaining reform momentum is critical for Sri Lanka to move from crisis stabilisation to transformation, noting four of eight EFF reviews completed and about $1.74bn disbursed. She urged trade liberalisation, digitalisation, labour-market reform, fiscal credibility and Central Bank independence to bolster investor confidence; reserves stood at $6.8bn and inflation was 2.3% YoY in Jan 2025.

Gulf Air has increased flights between Bahrain and Colombo to 10 per week (including double daily services on Tuesdays, Thursdays and Fridays) to meet strong Ramadan and Eid travel demand. The expanded schedule also increases cargo capacity, benefiting exporters and logistics.

Batik Air will relaunch Colombo–Kuala Lumpur flights from 30 March with four weekly services, restoring direct connectivity. Officials say the route will support tourism, trade and export cargo flows, and Malaysia aims to increase Sri Lankan arrivals by 10–15% in 2026.

Cinnamon Hotels & Resorts (John Keells Hotels) signed an MoU with the National Olympic Committee naming Cinnamon as Official Hospitality Partner and Walkers Tours as Official Transportation Partner, offering preferential rates and hosting/transport services for visiting teams. The partnership includes joint promotions to boost Sri Lanka's sports tourism.

DFCC Bank PLC ran the "Rising Above with DFCC ONE" campaign, rewarding selected customers with a hot-air-balloon experience over Dambulla to encourage DFCC ONE app engagement and accelerate digital adoption.

Court of Appeal granted interim orders restoring the prior legal position that foreign tourists may drive tuk‑tuks using International Driving Permits together with local covering permits. The orders preserve existing permits and businesses pending a full hearing on the directive’s legality.

Gulf Air will increase flights between Bahrain and Colombo from daily service to 10 weekly flights from 19 February 2026. The added frequencies target Ramadan/Eid travel demand and expand cargo capacity, improving connectivity for passengers and exporters.

Prime Group and Melwa Conglomerate acquired a four-acre marina-front parcel in Port City Colombo for USD 57.6 million to develop an ultra-luxury apartment project with estimated turnover of about USD 250 million, slated for completion within four years.

The Court of Appeal granted interim orders preserving the legal framework that allows foreign tourists with international driving permits, together with Sri Lankan covering permits, to drive tuk‑tuks. The legality of the disputed directive will be decided by the court in due course.

Nüwa at City of Dreams Sri Lanka hosted a Valentine's Day celebration featuring curated handcrafted desserts and intimate luxury experiences for couples. Guests were served items such as heart-shaped pralines, strawberry-adorned creations and delicately detailed petit fours.

Sri Lanka will promote tourism at ITB Berlin (3–5 Mar 2026) with an SLTPB delegation including 72 local companies and SriLankan Airlines to boost German arrivals, develop business partnerships and showcase Sri Lankan products.

Mirissa Beach was ranked 5th and Bentota Beach 7th on Tripadvisor's 2026 Travelers' Choice 'Best of the Best' list for Asia's beaches. The accolade reflects destinations that receive a significant volume of exceptional reviews from the Tripadvisor community over a 12-month period.

Mozambique has launched a VFS Global‑powered e‑Visa platform allowing travellers from 183 countries, including Sri Lanka, to apply online for multiple visa categories with stays up to two years. The cloud-based system offers automated processing, secure payments and 24/7 support to boost tourism and investment.

Asia Capital PLC reached a mutually agreed settlement with its Japanese investors, transferring shares in River House Ltd as full and final settlement to end nearly five years of legal disputes; the deal is expected to strengthen the company's balance sheet and streamline its capital structure.

SLID held a directors' accountability session on Sri Lanka's PDPA on 30 Jan 2026, warning that stronger enforcement increases regulatory, financial, reputational and personal risks for boards. A repeat session is scheduled for 5 Mar 2026.

Deputy Minister Prof. Ruwan Ranasinghe said the government is keeping ownership options open for Mattala Rajapaksa International Airport (MRIA) but first wants the airport operationalised; MRIA handled a record 140,614 passengers and 703 international flights in 2025.

Sri Lanka Police have launched a special operation in the Southern Province targeting foreign nationals driving without valid licences and warned legal action against vehicle owners and rental operators who breach the Motor Traffic Act. Police cited five foreign driver deaths, seven serious accidents, 78 minor accidents and six vehicle damage incidents this year.

Colombo Active Week 2026, featuring the KAYA Expo (19–21 Feb), IRONKIDS (21 Feb) and IRONMAN 70.3 Colombo (22 Feb), has launched in Colombo to promote sport, wellness and boost tourism, attracting participants from over 49 countries.

Sri Lanka is targeting $4 billion in tourism revenue in 2026 and will launch a Rs.2 billion interim PR and digital campaign in April targeting 12–15 key source markets. The country welcomed 2.36 million tourists in 2025, arrivals were up over 13% year-on-year to Feb 15, and five-star room rates during the ICC T20 rose from about $300 to nearly $500.

Tourism Minister Vijitha Herath said tourism earnings have not fallen and that a revised SLTDA methodology lowered the estimated average per-day tourist spend from $171 to $148. Sri Lanka posted a record 2.36m arrivals in 2025 while tourism income rose 1.6% YoY to $3.2bn, with an SLTDA study estimating $1.13bn in annual leakages.

Sri Lanka Tourism Chairman Buddhika Hewawasam said Mattala Rajapaksa International Airport will be positioned as a tourism gateway via joint marketing and operational strategies to attract more airlines and develop routes. Authorities and aviation bodies are addressing past safety/awareness issues and plan airline engagement, with further technical and financial assessments before expanding services.

The Consulate General of Sri Lanka and the Pudong Shangri-La Shanghai held the first Sri Lankan Food Festival in Shanghai from 9–13 February 2026. The five-day event showcased Sri Lankan dishes and Ceylon tea, attracting celebrities, media and international food lovers.

Green Cabin partnered with Michelin-selected Frangipaani (The Olive Tree Group) to present a two-night “Coast to Coast” 4-hands dinner in Kuala Lumpur on 7–8 February. The event showcased Sri Lankan coastal flavours and aimed to raise Green Cabin’s profile in ASEAN fine-dining and export markets.

AmCham Sri Lanka will convene its CEO Forum 2026 on 25 Feb 2026 in Colombo to drive actionable policy and private-sector coordination for the country’s economic recovery; Hatton National Bank is the Title Partner, signalling private-sector confidence.

Emirates renewed its long-standing partnership with the Sydney Symphony Orchestra, extending their 23-year relationship through 2028. The agreement expands the orchestra’s presence on Emirates’ inflight entertainment (ice) and continues support for live performances, digital initiatives and audience engagement.

Luxury Brands introduced DIAGEO’s World Class bartending competition to Sri Lanka for the first time, with Akash Rajapaksha of Colombar (Cinnamon Lakeside) winning the national final and advancing to the regional stage. The programme covered training and mentorship for over 100 bartenders to raise service standards across the hospitality sector.

Hayleys PLC won the Gold Award for Overall Excellence in Corporate Reporting at CA Sri Lanka's TAGS Awards 2025 for the fourth consecutive year, with the Group securing 21 awards including 14 Golds. Several listed firms on the shortlist also won sector awards, including Haycarb, Kelani Valley, Singer, Dipped Products, Alumex, Talawakelle, Horana and Kingsbury.