News & market updates

Nyne Hotels' Stafford Bungalow in Ragala (near Nuwara Eliya) is a restored 1884 colonial retreat on a 50-acre estate offering six ultra-exclusive rooms and a curated tea-focused experiential stay, with guided estate tours, private tastings and access to stages of the Pekoe Trail.

Sri Lanka's monthly current account deficit widened to $149mn in June 2026 (third consecutive monthly deficit), leaving a H1 cumulative deficit of $245mn versus a surplus in H1 2025. The merchandise trade gap widened as import expenditure (fuel imports +40.2% YoY) outpaced export growth, tourist earnings fell and remittances rose; official reserves were $6.5bn and the rupee had depreciated 7.8% YTD by end-July.

Indiya at City of Dreams Sri Lanka will host Indian Accent Mumbai and Ekaa for an exclusive two-night chef's tasting on Aug 7-8, 2026. The event features guest chefs Rijul Gulati and Niyati Rao presenting specially curated vegetarian and non-vegetarian tasting menus.

Colombo International Airport Hotel's Little Japan will host a 250+ member Japanese delegation arriving in late August for a multi-day tour across Sri Lanka, the largest privately organised Japanese visitor group to the country. The visit is organised by Dr. Ruwan Perera to boost tourism, trade and investment ties.

The Sri Lanka Institute of Tourism & Hotel Management (SLITHM) held its 45th graduation at BMICH, with 71 graduates conferred degrees. Prime Minister Dr. Harini Amarasuriya attended and stressed human capital development to support the government's Tourism Vision 2030 targets (5m arrivals, USD 10bn revenue, 800,000 workforce).

The Central Bank reported a monthly current account deficit of US$149 million in June 2026 (third consecutive month) and a cumulative H1 deficit of US$245 million. The deterioration was driven by a wider merchandise trade deficit (US$5.5bn H1), a 40.2% rise in fuel import costs y/y, a 9.9% drop in tourist arrivals in June, and a 7.8% YTD depreciation of the rupee.

CHEC Port City Colombo is pitching its 2.7 sq km SEZ to attract Indian investors, allowing Indian firms to register as offshore companies and transact in Indian rupees; the plan includes four dedicated hospitality plots, a two-km beach and a 90-hectare lagoon.

Hotel Developers (Lanka) Ltd. reported a Profit After Tax of Rs. 48.5 million for the year ended 2025, its first profit since 2017. Revenue was Rs. 5.38 billion, EBITDA rose to Rs. 1.22 billion and operating profit doubled to Rs. 746 million, boosted by a room refurbishment and stronger tourism demand.

City of Dreams Sri Lanka marks its first anniversary on 2 August 2026 and will run month-long celebrations in August, including 30% off food & beverages (1-9 Aug), anniversary set menus (10-16 Aug) and international guest-chef dining events to promote Colombo's tourism and hospitality offering.

City of Dreams Sri Lanka marks its first anniversary, with its two hotels achieving five-star status and the integrated resort reporting notable contributions to tourism, employment and MICE growth. The destination combines luxury hotels, dining, entertainment and events and plans further expansion and international partnerships.

Blue Lanka Tours received the Sustainable Community Impact Initiative Award at the Sri Lankan Sustainability Awards 2026 for its community programmes; the company has donated over Rs. 1.29 million to the Little Hearts Project and contributes USD 10 from every tour booking toward treatment for children with congenital heart disease.

Agoda search data shows Sri Lanka has emerged as a top choice for Indian travelers, with a significant surge in searches for coastal destinations such as Arugam Bay (surfing), Trincomalee (marine life), Mirissa (whale‑watching), Galle and Bentota.

Sri Lanka's tourism industry surpassed 1.3 million visitors in the first 26 days of July as arrivals for the period edged up 0.11% YoY to 167,401, led by India (38,785 visitors, 23%). YTD arrivals remain about 2% below last year; interim promotional campaigns are due next month.

The Cabinet approved leasing five Presidential Residences in Bentota, Kataragama, Mahiyanganaya, Embilipitiya and Anuradhapura to private investors on a long-term basis for tourism development. The move aims to reduce state maintenance costs for underutilised properties while generating tourism investment and economic activity.

The Canadian Chamber of Commerce in Sri Lanka held a "Canada Day Dialogue" to map new pathways for bilateral trade, investment and tourism, noting Canada's CAD 500 billion Indo‑Pacific commitment could create opportunities across energy, technology, manufacturing and tourism. Panelists said Sri Lanka could target roughly $2.4bn in two‑way trade and attract up to about $400m in Canadian investment if structural bottlenecks are removed.

S&P affirmed Sri Lanka's sovereign ratings at 'CCC+/C' with a stable outlook on July 27, 2026, and upgraded the transfer and convertibility assessment to 'B-'; it flagged a heavy interest-to-revenue burden (~45.6%). The agency noted resilient GDP growth but vulnerabilities from high debt, external shocks (Middle East war, Cyclone Ditwah) and a 100bp policy-rate hike to anchor inflation.

S&P Global affirmed Sri Lanka's long- and short-term sovereign ratings at 'CCC+/C' with a stable outlook and revised the transfer and convertibility assessment to 'B-'. The agency warned higher energy costs and Middle East risks could pressure growth and external balances, and forecasts 3.8% GDP growth in 2026.

DFCC Bank has introduced Sri Lanka's first ATMs and cash recycler machines offering transactions in eight languages, now available at Bandaranaike International Airport and DFCC locations in Hiriketiya, Ella and Arugam Bay, with wider rollout across its network planned.

Global Sri Lankan Kumara Kumariya finale will be held on July 31 at the Ramadia Grand Hotel, Moratuwa. The pageant, endorsed by Sri Lanka Tourism and sponsored by Kandy Spices Agro, promotes Sri Lankan culture and tourism and offers prizes worth over Rs. 1 million plus return tickets to Thailand for top winners.

Talawakelle Tea Estates' Somerset estate sold a single lot for Rs. 3,050/kg in March 2025, the highest price for the region. The estate also generated 3,622,254 kWh from its 1,100 kW hydro plant in FY2025/26 and has introduced digital weighing, cloud monitoring and drone fertiliser use.

SriLankan Airlines signed an interline agreement with Island Aviation Services (Maldivian) to enable single e-ticket travel to 17 Maldivian domestic destinations via Velana (Malé) and Gan airports. SriLankan continues three daily frequencies to Velana and two weekly to Gan, improving regional connectivity.

Jetwing Hotels had 24 properties recognised in Tripadvisor's 2026 Travellers' Choice Awards, the most honours for any Sri Lankan hotel group, with Mermaid Hotel and Club named 'Best of the Best' (top 1%).

Odiliya Homes & Residencies has appointed Sri Lankan cricketer Lasith Malinga as its official Brand Ambassador to boost its local and international brand presence, promote its Icon hotel portfolio and support efforts to attract foreign investment into Sri Lanka's premium real estate and hospitality sectors.

Bally's Colombo has appointed Rahul Attanayake as Chief Operating Officer. He was previously the company's Chief Human Resources Officer and will oversee operational functions across business units while continuing to lead human capital and organizational transformation.

Emirates Skywards launched Skywards Rail, allowing members to redeem Miles for rail tickets to more than 12,000 European destinations via skywardsrail.com. Members can pay fully with Miles or use Cash+Miles, search schedules, choose cabins/ticket types and receive e-tickets by email.

Sri Lanka was ranked 20th in Travel And Tour World's Top 50 Beach Travel Destinations for 2026. The listing highlights the country's diverse coastal attractions—beaches, surf breaks and marine heritage—underscoring its appeal for coastal tourism.

McLarens Lubricants Ltd will be the Official Lubricant Partner of the 92nd Mahagastota Hill Climb on 16–17 August 2026 at the Mahagastota racing track in Nuwara Eliya. The partnership aims to showcase Mobil-branded lubricant technology to motorists, racing enthusiasts and automotive professionals.

Hayleys PLC (via Hayleys Plantations) has partnered with UNDP BIOFIN to implement Payment for Ecosystem Services projects across its estates, covering Talawakelle Tea Estates, Horana Plantations and Kelani Valley Plantations. Projects include watershed conservation, biodiversity-restoration with tourism integration and a PES model evaluation.

SriLankan Airlines' swimming team won the Overall Championship at the Travel Trade 2026 Swimming Competition, securing both the men's and women's trophies. The team will next compete at the Mercantile 2026 Swimming Championship in October.

JAT Holdings PLC has signed an exclusive nationwide partnership to distribute WASHLEX Japanese smart toilets across Sri Lanka's hospitality, residential and commercial sectors. Over 350 units have been installed to date and the brand is already used by several luxury hotels and property developments.