Sri Lanka maps out long-term BIA expansion, port development for 2027 budget

Thursday July 16, 2026 1:03 pm ECONOMYNEXT – Sri Lanka plans to expand the annual passenger capacity of the Bandaranaike International Airport (BIA) in Katunayake to 24.2 million by the year 2055 under a new 30-year development blueprint, the President’s Media Division (PMD) sai…

Thursday July 16, 2026 1:03 pm

ECONOMYNEXT – Sri Lanka plans to expand the annual passenger capacity of the Bandaranaike International Airport (BIA) in Katunayake to 24.2 million by the year 2055 under a new 30-year development blueprint, the President’s Media Division (PMD) said. The three-year efficiency and development plan was discussed during a pre-budget meeting chaired by President Anura Kumara Dissanayake at the Presidential Secretariat to review the 2026 progress and 2027 budget allocations for the Ministry of Ports and Civil Aviation. Under Phase II of the BIA development project, the government aims to complete the expansion of the existing arrival and departure terminals, build a new terminal, and expand depots during 2027. Airport services are also being digitized in collaboration with the Digital Ministry to improve efficiency. Meanwhile, the government is looking at alternative options to fix heavy financial losses at the Mattala International Airport. “Mattala Airport is currently incurring a loss of between 6 to 7 million rupees per day, amounting to approximately 4 billion rupees annually,” the PMD statement said. Investment proposals for the Mattala airport have already been called, with the government expecting to finalize the process by 2027. The meeting also reviewed foreign-funded port projects, including the Sri Lanka Port Development Program and the Kankesanthurai (KKS) Port rehabilitation, which are backed by the World Bank, the Asian Development Bank (ADB), and the Government of India. Discussions also focused on digitizing Colombo Port operations, expanding the South Port breakwater, and starting the second phase of the West Terminal. For domestic aviation, President Dissanayake instructed the Ministry and the Sri Lanka Air Force to conduct a joint review to set up a better mechanism for civil passenger flights at regional airports, including Hingurakgoda. Modernization work has already started at the Jaffna Airport terminal. President Dissanayake emphasized that state institutions must become financially independent instead of relying on public funds. (Colombo/Jul16/2026)

Thursday July 16, 2026 2:00 pm

ECONOMYNEXT — The Colombo Municipal Council (CMC) has slashed its entertainment tax across all categories, including a sharp reduction for local concerts, in an effort to revitalize the capital’s cultural and creative industries. The relevant Gazette notification has now been issued after the proposal was approved through the 2026 Budget, Colombo Mayor Vraîe Cally Balthazaar said. “One of the requests we received when we took office was a simple one. The Governor asked us to create more opportunities for the people of Colombo to enjoy entertainment, culture, and sport,” Balthazaar said. Under the revisions, the entertainment tax slapped on local concerts has been lowered from 12 percent down to 7 percent. Mayor Balthazaar stated that the policy change followed a direct request from the Governor to open up the city for more public engagement. Following the tax cut, the municipal administration has called on event creators to ensure the financial relief trickles down to the public. Organizers are being encouraged to adjust their pricing structures to make commercial entertainment more accessible to a wider audience. “We hope this benefit doesn’t stop with the industry, but reaches the people too. Wherever possible, we encourage organisers to reflect this tax reduction in their ticket prices, making concerts and events more affordable for more people,” the Mayor added. The local government expects the lower tax rates to act as a buffer for local artists and the broader creative sector, while pushing Colombo to become a more active cultural hub.

Balthazaar noted that the city’s development should look beyond basic infrastructure, emphasizing that shared social experiences remain vital to urban life. (Colombo/Jul16/2026)

Thursday July 16, 2026 11:42 am

ECONOMYNEXT — The Colombo International Maritime and Logistics Conference (CIMC) will focus on how standard practices must evolve into comprehensive logistics zones to capitalize on Sri Lanka’s geographic advantages. “Free ports give that edge over standard port to port business. The industry is now valued over trillions of dollars and growing,” the organizers said. The conference, scheduled to take place from September 9 to 11, 2026, at the Radisson Blu Hotel Galadari in Colombo, is organized by CIMC Events in collaboration with the Shippers’ Academy Colombo and Shippers’ Academy International. The event arrives as global trade routes face intense middle eastern disruptions, rising cost escalations, and shipping vulnerabilities at key maritime choke points, pushing global supply chains to look for reliable regional options. Sri Lanka’s strategically placed ports are seeing renewed global interest to service these shifting trade requirements. Experts note that standard transshipment alone is no longer enough to build a modern maritime economy. The forum will also address critical operational segments like ship bunkering infrastructure, marine engineering, and dry docking. For the first time in South Asia, the Chairman of the United States Federal Maritime Commission will deliver a keynote address, detailing U.S. policy frameworks and competitive regulations designed to support international ocean transportation. Additionally, delegations from the World Bank, the Asian Development Bank, and regional players will break down necessary port policy reforms and India’s rapid industrial growth. The event will conclude with a multi-party-political fireside chat designed to challenge local lawmakers on implementing modern strategic frameworks to boost the sector’s economic footprint. (Colombo/Jul16/2026)

Thursday July 16, 2026 11:41 am

ECONOMYNEXT – Sri Lanka’s Colombo Stock Exchange indices were trading up on Thursday morning, CSE data showed, with the benchmark All Share Price Index moving up 0.14 percent. The ASPI was up 29.70 points at 21,447.50, while the more liquid S&P SL20 was up 0.35 percent, or 21.05 points, at 6,009.67. Positive contributors to the ASPI were Dialog Axiata (up 1.83 percent at 44.40 rupees), John Keells Holdings (up 0.50 percent at 20.00 rupees), Central Finance Company (up 1.39 percent at 219.00 rupees), People’s Leasing & Finance (up 2.45 percent at 20.90 rupees), and Hemas Holdings (up 0.63 percent at 31.90 rupees). Carson Cumberbatch (down 1.27 percent at 700.00 rupees) and Ambeon Holdings (down 2.19 percent at 35.70 rupees) were top negative contributors. Market turnover was 229 million rupees. Banks led turnover with 74.9 million rupees. Lanka Realty Investments announced the receipt of 1.05 billion rupees from Lee Hedges on June 30, 2026, representing the final balance consideration plus interest for the sale of its 51 percent stake in Lanka Realty Developments. Lanka Realty Investments shares were trading up 1.67 percent at 54.90 rupees. Meanwhile, Asia Asset Finance announced a fixed, non-cumulative preference dividend of 0.70 rupees per preference share for the 2025/2026 financial year, with direct bank account credits scheduled for July 31, 2026. (Colombo/July16/2026)

Thursday July 16, 2026 9:31 am

ECONOMYNEXT – Sri Lanka’s rupee was quoted at 336.30/45 to the US dollar in the spot market on Thursday, from 336.30/40 the previous day, while bond yields were broadly steady, dealers said. The telegraphic transfer rate for the dollar was 331.80 buying, 340.80 selling; the euro was 377.8715 buying, 391.7885 selling; and the pound was 447.7701 buying, 461.8157 selling. A bond maturing on 15.12.2029 was quoted flat at 11.10/20 percent. A bond maturing on 01.03.2030 was quoted at 11.30/35 percent. A bond maturing on 01.08.2030 was quoted flat at 11.50/55 percent. A bond maturing on 15.10.2030 was quoted at 11.55/62 percent, up from 11.56/60 percent. A bond maturing on 15.03.2031 was quoted at 11.60/70 percent. A bond maturing on 01.12.2031 was quoted at 11.65/75 percent. A bond maturing on 01.11.2033 was quoted at 11.90/12.00 percent. A bond maturing on 15.06.2034 was quoted at 12.00/10 percent, down from 12.05/10 percent. A bond maturing on 15.10.2034 was quoted at 12.00/15 percent. (Colombo/Jul16/2026)

Wednesday July 15, 2026 6:07 pm

ECONOMYNEXT – Revenue collected by Sri Lanka Customs in the first 14 days of July accounted for over 65 percent of the month, official data showed, as the island nation is likely to outperform the target for the seventh consecutive month. Customs’ July revenue target has been set at 192.4 billion rupees. But the revenue collecting body has already collected 125.2 billion rupees in the first 14 days of this month, official data showed. The revenue collecting body has already exceeded monthly targets in the last six straight months and achieved 68.2 percent of this year’s target through July 14, official data showed. Customs has been accelerating container clearance using digital scanning to reduce corruption and fast-track the clearance process. Last year, Customs collected a record 2,551 billion rupees in revenues, higher than a revised target of 2,241 billion rupees for the year, achieving 64.2 percent higher revenue than the previous year’s revenue of 1,553 million rupees. Customs has set a revenue target of 2,207 billion rupees for this year, 13.5 percent less than last year as it expects a significant decline in car imports. Sri Lanka Customs’ revenue jump is largely due to stronger enforcement, improved valuation practices, and a rebound in import volumes after years of contraction. Following the economic crisis of 2022, imports fell sharply as the country imposed restrictions to conserve foreign exchange. However, with the stabilization of reserves, the relaxation of certain import controls, and a steady recovery in consumer demand, customs collections from import duties, excise, and other levies have risen. Officials note that tighter monitoring of under-invoicing and misdeclaration of goods has also contributed to boosting state revenue. The combined effect of increased import activity, currency movements, and stricter enforcement has positioned Customs as one of the top revenue sources for the Treasury in 2025, providing a vital cushion as the state works to meet fiscal targets under the IMF-supported program. (Colombo/July 15/2026)

Wednesday July 15, 2026 6:00 pm

ECONOMYNEXT – Sri Lanka’s rupee closed at 336.30/40 to the US dollar in the spot market on Wednesday, from 336.00/20 the previous day, while bond yields closed marginally higher, dealers said. The telegraphic transfer rate for the dollar was 331.80 buying, 340.80 selling; the euro was 376.9803 buying, 390.8973 selling; and the pound was 443.7513 buying, 457.7969 selling. A bond maturing on 15.09.2027 closed at 10.40/50 percent, up from 10.35/50 percent. A bond maturing on 15.12.2029 closed at 11.10/20 percent down from 11.10/30 percent. A bond maturing on 15.05.2030 closed at 11.40/50 percent, up from 11.35/50 percent. A bond maturing on 01.08.2030 closed at 11.50/55 percent, up from 11.48/55 percent. A bond maturing on 15.10.2030 closed flat at 11.56/60 percent. A bond maturing on 15.06.2034 closed at 12.05/10 percent, up from 12.00/05 percent. A bond maturing on 01.07.2037 closed at 12.55/60 percent. (Colombo/Jul15/2026)