Industry & Sector News
View all(90)UK ETA Glitch Threatens Arrivals from Second Largest Source Market ✈️
• Tourism authorities are addressing a technical issue preventing UK travelers from receiving Electronic Travel Authorisation (ETA) approval notices. • Despite the glitch, travelers who have applied can proceed; airlines have been instructed to allow boarding without the notice. Verification will be handled upon arrival at Bandaranaike International Airport (BIA). • The UK is Sri Lanka's second largest source market, contributing 212,277 arrivals in 2025. • For the first 15 days of February 2026, UK arrivals reached 17,807, bringing the year-to-date (YTD) total to 47,347 visitors. • This disruption occurs during the critical winter peak season. The UK market is vital for foreign exchange inflows due to higher per capita spending and longer average stays compared to regional markets. • Authorities are working to restore normal services to maintain momentum in Sri Lanka’s premium tourism recovery and avoid administrative uncertainty for long-haul travelers. 📉
📈 CIPM Launches Internationally Accredited HR Qualification
The Chartered Institute of Personnel Management (CIPM) Sri Lanka has officially launched its revised Chartered Qualification in Human Resource Management (CQHRM). The qualification has achieved international accreditation by Qualifications Scotland (QS) at SCQF Level 11, equivalent to a postgraduate level. • Key Milestone: This marks a significant step in elevating Sri Lanka’s professional education to global standards, enhancing the global mobility and employability of local HR professionals. • Strategic Alignment: The CQHRM curriculum now integrates modern competencies, including: • Digital and AI-driven HR practices • HR Analytics & Strategic HR Leadership • Sustainability & Global Talent Management • National Impact: Under its Parliamentary mandate, CIPM aims to bridge the gap between academic learning and labour-market demands. Prime Minister Dr. Harini Amarasuriya noted the importance of such qualifications in driving economic recovery and governance reform. • CSR Contribution: Demonstrating commitment to national resilience, CIPM contributed Rs. 4 million to the Rebuild Sri Lanka Fund during the launch event.
📈 National Push for Digital Responsibility & Cyber Careers
Sri Lanka is intensifying its focus on digital resilience through the 5th Annual Youth Summit on Cyber Security. Organized by CICRA and Daily FT with Education Ministry endorsement, the initiative targets the integration of cybersecurity into the national school culture to bridge the global talent gap. • Overall Scope & Impact • Program covered 24 leading government and international schools. • Focus: Transforming cybersecurity from a technical discipline into a fundamental life skill for students. • Outcome: Top 10 performers recognized in a national quiz; completion certificates awarded to participants. • Sector & Industry Highlights • ICT & Digital Education: The Ministry is developing a policy framework for digital transformation, expected for Cabinet approval by March 2026. • Cybersecurity Careers: Industry leaders highlighted a global talent crisis with millions of unfilled roles, positioning cybersecurity as a high-growth economic opportunity for Sri Lankan youth. • AI & Ethical Tech: Experts emphasized balancing AI innovation with ethical responsibility, data protection, and "digital hygiene" to mitigate phishing and social media risks. • Key Focus Areas for Students • Password protection and phishing prevention. • Online privacy and gaming vulnerabilities. • Responsible social media use and digital boundaries. • Institutional Framework • Teachers are being empowered as "digital safety ambassadors." • Sri Lanka CERT and the Ministry of Digital Economy are driving the National Cyber Security Strategy (2025-2029) to secure critical infrastructure and public trust.
Commercial Bank Leads Sri Lanka’s SME Sector Recovery 📈
Commercial Bank of Ceylon has reaffirmed its position as the primary financier for the SME sector, driving national economic recovery through consistent lending and digital innovation. • Overall Lending & Market Share Disbursed Rs. 330.95 Bn to the SME sector in 2024. Accounts for 30.4% of the total industry disbursement from 16 commercial and specialized banks. Maintained status as the largest lender to the SME sector for five consecutive years (2020–2024), with 2025 growth showing similar leadership (provisional data). • Innovation & Digital Ecosystem Launched the Commercial Bank LEAP GlobalLinker platform, onboarding over 14,000 SMEs and connecting them to a network of 400,000 members across 152 countries. Introduced Sri Lanka’s first AI-powered SME Credit Underwriting Solution for faster, hyper-personalized loan approvals. • Sector-Specific Highlights & Inclusivity Women-owned SMEs: Portfolio grew by 22% in 2025 through targeted support. Agriculture & Microfinance: Operates 67 specialized units and 3 'Bank on Wheels' to serve unbanked rural entrepreneurs. Sustainability: Incentivizing green initiatives through the 'Diribala Green Development Loan' for solar installations and eco-friendly practices. • Strategic Priorities for 2026 Focusing on Supply Chain Financing, import substitution, and export-led growth. Expanding the Dirishakthi Value Chain Development Program to transition micro-entrepreneurs into the formal SME stream.
### 📈 Roadmap to a US$ 8 Bn Tourism Industry: Quality Over Quantity
Sri Lanka aims to transform its tourism sector by shifting from a volume-based model to a premium destination strategy, targeting higher revenue with fewer, high-spending visitors. • Economic Targets & Projections Current State: ~1.5M tourists generating US$ 2.25 Bn (avg. $150/day). Proposed Goal: 1.2M tourists generating US$ 5.76 Bn (avg. $400/day). Total Potential: Over US$ 8 Bn by 2030 by integrating specialized sectors. • High-Value Sector Breakdowns Wellness Tourism: Leveraging Ayurveda to tap into a US$ 1.3 Tn global market; aiming for US$ 200M in premium revenue. Medical Tourism: Investing in high-tech equipment to attract elective surgery patients, projected to add US$ 500M. Cultural & Nature: Upgrading sites like Sigiriya and coastal areas to command luxury rates (US$ 500–2,000/night), mirroring the Maldives model. • Strategic Implementation Pillars Infrastructure: Immediate focus on cleanliness and 5-star service standards at beaches and heritage sites. Market Pivot: Ceasing marketing to budget "backpackers" and "digital nomads" in favor of wealthy retirees and luxury travelers. Local Retention: Implementing the "UAE Model" requiring majority Sri Lankan ownership to ensure profits remain within the national economy. Employment: Mandatory training programs to transition the workforce into high-end hospitality roles. • Global Benchmarks UAE: Generates US$ 70 Bn via premium infrastructure and strategic investment controls. Bhutan: Uses a US$ 100/day sustainable fee to maintain exclusivity and fund public services.
Sri Lanka Airports Hit Historic Milestone: 1M+ Monthly Passengers 📈
Airport & Aviation Services Sri Lanka (AASL) recorded its highest-ever monthly traffic in January 2026, signaling a robust recovery for the island's aviation and tourism sectors. • Overall Performance • Total movements: 1,045,097 passengers • Previous record: 1,034,687 (January 2018) • Result: Growth of approx. 1% over the pre-pandemic peak. • Sector Highlights • Tourism: Driving the surge with 277,327 arrivals in Jan 2026—the highest for a single month. • Aviation: High airline activity and traveler confidence boosted movements across BIA, MRIA, and Jaffna airports. • Employment: 184 new recruits recently added to AASL to manage rising operational demand. • Top Source Markets • India (52,061), UK (29,540), and Russia (27,134). _Data based on AASL and SLTDA provisional reports._
Sri Lanka to Showcase Innovation at Dubai FinTech Summit 2026 📈
The FinTech Association of Sri Lanka (FASL) has been named an Association Partner for the upcoming Dubai FinTech Summit (DFS) 2026, scheduled for 12–13 May at Madinat Jumeirah. This partnership highlights the country's growing integration into the global ICT/BPM and financial technology ecosystems. • Global Platform & Strategic Pillars The summit, organized by the Dubai International Financial Centre (DIFC), expects over 10,000 leaders and 1,000 investors. It focuses on seven key pillars: Future-proofing financial systems and AI-driven decision-making. Digital assets, tokenization, and cross-border payments. Sustainability & ESG finance and WealthTech. • Sri Lanka Regional Qualifier at Port City A major precursor to the summit is the FinTech World Cup (FWC) Regional Competition, which will be held on 31 March 2026 at Port City Colombo. Partnership: Organized by FASL in strategic collaboration with Port City Colombo. Opportunity: Winners of the Sri Lanka round will advance to the Grand Finale in Dubai on 12 May 2026 to compete for global investment and mentorship. • Economic Impact & Vision The initiative aligns with Port City Colombo’s goal to become a leading offshore financial center and a hub for South Asia’s fintech innovation. By providing a "regulatory sandbox" and access to private capital, the event aims to scale local startups and enhance employment within the high-value technology sector. _Note: Based on official event scheduling and provisional partner data._
📈 National Debate: Strategic Education Reforms in Sri Lanka
The current discourse on education reform emphasizes a shift from "quick fixes" to a long-term transformational process. Experts advocate for a model that balances modern needs with the country’s unique cultural and familial value systems. • Strategic Foundation The reform objective centers on the "ABCDE" framework—Attendance, Belongingness, Cleanliness, Discipline, and English—to move away from a rigid, exam-centric system toward a holistic, competency-based model. • Key Sector Shifts • ICT/BPM & Digitalization: Mandatory AI education is proposed for children as young as age six, following global trends (e.g., China), though critics warn of an impractical "digitization of everything" without contextual adaptation. • English-Medium Instruction: A priority is placed on making English-medium education permanent from Grade 6 onwards to address the global "knowledge gateway" gap. • Vocational Studies: Greater emphasis on building foundations in automobile engineering, electronics, and programming to enhance employability. • Critical Challenges • Policy Implementation: Recent "bureaucratic haste" led to the postponement of Grade 6 reforms to 2027. • Economic Context: Budgetary allocation for education remains at approximately 2% of GDP, with concerns over "hidden costs" for low-income families. • Stakeholder Roles: Reformists must bridge the gap between futuristic skills and the established "three platforms" of Sri Lankan society: family, religion, and school.
## Financial Ghosting: The Silent Drain on Banking Loyalty 📉
Financial ghosting is emerging as a critical risk for banks, where aggressive customer acquisition is followed by zero engagement. This "silent attrition" leads to dormant accounts that incur costs without generating revenue. • Overall Impact Up to 20–30% of retail accounts in mature markets (Canada, UK, Australia) are low-activity or dormant. Customers ignored in the first 90 days are 30–40% less likely to consolidate balances with that institution. Disengaged clients are 40–50% less likely to adopt high-value products like mortgages or investments. • The Sri Lankan Context Banks in Sri Lanka successfully run salary account campaigns, yet many become "silent shells" within a year due to a lack of follow-up. Professionals often maintain multiple accounts but only actively use the one providing proactive guidance or financial literacy. • Strategic Recommendations Onboarding: Must shift from a one-time "victory lap" to a year-long journey involving financial health check-ins. Digital vs. Human: Hybrid models combining digital efficiency with human trust (e.g., 15-minute advisor calls) report 20–30% higher product adoption. Data Utilization: Use predictive analytics to trigger engagement during key life events like entering the workforce or starting a business. _Note: Analysis based on industry observations and 2022 McKinsey study data._ ---
SEC/CSE Drive to Scale Sri Lankan Tech via Capital Markets 📈
The Securities and Exchange Commission (SEC) and Colombo Stock Exchange (CSE) recently hosted the "Seed to Scale" forum, urging over 60 ICT/BPM and tech firms to leverage the stock exchange for mid-to-long term growth. • Market Milestones • Market Capitalization crossed the LKR 8.5 Tn threshold in early 2026. • 2025 saw 25 total listings, including 6 new companies raising rapid expansion capital. • The ASPI and S&P SL20 hit record highs in January 2026, with the ASPI reaching 23,812.3 points. • Policy & Regulatory Shifts • Digital Economy: Authorities are considering a separate IT Board to offer lower entry barriers, reduced compliance costs, and better valuations for startups. • Tax Reform: Efforts are underway to eliminate cascading taxes on venture capital funds to attract foreign investment into the local ecosystem. • Capital Mobility: New facilities are expected for Foreign Direct Investment (FDI) to allow Sri Lankan firms to scale overseas while retaining headquarters and IP locally. • Strategic Highlights • Apparel & Textiles and other traditional sectors are being joined by a "success story" in tech, shifting from cost-based outsourcing to Intellectual Property (IP)-led growth. • Debt Innovation: 2025 introduced specialized instruments including Blue, Green, and Social Bonds to fund sustainable expansion.
Sri Lanka Aviation Hits Post-Crisis High in 2025 📈
The aviation sector recorded its strongest performance in years, signaling a robust recovery in tourism and regional connectivity as airport traffic surpassed pre-crisis momentum. • Overall Traffic & Connectivity The country’s airports handled 10.2 Mn passengers in 2025. Operations were supported by 46 airlines linking Sri Lanka to 72 destinations across 34 countries. Total aircraft movements reached 64,340, while cargo throughput stood at 190,280 tons. • Tourism & Transit Tourism remained the primary growth driver with 2.34 Mn arrivals by air. Notably, transit passenger movements rose sharply to 946,811, re-establishing the island as a regional aviation hub. • Regional Airport Performance Mattala (MRIA): Achieved a record turnaround with 140,614 passengers—its highest since 2013. New carriers from Russia, Uzbekistan, and the Middle East helped bypass previous underutilization. Jaffna (JIA): Posted its best year since 2019 with 53,443 international passengers. The hub saw its first medical evacuations and launched a terminal expansion project to boost Northern Province economic integration. • Strategic Outlook The recovery reflects stabilizing macroeconomic conditions and renewed airline confidence. Authorities are now focusing on infrastructure expansion to manage the 2026 demand surge and ease congestion at Bandaranaike International Airport. _Source: AASL Provisional Data 2025_
📈 Sri Lanka’s Digital Banking: Beyond the Marketing Hype
A critical review by former Central Bank officials and tech activists highlights a widening gap between "digital marketing" and actual service delivery in Sri Lanka’s financial sector. Despite government-led ICT/BPM pushes, the banking experience remains heavily tethered to manual, paper-based workflows. • The "Dead Aristotle" Gap Most local bank websites and portals are classified as "Web 1.0"—static, one-way communication tools that provide information but lack interactive functionality. This "dead" communication hinders real-time customer support and engagement. • Digitisation vs. Digitalisation Digitisation: Conversion of paper to digital (e.g., scanning a PDF). Digitalisation: Using digital data to improve decision-making. Current State: Banks often force existing customers to fill manual forms for new services, ignoring the digital data already in their servers. • Key Sector Challenges Regulatory Barriers: Service providers frequently cite Central Bank regulations as a shield to maintain archaic, paper-reliant processes. Open Banking Lag: While global peers (UK, India, Singapore) use APIs for seamless data sharing, Sri Lanka’s adoption remains in "unexplored territory." Brain Drain: Failure to adopt local innovations, such as unified API platforms for loan/deposit comparisons, has led to young tech talent migrating to more innovation-friendly nations. • Economic Outlook True digital transformation could reduce national resource waste in redundant advertising and lower "search costs" for customers. Moving toward Web 3.0 (multi-way real-time chat/AI) is deemed essential for the apparel & textiles and SME sectors to access efficient credit and trade facilities.