AGP Executive Report

Tourism Numbers: Sri Lanka has earned over $1.5bn from tourism in 2026 so far, with arrivals passing 1.2 million and the country aiming for 2.5 million visitors this year. Tourism Momentum Check: Early July data shows a fragile recovery—34,721 tourists in the first six days of July (down 3.6% year-on-year), even as daily averages improved versus June. Air Connectivity Deal: Vietjet’s July Double Day sale (7–9 July) is pushing USD90 one-way Eco fares for Sri Lankan travellers on the new Colombo–Ho Chi Minh City route, launching 18 August 2026. Sri Lanka–Myanmar Links: Sri Lanka’s embassy in Yangon backed a Nojili Group visit to boost gemstones, jewellery, tourism and investment cooperation, including participation in Myanmar’s UMTA Travel Fair. Local Travel & Business Finance: Pan Asia Bank launched Remit Max in Kurunegala to support migrant workers with savings and pre-departure loans—useful for families planning travel and relocation. Tourism Policy Talk: Experts are urging an urgent overhaul of Sri Lanka’s investment tax policies to stay competitive as global minimum tax rules tighten.

Tourism Recovery Watch: Sri Lanka welcomed 34,721 tourists in the first six days of July, down 3.6% year-on-year, even as daily arrivals improved to 5,786—still short of last year’s pace—leaving the recovery “slow” and fragile. Investment & Tax Pressure: Tax experts are urging an urgent overhaul of Sri Lanka’s investment tax policies to match OECD Pillar Two rules, warning that outdated incentives could scare off multinationals. Port City Update: Colombo Port City’s Cey Laya project has been repositioned to a new plot after the original land arrangement expired, with sponsors saying the development is still active. Expo 2027 Move: The Cabinet approved event management for Sri Lanka Expo 2027 to LECS–ASTL for Rs. 178.71m (VAT inclusive), with the expo set for 14–17 January 2027. Travel Finance for Migrants: Pan Asia Bank launched “Remit Max” in Kurunegala, adding a pre-departure loan facility and savings account aimed at migrant workers and their families. Sports & Community: Dambulla Sixers kick off LPL 2026 with a nationwide cancer awareness drive, including a visit to Suwa Arana for children receiving treatment. Safety & Governance: Negombo Prison deaths are under renewed scrutiny after postmortems reported severe torture before deaths, adding pressure for real prison reforms.

Sri Lanka Expo 2027: The Cabinet has approved the event management contract for Sri Lanka Expo 2027, awarding Rs. 178.71m (incl. VAT) to the LECS–ASTL partnership, with the expo set for 14–17 January 2027. Colombo Port City: Cey Laya’s Port City project has been repositioned to a new plot after discussions with CHEC, keeping the development active despite earlier land arrangement expiry. Prison system update: Old Bogambara Prison has been formally reinstated as an official correctional facility via an Extraordinary Gazette, as authorities work on inmate accommodation. Tourism & wellness spotlight: Anantara marks 25 years with signature culinary experiences across Sri Lanka, Thailand and Vietnam, leaning into food-led culture for travellers. Travel finance for migrants: Pan Asia Bank launched “Remit Max” in Kurunegala, adding a savings account and a pre-departure loan facility for migrant workers and families. Air connectivity push: A Vijayawada airport expansion roadmap sets Dasara as the deadline for a new terminal and includes proposals for direct flights to Sri Lanka and Dubai. Wellness travel trend: Sri Lanka is highlighted as a top trending wellness destination for 2026, with hotels association calls to boost wellness tourism.

Prison Crisis in Focus: Sri Lanka’s Negombo Prison clashes have left seven prison officers and 20 inmates dead, with authorities facing fresh calls to fix the root causes behind recurring unrest and to stop “report-and-forget” reforms. Tourism & Expo Push: The Cabinet approved the Rs. 178.71m event management contract for Sri Lanka Expo 2027 (14–17 Jan 2027), while exhibitor registration is open until 31 July—good news for trade visitors and tourism-linked business. Labour Shortage Watch: Sri Lanka’s labour shortage is described as structural, with falling participation and outward migration constraining growth across sectors—an issue that can also affect hospitality staffing. Foreign Investment Boost: UNCTAD reports Sri Lanka drew US$1.044b FDI in 2025, up from US$759m in 2024, signaling renewed investor confidence. Wellness-Style Travel Spotlight: Anantara marks 25 years with signature culinary experiences across Sri Lanka, Thailand and Vietnam, underlining food-led culture tourism. Travel Safety Angle: A separate report highlights a “mystery illness” affecting people after rafting trips abroad, a reminder for travellers to watch health risks and seek prompt care.

Tourism & Travel Policy: The Ministerial Consultative Committee reviewed tourism promotion projects and 2027 Budget priorities, with MPs pushing for new island-wide programmes. Expo & Trade: Sri Lanka Expo 2027 exhibitor registration is open until 31 July (14–17 Jan 2027, BMICH), with 650 booths across 25 sectors and 1,500+ global buyers expected. Foreign Employment: A new Foreign Employment Act is set to be presented soon, aiming to close legal gaps, end agency malpractice, strengthen enforcement via a special unit, raise death compensation to Rs. 1.2m, and introduce grievance support through “Lanka Konnect.” Investment & Jobs: Colombo Port City is considering using Port City Colombo to trial labour market reforms, arguing rigid hiring rules are a bigger drag than taxes, as Sri Lanka’s labour shortage is described as structural and widening. FDI Boost: UNCTAD reports Sri Lanka attracted US$1.044b FDI in 2025, up from US$759m in 2024. Health & Safety for Visitors: Health officials are considering an internationally approved dengue vaccine (over 90% effectiveness against DENV-2) alongside Wolbachia mosquito control. Infrastructure for Leisure: Construction has started on Sri Lanka’s first public heated swimming pool in Bandarawela (Rs. 144.19m). Sports (Travel Interest): West Indies won the Test series 1-0 after rain-affected action in North Sound.

Cricket & Tourism Tie-in: West Indies ended a three-year wait for a Test series win over Sri Lanka, taking a 1-0 series after the second Test in North Sound finished a rain-affected draw despite big centuries from Justin Greaves (180) and Shai Hope (112), while Lahiru Udara struck 188 for Sri Lanka. Digital Payments for Travellers: Sampath Bank launched Google Pay for Mastercard and Visa credit/debit cardholders, bringing tap-to-pay convenience for mobile-first users and frequent travellers. Cross-Border Travel Ease: India and Indonesia agreed to link UPI with Indonesia’s payment system, with benefits flagged for MSMEs, tourism and students. Health & Family Travel: Sri Lanka is considering an internationally approved dengue vaccine, with an expert saying it shows over 90% effectiveness against DENV-2, alongside Wolbachia mosquito control. Infrastructure for Sports: Construction began on Sri Lanka’s first public heated swimming pool in Bandarawela (Rs. 144.19m), aiming to boost rural athlete access to modern facilities. Road Safety Alert: Police reported 1,431 road deaths in the first six months of 2026, with motorcyclists and pedestrians hardest hit. Tourism Inspiration: A Sri Lanka luxury rail tour through tea country highlights renewed interest in scenic, experience-led travel.

Road & Rail Upgrades: Narahenpita Railway Station reopens after a Rs. 40 million refurbishment under the “Dream Destination” programme, aiming to modernise facilities at 100 stations nationwide. Local Transport Reform: Cabinet approved a pilot bus sector clustering plan for routes 170, 177 and 190 to reduce chaos from over-competition, poor schedules and unsafe driving. Tourism & Payments: Sampath Bank launches Google Pay for Mastercard and Visa cards, boosting tap-to-pay convenience for travellers. Travel Infrastructure Gap: Kerawalapitiya industrial zone access road remains in disrepair, with flooding, potholes and dust disrupting freight and daily travel. Sports Tourism Tie-in: Fatima Sana gets PCB permission to miss Sri Lanka T20Is to play in England’s Women’s Hundred, after completing the ODI leg. Regional Connectivity: India and Indonesia move to link UPI with Indonesia’s payment system to ease cross-border travel and commerce. Business/Investment: UNCTAD reports Sri Lanka’s FDI inflows hit $1.044bn in 2025, the strongest since 2020. International Spotlight: West Indies secure a rain-affected draw vs Sri Lanka in Antigua’s second Test, keeping the series level.

Road Safety: Sri Lanka Police report 1,431 deaths in road accidents in the first six months of 2026, with motorcyclists and pedestrians among the hardest hit, as authorities push stricter action for speeding and drink-driving. Transport Upgrade: Narahenpita Railway Station reopens after a Rs. 40 million refurbishment under the “Dream Destination” programme, aiming to modernise facilities for commuters. Public Transport Reform: Cabinet approves a pilot “bus sector clustering” plan to coordinate bus routes and improve schedules and safety, starting with routes 170, 177 and 190. Tourism & Retail: Finch Foods opens a premium travel retail outlet at Bandaranaike International Airport, showcasing Ceylon spices, honey, wellness products and gifting for international travellers. Luxury Hospitality: Melco Resorts brings its global luxury brand to Colombo via City of Dreams Sri Lanka, positioning the integrated resort as a new regional draw. Travel Payments: India’s UPI is set to integrate with Indonesia’s payment system, expected to make cross-border travel easier for tourists. Business Travel Deals: EaseMyTrip launches a Monsoon Travel Sale (July 7–10) with discounts across flights, hotels, buses, cabs and holiday packages. Local Infrastructure Concern: Residents near the Kerawalapitiya Expressway exit complain about a badly damaged access road to Elakanda Junction, citing flooding, potholes and dust affecting daily travel and freight.

World Bank Upgrade: Sri Lanka has been reclassified as an upper-middle-income economy again, with GNI per capita rising to $4,670 in 2025—an encouraging milestone, but the World Bank warns it’s fragile and depends on sustained reforms. IMF Pressure: As the current IMF programme nears its end, Sri Lanka faces a tough choice on whether to seek another arrangement, with debt-service pressures set to rise. Transport Costs: Private bus fares across Sri Lanka increase 12–20% from July 6, with the minimum fare up from Rs. 30 to Rs. 34, and inspections planned to prevent overcharging. Airport Retail for Travellers: Finch Foods opened a premium travel retail outlet at Bandaranaike International Airport, showcasing Sri Lankan spices, wellness products, honey and gifting collections for international passengers. Education for Visitors & Locals: ESOL Premier Campus launched OCN London qualifications in Sri Lanka, bringing UK-accredited pathways in English, business, education and digital marketing without needing to study abroad. Connectivity & Payments: UPI launched in Greece, making it easier for Indian travellers to pay at partner merchants—another boost for tourism-friendly cashless travel. Safety & Support: Families of workers killed in Dubai’s Emirates Road crash received financial assistance from Dr Shamsheer Vayalil, including education support plans for children. Tourism Context: Sri Lanka’s prison riot coverage highlights systemic strain in the justice system—an important reminder that travel safety also depends on governance and public services.

World Bank Upgrade: Sri Lanka has been reclassified as an upper-middle-income economy again, after GNI per capita rose to US$4,670 in 2025—yet the World Bank warns the gains are fragile and must be backed by sustained reforms to avoid a repeat of the 2022 crisis. IMF Reform Pressure: Separate coverage says Sri Lanka’s next IMF decision should focus on transformation, not another rescue, as the economy remains vulnerable despite easing shocks. Transport for Tourists: Private bus fares across Sri Lanka rise 12–20% from today (06), with the minimum fare up from Rs. 30 to Rs. 34, and inspections starting to prevent overcharging. Tourism & Connectivity: Sri Lanka’s port cities push closer China ties, while a new Delft Island fuel station is set to support tourism development and improve fuel access. Digital Payments for Visitors: UPI is now live in Greece, making it easier for Indian tourists to pay for travel and sightseeing—good news for regional visitor flows. Safety & Travel Risk: A suspect tied to the Akuregoda double murder has been arrested at BIA after extradition from the Maldives, underscoring ongoing security checks for travelers. Cyber Fraud Alert: A new investigation warns Chinese-led telecom fraud networks are expanding into Sri Lanka, raising concerns for visitors and investors.

Hotel & Rewards Deals: Best Western, Choice, World of Hyatt, Global Hotel Alliance, Radisson and Wyndham are running July 2026 bonus/points promos, including 1,000 bonus points per night for Best Western Rewards in Sri Lanka (with caps). Banking-to-Travel Discounts: Commercial Bank of Ceylon signed an MoU with Saimon Holidays to offer CBC Visa debit/credit cardholders up to 10% off selected holiday packages via Sri Lankan Holidays and Druk Air Holidays. Transport Disruption: Train services remain suspended on parts of the Mannar and Upcountry lines due to track obstructions from adverse weather; passengers are urged to check Sri Lanka Railways updates. Island Tourism Boost: Ceylon Petroleum Corporation will build Delft Island’s first fuel station, aiming to improve access and support tourism and livelihoods. Safety & Travel Alerts: A suspect linked to the Akuregoda double murder was arrested at BIA after extradition from the Maldives, with police saying he played a key role in the getaway vehicle. Sri Lanka in Global Spotlight: Sri Lanka regained upper-middle-income status in the World Bank classification, citing recovery signals like tourism and reforms. Tourism Inspiration: Achill Island was named among the world’s top islands for 2026 by Big 7 Travel.

Tourism & Access: CPC will build Sri Lanka’s first fuel station on Delft Island, with the foundation stone laid July 5 and construction expected to finish in a few months—aimed at easing disorganised fuel supply and boosting island livelihoods and visitor access. Rail Disruption: Train services remain suspended on Mannar and parts of the Upcountry line due to weather-related track obstructions; DMC urges passengers to check Sri Lanka Railways updates. Global Spotlight for Sri Lanka: Achill Island (Ireland) was named the 8th best island in the world for 2026 by Big 7 Travel, adding to the week’s “best islands” buzz that also keeps Sri Lanka’s own island branding in the spotlight. Safety for Travellers: Health experts report 72 measles cases in the Maldives this year, linked to incomplete immunisation; Dr. Faisal urges travellers and foreign workers (especially ages 15–35) to confirm both vaccine doses. Crime & Travel Security: A 23-year-old suspect tied to the Akuregoda double murder was extradited from the Maldives and arrested on arrival at BIA after an Interpol Red Notice. Connectivity & Investment: China EXIM Bank talks in Sri Lanka aim to finalise the revised Central Expressway (CEP-I) Section I deal by August, with tourism flagged as a priority sector.

Road & Connectivity: China EXIM Bank talks in Sri Lanka aim to sign the revised Central Expressway (CEP-I, Kadawatha–Mirigama) Section I deal by end-August 2026, boosting logistics and tourism-linked growth. Tourism & Industry People: Souvagya Mohapatra appointed Chair of the FICCI Eastern Region Tourism Committee, highlighting regional hospitality leadership. Digital Travel Convenience: Uber expands to Ratnapura with Uber Eats and Uber Rides, adding app-based food delivery and safer mobility for residents and visitors. Overseas Sri Lankans Support: SLT-MOBITEL and the Foreign Affairs Ministry launch Lankakonect, letting overseas citizens file and track consular complaints online in Sinhala, Tamil and English. City & Visitor Experience: Port City Colombo secures a reported US$300mn FDI commitment as Sri Lanka pushes investment and a regional financial-hub vision. Public Transport Access: A fresh call urges Sri Lanka to put disabled-friendly buses into service, saying special buses are still hard to find on routes. Health for Seniors: HelpAge plans 3,000 free cataract surgeries before year-end, targeting the high cataract burden among low-income older adults. Sri Lanka in Global Spotlight: An event in Colombo promotes “Xi Jinping: The Governance of China” Vol. 5, with Sri Lanka-China modernization and cooperation themes. Sports (Tourism Mood): Lahiru Udara’s 188 powers Sri Lanka to 338/5 on day one of the second Test vs West Indies in Antigua.

Port City Colombo: China Harbour Engineering confirms a US$300mn FDI commitment as Sri Lanka pushes Port City toward a regional financial hub, with tax holidays and a single-window approval push to ease investor concerns. Digital Travel & Services: Uber expands to Ratnapura with Uber Eats and Uber Rides, while SLT-MOBITEL and the Foreign Affairs Ministry launch Lankakonect for overseas Sri Lankans to file and track consular complaints online. Tourism Demand Signals: Sri Lanka tourist arrivals fell nearly 10% in June, even as the country is being promoted as a top wellness and best island destination for 2026. Wellness & Tourism Industry: The Sri Lanka Spa Association complains to the IGP and HRCSL over alleged police harassment of licensed spas, warning it could disrupt businesses and jobs. Health for Visitors & Locals: HelpAge plans 3,000 free cataract surgeries before year-end, targeting low-income seniors facing long waits in government hospitals. Sports with a Sri Lanka Angle: Lahiru Udara’s 188 powers Sri Lanka in the 2nd Test vs West Indies, with the match continuing at Antigua.

Bail & Anti-Corruption: Colombo Chief Magistrate granted bail to former Navy Commander Admiral of the Fleet Wasantha Karannagoda in the Yoshitha Rajapaksa recruitment case, setting Rs. 2.5m sureties each and a foreign travel ban; CIABOC alleges unlawful recruitment and state-funded training in the UK. Tourism Demand Watch: Sri Lanka tourist arrivals fell 9.9% in June to 124,551, with first-half 2026 arrivals at 1,146,573—nearly flat vs last year. Wellness Tourism Boost: Sri Lanka topped BookRetreats.com’s “top trending wellness destinations” list for 2026, driven by a 100% year-on-year jump in interest, highlighting heritage-led therapies and Hela Ayurveda. Digital Services for Travellers & Diaspora: SLT-MOBITEL launched the Lankakonect app with the Foreign Affairs Ministry as an overseas complaint-management platform in Sinhala, Tamil and English. Mobility & Local Access: Uber expanded to Ratnapura with Uber Eats and Uber Rides, adding doorstep pickups and in-app safety features. Income Milestone: World Bank reclassified Sri Lanka as an upper-middle-income economy after recovery from the 2022 crisis, with 2025 growth cited at 5%. Spa Industry Concern: Sri Lanka Spa Association complained to the IGP and HRCSL over alleged police harassment of licensed spas, including claims of fire incidents and targeted actions.

Tourism Pulse: Sri Lanka’s tourist arrivals fell 9.9% in June to 124,551 visitors, reversing May’s rebound, while the first half of 2026 stayed nearly flat at 1.15M arrivals. Wellness Spotlight: Sri Lanka topped BookRetreats.com’s “world’s top trending wellness destination for 2026,” with a 100% jump in interest, boosting calls from the Hotels Association to push wellness marketing harder. Global Rankings & Travel Ease: Big 7 Travel named Sri Lanka the world’s best island destination for 2026, and Unawatuna Beach also made the top beaches list. Digital Payments for Visitors: Visa says Sri Lanka’s digital commerce is hitting a “checkout” inflection point, and UPI overseas payments are moving toward real-time rupee cost visibility via HSBC and JPMorgan tie-ups. Hospitality Updates: Uga Resorts rebrands two east-coast properties under “an Uga Experience,” leaning into destination-led resort stays. Local Travel Content: A fresh Jaffna itinerary guide highlights the north’s post-war comeback and Tamil cultural pull. Transport & Infrastructure: Railways plans a rare locomotive move between Kandy and Peradeniya without using tracks as restoration work continues after Cyclone Ditwah.