Aviation

Sri Lanka Aviation clears bomb scare on Vistara amid threat to scores of Indian flights

Sunday October 20, 2024 12:03 am

ECONOMYNEXT – State-run Sri Lanka’s Airport and Aviation Services (Sri Lanka) (Private) Limited cleared bomb scare to India’s Vistara flight at the island nation’s main airport, an official said, amid similar threats to more than 70 Indian carriers across the world, foreign media reported.

India-based Economic Times said more than 70 flights of Indian airlines have received bomb threats since Saturday morning including planes from Air India, IndiGo, Akasa Air, Vistara, SpiceJet, Star Air, and Alliance Air.

It said multiple flights were affected, and necessary precautions are being taken by airlines in coordination with authorities, while the threats have been declared hoaxes.

A top official at the Airport and Aviation Services (Sri Lanka) (Private) Limited (AASL) said there was no threat over the reported bomb scare on the Vistara Flight UK 131 (A320 Neo) from Mumbai to Colombo.

“The management of Bandaranaike International Airport (BIA) adopted all precautionary and preventive measures in response to a reported bomb scare on a Vistara flight from Mumbai to Colombo, which was scheduled to arrive at 14.51 hours at BIA,” Aruna Rajapaksa, Head of Airport Management at the AASL said in a statement.

“A nonspecific call on a bomb threat had been reported to the captain of the flight 10 minutes before landing at BIA.”

“After authorities were alerted about the threat, in line with the protocol, all relevant authorities were immediately informed, and an emergency was declared at the Bandaranaike International Airport.”

“The flight with 96 passengers and 8 crew onboard landed safely at the airport at 14.49 hrs. All passengers were swiftly evacuated from the aircraft as a precautionary measure to the passenger terminal and the safety of all passengers were assured.”

India-based The Economic Times reported that among the targeted flights were IndiGo services from Delhi and Mumbai to Istanbul, as well as from Jodhpur to Delhi, and Vistara’s flight from Udaipur to Mumbai.

“So far, over 70 flights operated by Indian carriers have received bomb threats, all of which turned out to be false,” it said.

The United Kingdom-based Independent said the wave of threats were mostly issued via X and caused alarm among passengers and aviation authorities alike, and prompted urgent responses from government officials. (Colombo/October 19/2024)

Tourism

Sri Lanka July 2026 tourism revenue down 10.4-pct y/y

Monday August 24, 2026 5:52 pm

ECONOMYNEXT – Sri Lanka’s foreign exchange revenue from tourism fell 10.4 percent in July this year from a year ago to US$285,5 million, the central bank said, quoting tourism promotion authority data.

The fall comes two months after the government-owned tourism promotion body revised its daily average spending per tourist and the duration of the tourist stay.

The island nation recorded its lowest revenue in 32 months last month. Tourism revenue has been falling year-on-year since the U.S./Israel bombing on Iran started on February 28.

Total tourism revenue in the first seven months also fell 11.5 percent to US$1,796.7 million, compared to US$2,031.1 million in the same period last year.

The state-owned Sri Lanka Tourism Development Authority (SLTDA) revised the methodology for compiling monthly tourism earnings estimates in May, retrospectively since January, citing the need to “enhance the accuracy and representativeness”.

Official data revealed that the island nation’s tourism revenue has been lower since August last year compared to arrivals, following the relevant authority’s downward revision of per-day tourism spending.

The monthly revenue in July fell for the 11th time in the last 13 months, excluding September and October last year, despite an increase in the number of arrivals.

Sri Lanka has revised down its ambitious arrival target to 2.7 million from 3 million and the revenue goal to US$4.2 billion from US$5 billion for this year.

The island nation witnessed US$3.22 billion in revenue in 2025, a 1.6 percent jump compared to US$3.17 billion in the previous year, according to the data.Arrivals picked up 15.1 percent in 2025 compared to the previous year, with the number of foreign visitors to Sri Lanka rising to a record 2,362,521 from 2,053,465.

Tourism accounted for nearly 5 percent of Sri Lanka’s economy when the sector was at its peak in 2018. Since then, the sector has been hit by the violent Easter Sunday suicide attack in 2019, the Covid-19 pandemic in 2020, followed by an unprecedented economic crisis.

The tourism earnings figure is estimated from a survey conducted by the Sri Lanka Tourism Development Authority.

Sri Lanka’s imports and the merchandise trade deficit have gradually picked up as tourism earnings came in and people in the sector spent their wages and other earnings. (Colombo/August 24/2026)

Bonds & Forex

Sri Lanka rupee closes at 329.00/10 to US dollar spot, bond yields steady

Monday August 24, 2026 5:31 pm

ECONOMYNEXT – Sri Lanka’s rupee closed at 329.00/10 to the US dollar in the spot market on Monday, stronger from 329.40/50 the previous day, while bond yields held broadly steady, dealers said.

A bond maturing on 15.09.2027 closed flat at 9.50/65 percent.

A bond maturing on 15.02.2028 closed at 10.00/10 percent.

A bond maturing on 15.10.2028 closed at 10.15/25 percent, down from 10.15/30 percent.

A bond maturing on 15.12.2029 closed at 10.45/50 percent.

A bond maturing on 01.08.2030 closed at 10.75/85 percent, up from 10.70/80 percent.

A bond maturing on 15.10.2030 closed at 10.80/90 percent.

A bond maturing on 15.12.2032 closed at 11.25/30 percent, up from 11.15/25 percent.

A bond maturing on 15.10.2034 closed at 11.70/75 percent, up from 11.65/70 percent.

A bond maturing on 15.08.2036 closed at 11.97/12.02 percent, down from 11.95/12.00 percent. (Colombo/Aug24/2026)

Bonds & Forex

Sri Lanka Treasury bill yields drop further, Rs120bn sold

Monday August 24, 2026 5:25 pm

ECONOMYNEXT – Sri Lanka’s Treasury bill yields dipped across maturities at Monday’s auction, with all offered 120 billion rupees of bills sold, data from the Public Debt Management Office showed.

The 3-month bill was down 16 basis points at 9.06 percent, with all 50 billion rupees offered sold.

The 6-month bill was down 16 basis points at 9.44 percent, with all 35 billion rupees offered sold.

The 12-month bill was down 2 basis points 9.89 percent, with all 35 billion rupees offered sold.

All 3 bills are available on tap. (Colombo/Aug24/2026)

Economy

Sri Lanka’s new active credit card expansion rises in May, slows in June

Monday August 24, 2026 5:08 pm

ECONOMYNEXT – The expansion in new active credit cards in Sri Lanka accelerated in May compared to a month ago, while it slowed in June on a monthly basis, official data showed, amid Central Bank tightening monetary policy in May.

New active credit cards in May recorded an increase of 25,720, nearly double of 12,999, but they rose by 14,139, slowing from the previous month.

The total number of active credit cards reached 2,268,712 by the end of June, compared to 2,224,852 by the end of April, showing a 2 percent increase for two months.

The number expanded by 4.7 percent (102,526) in the first six months of this year.

Active credit cards rose 7.8 percent (157,730) in 2025, following a 4.8 percenbnt (91,371) rise in 2024. This growth was driven by the island nation’s economic recovery and strong credit card promotions amid falling interest rates.

Analysts have said most banks have tied up with super markets and other vendors to promote credit cards in the falling interest rate regime as the country’s economy has shown more-than-expected recovery.

However, they cited the June slowdown in the expansion compared to May due to the Central Bank’s 100 basis point policy rate hike. With the tight monetary policy and fuel rationing since March, people may not be spending as much as they spent before that, analysts said.

Sri Lanka’s economic recovery and stability have helped customers to use more credit since 2023.

Some analysts noted that higher interest (penalty) rates on credit cards had prompted some users to cancel their cards after the economic crisis and those same customers might now be actively using the cards due to declining rates.

With the Central Bank’s latest policy rate hike, analysts expect a slowdown in new active credit cards amid an expected increase in the penalty rate.

Active credit cards fell 1.8% (39,991) in 2023 after the country declared bankruptcy in 2022 amid an unprecedented hike in the Central Bank’s monetary policy rates.

The central bank sharply increased interest rates in April 2022 to fight hyperinflation.

However, the inflation slowed to a deflation September 2024 before turning to positive in August last year amid the central bank’s reduction of key policy rates eight times since June 2023.

The Central Bank’s policy tightening cycle started after the inflation jumped in April following sharp rupee depreciation and higher inflation following the fuel price hikes. (Colombo/August 24/2026)

Energy

Sri Lanka approves new renewable feed-in tariffs, introduces rates for battery storage

Monday August 24, 2026 4:13 pm

ECONOMYNEXT – Sri Lanka’s Public Utilities Commission (PUCSL) has approved a new feed-in tariff (FIT) structure for renewable energy projects and rooftop solar prosumers, and set purchase rates for battery storage systems.

The tariffs apply to small-scale renewable plants under 10 megawatts (MW), domestic prosumers, and projects equipped with Battery Energy Storage Systems (BESS).

“This tariff structure is designed not merely as a pricing schedule, but as a strategic mechanism to ensure the long-term sustainability and resilience of the electricity sector,” PUCSL Chairman Lalith Chandradasa said.

The regulator has directed the National System Operator to integrate 450 MW of battery storage capacity into the grid to address a projected power deficit in the first quarter of next year resulting from rising electricity demand and seasonal hydro fluctuations.

Feed-in Tariffs for Renewable Energy Power Plants (<10 MW)

The tariff structure for utility-scale plants under 10 MW splits payments into a fixed non-escalable component, an annually adjusted operation and maintenance (O&M) component, and specific fuel cost allowances.

Technology	Non-Escalable Rate (LKR/kWh)	Escalable O&M Rate (LKR/kWh)	Fuel Price Component (LKR/kWh)	Total Effective Tariff (LKR/kWh)
Mini-Hydro	30.37	4.50	–	34.87
Wind	20.80	4.93	–	25.73
Biomass (Dendro / Wood)	16.43	3.89	31.20	51.52
Biomass (Agri / Industrial Waste)	14.29	3.39	17.80	35.48
Municipal Solid Waste	41.72	14.83	–	56.55
Waste Heat Recovery	14.29	3.39	–	17.68
Ground-Mounted Solar PV	18.00	2.72	–	20.72
Floating Solar PV	23.58	3.92	–	27.50

Feed-in Tariffs for Rooftop Solar Prosumers

Tiered tariffs have been set for domestic and commercial rooftop solar installations, with premium nighttime rates established for systems above 250 kW paired with battery storage.

Capacity Band	Daytime / Standard Rate (LKR/kWh)	Nighttime BESS Rate (New Installations)	Existing Systems Adding BESS (Nighttime Add-on)
Up to 10 kW	23.11	Not Applicable	Not Applicable
Above 10 kW to 40 kW	19.15	Not Applicable	Not Applicable
Above 40 kW to 250 kW	17.11	Not Applicable	Not Applicable
Above 250 kW to 1,000 kW (1 MW)	15.81	45.53 (First 15 years)	Base Rate + 33.51
Above 1,000 kW (1 MW+)	15.81	42.49 (First 15 years)	Base Rate + 30.27

Feed-in Tariffs for New Power Plants (<10 MW) with Battery Storage

For new standalone ground-mounted and floating solar power plants installed with battery systems, separate tariffs have been approved for daytime supply and prioritized nighttime supply.

Technology	Daytime / Standard Rate (LKR/kWh)	Nighttime Prioritized Rate (LKR/kWh)
Ground-Mounted Solar PV + BESS	20.72 (18.00 fixed + 2.72 O&M)	50.10 (47.08 fixed + 3.02 O&M)
Floating Solar PV + BESS	27.50 (23.58 fixed + 3.92 O&M)	57.64 (53.28 fixed + 4.36 O&M)

Nighttime battery tariffs were restricted to systems above 250 kW due to technical grid control limits, safety standards, and because import duties are currently waived only for larger battery installations. The PUCSL noted it is in talks with the Ministry of Finance to extend tax concessions to smaller units.

“By reducing thermal generation dependency and integrating more storage systems into the network, the Commission aims to stabilize electricity tariffs against volatile fuel markets,” Chandradasa said.

The commission has also ordered utilities such as the Ceylon Electricity Board (CEB) and LECO to publish monthly transformer capacities and permit consumers to connect systems under a ‘Zero Export’ model for self-consumption when grid capacity is fully congested. (Colombo/Aug24/2026)

Markets

Sri Lanka stocks close down, despite CT Holdings, Cargills record sale

Monday August 24, 2026 3:43 pm

ECONOMYNEXT – Sri Lanka’s Colombo Stock Exchange closed down on Monday trading, CSE data showed, with the benchmark All Share Price Index moving down 0.34 percent.

The ASPI was down 71.84 points at 21,344.77, while the more liquid S&P SL20 was down 0.18 percent, or 10.79 points, at 6,017.30.

Positive contributors to the ASPI were CT Holdings (up 4.91 percent at 550.50 rupees), Haycarb (up 3.92 percent at 185.75 rupees), John Keells Holdings (up 0.51 percent at 19.90 rupees), and Ceylon Grain Elevators (up 2.05 percent at 486.00 rupees).

Commercial Bank of Ceylon (down 0.86 percent at 202.00 rupees), Melstacorp (down 1.04 percent at 190.00 rupees), Ceylon Tobacco Company (down 1.67 percent at 1,799.25 rupees), and DFCC Bank (down 1.37 percent at 126.25 rupees) were top negative contributors.

Market turnover reached 16.85 billion rupees. Food & Staples Retailing led turnover with 15.79 billion rupees.

CT Holdings and its flagship subsidiary Cargills (Ceylon) saw massive stake divestments. CT Holdings saw 20.14 million shares (10 percent) divested at 575.00 rupees per share, closing up 4.91 percent at 550.50 rupees.

Meanwhile, Cargills (Ceylon) saw 6 million shares (3 percent) sold at 700.00 rupees per share, closing down 0.80 percent at 680.75 rupees. (Colombo/August24/2026)