Despite fears this would be cancelled it seems it IS going ahead from 28th July to 5th August but is being supported by private enterprise in the form of the firm that provides the jousting show there each year. Silves council like all, or most, other councils have no money of course.

That is good news, I only wish I could be there this year

We go each year, its good fun and we always eat in the fish restaurant in front of the castle so we can people watch (rui's always has a really large line)
best to get there early to be able to park. The car parks opposite the football stadium are usually ok.