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Friday November 13th, 2026

For Sri Lanka and India, cooperation is the only option: High Commissioner

ECONOMYNEXT – Sri Lanka’s and India’s shared past, common heritage and strong cultural connect create ‘a natural warmth’ in dealing with each other, High Commissioner of India Santosh Jha has said.

“For us, as close and proximate neighbours, cooperation is the only option. It is not driven by choice and opportunity alone,” Jha said speaking at the India-Sri Lanka Defence Seminar held in Colombo on Wednesday.

“Our approach to Sri Lanka is guided by our neighbourhood-first policy and our SAGAR vision. This entails that we share with our closest neighbours all that we can based on their needs and aspirations. It also entails that our approach remains generous and non-reciprocal.”

India looked forward to working with Sri Lanka to take forward our common endeavour to deepen and further strengthen our defence cooperation, the high commissioner said. 

Bilateral cooperation between the countries is expanding and diversifying, “We now cooperate in wider range of areas including infrastructure and connectivity, deeper economic engagement, trade and investment, culture and education, tourism and people to people ties.” (Colombo/Apr10/2024)
 
Indian High Commissioner’s full speech:

Ayubowan, Namaskaar, Good Morning

It is my pleasure to welcome you to the Second Seminar on India-Sri Lanka Defence Cooperation that we are organizing in Colombo. I thank you all for attending. My deep appreciation to the Hon. State Minister Mr. Tennekoon for his presence here today.

I must also thank the Chief of Defence Staff of Sri Lanka and the Commanders of the Air Force and Navy for their gracious presence. We value the support extended by the Ministry of Defence of Sri Lanka. We look forward to working with our Sri Lankan friends to take forward our common endeavour to deepen and further strengthen our defence cooperation. 

I am also grateful for the presence of Indian delegation led by Additional Secretary from Ministry of Defence. He is leading a large and very diverse delegation from the Indian defence-industry, including some leading Indian Defence Public Sector entities and wide range of industry players from the private sector.

Distinguished Guests
Relations between India and Sri Lanka are uniquely fraternal. They are very special and unlike any other we have with other countries.
 

Our shared civilizational past, common heritage and strong cultural connect create a natural warmth and comfort in dealing with each other. For us, as close and proximate neighbours, cooperation is the only option.

It is not driven by choice and opportunity alone. Our approach to Sri Lanka is guided by our neighbourhood-first policy and our SAGAR vision. This entails that we share with our closest neighbours all that we can based on their needs and aspirations. It also entails that our approach remains generous and non-reciprocal.
 

Our support in recent years to Sri Lanka, during the Covid pandemic and the economic crisis,were driven by our sense of responsibility and obligation for our closest friend and neighbour. We stood shoulder to shoulder with our civilizational twin, when it was needed most, and without any hesitation. Many of you will agree that India is and will remain Sri Lanka’s most reliable friend and a trusted and dependable partner.

Our bilateral cooperation is expanding and diversifying. It is buttressed by India’s growing national capabilities.
 

We now cooperate in wider range of areas including infrastructure and connectivity, deeper economic engagement, trade and investment, culture and education, tourism and people to people ties.

Like in other areas, we are cooperating closely on security and defence matters. Because of our geography, our security is interlinked and intertwined. And when we speak of security, we must remember that it has acquired a wider meaning than we have traditionally associated with it.
 

After the covid pandemic and impact of Russia-Ukraine conflict, it has come to include energy, health,food and even economic security. This is because technology now permeates all aspects of our lives, and looking at security through a narrow and segmented lens is no longer possible. Our response, therefore, must keep this wider definition in mind. We must also act accordingly to address security in its entirety keeping the complex inter-linkages in mind.
 

Friends,
In recent years, the vision of Atmanirbhar Bharat, which means self-reliant India, has led to significant capability development within the Indian defence industry. The Government of India has promoted this vision through enabling policies and frameworks, initiatives such as establishment of defence industry corridors, and supporting and handholding different stakeholders.We have also promoted collaborations between private and government owned enterprises.
 

We have invested in research and development and promoted the use of innovation and new age technologies to build capabilities that are future-ready.

Our efforts are showing rich dividends in the last one decade. The Indian defence industry today rolls out state-of-the-art systems, advanced technologies and world class equipment. To name a few, this ranges from fighter aircrafts and helicopters to naval vessels, from electronic warfare systems to cyber security solutions and from small arms to large caliber precision long range artillery systems.

 
Not only are we producing for our own national requirements, but we have been willing to make these capabilities available to our friendly partner countries like Sri Lanka. In fact, our defence exports today stand at nearly 2.6 billion US Dollars. This is a ten-fold increase over the past five years. We export defence hardware and software to more than 85 countries with more than 100 indigenous firms active in this field.

In this effort, we have relied upon our 16 defence public sector undertakings, which have been the backbone of our defence industrial complex, and supplemented their efforts with a growing private sector participation. Our Innovations for Defence Excellence or iDEX initiative also help us building capabilities in critical and strategic technologies to bridge the gap between the expectations and requirements of the modern Armed Forces by fostering a vibrant defence innovation ecosystem.

Today, India can offer high quality, low cost,and reliable technology in defence with an assured supply chain for long term maintenance support.
 

As in other sectors, our endeavour has been that our growing capabilities must also benefit our neighbours, including Sri Lanka. We are committed to supporting the needs and requirements of the Sri Lankan Armed Forces.
I am therefore happy that the Seminar today will focus on our security and defence cooperation and help identify our shared priorities in this regard. That this Seminar is being held in Sri Lanka for the second time in the last two years underscores the value we attach to our defence partnership with Sri Lanka.
 

The large defence industry delegation from India further underlines our strong commitment to building industrial cooperation in the defence sector in Sri Lanka. We would also be showcasing the various advanced platforms and equipment to enable the Sri Lankan armed forces to familiarize themselves with various capabilities that have been developed indigenously in India. We are confident that these can also become viable, affordable and modern solutions for the Sri Lankan military.

 
I once again thank all of you for participating in this exercise. I wish the seminar and its participants all success. With your close cooperation, we are confident that we will see important and meaningful outcomes.
Thank you.

Sri Lanka stocks close down 0.60-pct, dragged by HNB and LOLC

ECONOMYNEXT – Sri Lanka’s Colombo Stock Exchange closed down on Friday, CSE data showed, with the benchmark All Share Price Index moving down 0.60 percent.

The ASPI was down 133.22 points at 22,024.18, while the more liquid S&P SL20 was down 1.06 percent, or 67.55 points, at 6,298.02.

The ASPI ended the week up 784.53 points from last Friday.

Positive contributors to the ASPI were Dialog Axiata (up 0.40 percent at 50.20 rupees), Distilleries Company of Sri Lanka (up 0.52 percent at 58.30 rupees), Aitken Spence (up 3.60 percent at 151.00 rupees), Ceylon Tobacco Company (up 1.05 percent at 1,828.50 rupees), and LOLC Finance (up 1.96 percent at 5.20 rupees).

Hatton National Bank (down 1.88 percent at 403.75 rupees), Richard Pieris and Company (down 6.21 percent at 27.20 rupees), LOLC Holdings (down 2.17 percent at 405.00 rupees), Sampath Bank (down 1.91 percent at 154.00 rupees), and Singer (Sri Lanka) (down 2.40 percent at 77.30 rupees) were top negative contributors.

Market turnover was 3.23 billion rupees. Capital goods led turnover with 869.21 million rupees. (Colombo/Nov13/2026)

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Sri Lanka MP slams budget speech for omitting Tamil national question

ECONOMYNEXT – A Sri Lanka legislator has voiced strong disappointment that the President’s budget speech failed to make a single mention of the Tamil national question.

“It is very unfortunate that in His Excellency the President’s speech, there has not been a single word mentioned about the Tamil national question. Not a single word,” Shanakiyan Rasamanickam said.

“A budget speech generally, is a policy direction of the government for the next year. The budget speech is not only a statement of the country’s fiscal position or the economy’s position. It is the country’s, the government’s, plan, or what the government plans to do the following year. That’s a policy statement.”

Former presidents would at least mention the Tamil question even if it was not resolved, he said.

Former President Ranil Wickremesinghe in his speech, in his policy statement, he would mention: “The Tamil national question must be resolved,” Rasamanickam said.

Former Presidents Maithripala Sirisena and Gotabaya Rajapaksa also mentioned that the national ethnic question must be resolved, he added.

“Every President, every country’s Head of State, in their policy statements, have acknowledged the fact that there is an unresolved national issue, the Tamil national question, that it needs to be resolved. Various governments have proposed various mechanisms; none of them have succeeded, but at least it was mentioned.”

This year’s budget made allocations for the Office of Missing Persons, and the Office of Reparations.

“But the domestic mechanism is a mechanism that the victim community has rejected. So you all are allocating money to a mechanism where the victim community is not going to be part of.”

Last year’s budget 1 billion was allocated to be spent on the Trincomalee and Jaffna airports.

“Where was that 1 billion for the Trincomalee and Jaffna airports spent last year?”

“The trajectory of this government, Honourable Deputy Speaker, is worrying to me. It’s really worrying to me. Because if the objective is to say that there is no Tamil national question, if the objective is to say that you all have resolved any ethnic issue that this country faced, then Honourable Deputy Speaker, then I think the Tamil people will teach this government a very, very, very harsh lesson in the future.” (Colombo/Nov13/2026)

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Sri Lanka sells extra Rs6.5bn Treasury bills after auction

ECONOMYNEXT – Sri Lanka has sold 6,500 million rupees of treasury bills offered on tap at an average rate of 9.95 percent, the public debt management office said, bringing the total of bills sold in the week to 85.562 billion rupees.

The issue offered 90 billion.

Total market subscription was 6.5 billion rupees.

The debt office sold a 12-month bill at 9.95 percent.

On Wednesday (11) the debt office raised 79 billion rupees of 3, 6 and 12 month bills after offering 90 billion.

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Sri Lanka Treasury bill yields hold broadly steady, less bills sold

The settlement date is November 13. (Colombo/Nov13/2026)

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Access Engineering Sept quarter group net profit surges 200-pct to Rs4.75bn

ECONOMYNEXT — Sri Lanka’s Access Engineering PLC recorded a group net profit attributable to equity holders of Rs. 4.75 billion for the quarter ended September 30, surging 200 percent from Rs. 1.58 billion a year earlier, interim accounts showed.

Basic earnings per share rose to Rs. 4.08 for the September quarter, up from Rs. 1.58 previously.

Quarterly group revenue expanded 36 percent to Rs. 20.39 billion from Rs. 14.94 billion, underpinned by condominium property handovers — reflected in inventories dropping Rs. 7.69 billion since March to Rs. 35.71 billion — alongside strong automobile sales and steady civil engineering execution.

Cost of sales rose at a slower 27 percent to Rs. 14.34 billion, lifting gross profit by 64 percent to Rs. 6.05 billion and expanding gross margins to 29.7 percent from 24.7 percent.

Other income jumped 144 percent to Rs. 259.9 million, while administrative expenses rose 75 percent to Rs. 1.14 billion, leaving operating profit up 64 percent at Rs. 5.16 billion.

However, finance costs more than doubled, rising 107 percent to Rs. 1.18 billion on elevated group borrowings of Rs. 43.74 billion, partly offset by finance income climbing 302 percent to Rs. 42.2 million.

Share of results from equity-accounted investees rose 122 percent to Rs. 26.7 million, pushing pre-tax profit up 56 percent to Rs. 4.05 billion.

Income tax swung to a net reversal of Rs. 186.6 million from an expense of Rs. 804.1 million, boosted by deferred tax assets on unrelieved losses from a 100 percent enhanced capital allowance claimed by 60 percent-owned radiopharmaceutical subsidiary Access Medical Tracers (Private) Limited.

Total period profit rose 136 percent to Rs. 4.24 billion, with non-controlling interest declining 24 percent to Rs. 164.9 million following last year’s buyout of minority shareholders in Harbour Village (Private) Limited.

No separate exchange gain or loss was itemized in quarterly earnings, though foreign currency translation via associates recorded a Rs. 17.4 million loss in other comprehensive income, alongside USD 16.6 million in corporate guarantees.

Notes also flagged an expected Rs. 1.45 billion recovery from the terminated South Asia Commercial and Logistics Hub project, a Rs. 225 million post-quarter legal settlement already provided for, and a Supreme Court appeal over a 2011/12 PAYE tax ruling.

Group assets stood at Rs. 132.4 billion as of September 30, with net asset value per share at Rs. 46.70, as the Employees’ Provident Fund raised its stake to 5.69 percent.

Access Engineering shares closed at 80.00 rupees at the end of September and are currently trading around 85.80 rupees. (Colombo/Nov13/2026)

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Sri Lanka private sector says timely implementation of Budget 2027 key

ECONOMYNEXT – Private sector body, The Ceylon Chamber of Commerce, said it was encouraged by the broad direction of Budget 2027, noting that it reinforces Sri Lanka’s commitment to economic transformation while maintaining policy continuity, macroeconomic stability, and fiscal discipline.

“This continuity is particularly important as the country seeks to transition from economic stabilisation to a more durable, investment-led growth trajectory.”

The chamber also noted several areas where the Budget could have placed greater emphasis to strengthen the country’s growth prospects.

“In particular, there is a need for a stronger focus on attracting Foreign Direct Investment (FDI), accelerating factor market reforms, particularly in land and labour, and fast-tracking public procurement reforms to improve the efficiency and speed of project implementation.

“More targeted and actionable proposals could have been introduced to unlock the potential of sectors with significant growth opportunities, including tourism, agriculture, IT/BPO and logistics.”

The chamber said the budget contains positive measures aimed at enhancing competitiveness, and external sector resilience, while presenting opportunities for focus on sectors that can accelerate growth.

“A number of the key structural reforms identified in last year’s Budget have been carried forward and strengthened, providing greater certainty and predictability to businesses and investors.

“These include the continued implementation of the Trade National Single Window (TNSW), the phased removal of para-tariffs, the rollout of the Digital ID framework, efforts to expand market access through new Free Trade Agreements (FTAs), the strengthening of one-stop-shop investment facilitation mechanisms, progress on Customs reforms, the expansion of Bandaranaike International Airport (BIA), enhanced financing support for SMEs, and reforms relating to the management of State-Owned Enterprises.”

The CCC said that more than 20 proposals submitted by it have been reflected in Budget 2027.

These include measures to strengthen investor facilitation through the establishment of a professionally managed investment promotion agency; continued efforts to improve trade facilitation and export competitiveness; the Government’s consideration of a successor programme with the International Monetary Fund (IMF); accelerated progress on key legislative reforms; the expansion of digital government services; and the promotion of cashless payments and broader digital adoption. The Budget has also captured several priorities relating to energy security, including the accelerated deployment of Battery Energy Storage Systems (BESS) and investments in fuel storage infrastructure, initiatives to optimize underutilized agricultural land, measures to support the expansion of the digital economy and the IT/BPO sector, and tax reforms to support exporters, including the acceptance of newly VAT-registered exporters as eligible exporters.

“The inclusion of these priorities reflects the value of sustained public-private dialogue and demonstrates increasing alignment between national policy objectives and the needs of a competitive, export-oriented economy.

“The priority now must be effective and timely implementation to translate policy commitments into investment, competitiveness, exports and sustainable growth.” (Colombo/Nov13/2026)

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Sri Lanka stocks trend lower day after budget reading

ECONOMYNEXT – Sri Lanka’s Colombo Stock Exchange was trending lower on Friday, CSE data showed, with the benchmark All Share Price Index moving down 0.66 percent.

The ASPI was down 146.78 points at 22,011, while the more liquid S&P SL20 was down 0.94 percent, or 59.99 points, at 6,306.

Positive contributors to the ASPI were Access Engineering (up 1.30 percent at 85.80 rupees), LAUGFS Gas (up 3.31 percent at 49.90 rupees), Ceylon Tobacco Company (up 1.13 percent at 1,830 rupees), Ceylon Cold Stores (up 0.80 percent at 126 rupees), and Namunukula Plantations (up 1.79 percent at 68.10 rupees).

LOLC Holdings (down 1.03 percent at 409.75 rupees), Hatton National Bank (down 0.61 percent at 409 rupees), Sunshine Holdings (down 3.81 percent at 30.30 rupees), and Sampath Bank (down 1.91 percent at 154 rupees) were top negative contributors.

Market turnover was 1.55 billion rupees. Capital goods led turnover with 459.57 million rupees. (Colombo/Nov13/2026)

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