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Monday November 9th, 2026

How NM’s thinking can be applied to Sri Lanka’s constitutional reform process

ECONOMYNEXT – 2025 marks the 120th anniversary of Dr N.M. Perera’s birth. N.M. was born on June 06, 1905, the year of the First Russian Revolution. He passed away on 14 August 1979, during the month progressives in Sri Lanka commemorate the 1953 Hartal, in which he played a significant role.

This year also marks the 90th anniversary of the Lanka Sama Samaja Party that NM and his comrades founded.

NM was a multi-faceted man: the first leading man in a Sinhala film, “Rajakeeya Vickramaya”; captained Ananda College at the inaugural Battle of the Maroons against Nalanda in 1925; founding member and leader of Sri Lanka’s first political party; President of the Nondescripts Cricket Club (NCC); President of the Board of Control for Cricket in Sri Lanka; Leader of the Opposition in the first and third Parliaments under the 1946-47 Constitution; and Minister of Finance (1964 and 1970-75).

The purpose of this article is to explore how NM’s thinking on constitutional issues can be applied to the constitutional reform process that the current National People’s Power (NPP) government has committed itself to.

He earned two doctorates from the London School of Economics – a PhD for his thesis on the Weimar Constitution of Germany, supervised by Prof. Harold Laski and a DSc for his comparative study of parliamentary procedures in the UK, USA, France and Germany, becoming the first Sri Lankan to receive a higher doctorate from the University of London.

Laski thought that NM would make an excellent Chancellor of the Exchequer, while Sir Ivor Jennings said that he would be an outstanding Labour Prime Minister. For Ajit Samaranayake, NM was “the best Prime Minister Sri Lanka never had.” Writing the Foreword to NM’s celebrated booklet, “A Critical Analysis of the 1978 Constitution of Sri Lanka,” his comrade-in-arms, Dr Colvin R. De Silva, described him as an acknowledged authority on constitutional law, with his doctoral thesis cited as an authoritative source.

The purpose of this article is to explore how NM’s thinking on constitutional issues can be applied to the constitutional reform process that the current National People’s Power (NPP) government has committed itself to.

The NPP is dominated by the Janatha Vimukthi Peramuna (JVP), a Left-oriented party, and has members with roots in the traditional Left, including several who grew up in the LSSP and have strong emotional ties to NM’s memory.

Abolishing the Executive Presidency

It is not surprising that NM, the parliamentarian par excellence, so knowledgeable about parliamentary procedures worldwide, was a staunch defender of the parliamentary form of government. In a penetrating analysis of the 1978 Constitution, NM pointed out in his booklet that the parliamentary form of government had worked for thirty years in Sri Lanka with a degree of success that had surprised many Western observers.

He warned: “The presidential system offers unlimited scope for wielding absolute powers, albeit for a limited period. But the taste of unlimited power grows with the feeding and the lust cannot be easily satiated. It is a matter of regret that Sri Lanka that has amassed considerable experience in Parliamentary Government and has successfully overcome the teething troubles of the early period should now be thrown down the slope of constitutional confusion in the end jeopardizing democracy itself.”

If there were sceptics regarding the desirability of abolishing the presidential form of government, the actions of the two Rajapaksa brothers, Maithripala Sirisena and Ranil Wickremesinghe, in recent times should have helped alleviate their concerns. Abolition was a major demand of the Aragalaya, which culminated in the peaceful overthrow of President Gotabhaya Rajapaksa.

It was one of the central planks of the NPP’s platform at the 2024 presidential election and of the JVP’s platform at all previous elections. The main party of the Opposition, Samagi Jana Balavegaya, as well as parties that primarily represent the Tamils, Muslims, and Hill Country Tamils, support abolition. It is only the Rajapakse-controlled Sri Lanka Podujana Peramuna that clearly stands for retaining the executive presidency.

Earlier attempts at abolition failed for various reasons. President Chandrika Bandaranaike Kumaratunga’s Bill for a new constitution, which provided for abolition, came too close to the 2000 general election.

The United National Party, which had previously expressed support, withdrew ostensibly due to a transitional provision allowing President Kumaratunga to complete her second presidential term despite the abolition.

Those close to the process are aware that Kumaratunga offered to shorten her second term to one year, but the UNP leadership was unresponsive. Abolition was a significant demand of the forces that supported Maithripala Sirisena in 2015.

However, after publicly pledging abolition, he signed a memorandum of understanding with the Jathika Hela Urumaya the following day, agreeing that no constitutional amendment requiring a referendum would be presented. The tension between President Sirisena and Prime Minister Wickremesinghe resulted in the breakdown of the Yahapalanaya Government’s constitutional reform process.

A constitutional settlement of the ethnic issue

The early Tamil demand was for guaranteed representation in the legislature. Tamils did not join the Kandyan chiefs in demanding federalism before the Donoughmore Commission.

It was when the Tamil Congress failed to prevent the disenfranchisement of their Hill Country Tamil cousins that Chelvanayakam raised the demand for federalism, a demand that Tamils rejected at the 1952 elections, with Chelvanayakam losing his seat in KKS to a UNP candidate.

Clearly, Tamils preferred sharing power in Colombo to regional autonomy. With Sinhala Only a virtual fait accompli after the two main parties of the South discarded parity of status for both languages, the Illankai Tamil Arasu Kadchi (ITAK) swept the North and East at the 1956 elections.

With the Tamils initially preferring power-sharing at the centre to regional autonomy, it is not surprising that the Left thought that equality would ensure ethnic harmony. The Left opposed the disenfranchisement of Hill Country Tamils and stood for parity of status.
NM and his comrades were vilified for their positions.

Supporters of Philip Gunawardena, who had broken away from the LSSP, shouted “NM pataw Kochchi pataw, Philip pataw Sinha pataw” (NM’s supporters are Malayalis, Philip’s supporters are lion cubs) during a May Day procession.

Years later, after the conflict had escalated, NM said in his booklet, written a few months before his death: “The Lanka Sama Samaja Party had the worst of both worlds. The Sinhalese hounded us as anti-national in general, and anti-Sinhalese in particular. Our principled stand of parity of status for both languages drove us into the political wilderness.

The Tamils on the other hand treated us with suspicion. Our party was treated as mainly Sinhalese and therefore suspect in their eyes. Our past record of 20 years of consistent advocacy of fairness to the Tamil community and indeed to all minorities, inclusive of caste and creed, was conveniently ignored.”

NM was now convinced that regional autonomy was the answer to the conflict: “Unfortunately, by the time the pro-Sinhala leaders hobbled along, the young extremists had taken the lead in demanding a separate State. (…) What might have satisfied the Tamil community twenty years back cannot be adequate twenty years later. Other concessions along the lines of regional autonomy will have to be in the offing if healthy and harmonious relations are to be regained.”

Following his death, NM’s followers advanced his call for regional autonomy. At the All-Party Conference convened after the bitter experiences of July 1983, Colvin stated that the ethnic issue was “a problem of the Sri Lanka nation and state and not a problem of just this community or that community.”

While reaffirming the LSSP’s position that Sri Lanka must remain a single country with a single state, he emphasised that with Tamils minority living in considerable numbers in a contiguous territory, the state as presently organised does not serve the purposes it should serve, especially in the field of equality of status in relation to the state, the nation and the government.

The Left supported the Thirteenth Amendment in principle. More than 200 leftists, including Vijaya Kumaratunga, paid the price with their lives for doing so, 25 of whom were Samasamajists.

An All-Party Representative Committee (APRC), appointed by President Mahinda Rajapaksa and chaired by LSSP Minister Tissa Vitarana, convened from 2006 to 2009. Sinhala nationalist parties walked out at various stages, but the SLFP, the main party in the government, remained.

APRC Chairman Tissa Vitarana presented a summary of its proposals to the President in 2009. The APRC proposed extensive devolution within a unitary state, with power-sharing at the centre.

Dr. Colin Irwin of the University of Liverpool, with extensive experience in conducting opinion polls in conflict zones, assessed the APRC proposals against public opinion in March 2009, just three months before the end of the war.

In March 2010, nine months after the war ended, the same proposals were reevaluated, this time with a larger sample that included participants from the Northern Province. Support among Tamils, Muslims, and Hill Country Tamils was overwhelming.

Contrary to the myth propagated by opponents that the Sinhalese do not favour devolution, 59% found the APRC proposals at least ‘acceptable’ three months before the end of the war, at a time when defeat was looming for the LTTE. One year later, the figure had risen to as much as 80%.

In 2016, as part of the constitutional reform process, Lal Wijenayake, a long-time Samasamajist, headed the Public Representations Committee. Based on the extensive public consultations it had, the committee recommended substantial and meaningful devolution. Dr Harini Amarasuriya, the present Prime Minister, was a member of the committee.

A new constitution

In its presidential election manifesto, the NPP promised a new constitution under which powers will be devolved to local authorities, districts and provinces, and all communities would have a share in governance.

Government spokespersons have indicated that a constitutional reform process will commence in the second half of President Dissanayake’s term. It would be wise not to delay reform. Constitutional reform involves broad consultations and dialogue. Experience suggests that extensive reform is more likely to succeed when undertaken early, rather than later, when other issues may arise.

While the government may be confident in retaining its two-thirds majority, a new constitution also requires approval via a referendum. A referendum in the latter half of a government’s term will likely focus more on its performance than on the new constitution. With their eyes set on the next elections, Opposition parties are more likely to act as spoilers.

The NPP faced setbacks at the local elections. Most voters who distanced themselves from it seem to be Sinhala nationalists previously aligned with the Rajapakses. There is a lesson for the NPP in the results from the North and East. The release of lands, the reopening of roads, and promises to return confiscated jewellery did not entice the Tamils.

The ITAK’s subtle message, “The country to Anura, the village for us”, cleverly crafted by Sumanthiran, truly meant “Whoever rules in Colombo, we must rule our own areas,” and resonated well with Tamil voters. One hopes that the NPP’s setbacks will not place it on the defensive concerning constitutional reform.
Failure on the part of the government will almost certainly strengthen the political Right. Although the SJB had the opportunity to position itself as a social-democratic alternative championing social justice, it has miserably failed to do so. The UNP lurks in the shadows, hoping for a comeback. The SLPP adheres to its rightist, Sinhala nationalist positions. Several rightist think tanks have sprung up.

The Left may be weaker and fragmented; nevertheless, the relevance and need for a Left alternative persist. If the LSSP can celebrate its 90th anniversary as a reunited party, that could pave the way for a stronger and united Left as well. Such a development would be the best way to honour NM and other pioneering leaders of the Left. (Colombo/June15/2025)

Sri Lanka stocks close up 1.37-pct, banks lead turnover

ECONOMYNEXT – Sri Lanka’s Colombo Stock Exchange closed up on Monday, CSE data showed, with the benchmark All Share Price Index moving up 1.37 percent.

The ASPI was up 291.72 points at 21,531.37, while the more liquid S&P SL20 was up 1.67 percent, or 100.96 points, at 6,146.34.

Positive contributors to the ASPI were Commercial Bank of Ceylon (up 2.86 percent at 216.00 rupees), Hatton National Bank (up 1.52 percent at 399.75 rupees), Asiri Hospital Holdings (up 12.86 percent at 31.60 rupees), Tokyo Cement Company (up 5.22 percent at 84.70 rupees), and Access Engineering (up 3.93 percent at 81.90 rupees).

Carson Cumberbatch (down 4.24 percent at 712.00 rupees), Richard Pieris and Company (down 2.43 percent at 28.10 rupees), LOLC Holdings (down 0.62 percent at 400.00 rupees), Renuka Holdings (down 2.63 percent at 37.00 rupees), and Chevron Lubricants Lanka (down 0.61 percent at 204.25 rupees) were top negative contributors.

Market turnover was 3.33 billion rupees. The S&P/CSE Banks Industry Group led turnover with 667.76 million rupees.

The session saw heavy crossings, according to Raynal Wickremeratne, Head of Research and Strategy at NDB Securities. Significant crossings included Keells (23 million rupees), Distilleries Company (27.7 million rupees), Sunshine Holdings (30.6 million rupees), Commercial Bank (32.4 million rupees), Ceylon Tobacco Company (35.6 million rupees), Hatton National Bank (39.5 million rupees), Prime Lands (40.5 million rupees), and HAS Holdings (41.5 million rupees).

In corporate news, Hayleys Retail Holdings Ltd announced it has partnered with supply chain software provider Blue Yonder to build and scale an AI-native grocery supermarket chain across Sri Lanka. (Colombo/Nov09/2026)

 

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Sri Lanka’s Hayleys Retail to launch supermarket chain with Blue Yonder

ECONOMYNEXT — Hayleys Retail Holdings Ltd has selected supply chain software provider Blue Yonder to build its grocery retail operations from the ground up, the two companies said in a joint statement.

Hayleys Retail, a member of Sri Lanka’s diversified conglomerate Hayleys Group, plans to open several stores in the near future to serve consumers across the country. The agreement marks Blue Yonder’s first retail customer in Sri Lanka.

“Our entry into supermarket retail is about bringing that same commitment to quality and reliability closer to everyday Sri Lankan consumers,” Mohan Pandithage, Chairman and Chief Executive of Hayleys PLC said.

“With Blue Yonder, our teams will have AI-driven insight to deliver a seamless, consistent shopping experience across every store,” he said.

Hayleys, which accounts for approximately 5 percent of Sri Lanka’s export income and operates across 17 business sectors, is entering the large-scale supermarket space by drawing on its group strengths in manufacturing, logistics, and services.

The company selected Blue Yonder to connect its data across merchandising and shelf space, deploy artificial intelligence agents to catch operational issues early, and scale its business into a national network without changing platforms.

The rollout will begin with merchandise operations to manage suppliers, items, costs, and pricing, followed by machine learning capabilities to forecast demand and balance store inventory during seasonal peaks.

“Hayleys Retail is choosing one where AI is the foundation rather than an add-on—connected data and agentic AI built into core merchandising operations, and planning that learns as the business grows,” Antonio Boccalandro, President, APAC at Blue Yonder said.

The retailer plans to use the platform to automate routine store tasks and adjust inventory according to real-time sales and local market trends as its store footprint grows. (Colombo/Nov09/2026)

 

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Sri Lanka’s Citrus Leisure extends Lotus Tower management pact

ECONOMYNEXT – Sri Lanka listed hospitality firm Citrus Leisure said it has extended an agreement to manage consumer-facing and entertainment spaces at the Colombo Lotus Tower, which includes revolving restaurant Blue Orbit, until June next year.

The initial agreement signed between Citrus Leisure and Colombo Lotus Tower Management Company (Private) Limited (CLTMC) is due to expire on December 11.

“The Board of Directors of CLTMC at meeting held on 2nd November 2026 has resolved to extend the term of the Management Agreement and continue the existing Management Agreement until 30th June 2027, to which the company has given its concurrence,” the company said in a market filing.

Citrus Leisure Plc opened its revolving restaurant at the Lotus Tower in December 2023.

The company signed a 3-year agreement with CLTMC in May 2023 to provide services in the management of (l) the banquet hall 1 on the 25th floor, (2) the banquet hall 2 on the 26th floor, (3) the revolving restaurant on the 27th floor, (4) the 6 suites situated on the 28th floor and the kitchen in the basement floor of the Colombo Lotus Tower.

The 350-meter or 1,150-feet tower, the tallest in South Asia, was built at a cost 104.3 million US dollars with 80 percent of the money borrowed from Exim Bank of China.

Located in the commercial heart of Colombo, the tower has been called a symbolic landmark of Sri Lanka as well as a colossal white elephant and has been mired in controversy for years. (Colombo/Nov9/2026)

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CIC Holdings Sept quarter net profit rises 20-pct to Rs1.7bn

ECONOMYNEXT — Sri Lanka conglomerate CIC Holdings recorded a net profit of 1.66 billion rupees for the quarter ended September 30, rising 20.3 percent from 1.38 billion rupees in the same quarter last year, interim accounts showed.

The group posted basic earnings per share of 0.87 rupees for the September quarter, up from 0.73 rupees a year earlier.

Quarterly revenue grew 3.4 percent to 20.89 billion rupees from 20.20 billion rupees, supported by broad-based growth across industrial solutions, livestock, and healthcare segments, which counterbalanced relative demand moderation in agricultural inputs.

Cost of sales rose 5.3 percent to 15.20 billion rupees, outpacing revenue growth and causing gross profit to contract marginally by 1.2 percent to 5.68 billion rupees.

Results from operating activities dropped 7.3 percent to 2.66 billion rupees from 2.87 billion rupees, impacted by higher operating overheads.

Selling expenses expanded 6.8 percent to 2.15 billion rupees, and general and administrative expenses climbed 5.8 percent to 1.07 billion rupees, while other operating income dropped 29.6 percent to 117.40 million rupees.

However, operating profits were cushioned by an impairment reversal on trade receivables of 85.83 million rupees, turning around from an impairment provision of 23.38 million rupees in the corresponding quarter last year.

Net finance costs climbed 35.4 percent to 712.25 million rupees from 526.01 million rupees.

The increase was driven by a 30.8 percent rise in finance expenses to 771.46 million rupees, primarily reflecting higher interest expenses on loans to finance elevated working capital and inventory requirements.

The quarter’s bottom line was strongly bolstered by CIC’s equity-accounted investment in John Keells Holdings PLC (JKH).

Share of profit from equity-accounted investees surged more than fourfold to 590.50 million rupees from 257.87 million rupees, driven by JKH’s strong profit expansion during the period.

The group also recognized a gain on bargain purchase of 55.59 million rupees during the quarter resulting from additional share purchases in JKH where the proportionate net asset value exceeded acquisition cost, compared to no such gain a year earlier.

With associate income gains offsetting operating margin contraction and higher borrowing costs, group pre-tax profit held virtually flat at 2.59 billion rupees, down 0.11 percent.

Income tax expense fell 29.4 percent to 606.24 million rupees from 858.71 million rupees, driving total group profit for the period up 14.1 percent to 1.98 billion rupees.

Total group assets stood at 108.58 billion rupees as of September 30, up from 99.75 billion rupees at the end of March 2026.

Group net asset value per share increased to 25.52 rupees from 22.10 rupees a year earlier.

CIC Holdings’ ordinary voting shares closed at 27.80 rupees at the end of September.(Colombo/Nov09/2026)

 

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Sri Lanka stocks trend up; ASPI gains 0.78-pct

ECONOMYNEXT – Sri Lanka’s Colombo Stock Exchange was trading higher on Monday, CSE data showed, with the benchmark All Share Price Index moving up 0.78 percent.

The ASPI was up 165.73 points at 21,405.38, while the more liquid S&P SL20 was up 0.61 percent, or 37.04 points, at 6,082.42.

Positive contributors to the ASPI were Commercial Bank (up 1.55 percent at 213.25 rupees), Ceylon Cold Stores (up 2.61 percent at 128.00 rupees), Asiri Hospital Holdings (up 10.00 percent at 30.80 rupees), Hemas Holdings (up 1.27 percent at 32.00 rupees), and Ambeon Holdings (up 6.02 percent at 37.00 rupees).

Namunukula Plantations (down 3.92 percent at 63.70 rupees), LOLC Holdings (down 0.62 percent at 400.00 rupees), and Chevron Lubricants Lanka (down 0.12 percent at 205.25 rupees) were top negative contributors.

Market turnover was 428.31 million rupees. Capital goods led turnover with 82.53 million rupees. (Colombo/Nov09/2026)

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Sri Lanka rupee at 332.54/58 to US dollar spot, bond yields steady

ECONOMYNEXT – Sri Lanka’s rupee was quoted at 332.54/58 to the US dollar spot on Monday, stronger from 332.55/60 Friday, while bond yields held broadly steady, dealers said.

A bond maturing on 15.09.2029 was quoted at 10.90/95 percent, up from 10.85/95 percent.

A bond maturing on 01.08.2030 was quoted at 11.00/10 percent, down from 11.05/10 percent.

A bond maturing on 01.02.2031 was quoted at 11.10/20 percent, up from 11.10/15 percent.

A bond maturing on 15.12.2032 was quoted at 11.58/68 percent, up from 11.55/65 percent.

A bond maturing on 01.06.2033 was quoted at 11.80/95 percent, up from 11.80/85 percent.

A bond maturing on 15.10.2034 was quoted at 12.08/15 percent, up from 12.05/12 percent.

A bond maturing on 15.08.2036 was quoted flat at 12.30/40 percent.

The telegraphic transfer rate for the dollar was 328.05 buying, 337.05 selling; the euro was 363.3528 buying, 377.1336 selling; pound was 437.5954 buying, 451.7038 selling.

On the Colombo Stock Exchange the All Share Price Index was up 0.78 percent, or 165.42 points, at 21,405; while the S&P SL20 was up 0.58 percent, 35.19 points, at 6,080.

90,000 million rupees Treasury bills are to be issued through an auction on November 11. (Colombo/Nov9/2026)

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