An Echelon Media Company
Friday November 13th, 2026

Indian democracy and economic growth plays a pivotal role in world order

India is on its way to taking its place on the world stage as a developed nation by 2047, the year it will celebrate a century of independence from British rule.

In 1947, India chose to steer the nation on a democratic path and has emerged as the world’s largest democracy, despite the many internal and external complexities it has faced.

Its spurt of economic growth in recent decades and continued commitment to safeguarding democratic values places it in an ideal position to disrupt the world order, opine panelists who participated in a webinar titled ‘India: A Stable Democracy Leading the Global South.’

But that new world order must be ‘more stable and equitable than what it is transitioning from’, cautions Apurv Kumar Mishra, Consultant, Prime Minister’s Economic Advisory Council.

Sharing his thoughts as one of the panelists, Mishra explains that large parts of the developing world are now looking to India, which opted to follow democratic principles.

Moderated by Samajwadi Party National Spokesperson, Ghanshayam Tiwari, the webinar held on August 20, 2025, was organised by the Friedrich Naumann Foundation for Freedom, South Asia.

The webinar included one of India’s former Election Commissioners, Dr S Y Quraishi and Janvi Tripathi, Associate Fellow, Observer Research Foundation, as panelists.

Mishra also downplayed reports of declining human rights and press freedom rankings to point out that a UN report shows India had brought 415 million people out of poverty in 15 years.

India’s economic rise ‘as a non-Western democracy will have global implications,’ and as its economic ambitions grow, the country will be ‘more attentive to internal and external factors that may jeopardise’ that plan Mishra says, adding that despite the challenges, be it dealing ‘with security or trade negotiations, India will prioritise the well-being of its 1.4 billion population.’

A Free Trade Agreement with the EU is expected to be finalised by year’s end, Mishra said. India also enjoys being the only other country which has a Trade and Technology Council with the EU, the USA being the other.

Meanwhile, India’s Semiconductor Mission (ISM) is taking the country towards self-reliance in electronics manufacturing, a move to free India from being a chip consumer.

Democratic principles in India have deepened, Mishra says, pointing to voter increase and more women entering politics, and adding that it has been during the ‘greatest period of economic wellbeing’ that India has seen ‘the highest participation in elections.’

But now the biggest challenge, one he describes as keeping him awake at night, is how Artificial Intelligence could be regulated.

‘India’s identity is democracy,’ claims Dr Quraishi, who states that credible election results, with no margin for error, ensures a smooth transition of power.

He recounts tales of election officials setting up polling booths and waiting all day, even if the area had just one voter.

And, whatever time the voter comes to cast their vote, polling officials are obliged to wait till the end of the polling day to ensure they are not accused of any election irregularities.

While political parties and governments may change, the nation and government as an institution will continue, he points out.

The India International Institute of Democracy and Election has won world recognition and has trained election officials from 143 countries. Modules are customised to meet the needs of the respective country, explains Dr Quraishi.

Viewed as a ‘working and credible democracy,’ India is well poised to play a leadership role, not only within the SAARC region, but also ASEAN Dr Quraishi states.

A robust democratic institution is an enabler in economic growth, explains Janvi Tripathi, adding that there had been a time when government institutions were crushed by a ballooning bureaucracy.

But once bureaucracy in business was reduced, it paved the way for economic growth.

She describes India’s economy as a bit of an experiment; it’s not a pure capitalist, or socialist economy, nor is it a communist or market economy. Yet, ‘It’s an experiment that is working in real time.’

India-Europe relations are not necessarily contingent on what goes on around them, Tripathi explains.

However, the challenge is negotiating deals which meet the diverse requirements of each of the 27 countries that make up the EU, unlike responding to the trade needs of the US.

India’s exports to the US are at 18 per cent, while it is at 17 per cent to the EU.

There are vulnerabilities to be resolved, she explains, stating, however, that in a democracy, leaders listen to the experts who identify gaps that the government could then address.

India is also the second-largest green investment destination and the second-largest consumer of AI.

The latter, she points out, poses ‘wide implications for democratic systems’ which must deal with situations created by misinformation.

Dealing with traditional trade partners is yet another challenge, says Tripathi, describing them as ‘opportunistic partners.’ In such a situation, she advises that the better option is to work with regional trading partners.

Even though some regional competitors have struck better tariff deals (with the US), India still holds the edge, owing to the quality and scale of its products, she points out.

The answer lies in shifting market focus, in being agile in responding to challenges instead of wasting time in understanding intent, so that Indian industries and SMEs are not impacted.

Market diversification is key, and technological advances demand new skills.

Tripathi emphasises that building resilience to India’s own economy is important and that it can be achieved by reskilling its workforce.

Even as India focuses on external trade agreements, unless the young workforce receives skills training, it could easily change the ‘demographic dividend to a demographic burden.’

A trap that India must avoid, she advises, while it journeys ‘towards a developed economy, instead of a developing economy.’

In a video message, Sandra Weeser, a former member of the Bundestag, noted that India is an important trading partner for Germany.

She also added that freedom and democracy cannot be taken for granted but must be fought for, because it could easily move from stability to instability. (Colombo/Aug28/2025)

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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