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Monday November 9th, 2026

Sri Lanka’s new regime faces major split over arms scandal

ECONOMYNEXT – Prime Minister Ranil Wickremesinghe’s coalition faced the first major threat of a split Thursday as two key ministers threatened to either quit or bring down cabinet colleagues defending the Avant Garde arms scandal.

Clashes erupted at Thursday’s cabinet meeting which followed a parliamentary debate during which two government ministers made stunning declarations that were diametrically opposed to the government’s own stand on the issue.

Law and Order Minister Tilak Marapana shocked both sides of the House on Wednesday by declaring that there was nothing illegal about Avant Garde’s operation that involved using government weapons and hiring them out to foreigners. Marapana said, contrary to police claims,  Avant Garde did not require a licence as they were using weapons of the Sri Lankan state.

Marapana also accused the police, which is under his ministry, of trying to “score political points” and trying to ingratiate themselves  with the new regime by raiding the arms ship, the M.V. Mahanuwara, that had been anchored at the Galle harbour soon after the change of the president.

The minister trashed the "B" report of his own police and praised Avant Garde for bringing millions of dollars into the country. By the ministers’ argument, all the allegations made by his own United National party (UNP) and his own leader Ranil Wickremesinghe  are not only false, but malicious allegations made out of jealousy.

At Thursday’s cabinet meeting, ministers Champika Ranawaka and Rajitha Senaratne were livid to the point of going to blows with those who had "sold the government down the drain," a top political source said.

The reaction of Marapana and Wijeyadasa Rajapakshe  were not immediately known. Rajapakshe claimed it was he who intervened to stop the police arresting former defence secretary Gotabhaya Rajapaksa over the alleged illegal transfer of weapons to Avant Garde.

Minister Ranawaka threatened to resign while Senaratne said he would fight the corrupt individuals within the government.

"We wil not allow these fellows to take us down," an exasperated minister said adding that as fireworks were going off inside the cabinet room, Prime Minister Ranil Wickremesinghe had left the room. President Sirisena was forced to put off the discussion on Avant Garde and he promised to call a separate cabinet meeting to discuss future action.

President Sirisena who chaired the cabinet meeting was also furious with cabinet minister Vajira Abeywardena who was accused by the JVP of leading efforts to defend Avant Garde.

Top political sources said the current crisis in cabinet sparked by the Avant Garde issue could lead to greater polarisation within the so called unity government and degenerate into a regime change unless the regime changed its ways.

Strong Sirisena loyalists were already discussing the possibility of demanding the sacking of Marapana and Wijeyadasa.

In the alternative, they were ready to drum up support of Sri Lanka Freedom Party (SLFP) MPs to oust Prime Minister Ranil Wickremesinghe through a no confidence motion if he failed to take action.

Many were speculating that there would have been a re-play of Chandrika’s sacking of Ranil’s government if not for the 19th amendment that has taken away the president’s power to prematurely dismiss parliament.

"The president can’t dismiss parliament, but he can call for a resolution for the removal of the Prime Minister and have a new government of his choice," a top source close to Sirisena said. "We may be headed down that road."

President Sirisena ticked off UNP Galle district MP and minister Abeywardena for keeping quiet and tacitly confirming an allegation by JVP leader Anura Kumara Dissanayake that Avant Garde boss had secretly met the president in his company.

‘Why didn’t Vajira deny this in parliament," the President had asked. A visibly angry President told ministers that he would get his media secretary to issue a formal denial that he ever met with Avant Garde boss.

-Avant Garde lawyer in the House-

Marapana, who now is responsible for the police as minister of Law and Order had been retained as attorney for Avant Garde before he became a minister. Cabinet colleagues pointed out a conflict of interest, but Marapana brushed it aside saying Avant Garde was no longer his client, but he was aware that they were innocent and it was only the fault of the police for carrying out a raid.

He expressed surprised over the action of police in Galle in raiding the Avant Garde floating armoury, the m.v. Mahanuwara,  ship earlier this year after the fall of the Rajapaksa regime.

He called the police raid a political move and compared it to the "Millennium city" raid carried out by a UNP government that came to power in 2002.

Rajapaksa’s administration had subsequently criticised the raid as a betrayal of military intelligence units which had maintained a secret safe house within the Millennium City complex in Athurugiriya.

Although Marapana criticised the Millennium City raid, he neglected to mention that at the time, he was in fact the defence minister and the raid followed a claim by his prime minister Ranil Wickremesinghe that claymore bombs had been stored at Millennium City to attack him and other UNP leaders.

Sustainable development minister Gamini Jayawickrema Perera reminded his colleagues that he had complained about an alleged Avant Garde operation to terrorise his constituents during the election campaign.

Minister Perera was shocked by cabinet colleague Marapana’s amnesia.

Deputy Minister Ranjan Ramanayake in a hard-hitting speech in parliament accused several in his own government of taking bribes to sweep corruption cases under the carpet.

JVP’s Bimal Ratnayake said both Marapana and Rajapakshe sounded like they were members of former president Rajapaksa’s cabinet, an allegation rejected by Marapana while Justice minister Rajapakshe was unavailable.  (Colombo/Nov06/2015 – Update I)

Sri Lanka rupee closes at 332.53/59 to US dollar spot, bond yields edge up

ECONOMYNEXT – Sri Lanka’s rupee closed at 332.53/59 to the US dollar spot on Monday, from 332.55/60 the previous day, while bond yields closed higher, dealers said.

A bond maturing on 15.09.2029 closed at 190/98 percent, up from 10.85/95 percent.

A bond maturing on 01.08.2030 closed at 11.07/12 percent, up from 11.05/10 percent.

A bond maturing on 01.02.2031 closed at 11.30/40 percent, up from 11.10/15 percent.

A bond maturing on 15.12.2032 closed at 11.65/70 percent, up from 11.55/65 percent.

A bond maturing on 01.11.2033 closed at 11.95/12.00 percent, up from 11.90/95 percent.

A bond maturing on 15.10.2034 closed at 12.10/15 percent, up from 12.05/12 percent.

A bond maturing on 15.08.2036 closed at 12.40/50 percent, up from 12.30/40 percent. (Colombo/Nov9/2026)

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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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