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Friday November 13th, 2026

Can the UNP get its act together?

Badly wounded at the last Presidential Elections, a deeply divided United National Party will try this week to reach a “settlement” between its fighting factions to face the upcoming Parliamentary General election, senior party member and former Leader of the House Lakshman Kirielle told economynext.

The deal, he said, will be for Deputy Leader Sajith Premadasa to lead the campaign at the head of the UNP-led Alliance and be the Prime Ministerial candidate.

Ranil Wickremesinghe, he said, will remain as Party Leader.

Kirielle also said that the vacancies in the UNP Working Committee will be filled and the proposal to endorse the settlement will be carried out through that body “early this week.”

The settlement as proposed by Kirielle came forward after a group of 48 MPs from the UNP shuttled back and forth between the two factions urging a coming together of the party to face the elections.

But can the party regroup? Divisions within are deep, and sadly, in some cases, split along caste lines.

The UNP leaders Sajith Premadasa and Ranil Wickremesinghe in happier times/PM Media

The decades-long struggle by those opposed to Wickremesinghe to remove his stranglehold on the party leadership has created many fissures. Leading figures have left the party, and Wickremesinghe’s obstinacy has forced the party to stay in Opposition for too long without fresh blood at the top.

This was a key factor in the inability of the UNP to function as an effective government when they did get power in 2015, as they had very few MPs with the experience or the ability to function as Cabinet Ministers.

The division between the Sajith and Ranil factions were exacerbated during the Presidential campaign as former party-men who fought the Leader and left or were made to feel unwelcome, such as Tissa Attanayake, Shiral Laktilaka and Maithri Gooneratne joined the Premadasa team.

Meanwhile, moves are on to remove some of Premadasa’s supporters in the UNP from the Party Working Committee. Among them are the former Minister Ajit P Perera and two others who have not yet been named.

Wickremesinghe has the power to make the appointments to the WC which holds the powers to choose the Party Leader and for decades Wickremesinghe has had this body in lockdown with a clear majority of members on his side.

On the other hand, the last time the UNP Parliamentary Group discussed the issue, Premadasa appeared to have a majority of MPs on his side.

This struggle prevented the UNP from choosing a Presidential Candidate early enough in the November campaign and finally went into that race hamstrung by the divisions.

After the heavy defeat, by more than 1.3 million votes, the Premadasa faction blamed the Party leadership for engineering his defeat and denying him party resources. His supporters in the campaign said Team Sajith simply ran out of cash.

Mutual Photo session with Sajith Premadasa and Hela Urumaya leader Patali Champika Ranawaka

Former Minister and UNP Galle District MP Vajira Abyewardene, points out that Premadasa received more than a million votes from the minority-dominated Northern and Eastern Provinces. “Without those votes, the margin of defeat would have been more than two million votes,” he told the Lankadeepa Newspaper last week.

Abeywardene, a strong Wickremesinghe supporter, likens the Party Leader to the Chief Incumbent of a Buddhist Temple. “Younger and more educated Monks may join the Temple and engage in good works for the Sasana, but the Mahanayake goes on as leader until he passes away,” he says.

The Sajith faction argues that in order to become a better fighting force he needs the Leader’s post as he can then harness all the available resources.

Sujeewa Senasinghe, another UNP MP, says there has to be a change in the leadership at the top. “I am not insisting that it be Sajith, but we have to go to the election with new leadership and a new plan.”

All this infighting has upset the UNP’s allies. Mano Ganesan, leader of the Democratic People’s Front, has already indicated he has lost patience with the UNP’s endless squabbling and decided to go it alone at the next election.

A high-ranking source from the Hela Urumaya, another allied party, who spoke to economynext on the condition of anonymity says he wishes Sajith would stop seeking Wickremesinghe’s removal from the Party Leadership and get on with his task of leading the alliance.

After the drubbing they got at the Presidential election it is highly unlikely that the UNP can win enough seats to cobble together a government.

All they can hope is that they can prevent the smoothly-run giant Sri Lanka Podujana Peramuna-led alliance from winning a two-thirds majority in the Parliament so that it can roll-back features of the 19th Amendment to the Constitution that took away some powers of the President.

President Gotabaya Rajapaksa has not made it a secret that he wants full executive powers restored to the Presidency.

Rajapaksa has made it clear that he was elected by a huge majority who have great expectations of him and he will not be able to fulfil those promises unless the 19th Amendment is removed.

The President’s brother and the organizer of the SLPP Basil Rajapaksa told reporters last year that the Amendment should be “abolished.”

However, it is also true that in successive elections the people have voted against the continuation of the Executive Presidency. Mahinda Rajapaksa, Chandrika Kumaratunga and Wickremesinghe all promised to abolish the Executive Presidency. Mahinda and Chandrika won but made no move to reduce the power of the position. Mahinda actually proposed an amendment to the Constitution to remove term limits on the Presidency.

The only time some changes were made was by the 19th Amendment proposed by the Sirisena administration of 2015 -2018.

The effectiveness of the changes brought about by the empowerment of Parliament and the independence of the Judiciary was displayed in the eventual resolution of the 2018 October Crisis when the Courts prevented President Maithripala Sirisena from dissolving Parliament.

While the people did vote for an effective government that can get stuff done, giving the Rajapaksa administration, or any administration for that matter, untrammelled power is not advisable.

To prevent the SLPP from winning a two-thirds majority the Opposition would have to cobble together more than 75 seats in the next Parliament. Of that number, the UNP will have to contribute more than 50 seats.

To do that the UNP has to show exceptional leadership to the disparate opposition which is dismal and discouraged by the November election result.

From the Walt Disney Cartoon Jungle Book, the castle crashes down around King Loui

Wickremesinghe has led many times and has taken his party to lower levels almost every time.

If his obstinacy continues he may end up like King Loui in the Jungle Book, holding up just the brick he can cling to as the castle collapses around him!

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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