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Monday November 9th, 2026

Sri Lanka prepares to back seabed claim at UN body

ECONOMYNEXT – Sri Lanka is readying a scientific team to substantiate its claim under international law for a larger area of the Bay of Bengal seabed, potentially rich with mineral and hydrocarbon resources, parts of which have overlapping claims.

The claims will be examined by the Commission on the Limits of the Continental Shelf, the United Nations scientific body which evaluates submissions by member states, officials said.

No formal objections have yet been made by other states with overlapping claims under the United Nations Law of the Sea Convention although Bangladesh reportedly is preparing to oppose Sri Lanka’s claim.

“In the queue of claims by states in the northern Bay of Bengal area, Myanmar is first followed by Sri Lanka,” said Chris Dharmakirti, outgoing chairman of the National Ocean Affairs Committee (NOAC), which submitted the island’s claim to the UN.

This would be followed by claims by India, Maldives and Bangladesh.

Seabed entitlement

Dharmakirti told EconomyNext.com the UN body would first need to examine Sri Lanka’s claim and those of neighbouring countries and determine the entitlement of the claimed areas.

“Once the entitlement to the claimed area is accepted and recognised by the UN then the countries that would have overlapping areas have a UN-accepted basis to enter into negotiations bilaterally or even multilaterally.”

There are overlapping claims between Sri Lanka, India, Myanmar, Bangladesh and the Maldives.

Under the UN Law of the Sea Convention (UNCLOS) a country can have continental shelf rights up to 350 nautical miles or 100 nautical miles from the 2,500 metres depth, whichever is higher.

Image of Indian Ocean seafloor (Source-NOAC)

Sri Lanka’s seabed claim has been made under a special provision known as the Statement of Understanding in the UNCLOS which she lobbied for when the law was being prepared that allows her to make a claim based on the narrowness of the island’s continental shelf.

Although no formal objections against Sri Lanka’s claim have been lodged with the Commission on the Limits of the Continental Shelf (CLCS), Bangladesh in 2010 submitted a ‘note verbale’, a diplomatic communication, where they reserved the right to do so.

Overlapping claims

The Dhaka Tribune recently quoted Bangladeshi foreign ministry officials as saying Dhaka objects to Sri Lanka’s claim for an extended continental shelf beyond 350 nautical miles from its coast baseline on the grounds that it overlaps her own claim,

Dharmakirti said there are two ways to resolve overlapping claims to the seabed in what’s known as the ‘Bengal Fan’, whose thick sedimentary deposits are believed to have big hydrocarbon and mineral resources.

“The preferred approach for Sri Lanka, and the logical one, is to have joint ownership of the overlapping area,” said Dharmakirti.

“Doing so means the total resources in that space are exploited fully by both countries in an equitable manner.”

The less preferred option is to bilaterally negotiate and draw boundaries separating the overlapping area into halves.
 
“However, that approach is not prudent as the economic value of the seabed resources can vary depending on the size of the deposit in each area,” said Dharmakirti, who is also in charge of the oceanic economic resource assessment under the ‘Neela Haritha’ (‘Blue-Green’) economic scoping study.

The ‘Blue-Green’ economic scoping study by the National Secretariat for Ocean Economic Affairs is being conducted jointly by the ministry of environment and the ministry of primary industries to identify opportunities in the offshore sector.

It is part of commitments made to the UN by President Maithripala Sirisena, who is also environment minister, to uphold sustainable development practices.

Riches of the deep

The northern part of the Bay of Bengal, which has deep sediment deposits reaching down to 20km, is one of the largest such resources still untapped in the world and yet out of reach given today’s technology and costs.

Dharmakirti said the resources were deeper than currently economically viable oil or gas exploration depth levels.

Most offshore oil and gas deposits now being mined are at shallower depths, of less than four kilometres.

“But if the price of oil reaches a point higher than 120 US dollars a barrel, these deposits become viable,” said Dharmakirti.

“Although oil prices are currently depressed, in future if prices rise again, these resources in the deep sea become viable in the same way shale oil extraction became viable when oil prices were higher than 100 dollars a barrel.”

New gold rush

The race for minerals in the seafloor, seen as the next frontier of exploration, as difficult as space, has already begun and been likened to a new ‘gold rush’.

The International Seabed Authority, another UN body, in charge of the seabed outside national jurisdictions, is evaluating applications from countries like China, Japan and India to mine for minerals in the southwest Indian Ocean.

They are looking to extract a range of minerals like gold, zinc and copper available on the seabed which are needed for modern hi-tech industries like electronics, automobiles and clean energy.

Bulk Cutter machine to be used by Nautilus Minerals for mining in the Pacific Ocean. (Source – Nautilus Minerals)

The world’s first commercial mining project to extract high-grade seafloor copper and gold, known as Solwara 1, by Canadian miner Nautilus Minerals, is set to begin off Papua New Guinea in 2017.

Sri Lanka’s seabed claim was originally to have been taken up only after 2028 as the CLCS, which used to meet only six weeks in a year, had many claims to evaluate.

But after painstaking lobbying by Dharmakirti of all signatories to the convention, the UN allocated more resources to the scientific body enabling it to meet for 26 weeks, and bring forward the date for considering the island’s claim to after 2018.

“Now the submission is close to the point of being called by the UN for examination,” Dharmakirti explained. “It is now between our scientific team that prepared the submission and UN scientific panel to decide the validity of the data.”

Dharmakirti said coastal states with overlapping seabed claims under UNCLOS must realise that it is an economic resource each is after.

“Coming to a common understanding and agreement to operate on a shared output basis is better as concession licenses can stipulate revenue split between countries that own overlapping areas.”
(Colombo/April 22 2016)
 

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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