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Friday November 13th, 2026

Switzerland and Sri Lanka to calm matters down

They have been eyeball to eyeball, staring each other down over the past month, but as of this week, Sri Lanka and Switzerland will begin the long-slow dance to step back from further confrontation towards normalizing relations.

This is not because it is the season of good cheer, but both sides are showing that they want a way out lest more serious damage is done to the relationship between the two countries.

The dispute is over whether or not Garnier Banister Francis, a Visa Assistant in the Swiss Embassy was abducted by unknown men, sexually assaulted and threatened to reveal information about Chief Inspector Adrian Nishantha Silva of the CID on November 25.  

Silva, who fled to Switzerland on November 24 is a key investigator who probed sensitive cases connected to the Rajapaksa family including President Gotabaya Rajapaksa during the last government.

The government, even before the investigations and the case before the Magistrate is over, declared that such a thing did not happen.

The Swiss government, protecting its local employee, says it maybe did and asked that conclusions be made after the investigation ends.

President Gotabaya Rajapaksa meeting Swiss Ambassador Hanspeter Mock in Colombo on Dec 16, 2019/PMD Photo

At heart is the somewhat hasty move by the Swiss embassy in Colombo to take the first statement made by Francis to them as a complaint to the Sri Lanka government. Swiss Ambassador Hanspeter Mock met Prime Minister Mahinda Rajapaksa with this information and the PM ordered an investigation.

That investigation found that Francis’s story did not match CCTV and Uber records of what she did that day after she left work.

Complicating matters further, Francis’s version of the event was at the core of news stories that appeared in the international media, including the New York Times. The news stories said that the incident raised fears of a “crackdown” by the new President’s cohorts against dissent. They asked whether this was a return of the dreaded White vans just a week and a day after President Gotabaya Rajapaksa was elected.

This controversy is one of the worst diplomatic incidents this country has ever faced. It came hours before the newly minted President was going on his maiden state visit to neighbouring India. The government’s knee-jerk reaction was to say “Western conspiracy.”

 “I am the victim (of a conspiracy),” President Rajapaksa told the Media.

Then Francis was summoned to the CID and questioned for thirty hours over several days where she changed her story about being accosted on the street. She agreed with what the police found where CCTV records show her entering an apartment block known as Palm Court in Colombo 3 and going home after that, according to phone tracking information.  That night, she had gone to the Embassy to meet some diplomats.

Francis told the detectives that the sexual assault and the intimidation took place while she was in an apartment in Palm Court.

The government disputes that pointing to footage of her coming out of the apartment block where she “does not look as she was assaulted or intimidated.” She was accompanied by a woman who is said to be a teacher. Francis says her abductors warned her to act normal when she leaves the building. Francis says she was in the building to see the teacher who has reportedly told police that no such incident took place.

Then on December 17, Francis was charged with falsification of evidence and bringing the government into disrepute and arrested.

She is now in remand custody and will be produced again in court on December 30.

Following the arrest, the exchanges between Berne and Colombo became heated.

The Swiss expressed concern at Francis’s arrest and called for due process to be followed, warning that “in this high-profile case Sri Lanka’s reputation as a country that upholds the rule of law is at stake.”

Talk of “due process” and “rule of law” are serious in diplomatic language as it carries with it the implied threat that Sri Lanka can be branded as a “rogue” state which is a major deterrent for foreign investment.

Foreign Relations Minister Dinesh Gunewardene, shot back saying “Sri Lanka has fully complied with national law and international judicial standards and that any assertion to the contrary was factually inaccurate.”

The Swiss statement, in turn, slammed Sri Lanka for making public statements “questioning her (Francis’s) account before the investigations had been completed.”

But now both sides appear determined to calm things down.

From today the Sri Lankan Ministry of Foreign Relations will not issue any more press releases on this matter, RepublicNext reliably learns.

Yesterday a top official from the Ministry told RepublicNext off-the-record that “this is no longer a diplomatic issue, it is a law and order problem.”

This is a clear signal that both sides want to bring the impasse to an end and allow ‘due process” of the courts to take over.

It is important for Sri Lanka to seek a compromise with the Swiss because in case tensions continue to rise, the issue can become a European issue, a multi-lateral one, which is much more difficult to unravel than a bi-lateral spat between Colombo and Berne. It is important that Sri Lanka contains this issue as a bilateral issue as a multi-lateral dispute can lead to sanctions and other measures.

As an indication that Berne was willing to negotiate Senior Swiss diplomat Jörg Frieden came to Sri Lanka and met Minister Gunawardena telling him that “the principle of the presumption of innocence applies and that the health and safety of our embassy staff take priority.”

It is a month since Francis went on that life-changing journey home, and this Christmas her children will not have their Mom at home.

But now both sides appear determined to calm things down.

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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