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Monday November 9th, 2026

Sri Lanka’s simmering crisis spells bad news for PM

ECONOMYNEXT – The simmering tensions within the unity government has already undermined its ambitious political reforms and cleared the way for opposition manoeuvring to engineer defections and topple the Prime Minister.

Insiders say there had been a lukewarm response to attempts at repairing the damage after President Maithripala Sirisena’s October 12 outburst against institutions under Premier Ranil Wickremesinghe’s administration.

President Sirisena accused two institutions directly under the government — the Financial Crimes Investigations Division (FCID) and the Criminal Investigations Division (CID) — and the independent Bribery Commission of partisan action.

The Presidential shot was seen as a direct attack on Prime Minister Ranil Wickremesinghe who initiated the FCID and appointed Dilrukshi Wickramasinghe as the head of the bribery commission.

In what many commentators saw as an act of defiance, Premier Wickremesinghe responded to the President’s polemics by releasing a photo of himself savouring gourmet chocolates in Geneva in the company of Minister Sagala Ratnayake.

But, The Prime Minister may not have realised that his support base was slowly melting and the damning report of the Committee on Public Enterprises (COPE) had further emboldened a joint opposition.

At least one key figure who secretly worked behind the scenes to secure Sirisena’s defection from the Rajapaksa government in November 2014 was now involved in bringing an SLEF-led government under the President.

The low-profile individual has been working for quite some time to bring about rapproachement between rival factions within the SLFP in order to topple Wickremesinghe’s United National Party (UNP) government.

Numerically, Wickremesinghe’s UNP-led government has 107 seats in the 225-member parliament, but is still short of six seats to have an absolute majority on their own.

The current unity government has 34 MPs from Sirisena’s faction of the Sri Lanka Freedom Party (SLFP) but their loyalty is not with Wickremesinghe and can shift easily if Sirisena forms a new government.

A united SLFP can count on 94 MPs and needs just another 19 MPs to take control of parliament, a move many Rajapaksa-faction members think is a possibility, albeit a difficult one.

In the event of President Sirisena forming his own SLFP government, he can count on his own loyalists such as ministers Rajitha Senaratne, Champika Ranawaka and Arjuna Ranatunga who contested under the UNP.

Deputy Minister Karu Paranavithana is also seen as a Sirisena loyalist who contested the August 2015 elections as a UNP member. So are Chathura Senaratne (son of minister Rajitha Senaratne) and Hirunika Premachandra.

Ten Muslim MPs who are with the UNP could also switch loyalties in the event of a change of government. Such a move could change the balance of power in parliament giving a Sirisena-led government 110.

It can also count on the EPDP’s Douglas Devananda which means they need to engineer just two defections from the UNP to form a government.

Although in theory, securing two lawmakers from the UNP may not be too costly, but keeping the SLFP-led United People’s Freedom Alliance (UPFA) coalition in tact will be a challenge.

The UPFA includes three Rajapaksas — Mahinda, Chamal and Namal — and many within the UPFA would be ready to form a government, but without the tainted Rajapaksas.

Political sources said a dignified exit for Mahinda and political accommodation for his son could be a compromise worked out by desperate SLFP stalwarts keen to avoid FCID, CID and Bribery inquiries against them by returning to power.

The President’s remarks on October 12 have emboldened the attempts to form an SLFP-led government.

Constitutional safeguard

The 19th amendment to the constitution does not allow the president to sack the prime minister and invite someone else to form a government. That is why Sirisena requires 113 seats in parliament to bring a no-trust vote against Wickremesinghe.

However, political sources said the Premier was confident of retaining his majority and was pushing ahead with his sweeping economic reform plans.

In 2004, Wickremesinghe underestimated the power of the then president and was taken completely unawares when Chandrika Kumaratunga sacked his government and called a snap election, which he lost.

Sources within the government said the October 12 statement by the President Sirisena meant that they would be forced to put political reforms in the back burner while reconciliation and accountability issues may not be pursued.

"You need political stability to push such controversial reforms," a source said. "This is not the time to attempt any of that.  On the constitutional reforms, we will not proceed beyond the 19th amendment. Forget about accountability for war crimes. "

However, a senior government minister privately said that neither the president nor the prime minister would make any move against each other and are likely to maintain the status quo until the next general election in 2020.

"Both should realise that they cannot work without the other. The mutually assured destruction will keep them together," he said.

However, political sources say an emboldened opposition has become more active thanks to the President’s October 12 public statement which he later reconfirmed in an interview with a Sinhala-language weekly.

Civil society activists led by Sarath Wijesuriya who played a key role in ensuring Sirisena’s victory have publicly declared that President Sirisena had become a hostage of the military intelligence and was working against the January 2015 "revolution."

They reminded Sirisena, a low profile figure at the time, that he was chosen as a figurehead to rally civil society groups as well as parities such as the UNP and the JVP to topple the much maligned Rajapaksa family rule and return the country to rule of law. While the UNP campaign for his victory, the party that he is now leading tried its best to defeat him and retain the Rajapaksa regime.

Dejected civil society activists are staging rallies from this week to express their disappointment with Sirisena. (COLOMBO, Nov 1, 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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