An Echelon Media Company
Monday November 9th, 2026

Sri Lanka, B.1.1.7 and dousing fires: In conversation with Prof Neelika Malavige

Prof Neelika Malavige

ECONOMYNEXT – The fast-spreading B.1.1.7 variant of COVID-19 was not present in the community in Sri Lanka until April 08, Prof Neelika Malavige of the University of Sri Jayawardenapura said.

Speaking to EconomyNext in a phone interview this morning, Malavige denied claims that authorities had known for at least two months that the strain was in the community.

Related: Can Sri Lanka survive B.1.1.7?

Malavige, Professor in Microbiology at the Department of Immunology and Molecular Medicine, Faculty of Medicine, University of Sri Jayewardenepura, said that though her team found one or two cases of B.1.1.7 in the community towards end-January/early February this year, subsequent testing of primary, secondary and even tertiary contacts of those cases had not resulted in a single positive identification of the highly transmissible variant.

“We did not see any sign of B.1.1.7  in our PCRs until April 08,” she said .

However, in a previous correspondence on February 13, the professor said three people in the community had tested positive for the UK strain towards end-January.

“[The strain] possibly leaked into the community due to some failure in the quarantine process,” Malavige said in that interview, adding that leaks were natural and to be expected even in the toughest quarantine regimes in the world.

She said at the time that three Sri Lankans from the community had tested positive for B.1.1.7. “Since we identified the variant in the community very early, we might be able to contain it,” she said.

Excerpts from her February 13 interview can be found here.

A statement from the Sri Jayawardenapura University (SJU) released on February 12 also said: “While most of the [92 samples that were genome sequenced] belonged to the previously circulating B.1.411 lineage (Sri Lankan lineage), a few viruses belonging to the B.1.1.7 (UK lineage) was detected from Colombo, Avissawella, Biyagama and Vavinya and from a few individuals in the quarantine centres.” (Emphasis ours)

Acknowledging the wording in the statement and that there was no subsequent clarification  or announcement from either the SJU or the Ministry of Health of this apparent re-evaluation, Malavige said today that the SJU had later concluded that only one of the positive B.1.1.7 cases was from the community and not three as previously thought.

All other positive cases, she said, were from quarantine centres.

“As soon as that information was out, the one or two positive cases were contact-traced and everyone was quarantined for 14 days. After that, no other samples tested positive for B.1.1.7,” said Malavige.

“Thousands of samples from all over the country were sent to us for screening, but until April 08, we just didn’t detect it again in the community,” she added.

The professor said that the SJU lab routinely receives samples from quarantine centres and offices of the Regional Directors of Health Services (RDHS). The RDHS offices, which used to only send samples from the community, now send samples from the quarantine centres too.

“So you can see how we can sometimes get the location wrong,” she said.

Earlier this year, two people had tested positive for B.1.1.7, one from Vavuniya and the other from a construction site in Colombo. The Vavuniya case, Malavige said today, was definitely from a quarantine centre.

The construction worker’s movements were then retraced using GPS locations on his phone but none of his contacts tested positive for B.1.1.7.

“We screened thousands of samples and didn’t find the British variant again. It was not a case of finding it in the community and then proceeding to ignore it,” she said.

Meanwhile the COVID-19 caseload in Sri Lanka was on the decline. What used to be a positivity rate of around 30% in December last year had declined to 10 to 15 percent by January in Colombo, said Malavige, after which it gradually fell. By March, the SJU lab was seeing “very few positives” – 3 or 4 out of 600.

If the UK strain was indeed not in the community in February or March, how then did it suddenly spread among thousands of people in April alone? Was it a quarantine leak some months prior? Did it arrive through a tourist, or perhaps a visiting cricketer? Authorities have yet to answer this question.

One of the more surprising decisions of late by the health ministry, as has been highlighted by lab technologist Ravi Kumudesh and others, is Sri Lanka’s sudden and inexplicable drop in PCR tests. The number of daily tests dropped significantly, and the only explanation offered by the health ministry’s epidemiology unit was that, because cases were on the decline, the corresponding drop in close contacts meant there weren’t many people left to test.

Malavige agrees that testing went down.

“I don’t know why. I do know what the epid unit said. In April when we got random samples from the Colombo Municipal Council (CMC) area which we covered, on some days we didn’t get any positives,” she said.

The professor maintains that, apart from the two cases detected in end-January/early February, genome sequencing of samples collected from the community until March 31 only showed B.1.411, the Sri Lankan strain of SARS-CoV-2, the virus that causes COVID-19.

“After that, we didn’t see anything unusual,” she said.

That is, until the Avurudu holidays.

Following an outbreak in the first week of April, the SJU lab sequenced samples that showed what is known as an S drop – the absence or malfunction of the virus’s S gene in the test due to a specific mutation in the gene.

The TaqPath COVID-19 diagnostic test kit, which according to Malavige is widely used in Sri Lanka, results in an S drop when a sample with this specific mutation is tested, potentially signalling – though not confirming – the presence of B.1.1.7.

“This is a characteristic of the UK variant,” she said.

B.1.1.7, she said, is one of three variants of concern, as declared by the World Health Organisation (WHO); the other two being the South African and Brazil strains. A variant of concern is more transmissible, or is associated with more disease severity, or evades immunity (meaning it can infect people who have already had COVID-19 or have received a vaccine).

The UK strain is known for its high transmissibility. Whether it causes more disease severity is less certain. But given the increased transmissibility and the ceiling on the number of intensive care units (ICU) in the system, said Malavige, the mortality rate invariably increases – potentially up to 55 percent according to one paper published in Nature.

Whether any increased severity is due to this logistical equation or whether it actually causes severity on its own remains a question, but Malavige is inclined to believe the latter.

The samples sequenced in early April showed the S drop which, Malavige said, showed that something was not right, though it could not be confirmed at the time that B.1.1.7 was indeed the culprit.

Some 800 samples subsequently collected from all primary and secondary contacts all tested negative, after which the SJU team took a break for the Avurudu holidays.

“SJU is not bound to do PCRs. We do it voluntarily as a duty and have been since February 2020. Every person working in our lab is doing 100% voluntary work. No one in our lab had taken a break, so we took one for Avurudu,” she said.

Work resumed on April 19, but during the break, patients from a bank head office in Colombo had been rushed to hospital. After Samples were collected and, on April 19, promptly sequenced. Sixteen out of 17 showed the S drop.

“And then we saw stars,” said Malavige.

The S drop was observed in samples from Kurunegala too. On April 23, Malavige and her team, flanked by officials, went before the media and announced the detection of a new, much more transmissible strain of the novel coronavirus, pending confirmation.

“The authorities were very concerned,” she said.

Then came the long weekend, and pictures that went viral on social media revealed reckless travels and unmasked gatherings that likely took the newer, deadlier – and as Malavige calls it, nastier – strain everywhere.

Should the government have declared a lockdown? Or at least imposed movement restrictions? Authorities have been repeatedly criticised for shifting the blame to the public and for placing the burden of containing the spread on an exhausted populace.

“Whether restrictions should’ve been imposed when the strain was detected, I do not know. What happened during Avurudu was alarming and shocking. But I’m not going to blame the public. The people were kept inside a cage for a long time. It’s human nature to want to be free.

“Whether that cage should’ve been kept closed for a longer period, that is the question. If the UK strain hadn’t come to Sri Lanka, yes, we would’ve seen a spike in cases after Avurudu regardless, but it wouldn’t have been like the situation we’re seeing now,” said Malavige.

While there is no disputing that the public has a part to play, the authorities’ more questionable decisions have been met with bitter criticism from medical experts, union representatives and others. Scepticism has also been expressed about the sincerity of the SJU team, with some alleging certain biases on their part – an allegation that Malavige flatly denies.

“I have no political affiliation at all. Neither does Dr Chandima Jeewandara,” she said. Dr Jeewandara is Director, Allergy Immunology and Cell Biology Unit of the University of Sri Jayawardenepura.

“I think the government has made enough and more mistakes. We can talk about who did what wrong after we have doused the fire, but right now let’s douse the fire,” said Malavige.

However, the professor does contend that the authorities are doing everything they can to take charge of the situation.

“I believe they do understand the gravity of the situation. I believe they’re trying their best to do what they can because the priority now is to reduce cases and manage the severe cases,” she said.

With the politics out of the way, Malavige spoke of the dangers of the new strain.

As deadly as it is, so far even the UK strain has resulted in a majority of asymptomatic cases in Sri Lanka. But that’s not the reassurance it sounds like.

“Let’s put it this way. Let’s say with the Sri Lankan variant, 0.1% needed ICU care. If it becomes 1% now or even 0.5%, that will really tip the balance. If people who get severe disease increase from 1 percent to 5 percent, that too will tip the balance. These are not actual figures based on real data, but you get the idea,” she said. (This data, incidentally, is not yet available).

B.1.1.7 has been responsible for a sudden increase in ICU admissions, particularly of younger patients with severe symptoms including breathing difficulties. Prof Malavige said the proportion of those who develop pneumonia and therefore need oxygen and high dependency care/ICU care are on the rise.

The data on this too, is unavailable, and ‘young’ remains undefined, and Malavige calls for getting out hospital statistics to better understand the situation.

“How prepared are we to increase the facilities to rapidly accommodate these patients who develop severe disease? Right now the important thing is to prevent casualties. If we have increasing case loads, we can’t keep expanding facilities because there’s a ceiling,” she said.

“We have to reduce cases. How do we do that and at the same time maximise facilities? These are the burning questions we must address,” she added.

The priority now, the professor said, is to strategise.

“We’re now in a crisis,” she said, adding that it’s critical that people limit non-essential movement.

“I don’t go out unless I absolutely have to because I know the danger. If there is a fire somewhere, nobody has to tell me not to go in there. If you see fire, you move, you don’t jump in.”

But what of the thousands for whom staying put is a luxury? What of essential workers, daily wage earners and others to whom a lockdown of any kind spells doom?

“It would be less dangerous for those thousands who have to be out if everyone else stayed at home. For essential workers and daily wage earners to be out and about, those who can afford to stay home, must stay home,” the professor said.

Asked if Sri Lanka is in danger of becoming another India in terms of an unmitigated public health crisis,  Malavige said: “That’s a difficult question. We should not let the Indian variant come here. We’ve got enough problems in our hands. We don’t need double trouble.”

She is, however, cautiously optimistic that the situation will be brought under control – if Sri Lanka acts now.

“We’ll be able to contain it, but not tomorrow. We’re still in the exponentially rising stage. Normally anything rises, then plateaus and then falls,” she said.

“I hope this plateaus soon,” she added. (Colombo/May02/2021)

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)

 

Continue Reading

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)

 

Continue Reading

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)

Continue Reading

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)

 

Continue Reading

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)

Continue Reading

Sri Lanka rupee at 332.54/58 to US dollar spot, bond yields steady

ECONOMYNEXT – Sri Lanka’s rupee was quoted at 332.54/58 to the US dollar spot on Monday, stronger from 332.55/60 Friday, while bond yields held broadly steady, dealers said.

A bond maturing on 15.09.2029 was quoted at 10.90/95 percent, up from 10.85/95 percent.

A bond maturing on 01.08.2030 was quoted at 11.00/10 percent, down from 11.05/10 percent.

A bond maturing on 01.02.2031 was quoted at 11.10/20 percent, up from 11.10/15 percent.

A bond maturing on 15.12.2032 was quoted at 11.58/68 percent, up from 11.55/65 percent.

A bond maturing on 01.06.2033 was quoted at 11.80/95 percent, up from 11.80/85 percent.

A bond maturing on 15.10.2034 was quoted at 12.08/15 percent, up from 12.05/12 percent.

A bond maturing on 15.08.2036 was quoted flat at 12.30/40 percent.

The telegraphic transfer rate for the dollar was 328.05 buying, 337.05 selling; the euro was 363.3528 buying, 377.1336 selling; pound was 437.5954 buying, 451.7038 selling.

On the Colombo Stock Exchange the All Share Price Index was up 0.78 percent, or 165.42 points, at 21,405; while the S&P SL20 was up 0.58 percent, 35.19 points, at 6,080.

90,000 million rupees Treasury bills are to be issued through an auction on November 11. (Colombo/Nov9/2026)

Continue Reading