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Friday November 13th, 2026

Fishing in troubled waters: Sri Lanka’s war-hit fishermen frustrated over Indian bottom trawling

ECONOMYNEXT – Resettled after the end of Sri Lanka’s 26-year war in 2009, Annalingam Annarasa had vowed to develop his family profession of fishing. Twelve years later, he struggles to continue his livelihood in the resettled Northern coastal island of Kayts.

The reason is bottom trawling by fishermen from neighbouring India.

The banned method of fishing still continues, and local fishermen are the most affected – fishermen who have just started to prosper from a livelihood they had been long denied as a result of being displaced by the war, fishermen who have finally allowed to resettle in their original fishing villages.

“We have lost around 40 percent of our daily fish catch due to bottom trawling by Indian fishermen,” Annarasa told EconomyNext over the phone.

The 43-year-old, who is President of the Federation of Jaffna District Fishermen Societies, says the local fishermen in Jaffna are deprived of fishing resources as Indian bottom trawling has reduced fish populations in Sri Lankan waters. The banned practise results in even fingerlings being caught while also damaging fishing nets used by local fishermen.

“Around 500 fishing nets have been damaged so far this year in Kayts,” he said, referring to an area where a number of small islands is situated in the Gulf of Mannar to the north-northwest of mainland Sri Lanka and to the south-southwest of the Jaffna peninsula.

Bottom trawling is banned in Sri Lanka and the law is strictly implemented to maintain the sustainability of the fishing industry by preventing fingerlings being destroyed.

Thousands of fishermen like Annarasa who are rebuilding their lives after the end of a decades-long war are now desperate in the face of increased bottom trawling by Indian fishermen.

Thousands of Sri Lanka’s northern fishermen have urged the government to make a final stand on the Indian trawler issue as the encroachment and the damage to their fishing equipment are hindering their livelihood and challenging Sri Lanka’s post-war resettlement efforts.

Around 800,000 people were displaced during the civil war that lasted from 1983 to 2009. The fighting escalated in Jaffna district in 1990, which saw many turn to state-run welfare centers or move to live with family elsewhere.

Bottom Trawling

Bottom trawling is a type of fishing net that’s pulled along the seafloor. Fishermen commonly use the technique to catch shrimp and bottom-dwelling fish.

However, in addition to targeting fish, the nets also catch a variety of ocean life that’s usually thrown back into the water dead or dying.

Dragging heavy gear across the seabed can also damage sensitive seafloor habitat. The harmful effects of bottom trawling on bottom-dwelling organisms and their habitat can be reduced by modifying the fishing gear or limiting the trawling area.

Annarasa says a fisherman needs up to 600,000 rupees to start fishing and if a net is damaged, the fisherman needs a quarter of that investment for repairs.

“These fishermen use kerosene oil for their boats to cut the costs, and we have lost our income due to bottom trawling. Our fishing community is now reduced to 17,000 from 23,000 in the past few years,” Annarasa said.

After many failed discussions with India on its fishermen illegally entering and using bottom trawl nets in Sri Lankan waters in Palk Strait, the fishing community in Jaffna launched a flotilla protest on October 17, demanding that the government strengthen existing laws and protect their own fishermen and bring to a stop the damage caused to their livelihood as well as the environment.

Resettlement is one of the key issues India has been pushing Sri Lanka towards since the end of the war as thousands of displaced Sri Lankan Tamils are still living in refugee camps in the South Indian state of Tamil Nadu.

Many international aid agencies including the United Nations Development Program and the Canadian International Development Agency (CIDA) have helped northern fishermen restart their livelihood after resettlement.

Back to zero?

The resettled fishermen had nothing but the skills of fishing and fish resources in the northern sea. They started from zero and now they are compelled to hit reset because most of their fishing gear is damaged.

“We need the government to strengthen the existing laws that already states entering into our waters and using trawler boats are illegal. The government must alsoe provide compensation for the damaged boats and provide a mechanism for fishermen who lost their livelihoods and are unemployed as a result of this,” N V Subramanian, Chairman of the Northern Fishermen Association, told EconomyNext.

Sri Lanka amended provisions in the Fisheries and Aquatic Resources Act No 2 of 1996 in both 2017 and 2018 to charge foreign fishermen who trespass into Sri Lanka’s waters and are involved fishing without a permit, entering into territorial waters without keeping the fishing gear stowed in their vessels and using banned bottom trawling nets towed by a mechanised boat.

Most fishermen urged the government to implement the amended act strictly. Already the amendment had angered Indian fishermen.

Gajendrakumar Ponnambalam, an opposition lawmaker raised the issue in the parliament and said on July 22 alone 277 fishing nets in a small fishing village in Jaffna were damaged, with total damage estimated at 4 million rupees.

“Indian fishermen have been encroaching into Sri Lanka waters. These are fishermen who come in large trawlers and they have literally destroyed the fishing assets of the fishermen of the Northern Province, particularly from Mannar to Jaffna and Mullaitivu,” he told the parliament on August 05.

Vincent Arulnathan, president of Annai Velangkanni Fishermen Association in Mullaitivu, expects another gloomy month in November as Indian trawler boats can be seen as near as 1 kilometre from the shore.

“In November, it is shrimp season and these Indian trawlers will come for shrimp resources depriving many of our fishermen,” he told EconomyNext over the phone.

“Our livelihood is fishing and it is now being destroyed. Resettlement hardly means anything for us without our livelihood, and we only know fishing.”

The fishing issue between the two neighbours began when India and Sri Lanka signed four Maritime Boundary Agreements between 1974 and 1976 that defined a mutual understanding of the international maritime boundary between the two countries. Katchatheevu Island, famous for its annual St Anthony’s festival, was ceded to Sri Lanka by India without consulting the Tamil Nadu state government.

Since then, Indian fishermen have only been allowed to use the island for resting, drying their nets and for the annual church feast, but not for fishing.

Since 2009, after the end of the war, the Sri Lankan navy has tightened surveillance of its northern maritime boundary to halt a potential return of Tamil insurgents, resulting in increasing the number of Indian fishermen arrests, even as Sri Lankan authorities argue that they are simply protecting the maritime boundaries of the country against poaching and are securing the livelihood of Sri Lankan fishermen.

Lingering bilateral discussion

President Gotabaya Rajapaksa when he met Indian Foreign Secretary Harsh Vardhan Shringla last month in Colombo pointed out that the long standing problems faced by the fishermen of the two countries could be resolved by identifying immediate solutions to the existing problems and providing the benefits rightfully owed by the fishing community.

Fisheries Minister Douglas Devananda also expressed his displeasure over the illegal fishing of Indian fishermen in Sri Lankan waters sabotaging the livelihood of Sri Lankan fishermen and ruining the aquatic resources in Sri Lanka, when he met the visiting Indian Foreign Secretary.

Minister Devananda had told the Indian official that a large number of Indian fishing trawlers enter the Sri Lankan waters daily for illegal fishing amid strong protest by Sri Lankan authorities.

The Minister said that he had submitted a legal draft to the Indian authorities with a proposal to set up an India-Sri Lanka Joint Coastguard to halt the Indian bottom trawling during his visit to India as a member of the official entourage headed by Prime Minister Mahinda Rajapaksa in 2020.

State Minister of Fisheries Kanchana Wijesekera said Sri Lanka has taken steps to ban bottom- trawler fishing practices and India too should do the same with its own fisheries act.

“So far we have not got positive feedback on that,” Wijesekera told EconomyNext.

Sri Lanka has also requested both countries’ coastguards to work together to find a mechanism to prevent either party crossing the border. Sri Lanka has already taken steps to use a Vessel Monitoring System (VMS) in all the vessels and has requested India to do the same.

“If the Indian fishing ministry implements this, it could prevent illegal fishing,” the state minister said.

“According to the laws in the country, the vessels that cross our border or are engaged in illegal fishing: those vessels will be confiscated, the fishermen will be released, but not the vessels,” he said.

Many fishermen say they are considering moving to some other area in search of new jobs though they have no idea what to do for a living besides fishing. (Colombo/Nov02/2021)

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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