An Echelon Media Company
Friday November 13th, 2026

Arms manufacturers show Indian capability to Sri Lankan military

ECONOMYNEXT – Indian arm manufacturing firms showed the Delhi’s capability in arm manufacturing to Sri Lankan military at a seminar on Wednesday which the island nation expects to open the door for future joint collaboration in manufacturing and services.

Indian High Commission in Colombo High Commission organised the seminar titled “Identifying New Opportunities and Forging New Bonds” to promote Indian Made Defence equipment and explore avenues for collaboration in defence production.

India’s privately owned defence companies demonstrated the capability they have developed in manufacturing arms and other products including unmanned aerial vehicles (UAVs), latest drones, and latest earth movers used in war zones.

The delegation comprised representatives from Indian Defence companies including Hindustan Aeronautics Limited, Bharat Electronics Limited, Zen Technologies, SSS Defence, Bharat Forge, Big Bang Boom Solutions, AWEL, AVNL, Mahindra Defence, Sager Defence and TATA Advances System Ltd.

They presented their manufacturing capabilities and the advantages of using them in a modern war.

From the Sri Lankan side, Chief of Defence Staff, Commander of Sri Lanka Navy, Commander of Sri Lanka Air Force and other senior officers from Sri Lankan Armed Forces, Police and Special Task Force attended the event along with representatives of leading Sri Lankan business conglomerates.

Santosh Jha, the Indian High Commissioner to Sri Lanka underlined the increasing diversification of India-Sri Lanka bilateral cooperation across domains, including in security and defence matters.

“He emphasised that because of geography, the security of India and Sri Lanka is interlinked and intertwined,” Indian High Commission of Sri Lanka said in a statement.

“India’s defence exports today stand at nearly 2.6 billion US Dollars, a ten-fold increase over the past five years. High Commissioner stated that the seminar was another platform to explore ways of extending India’s increasing capabilities in the defence sector to Sri Lanka.”

TOUGH PAST 

Sri Lanka military had been in desperate situations for modern arms when they were fighting a civil war against Tamil Tiger rebels popularly known as Liberation Tigers of Tamil Eelam (LTTE) who demanded an independent state in the island nation’s resourceful North and East.

The military, however, ended the 26-year war in 2009 annihilating all LTTE leaders including its supreme leader Velupillai Prabhakaran.

India, which strongly backed LTTE by providing arms and training in the early stage of the war, took a complete U-turn and helped Sri Lanka military in the final stage of the war.

The LTTE killed Indian Prime Minister Rajiv Gandhi in 1991 after his government sent Indian Peace Keeping Force (IPKF) to stop the violence in the North as per a deal signed between the two neighbours.

India, along with China, Pakistan, and the United States helped Sri Lanka to end the war amid strong concerns over war crimes and human rights violation by the Sri Lankan armed forces.

Since the end of the war, India has been increasingly involved with Sri Lanka armed forces, providing trainings and conducting joint military exercises with a special focus on maritime security after China increased its footprint in Sri Lanka.

China has owned Sri Lanka’s largest port in the country’s deep southern district of Hambantota where the world’s second largest economy is in the process of building a $4.5 billion refinery and establishing an investment zone.

USING INDIAN WEAPONS 

A similar Defence Seminar and Exhibition has been conducted in June last year, the Indian High Commission said.

“Sri Lanka Armed forces have been successfully operating a range of Indian defence equipment like L-70 guns, Indra Radar, Offshore Patrol Vessels and Army training simulators,” it said.

“More recently the GoI (government of India) has committed supply of Floating Dock, Maritime Rescue Coordination Centre and Dornier aircraft which would ensure capacity building of Sri Lanka Armed Forces.”

Shri Anurag Bajpai, Indian Defence Ministry’s Additional Secretary (Defence Production) reassured that India stands committed towards ensuring capacity and capability building of Sri Lanka Armed Forces as part of Prime Minister Narendra Modi’s vision of SAGAR (Security & And Growth for All in the Region).

“He highlighted the common security challenges faced in the Indian Ocean Region and called for enhanced collaboration to create a safer environment,” the Indian High Commission said in a statement.

“He shared Aatma Nirbhar Bharat’s, self-reliant India’s upward trajectory in establishing robust R&D (research and development) and indigenous manufacturing ecosystems, while fostering innovation and entrepreneurship”.

“NEW AREAS OF ECONOMIC REVIVAL”

Sri Lanka has been looking for collaboration to earn foreign exchange in all sectors including military since an unprecedented economic crisis in 2022 which forced the country to default sovereign debts.

Since then, the island nation has yet to pay its private and bilateral external creditors.

“This could hopefully open the door to future joint collaboration in manufacturing and services as well as joint research and development, thereby identifying new areas for economic revival whilst ensuring capacity building of the Sri Lankan Armed Forces,” State Minister of Defence Premitha Bandara Tennakoon told the participants at the seminar.

“…as we embrace the era of fourth industrial revolution technologies, we must adapt to the changing landscape of warfare,” he said.

“Innovations in artificial intelligence, cyber security, unmanned systems, and space technologies have revolutionized the way we perceive defence and security.”

“It is essential for us to remain at the forefront of these developments, continuously modernizing our armed forces to counter emerging threats effectively. I believe this seminar is therefore taking us in this future direction.” (Colombo/April 12/2024)

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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