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Friday November 13th, 2026

China-backed Port City act could be Sri Lanka’s Nanjing treaty: former finance minister

Former Foreign Minister Mangala Samaraweera

ECONOMYNEXT – The recently passed controversial Colombo Port City Economic Commission Act could well end up being a modern-day Trojan horse or a Nanjing treaty for Sri Lankans in the years ahead, former foreign minister Mangala Samaraweera said.

The China-backed Port City project, in the absence of checks and balances or parliamentary oversight, would create a city which is more or less a law unto itself, Samaraweera said in a statement Friday morning (02).

“It will be a centre for international money laundering for the local and international mafia. The likelihood of this piece of extraterritorial real estate turning into a centre for international espionage for the super powers to protect/subjugate the peace and stability of the Indian Ocean should also not be dismissed as mere fantasy,” he said.

Related: Sri Lanka speaker signs off on controversial Port City economic commission bill

Referring to a commemorative coin the Central Bank of Sri Lanka (CBSL) issued marking the 100th anniversary of the Communist Party of China (CPC) and recent revelations about Chinese nationals  allegedly clad in military camouflage working in the island’s deep south,  the former minister said: “These are a few examples which makes one wonder whether the principle of “extraterritoriality” being applied liberally in our statecraft today is seen as the continuation of diplomatic relations with a friendly country or as a major infringement of Sri Lankan sovereignty? Will the historians of the future call this point in time as the beginning of Sri Lanka’s century of humiliation?”

Related: Sri Lanka archaeology dept won’t take action against Chinese dredging company

“Sri Lanka needs FDIs and trade opportunities badly and desperately. Having an international Financial Centre on reclaimed land is a very good idea if it’s based on international law and participation, not merely serving the interests of a single country or two. In fact the first proposal for such a venture came from one of our very own Sri Lankan conglomerates in 2000.

“However, such proposals need not come at the cost of our sovereignty; it cannot be at the cost of our friends who provide 60% of our trade; it cannot be at the cost of diminishing our friendship with our friend and neighbor, India, 20 odd kilometres away. Sri Lanka has not been blessed with oil, diamonds, gold or copper; we have been blessed with a beautiful island and a most propitious geographical location on one of the busiest shipping routes in the world,” said Samaraweera.

The retired Matara district politician said Sri Lanka must revert to the foreign policy almost all governments have followed since independence

“Despite our relative “insignificance” in the International order, Sri Lanka was a much loved and esteemed member; from Washington to Beijing, from New Delhi to the Kremlin, from Downing Street to Tokyo, from Brussels to Ghana our leaders were welcomed with open arms,” he said.

“Alas, no more,” he added.

The full text of the statement is as follows:

Sri Lanka’s century of humiliation

 “Reflect continually on the fact that all things as happen now, also happened before, and on the fact that they will happen again. The whole dramas and the comparable scenes…from history of the past….All these were similar only the actors were different.”

Marcus Aurelius

 The Sunday Times of 27th June says that the Central Bank of Sri Lanka has taken the unprecedented step of issuing a commemorative coin for the centenary of the Communist Party of China. This news followed ‘hot’ on the heels of the Colombo Port City bill which the government tried to rush through Parliament until the Supreme Court shot down a few of the clauses which could have violated our sovereignty and posed a serious threat to our countries independence in the years to come. Adding to the paranoia of many Sri Lankans was the shocking exposé by ’Sirasa’, one of the leading broadcasters in Sri Lanka and perhaps the only truly independent TV stations in this country today ( I too have been at the receiving end of its criticisms during the various periods I served as a Cabinet Minister, during the last 3 decades) where we saw Chinese personnel in Chinese Military uniform dredging a historic lake in the deep south (where youth unemployment is at its highest) under the patronage of a senior cabinet Minister of the ruling family. These are a few examples which makes one wonder whether the principle of “extraterritoriality” being applied liberally in our statecraft today is seen as the continuation of diplomatic relations with a friendly country or as a major infringement of Sri Lankan sovereignty? Will the historians of the future call this point in time as the beginning of Sri Lanka’s century of humiliation?

China is one of world’s greatest and most ancient countries; more a civilization than a country! The “Celestial dynasties” which ruled for millennia sincerely believed that they were the heavenly representatives sent to rule a vast kingdom – HONGUO/the middle kingdom, refined and civilized in a world of barbarians. The Emperor was perceived as mankind’s supreme sovereign, often referred to as the “Emperor of humanity” and his diplomats were called “Heavenly Envoys from the Celestial Court. As Honguo was considered the centre of the universe, all interactions with the ‘barbarians’ of the outside world were controlled and limited; learning/translating the languages of the barbarians were banned without special permission, entering and traveling within the kingdom was also not allowed and only the Port of Guangzhou (Canton) was open to foreigners to conduct their trade. Even the envoy from the Queen-Empress Victoria had to hang around the port for weeks until it was decided to grant an audience with the Emperor in Beijing on the basis that the English diplomat will ‘kowtow’(to prostrate oneself and to touch the ground with ones forehead thrice) before the Emperor when received in the Royal court.

With the advent of high imperialism in the 17th century, western powers tried repeatedly to penetrate this vast kingdom for trade/commercial purposes but China remained one of the few Asian countries which could not be colonized by the British to become a part of the Empire where the ‘sun never sets.’

The East India Company was founded in 1600 with the objective of promoting trade and commerce in the Indian Ocean and China. By 1800, the company accounted for more than half the world’s trading and laid the groundwork for the British Empire and the Indian Raj; East India company rule was established in large parts of India in 1757 exercising military power and even assuming local administrative functions until 1858 when the British crown assumed direct control of India – ‘the jewel in the Crown’ where opium was grown to be sold to the ‘natives’ in all corners of the Empire. In 1839, the opium war started against China in the face of determined and stiff resistance by the Qing dynasty to open up its vast market to British opium traders. Consequently, the British ordered the blockade of principal ports in China and were poised to attack the ancient capital of Nanjing, when the Chinese sued for peace. The treaty of Nanjing of 1842 imposed on China the cession of Hong Kong to the British, a payment of $6 million in indemnity, and the opening of five ports in which trade would be allowed and westerners would be permitted to reside. Although China was not formally colonized, the treaty of Nanjing made it a de facto colony of the British Empire and the Qing court lost much of its independence in commercial and foreign policy. The principle of extraterritoriality enshrined in this treaty was to become a major infringement of Chinese sovereignty and the opium traders residing in the treaty ports would only be subject to their own countries’ laws and not that of China.

Thus began, what is known in China today as its “century of humiliation.”

Nearly two hundred years later, as the first quarter of the 21st century is drawing to a close, China is now poised to become one of the world’s leading economies with ambitions of becoming a military super power as well. Like the East India Company in earlier centuries, the investment, trading and commercial arm of China is now the Belt and Road Initiative. (BRI) started in 2013 and incorporated into the constitution of China in 2017. According to the BRI, the initiative is “a bid to enhance regional connectivity and embrace a bright future.” In fact we know that the East India Company colonized the better part of the world with similar noble objective of civilizing ‘savages’ and natives promising all a ‘brighter future’. The imperial powers of the west carved out a very bright future for themselves and their countries over the last five hundred years but at what cost to the countries and the peoples they colonized? Isn’t the BRI the same old concept wrapped up in brand new gift paper?

What was challenged in the Supreme Court recently – the Colombo Port City Act. Could well end up being a modern day trojan horse or a Nanjing Treaty for Sri Lankans in the years ahead. The port city without any checks and balances and Parliamentary oversight will create a city which is more or less a law unto itself; it will be a centre for international money laundering for the local and international mafia. The likelihood of this piece of extraterritorial real estate turning into a centre for international espionage for the super powers to protect/ subjugate the peace and stability of the Indian Ocean should also not be dismissed as mere fantasy.

Sri Lanka needs FDIs and trade opportunities badly and desperately. Having an international Financial Centre on reclaimed land is a very good idea if it’s based on international law and participation, not merely serving the interests of a single country or two. In fact the first proposal for such a venture came from one of our very own Sri Lankan conglomerates in 2000. However, such proposals need not come at the cost of our sovereignty; it cannot be at the cost of our friends who provide 60% of our trade; it cannot be at the cost of diminishing our friendship with our friend and neighbor, India, 20 odd kilometres away. Sri Lanka has not been blessed with oil, diamonds, gold or copper; we have been blessed with a beautiful island and a most propitious geographical location on one of the busiest shipping routes in the world.

Therefore it is also in our greater interest to work with all countries to ensure that the Indian Ocean remains a zone of peace and stability while taking the maximum advantage of our position to create wealth and prosperity for our next generations. In the great power play between superpowers, Sri Lanka cannot afford to be a pawn of one group or another like Cuba in the early 1960s when not ideological but financial considerations compelled the Cuban government to allow USSR to install nuclear missiles 65km from the USA nearly triggering off a nuclear war in the Bay of Pigs. Sri Lanka cannot afford to follow a confrontational and isolationist policy with the international community. Especially in this age of pandemics and international trade, multilateralism is the way forward. Westphalian concept of sovereignty is no longer valid and we must abide by our international obligations for the betterment of our own people. Sri Lanka must revert to the foreign policy almost all governments have followed since independence; despite our relative “insignificance” in the International order, Sri Lanka was a much loved and esteemed member; from Washington to Beijing, from New Delhi to the Kremlin, from Downing Street to Tokyo, from Brussels to Ghana our leaders were welcomed with open arms.

Alas, no more!

Today, like somnambulists walking towards the precipice while tumbling over one humiliation after another, we are pushing our sons and daughters, towards a future of unimaginable horrors.

Stop. Think. Take stock.

Democracy and freedom, Justice and the rule of law, unity in diversity, multilateralism and international cooperation is the only way forward.

 Mangala Samaraweera

02.07.2021

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.

Read more
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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