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Friday October 16th, 2026

China climate announcements turn tables on U.S. Congress foes

WASHINGTON, Sept 25 (Reuters) – Donald Trump was succinct last week when asked how the United States should respond to climate change.

"It’s not a big problem at all," the leader in opinion polls for the Republican presidential nomination told a radio talk show host. "If you look at China, they’re doing nothing about it."

This week, Chinese President Xi Jinping came to Washington and agreed to take new measures. Standing alongside President Barack Obama at the White House, the Chinese leader committed his country to a series of ambitious policies aimed at countering the rise in global temperatures.

Xi said China would introduce a national cap-and-trade system in 2017 that would limit carbon emissions across major industrial sectors, from electricity to iron and steel production. He also pledged to match tougher U.S. fuel standards on heavy trucks planned for 2019, and committed $3.1 billion to help poor countries adapt to climate change.

"President Xi has lifted the final political excuse of inaction in Washington," said Li Shuo, a campaigner for environmental group Greenpeace.

China’s aid money matches a similar pledge made last year by Obama, though the money has yet to be delivered to the UN-backed Green Climate Fund because of Republican refusal to appropriate the funds.

Despite the joint announcement by Xi and Obama, some Republicans remained adamantly opposed to a climate deal.

"If the president was serious about achieving a substantive climate agreement, he would spend more time working with Congress instead of developing press releases with the Chinese government," said Senator James Inhofe of Oklahoma. "These public pledges sound good but come with serious economic consequences for the United States."

For his part, Trump has not made any public comments about the agreement since it was announced. He did not immediately respond to an emailed request for comment on Friday.

The pledges mean that the world’s two biggest carbon emitters have now aligned their climate diplomacy going into negotiations for a global accord in Paris this December. It marks a long evolution from the Kyoto climate talks in the 1990s, when China refused to sign any agreement that would limit carbon emissions. That position undermined support for the Kyoto agreement in the U.S. Congress, which refused to ratify it.

That sentiment remains strong among Republican lawmakers and some Democrats, who oppose U.S. measures to limit carbon emissions because, in part, China has been reluctant to do the same. The result has been a standoff between Obama and Congress that hit a nadir in 2010 when the Senate balked at passing the administration’s attempt to enact a national carbon market.

Now Xi says China will move ahead with just such a market.

"The irony is rich: emissions trading is an American idea; now it’s become an American export," said David Sandalow, a fellow at Columbia University’s Center on Global Energy Policy and former under secretary of energy for policy and international affairs.

Other parts of the Chinese package reveal a similar change – in tone, at least.

China’s financial pledge is a "watershed moment" for climate diplomacy, environmental groups say, because it shows a willingness to share the billions of dollars believed required to help poor countries shift to low-carbon economies and deal with the effects of a hotter planet. China has long seen itself as a developing nation that is expected to be on the receiving end of any international largesse.

Jake Schmidt, international policy director of the Natural Resources Defense Council, said this change in attitude removes a common complaint about China from Congressional opponents.

"China is not going to be the recipient of U.S. climate financing, which is how some of our friends on the Hill are painting it," said Schmidt. "This is a better narrative."

In fact, Obama is the more likely leader who will be forced to show up in Paris without money. The first $500 million of the president’s $3 billion pledge is held up in thorny budget negotiations on Capitol Hill, where some Republican lawmakers have vowed to block any international climate funding.
 

Sri Lanka stocks trend up, ASPI gains 0.60-pct

ECONOMYNEXT — Sri Lanka’s Colombo Stock Exchange opened up on Friday, CSE data showed, with the benchmark All Share Price Index moving up 0.60 percent.

The ASPI was up 119.48 points at 20,090.63, while the more liquid S&P SL20 was up 0.63 percent, or 36.09 points, at 5,735.11.

Positive contributors to the ASPI were Dialog Axiata (up 3.29 percent at 43.90 rupees), Commercial Bank of Ceylon (up 0.51 percent at 199.00 rupees), Sri Lanka Telecom (up 4.54 percent at 82.90 rupees), and Sampath Bank (up 1.45 percent at 140.00 rupees).

Distilleries Company of Sri Lanka (down 1.57 percent at 50.00 rupees), Ambeon Holdings (down 3.98 percent at 31.40 rupees), Tokyo Cement Company (Lanka) (down 2.28 percent at 72.80 rupees), Singer (Sri Lanka) (down 0.56 percent at 70.60 rupees), and Ceylon Tobacco Company (down 0.56 percent at 1,768.00 rupees) were top negative contributors.

Market turnover was 170.32 million rupees. Capital goods led turnover with 36.64 million rupees. (Colombo/Oct16/2026)

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Sri Lanka rupee at 331.15/25 to US dollar spot, bond yields steady

ECONOMYNEXT – Sri Lanka’s rupee was quoted flat at 331.15/25 to the US dollar in the spot market on Friday, while bond yields were steady, dealers said.

A bond maturing on 15.10.2028 was quoted flat at 10.60/70 percent.

A bond maturing on 15.06.2029 was quoted at 10.95/11.05 percent.

A bond maturing on 15.10.2030 was quoted at 11.41/45 percent, up from 11.40/45 percent.

A bond maturing on 01.12.2031 was quoted at 11.65/73 percent, up from 11.65/70 percent.

A bond maturing on 15.12.2032 was quoted at 11.75/90 percent, up from 11.75/85 percent.

A bond maturing on 15.01.2033 was quoted at 11.85/95 percent, up from 11.95/12.00 percent.

A bond maturing on 15.10.2034 was quoted flat at 12.20/30 percent.

The telegraphic transfer rate for the dollar was 326.70 buying, 335.70 selling; the euro was 363.6850 buying, 377.4658 selling; pound was 432.5942 buying, 446.7026 selling.

On the Colombo Stock Exchange the All Share Price Index was up 0.56 percent, or 111.97 points, at 20,083; while the S&P SL20 was up 0.63 percent, 35.68 points, at 5,734. (Colombo/Oct16/2026)

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Sri Lanka services expands at slower rate in September 2026: PMI

ECONOMYNEXT – Sri Lanka’s services sector expanded at a slower rate in September 2026, according to a Purchasing Managers Index compiled by the central bank, which registered an index value of 60.5, compared to 65.6 the previous month.

“Business Activity increased in September 2026, reflecting improvements across several sub-sectors, led by financial services, with notable contributions from education and professional services,” CBSL said.

New businesses increased in September 2026, registering 60.9 from August’s 60.0, due to the expansion in the financial services, with positive contributions from the insurance, education, professional, and other personal services sub-sectors.

Employment increased in September, “as firms across several sectors increased recruitment to meet operational needs and support business expansion”.

Backlogs of Work declined in the month, although at a slower rate compared to the previous month.

Broader global economic uncertainties continued to pose downside risks to the outlook, CBSL said. (Colombo/Oct15/2026)

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Sri Lanka manufacturing PMI steady at 53.0 in September, growth continues

ECONOMYNEXT – Sri Lanka’s manufacturing sector expanded at a steady rate in September 2026, registering a value of 53.0 on a Purchasing Managers Index compiled by the central bank, same as the previous month.

“This indicates that manufacturing activities continued to expand at a similar pace during the month,” CBSL said, noting the outlook remains positive, driven largely by optimism on year-end seasonal demand.

The New Orders sub-index expanded in the month, registering 51.0, attributed to positive developments in both the food and beverages and textiles and wearing apparel manufacturing sectors.

The Production sub-index also registered 51.0, for the same reason.

The Employment sub-index expanded at a slower pace, registering 52.6, from the previous 54.8.

The Stock of Purchases sub-index moderated towards the neutral threshold, “indicating broadly unchanged inventory levels during the month,” CBSL said.

Suppliers’ Delivery Times sub-index remained lengthened in September. (Colombo/Oct15/2026)

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Sri Lanka rupee closes at 331.15/25 to US dollar spot, bond yields steady

ECONOMYNEXT – Sri Lanka’s rupee closed flat at 331.15/25 to the US dollar in the spot market on Thursday, while bond yields closed steady, dealers said.

A bond maturing on 01.08.2030 closed flat at 11.35/40 percent.

A bond maturing on 15.10.2030 closed at 11.40/45 percent, up from 11.37/43 percent.

A bond maturing on 01.02.2031 closed flat at 11.45/50 percent.

A bond maturing on 15.12.2032 closed flat at 11.75/85 percent.

A bond maturing on 15.10.2034 closed at 12.20/30 percent, up from 12.12/20 percent. (Colombo/Oct15/2026)

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Sri Lanka’s Sampath Bank to raise Rs10bn in debenture sale

ECONOMYNEXT – Sri Lanka’s Sampath Bank plans to raise 10 billion rupees through the issuance of Basel III-compliant debentures, it said in a market filing.

Up to 100 million listed, rated, unsecured, subordinated, redeemable 5-year (2026/ 2031) and 7-year (2026/ 2033) instruments will be offered at 100 rupees each.

The proposed instruments will carry a non-viability conversion feature, the company said.

Initially 70 million debentures will be issued, and another 30 million in the event of an oversubscription of the initial issue.

Fitch rates Sri Lanka Sampath Bank’s Rs10bn debenture issue A(lka)

The issue has received CSE approval.

The subscriptions list opens on October 20. (Colombo/Oct15/2026)

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