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Monday November 9th, 2026

Counsel Corea – “President and the Cabinet are constitutionally responsible to the Parliament”

ECONOMYNEXT – Holding Parliamentary General Elections at this time when the COVID 19 pandemic is claiming victims is dangerous and “queues will stretch for kilometres,” at polling stations, the Supreme Court heard today.

The Apex Court is hearing eight Fundamental Rights applications challenging the Election Commission’s decision to hold the polls on June 20 and the refusal by President Gotabaya Rajapaksa to reconvene the recently dissolved Eighth Parliament.

These hearings are to decide whether the court will proceed with the petitions.

A five-member bench headed by Chief Justice Jayantha Jayasuriya comprising Supreme Court Justices Buwaneka Aluwihare, Sisira de Abrew, Priyantha Jayawardena and Vijith K Malalgoda has been constituted for these hearings.

Counsel Viran Corea appearing for Petitioners the Centre for Policy Alternatives and its Executive Director Dr Paikiasothy Saravanamuttu says the Petitioners have come before the SC to “protect the people’s right to franchise and their sovereignty.”

Corea says “free and fair elections must be safe, and health experts have suggested that under the prevailing conditions holding an election is not safe.”

Until a new Parliament can be elected, “the functions of the Parliament must continue” because the President and the Cabinet are constitutionally responsible to the Parliament,  Corea submitted.

Because Parliament has full control of public finance, he said, in terms of the constitution the functioning of the Parliament cannot be dispensed with, he submitted.

Corea, referring to the 2018 dissolution case, submitted that there is no special power vested on the President to dissolve Parliament except the power subject to the restrictions stipulated in Article 70, and that it should be understood in a way that the discretion to call for an early election is subject to the condition that a new date is set to summon a new Parliament within 3 months.

Corea told the court “the framers of the constitution has taken great pains to emphasise that a new Parliament must meet within 3 months.”

He submitted that the Dissolution proclamation, ever since it became clear that the new Parliament cannot be summoned on the stipulated date, has become invalid.

“There is imminent danger unless the impugned proclamation is held void, otherwise a dangerous precedent will be set where a vital organ of Government will not be for the first time not function for over the stipulated maximum of three months’ period,” he counsel said.

Another counsel, Suren Fernando appearing for two sets of Petitioners including Ranjith Madduma Bandara, General Secretary of the Opposition Samagi Jana Balavegaya submitted that the election commission has two responsibilities. “One is to have a timely election, and two is to have a free and fair, and secret ballot.”

Fernando says that “in any functioning democracy all three organs of Government must exist,” and emphasized about the importance of the separation of powers.

Fernando submitted to the court that the constitution makes the President responsible to the Parliament and he must attend Parliament once in 3 months, and asked if Parliament stands dissolved for over 3 months how can the President attend the Parliament.

He described the current situation as being far more serious than the situation than what the country faced during the 2018 dissolution.

He submits that, the election was not held on the time stipulated in the proclamation, and the new Parliament did not meet on the stipulated date, hence the proclamation is unworkable, and is frustrated.

He said that the “citizens have a right to have a functioning Parliament. If not for the early dissolution invoked by the President, this Parliament would continue until September.”

Fernando told the court that dissolution, in our constitution, is not termination or a “permanent killing of Parliament until a new Parliament is elected. If it is construed otherwise, it will render other provisions in the constitution meaningless.”

He submitted that dissolution of Parliament is not like the dissolution of marriage or dissolution of a partnership as the Constitution enables the President to summon a dissolved Parliament. “You can’t summon a dead Parliament. Hence, dissolution doesn’t mean the Parliament is dead,” Fernando said.

Fernando pointed out that it “imposes a duty on the President to respect and uphold the constitution. This is a situation where the constitution is not respected and upheld. One organ of the Government is not functioning.”

He submitted that the President had a duty to rescind his proclamation adding that that “when you have the power you must not abuse it, but also in necessary situations you must use it.”

He said the President has no control over sources and oversight of public finances. In the circumstances, the President’s powers are limited to the allocation of public finances to public service.

He submitted that the debt ceiling is very important and is set by our by Parliament. Any borrowing that has happened after April 30 is illegal as Parliament has not sanctioned them.

He said the concerns pertaining to public finances emphasise the importance of a functioning Parliament. “Otherwise we will be going into a dangerous situation where we will cease to be a democracy,” counsel said.

Geoffrey Alagaratnam President’s Counsel appearing for two citizens of Sri Lanka quoted the famous saying the “King is dead long live the kingdom” and emphasised the importance of the continuance of Parliament.

He submitted that, the power of dissolution is not an open-ended power and that the constitution reflects the social contract between the sovereign people and the rulers who hold and exercise that sovereign power in trust of the people.

Alagaratnam said “we don’t have an election by hook or crook. It must be free and fair.”

He said the Executive has stated that “under no circumstances, I would reconvene the Parliament. Is it responsible for an Executive to say so?”

Ikram Mohammed PC appearing for Petitioner Sri Lanka Muslim Council leader Rauff Hakeem says that the dissolution proclamation has ceased to be valid; it is inoperative; and cannot be carried forward.

Counsel said “if elections were held queues can extend to more than a kilometre. Is it practical to have an election now, can we all stand in such queues? Can social distancing be maintained at an election?”

He said that “even today we are not free, therefore a free and fair election cannot be held. It is not realistically possible.”

The President, Mohammed said, could have obtained an opinion from the SC, but he has not done that, and that is why these actions had to be filed.

He said the “SC is the final guardian of Fundamental Rights, there is no other place to go. It is a solemn and sacred duty of the SC.”

He submitted that the President is also subject to the rule of law; he is a creature of the constitution, and he is not above the law.

Submissions with resume tomorrow. (Colombo, May 19, 2020)

We acknowledge online sources primarily the Tweets from N K Ashok Bharan and PublicLaw for the content above as well as our court reporters.

Reported by Arjuna Ranawana

 

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)

 

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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)

 

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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)

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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)

 

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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)

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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)

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