An Echelon Media Company
Friday November 13th, 2026

Elpitiya result; A wake-up call

The victory of the SLPP at the long-postponed Pradeshiya sabha election in Elpitiya did not come as a surprise.  This had been an area that has consistently supported the SLFP from which the SLPP has taken the larger part.  Virtually all local authorities in the Southern Province went to the SLPP at the last local government elections held in February 2018.  Therefore it was to be expected that Elpitiya would go the same way.  However, the psychological boost to the SLPP of winning this election so near to the all-important presidential election scheduled for November 16 has been high especially given the margin of victory.  Visiting the southern hinterland a day after the election victory had been announced we could see SLPP cadres carrying out their house-to-house campaigns.  A local civil society activist said that the UNP’s campaigners had still to pay a visit to his area, whereas the SLPP cadres had done three such visits so far.

We visited a school in Gandara where an inter-ethnic peace programme was being conducted for children and their parents with the assistance of local government officials. This had not been easy to organize.  The district inter-religious committee had invited Buddhist monks from five temples to the event which was to take place at the Al-Asar Muslim school, but monks from only one turned up.  The monks in two of the temples had chided the organisers for their choice of venue. The build up of mistrust between the communities in the aftermath of the Easter Sunday attacks, and the election campaign of the SLPP which emphasizes the importance of national security, would have contributed to this attitude. But the commitment of the civil society activists ensured that a large enough number of Sinhalese children joined the programme where they, together with Muslim children, drew pictures of inter-ethnic harmony together.  In doing so they got to know each other better, and so did their parents who had accompanied them.

The children were divided into 5 groups randomly and they worked together regardless of different ethnicities, religion and language to come up with their pictures. The children then presented their artwork together and explained the concept behind it showcasing positive reconciliation thoughts. The local groups involved who collaborated to make the event a success comprised a wide range of both state and civil society and included the Matara district branches of the National Youth Services Council, Sri Lanka Human Rights Commission, Sarvodaya, Transparency International, Gandara Fisheries Society, Gandara Police Station and Community Policing Unit, Matara District Inter-religious committee and National Peace Council.  This showed the potential for peace building if the necessary leadership was given. 

WEAK COMMUNICATION

A key factor in the heavy defeat of the UNP and its inability of get more than 23 percent of the Elpitiya vote was due to the lack of a systematic political campaign on the part of the grassroots cadre of the UNP prior to the local government election.  This was on account of the party’s focus on the power struggle within itself regarding its presidential candidate.  The decision to finally field Minister Sajith Premadasa as the UNP’s presidential candidate came just two weeks before the Elpitiya election, by which time it was too late for anyone to reverse the tide.  However, it is likely that the candidacy of Sajith Premadasa will at least partly address the deficit that the UNP currently suffers from in the south of the country amongst the Sinhalese electorate vis-à-vis the SLPP.  The key factor here is that he is more popular than his party.

Under its current leadership, the UNP has come to be seen as a hands-off party by people at the grassroots level, whose leaders are cosmopolitans who deal with global and policy issues but not with local level problem solving.  By way of contrast, Sajith Premadasa is seen as a political leader who cares for the poor and will spend his time with them solving their problems.  He has been strengthening this belief in the general population by saying that he will not live in palaces in Colombo but will spend his time in the villages.  The mobile presidential secretariat that engaged in immediate local level problem solving that his father introduced when he was president can be expected to make a comeback if the younger Premadasa were to win the presidency.  This will address the desire in the electorate for leaders who will care for them and work hard to resolve their problems.

Sajith Premadasa has gone on record saying that it is necessary to promote policies in a way that they are acceptable to the people.  One of the main failures of the government has been to communicate its positive initiatives in a way that reaches mass audiences.  A school teacher at the Al Asar school in Gandara said that the Suraksha insurance scheme for school children had benefited four children in the school.  Two of them had received a sum of Rs 200,000 due to the death of a parent and another two had received a sum for Rs 10,000 for having been sick and in hospital.  A local government official who was part of the conversation admitted to not knowing of the existence of this insurance scheme.  He attributed this to inadequate communication by the government. This was contrasted with the previous government which excelled in communication though at high cost.

UNIFYING PRESSURE

Civil society activists present also explained another problem with the government’s development initiatives. It was that they are not visible, even though they have improved the lives of the people.  The most compelling one has been the greater sense of freedom from fear of being victimized by those with power and either punished unfairly or made to disappear.  But as this benefit is not visible, it is not seen as being a part of development.  A similar issue arises with improvements in the institutional frame of governance as thought the Right to Information Act (RTI) which empowers people to challenge the government authorities at various levels regarding their conduct.  An example given was of Samurdhi welfare benefits which had been distributed by government officials unfairly leaving out the more needy persons.   The filing of an RTI asking why they were left out often resulted in the inclusion of those who had been left out.

The election result from Elpitiya will serve as a wake-up call to the UNP that it has to regain the confidence of the larger electorate that expected it to deliver on its promises made in 2015 regarding good governance, economic development and national reconciliation.  The main lacuna has been in the area of economic development with the economy registering low rates of growth and the poorer sections of the population feeling that they have been standing still while they see others move on.  The choice of Sajith Premadasa, with his focus on the poor and on providing housing as the most basic of economic rights, has rejuvenated UNP supporters as witnessed in the massive shows of strength at his inaugural and subsequent public rallies as the official candidate of the UNP. 

However, the gap in the south of the country in relation to the SLPP remains substantial and needs to be bridged.  In his recent public statements as presidential candidate, Sajith Premadasa has welcomed all likeminded parties and groups to join the New Democratic Front, and said that they will all be treated with respect as constituent parties of the alliance. In one of his recent discussions with local politicians, he specifically referred to wanting President Maithripala Sirisena to join the alliance.  The president has taken the position that he will be neutral in this election even though the parliamentarians in his party have all pledged alliance to the SLPP.  In the aftermath of the Elpitiya verdict, there will also be pressure to reach out to  other presidential candidates who are likeminded in term of their policies in order to close the gap, most notably Anura Kumara Dissanayake of the JVP and General Mahesh Senanayake of the National People’s Movement.  Only a maximum alliance of like-minded parties and groups will be able to match the juggernaut of the SLPP.

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)

Continue Reading

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)

Continue Reading

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)

Continue Reading

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)

Continue Reading

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)

Continue Reading

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)

Continue Reading