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Monday November 9th, 2026

EU to review Sri Lanka’s access to GSP+ trade concession amid rights abuse concerns

Sri Lankan Garment Factory/apparelresources.com

ECONOMYNEXT – A European Union (EU) delegation arrived in Sri Lanka Monday (27) morning to assess if the bloc should withdraw the country’s largest trade concession that has helped the island nation’s top export garments, amid renewed concerns over human rights abuses against ethnic minorities.

The five-member EU delegation will meet officials including President Gotabaya Rajapaksa and all key stakeholders to assess the progress of Sri Lanka’s pledges to comply with 27 international conventions in return for the Generalized Scheme of Preference Plus (GSP+) trade concession.

The European parliament in June adopted a resolution to consider withdrawing the over 500 million US dollar worth trade concession.

The European parliament’s key demand was for Sri Lanka to repeal the Prevention of Terrorism Act (PTA), arguing that the legislation has been systematically used for arbitrary arrests and the detention of Muslims and minority groups in Sri Lanka.

International rights groups have asked the EU to demand Sri Lanka to comply with its obligations to continue the trade concession.

“Under President Gotabaya Rajapaksa, the Sri Lankan government has suppressed civil society, silenced protesters, targeted vulnerable minorities, further misused the abusive PTA, and reversed any progress on accountability for war crimes,” EU director at Human Rights Watch Lotte Leicht said in a letter last week.

“The EU should call out these blatant violations of Sri Lanka’s obligations under the GSP+ rules and be clear about the consequences if human rights violations and impunity for war crimes persist.”

The Rajapaksa government has denied the allegations.

The EU is the second largest export destination for Sri Lankan products, and GSP+ has helped the country’s exporters to consolidate their position.

Around 7,000 Sri Lankan export items were covered under GSP+, of which around 60% were apparel, 11% were rubber products, 9% were gems and jewellery, 3% agriculture and around 17% other products, including wood products, toys and tableware.

Two key incidences

The EU delegation visit comes after two key incidents of alleged human rights violations in the last two weeks.

Lohan Ratwatta, a state minister under President Rajapaksa administration, has been accused of threatening 10 ethnic minority Tamil detainees with a gun while forced to kneel down.

Ratwatta has resigned from the Prison Management and Prisoners’ Rehabilitation State Minister portfolio, but still remains as the State Minister for Gem and Jewellery.

Ratwatta has denied the allegation though he admitted that he had gone to the prison. The government has appointed a commission to probe the matter.

In addition to this, an opposition Tamil legislator has said he was dragged by the police vehicle when he, in solo, tried to commemorate the death of a Tamil Tiger rebel in public while maintaining all COVID-19 health guidelines.

“The police kicked the camphor lamp I lit to commemorate the death of a Tamil youth by his shoe, dragged me into the police jeep saying that commemoration is banned,” Selvarajah Kajendren, Jaffna district opposition MP told the EconomyNext.

“Lighting camphor lamp is one of our religious traditions to commemorate deaths. I see police kicking this by his shoe as a refusal of my freedom of expression and religious rights,” he said.

“Then they did not show the court order which said there is a ban on the commemoration. They arrested me for commemorating the death of a banned organisation’s member, but they filed a case against me under breach of quarantine guidelines.”

Police Spokesman Nihal Thalduwa, however, said the arrest was made to be a staged drama as the MP struggled without obeying the order.

“By coming to commemorate the death of a banned organisation member, he broke the quarantine law and that is why he was arrested,” Thalduwa told EconomyNext.

Later the MP was released on bail after being asked to be present in court on October 27.

The two incidents took place when international attention was on Sri Lanks for its past human rights records as the United Nations Human Rights Council continued to assess the country’s progress in addressing alleged past abuses.

Vital for exports

The EU delegation also comes two weeks after the United Nations Human Rights chief raised concerns over Sri Lanka’s conduct over addressing past alleged human rights violations and said the world body will initiate maximum information gathering this year over said violations.

Sri Lanka benefits from the GSP+ concession, an incentive scheme tied to the improvement of human rights and good governance. The scheme offers tariff cuts to support vulnerable developing countries.

Some politicians in the ruling Sri Lanka Podujana Peremuna (SLPP) have said the country should not always depend on trade benefits and the export industry should increase their productivity to overcome the situation.

However, exporters have said GSP+ has given great relief given the higher cost of production in Sri Lanka.

The EU has consistently warned Sri Lanka it must meet 27 international human rights conventions to retain its GSP Plus status. The island nation lost the concession in 2010 because of human rights violations and civilian deaths in the final phase of the war against the Tamil Tigers, which ended with the separatists’ defeat.

Sri Lanka regained the same concession in 2017 but it has come under pressure again from Western nations and rights groups because of renewed allegations of human rights violations since President Gotabaya Rajapaksa was elected.

Suspension of the preferential tariffs could hit Sri Lanka’s booming textile industry hard. In 2020, the country earned 3.9 billion US dollars from exports of clothing mainly to EU markets, apparel being the largest source of its foreign currency earnings. Exports fell almost by a quarter last year due to the pandemic impacting manufacturing.

Economy and reconciliation

President Rajapaksa’s government has said it is ready to engage with the United Nations but would not cooperate with an external initiative to address allegations of human rights violations.

At the UN General Assembly last week, he asked the UN to facilitate Sri Lanka to deal with its own issues by allowing the parliament, the judiciary and its range of independent statutory bodies “to exercise their functions and responsibilities”.

The President also expressed his government’s intention to engage with the Tamil diaspora, an idea that was strongly opposed by his ruling SLPP when it was in opposition from 2015 to 2019.

President Rajapaksa’s move comes as the country is facing an impending economic crisis with a sharp fall in state revenue due to the pandemic and risk of possible sovereign default amid difficulties in borrowing foreign currencies through external commercial loans due to high risk premium.

This has prompted the Rajapaksa administration to urge all countries to look at Sri Lanka as a trade and investment destination.

Foreign Minister G L Peiris when he met Lord Ahmad, British Minister of State for South Asia, United Nations and the Commonwealth, over the weekend on the sideline of the UN session in New York, discussed trade, investment opportunities available in the Port City and elsewhere and matters relating to development and reconciliation with particular reference to relations with the diaspora, the foreign ministry said in a statement.

“Minister Peiris briefed Lord Ahmad in detail about the substantial progress on the ground in a variety of sectors by domestic institutions, despite constraints imposed by the COVID-19 pandemic.”

In a meeting with South African Minister for International Relations and Cooperation Naledi Pandor, Peiris said Sri Lanka had closely looked at South Africa’s rich experience and unique history in the areas of reconciliation and truth. He also briefed Pandor on Sri Lanka’s own initiatives, including its own Office of Missing Persons and Office of Reparations and their contribution towards Sri Lanka’s post conflict development and national unity. (Colombo/Sep27/2021)

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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