An Echelon Media Company
Friday November 13th, 2026

EXPLAINER – From PTA to PS-TB: Is Sri Lanka only replacing the name?

ECONOMYNEXT – Sri Lanka’s decades-long engagement with extraordinary security legislation has reached a pivotal juncture with President Anura Kumara Dissanayake’s government has decided to do away with the draconian Prevention of Terrorism Act (PTA) enacted in 1979.

Instead, the government tabled the Protection of the State from Terrorism Bill (PS-TB) in Parliament.

However, an exhaustive legal analysis by Amnesty International, alongside scrutiny from civil society and legal experts, suggests that rather than dismantling a legacy of state abuse, the new legislation threatens to institutionalize arbitrary executive powers under a modernized statutory veneer.

For domestic citizens, foreign observers, human rights defenders, and international investors, the bill presents far-reaching implications for human rights, judicial independence, and Sri Lanka’s broader economic stability, analysts say.

To understand the concerns surrounding the new bill, one must examine the legacy of the law it aims to replace.

Enacted in 1979 as a temporary emergency measure during the onset of civil unrest, the PTA was permanently codified in 1982 and became a cornerstone of Sri Lanka’s security architecture for over four decades.

Historically, the PTA served as a primary mechanism for systemic state abuse, arbitrary arrest, and human rights violations.

The law was disproportionately deployed against ethnic minorities, political dissidents, journalists, trade unionists, and peaceful protesters, analysts say.

Under the PTA, individuals could be detained for up to 18 months under administrative Detention Orders issued by the Minister of Defence without formal charges or meaningful judicial review.

The act uniquely rendered confessions made to senior police officers admissible in court, creating structural incentives for torture, coerced statements, and extended solitary confinement.

By shielding security personnel with broad immunity clauses and denying suspects prompt access to legal counsel or bail, the PTA enabled state actors to operate with near-total impunity, leaving victims without legal redress.

Despite repeated pledges by successive administrations and explicit commitments made to international bodies, the PTA remained actively used, with human rights data confirming dozens of detentions through 2025 and 2026.

The latest Protection of the State from Terrorism Bill introduces minor modifications compared to earlier legislative iterations, such as late-2025 proposals.

Most notably, the updated draft incorporates judicial oversight over executive decisions to proscribe organizations and removes vague clauses that previously criminalized acts merely intended to infringe on national sovereignty.

However, as Amnesty International highlights, the new bill retains significant grey areas and structural deficiencies that fall far short of international human rights standards.

“Any attempt to revise a counterterror law which has time and time again been weaponized by the authorities against dissent, government critics, and minorities must be given the utmost scrutiny,” said Smriti Singh, Amnesty International’s South Asia Director.

“The new bill must break with this legacy of abuse, not give the authorities new tools to silence dissent.”

“Serious Human Rights Concerns”

“Sri Lanka’s history of abusing such legislation makes robust, enforceable safeguards essential, and these remain inadequately addressed in the bill, sparking serious human rights concerns.”

While narrower than earlier drafts, the definition of terrorism in the PS-TB remains dangerously elastic.

The bill does not explicitly exclude peaceful protests, trade union actions, civic advocacy, or medical and humanitarian assistance from being classified as terror offenses.

Instead, it merely notes that such activities are not by themselves sufficient to establish an offense, a qualification that leaves substantial room for subjective interpretation and potential criminalization of civil dissent.

Furthermore, the bill penalizes acts causing a mere likelihood of substantial economic loss, setting a low threshold that could potentially classify mass strikes or blockades as acts of terror.

“Allowing a person to be detained for up to a year before being charged, with the prospect of a further year in pretrial detention, raises grave concerns about arbitrary detention and the right to a fair trial. No one should have to spend years in detention while the state delays bringing a case to trial,” said Smriti Singh.

“We urge Sri Lanka’s parliament to withdraw this bill and reform the law in line with international human rights law and standards. Until this is done, the PTA should not be misused further.”

In addition to broad definitions, the procedural safeguards within the proposed law remain deeply compromised.

The bill permits administrative detention for up to one year without formal charges, alongside the possibility of an additional year in pre-trial detention.

A cumulative two-year period of pre-trial deprivation of liberty severely undermines the presumption of innocence, the right to a fair trial within a reasonable timeframe, and protection against arbitrary detention.

Furthermore, although the bill establishes a review committee to examine the legality of Detention Orders, its members are appointed directly by the Minister of Defence, meaning an executive-appointed panel cannot substitute for independent, impartial judicial review within the regular criminal justice system.

Wide Police Powers

The draft also extends police powers, including search, arrest, and seizure authority, to the armed forces and coast guard, while empowering the Attorney General, with High Court approval, to suspend or defer prosecutions for up to twenty years in exchange for suspect concessions, leaving individuals exposed to prosecution for decades.

The passage of the PS-TB in its current form carries profound risks across political, social, and economic spheres.

For the domestic public and civil society, analysts say, the law risks creating a chilling effect on democratic expression by failing to explicitly protect industrial action and civic advocacy, exposing citizens and non-governmental organizations to the perpetual threat of weaponized legal proceedings whenever opposing government policies.

For foreign nationals, researchers, and tourists, overbroad security provisions that grant sweeping arrest powers to police and allow extended detention without charge heighten jurisdictional risks during sensitive political climate shifts.

Foreign investors and international trade partners must consider the institutional stability and predictable rule of law necessary for long-term commitment.

A national security framework that permits executive overreach undermines corporate governance standards and heightened environmental, social, and governance (ESG) compliance.

Crucially, failing to align counterterrorism legislation with international human rights benchmarks jeopardizes Sri Lanka’s access to vital export preferences, such as the European Union’s GSP+ tariff scheme, which hinges on compliance with core international conventions.

Replacing the PTA was meant to mark Sri Lanka’s definitive break with an era of state-sanctioned impunity.

However, as the Protection of the State from Terrorism Bill moves through constitutional review at the Supreme Court and toward parliamentary debate, international human rights organizations and legal experts agree that the proposed statute merely re-packages executive power.

To build a secure, stable, and economically prosperous society, Sri Lanka requires a counterterrorism framework strictly aligned with UN standards, one that clearly defines terror offenses, preserves judicial oversight, protects peaceful dissent, and ensures equal protection under the law for all. (Colombo/October 22/2026)

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