An Echelon Media Company
Friday November 13th, 2026

Gotabaya’s early parametres need revision

One of the weaknesses of the previous government was its failure to have cohesive policies that it implemented with determination.  Instead there was a sense of free space and license to do as one pleased.  It gave people a welcome sense of freedom, but it also led to strikes and pickets on an almost daily basis and frustration among the general population who did not see government at work.  Along with the change of government that took place after the November 16 presidential election there is a sense of strong government and an uncertainty about what the parameters of free space will be.  Recent pronouncements by President Gotabaya Rajapaksa are providing an initial indication of what some of the parameters will be.  The president’s visit to India and the speeches and interviews he gave there provide a first indication of what some of the parameters might be.

Sri Lankans who are looking for political leadership that would bring change would be pleased with many of the decisions that President Rajapaksa has made in the first two weeks of assuming power.  He has made executive directions by himself that show him as a leader who is different.  The reduction in presidential staff and the small entourage of less than ten who accompanied him on his state visit to India could be seen as cost-cutting measures that correspond to the absence of an ostentatious lifestyle and simple manner of dress. His direction that all appointments to be made to state corporations and statutory bodies should be vetted by an independent high level committee appointed by him have also obtained widespread public approval.  It is a sign that appointments will be made on merit rather than on political patronage alone.

President Rajapaksa’s initial foray into international relations has also proved to be a success.  He obtained USD 450 million from the Indian government as a soft loan to be used for economic development and national security activities.  This amount is equal to that of the USD 450 million grant offered by the US government in terms of the Millennium Challenge Corporation project to develop the transport and land registration systems.  The parity in the money that is offered by India suggests that it wants to be considered to be Sri Lanka’s closest development partner.  While the Indian assistance is in the form of a loan, it is money that can be used to boost the country’s economy and if used for development purposes can strengthen the economy so that repayment is not problematic.  Transparency about how this money is to be spent would send a reassuring message about accountability.

CHINESE LEASE

There is unlikely to be controversy generated in Sri Lanka about the Indian offer of monetary assistance unlike in the case of the MCC grant.  This could be due to Sri Lanka having been the recipient of previous Indian assistance, such as the 60,000 houses that have been built or are in the process of being built in the North and East for displaced persons and in the hill country for plantation workers. It could also be due to the trust placed by the people in the present political leadership led by President Rajapaksa.  By way of contrast the US assistance has been fraught with controversy over American intentions.  Previous Chinese assistance which has lacked transparency has been dogged by the concern that it has placed Sri Lanka in a debt situation where it will be compelled to give in to Chinese demands that may even take the form of satisfying China’s military objectives.

During his visit to India, President Rajapaksa spoke straightforwardly that Sri Lanka under him would not permit its territory to be used for military purposes by any country.  He said he would renegotiate with China regarding the Chinese-built Hambantota port which was leased for 99 years to China by the previous government.  In stating this in India, the president lay down the parameters of Sri Lankan foreign policy with regard to crucial national assets, such as ports which could have national security implications, as against leasing out or selling land to foreign entities for purely commercial purposes.  The president’s statements on the Hambantota port appear to have caught the Chinese by surprise as they have made haste to point out the distinction between private commercial agreements and state-to-state agreements.  They have said that any revision calls for mutual agreement and not unilateral decision making by one side.  They have also sent a delegation to Sri Lanka. In the light of Indian generosity, there will be pressure on China to be generous without seeking to capitalize on the negotiating errors made by previous governments.

ETHNIC CONFLICT

Another issue on which President Rajapaksa spoke his mind in India was with regard to the ethnic conflict. Even prior to visiting India he had made his approach to that problem known.  He said that development was the way to push forward the reconciliation process with the minorities and that in the past Sinhala and Tamil political leaders had continuously fooled people by making unrealistic promises. He said that Sri Lanka should focus on what it could do first and he would focus on giving people the opportunity to live with dignity by improving their living standard.  Crucially he said that “Everybody is a Sri Lankan citizen if they are born in Sri Lanka. They have equal rights, everybody, but they should not do certain things. They have to understand the reality.”

In India, President Rajapaksa went further in explaining his position.  He said that he intends to focus on development of the Northern and Eastern regions and not political issues.  Development needs to take into account the needs of the people of each area, and there cannot be a blanket prescription for all parts of the country.  In an interview to the Indian media he said, “We can discuss political issues, but for 70 odd years, successive leaders have promised one single thing: devolution, devolution, devolution. But ultimately nothing happened. I also believe that you can’t do anything against the wishes and feeling of the majority community. Anyone who is promising something against the majority’s will is untrue. No Sinhala will say, don’t develop the area, or don’t give jobs, but political issues are different. I would say, judge me by my record on development [of North & East] after five years.” Development and devolution of power need not be looked at as opponents but as complementary as the development needs of different areas are unique. 

It is likely that economic development as envisaged by President Rajapaksa will make the ethnic conflict easier to resolve.  Prosperous and well employed people are less likely to agitate violently for political change.   But they will still want political change.  Catalonia in Spain, Scotland in the United Kingdom and Quebec in Canada are all prosperous territories, but they continue to agitate for self-rule.  So while the problem may become easier to resolve it will not go away on its own through economic development alone.  With political leadership they trust, the Sinhalese majority may be willing to concede more on political issues and the Tamil minority may be willing to demand less. The crux of the ethnic problem is that what the Sinhalese majority is opposed to is what the Tamil minority has been demanding for the past seventy years.  As in the case of the Chinese lease of Hambantota port, there will need to be mutual accommodation on this.  

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)

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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)

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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.

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Sri Lanka Treasury bill yields hold broadly steady, less bills sold

The settlement date is November 13. (Colombo/Nov13/2026)

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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)

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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)

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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)

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