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Tuesday October 27th, 2026

India should act strictly on fishermen poaching, bottom trawling in Sri Lankan sea: Minister

ECONOMYNEXT – India and its Southern Tamil Nadu state should take strict actions against their fishermen who encroach into and involved in illegal fishing in Sri Lankan seas with the usage of banned bottom trawler methods, the island nation’s Fisheries Minister Douglas Devananda said.

Sri Lanka has seen bottom trawling by Indian fishermen during the peak fishing season in Sri Lanka’s northern waters off Jaffna. Bottom trawling is banned by Sri Lanka and is a punishable offense, which has led to arrest of a raft of Indian fishermen along with their bottom trawlers.

Depletion of fish resources in the Northern sea in the face of continuous Indian bottom trawling, a method of banned fishing that involves dragging heavy weighted nets across the sea floor, has pushed some Northern fishermen to take up Chinese funded sea cucumber farming.

Sri Lanka’s North is just 27 km from the South Indian state of Tamil Nadu.

Northern fishermen have accused the Sri Lanka Government of not doing enough to curb Indian encroaching and bottom trawling.

“Though the child and mother are the same, their mouth and stomach are different.” Minister Devananda cited a Tamil proverb to explain Northern fishermen are suffering in the hands of Indian fishermen.

Northern fishermen have repeatedly pleaded with the governments of both India and Sri Lanka to stop bottom trawling in Sri Lankan territory.

CONTINUING INDIAN BOTTOM TRAWLERS

However, the plea has fallen on deaf ears. The plundering of Sri Lankan fishing resources continues despite the Sri Lankan Navy arresting some Indian fishermen and confiscating some trawlers

“Theft can’t be eliminated unless the thief feels his mistake and corrects himself. It is Indian fishermen who are encroaching. That should be banned,” Devananda said.

“It is not only us, but also the Indian and Tamil Nadu government should act on this. But there are no such efforts seen from the Indian side to stop this.”

The Indian Federal Government in principle agreed to ban bottom trawling in 2016 within three years in a phased-out manner by shifting the bottom trawlers to deep water fishing, Sri Lanka Government officials say.

But bottom trawling is thriving in the north, though Delhi agreed to ban it six years back.

“Due to the illegal encroachment and poaching of Tamil Nadu fishermen, not only our resources are destroyed, but also the livelihood of our fishermen. Our fishermen have expressed their dissatisfaction and protest against this,” he said.

The Minister said the Indian trawlers are not seen for the past two months as it is the hatching period of fish in the Northern sea.

“This is not something that started yesterday or today,” he said.

“We want to have not only the discussions, but also the laws implemented. We think we can control this by arresting those who encroach and illegally fishing while implement the law.

The bottom trawling sweeps up all juvenile fish along with their habitats and invertebrates that get in its way, which results in fishermen not having an adequate fish catch.

Northern fishermen blame India for not taking the issue seriously and they blame their own Tamil political leadership for using the issue to their own advantage, and they blame bureaucrats for their lethargic attitudes. (Colombo/June 11/2024)

Sri Lanka Cabinet approves $60mn OPEC Fund loan for Mahaweli project Phase 2

ECONOMYNEXT – Sri Lanka’s Cabinet of Ministers has approved a proposal to enter into an agreement with the OPEC Fund for International Development (OFID) to secure a 60 million US dollar loan facility for Phase 2 of the Mahaweli Water Security Investment Program (MWSIP).

The total estimated cost for Phase 2 of the program is 536.5 million dollars, which the government plans to finance through co-financing arrangements with multiple development partners. The Asian Development Bank (ADB) has already agreed to provide 200 million dollars toward the program.

“Phase 2 of the Mahaweli Water Security Investment Program is planned for implementation to achieve the Government’s long-term objectives: enhancing food security in the Dry Zone, strengthening water resource management, improving resilience to climate change, and alleviating poverty,” Minister Nalinda Jayatissa said.

Following prior cabinet approval on July 20, 2026, to begin negotiations with OFID, the development fund confirmed its willingness to provide the 60 million dollar facility in two components of 48 million dollars and 12 million dollars.

The proposal was submitted by the President in his capacity as the Minister of Finance, Planning, and Economic Development.

Under Phase 2, key construction works include finishing the remaining section of the main tunnel with about seven kilometers of excavation, constructing 68 kilometers of open and covered canals, conduits, and short tunnels, and building an eight-kilometer canal section for the Ellapothana Irrigation Project.

The project will also establish commercial farming infrastructure, including around 13 pressurized distribution networks to supply reliable irrigation water for high-value and field crops.

The cabinet paper noted that the phase will also focus on:

“Transforming agricultural production systems by introducing climate-resilient value chains and expanding farmers’ access to financial services and agricultural project-related services.” (Colombo/Oct27/2026)

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Sri Lanka stocks close up, ASPI gains 0.27-pct

ECONOMYNEXT – Sri Lanka’s Colombo Stock Exchange closed up on Tuesday, CSE data showed, with the benchmark All Share Price Index moving up 0.27 percent.

The ASPI was up 52.11 points at 19,693 (19,692.67), while the more liquid S&P SL20 was up 0.19 percent, or 10.44 points, at 5,612 (5,612.31).

Positive contributors to the ASPI were Dialog Axiata (up 0.48 percent at 42.20 rupees), Carson Cumberbatch (up 1.02 percent at 670 rupees), Ceylon Cold Stores (up 1.25 percent at 121.50 rupees), Laugfs Gas (up 5.07 percent at 37.30 rupees), and Lion Brewery (Ceylon) (up 1.86 percent at 1,849.75 rupees).

Colombo Dockyard (down 3.74 percent at 95.30 rupees), Vallibel One (down 1.19 percent at 83 rupees), Hatton National Bank (down 0.27 percent at 367.50 rupees), LOLC Finance (down 2.22 percent at 4.40 rupees), and LOLC Holdings (down 0.64 percent at 390 rupees) were top negative contributors.

Market turnover was 849.37 million rupees. Materials led turnover with 229.66 million rupees.

Digital Mobility Solutions Lanka announced a first interim dividend of 2.75 rupees per share for the financial year 2026/27, subject to withholding tax. The ex-dividend (XD) date is November 5, 2026, and the dividend payment is scheduled to be dispatched on November 25, 2026. (Colombo/Oct27/2026)

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Sri Lanka rupee closes at 332.40/50 to US dollar spot, bond yields edge up

ECONOMYNEXT – Sri Lanka’s rupee closed at 332.40/50 to the US dollar in the spot market on Tuesday, weaker from 332.25/35 the previous day, while bond yields closed slightly higher, dealers said.

A bond maturing on 15.09.2029 closed flat at 11.08/15 percent.

A bond maturing on 01.08.2030 closed at 11.55/60 percent, up from 11.45/55 percent.

A bond maturing on 01.02.2031 closed at 11.75/80 percent, up from 11.70/75 percent.

A bond maturing on 01.12.2031 closed at 11.85/95 percent, up from 11.80/90 percent.

A bond maturing on 15.01.2033 closed at 12.15/30 percent, up from 12.15/25 percent.

A bond maturing on 15.10.2034 closed at 12.5/60 percent, up from 12.45/55 percent. (Colombo/Oct27/2026)

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Sri Lanka approves performance-based framework for SOE collective agreements

ECONOMYNEXT — Sri Lanka’s Cabinet of Ministers has approved a new performance- and sustainability-based framework for collective agreements in State-Owned Enterprises (SOEs), which will take effect from January 1, 2027, minister Nalinda Jayatissa said.

The decision follows an earlier cabinet decision when the government decided to extend existing collective agreements in state enterprises under their current terms and conditions until December 31, 2026, while preparing a revised structure for 2027.

To facilitate the transition, the Secretary to the Treasury appointed an expert committee tasked with reviewing the current collective agreement mechanism and formulating the new framework.

Following consultations with relevant stakeholders, the committee submitted its report.

According to Jayatissa, the expert committee recommended aligning workplace pacts with key statutory regulations:

“It is recommended that collective agreements be implemented within state-owned enterprises, subject to the Industrial Disputes Act, the Trade Unions Ordinance, the Shop and Office Employees Act, and other relevant labour laws.”

The new structure also addresses employee incentives and financial returns.

“Recommendations have also been put forward regarding a framework for profit-sharing and bonuses.” (Colombo/Oct27/2026)

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Sri Lanka awards Rs756.9mn road project to Asset Engineering

ECONOMYNEXT – Sri Lanka’s Cabinet has approved a proposal to award a road improvement contract to cover an additional section of roadway in the Central Province to Asset Engineering (Pvt) Limited, minister Nalinda Jayatissa said.

The contract is valued at about 756.9 million rupees (excluding taxes).

The project will upgrade the road from kilometre 10+500 to kilometre 16+890 on the Norwood-Bogawanthalawa-Campion (B329) route.

Bids were called and 3 bids were received, Jayatissa said. (Colombo/Oct27/2026)

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Sri Lanka to lease 15 plantation properties to investors

ECONOMYNEXT – Sri Lanka’s Cabinet has approved the long-term leasing of 15 state plantation properties to selected local investors, minister Nalinda Jayatissa said.

The assets are owned by the Sri Lanka State Plantations Corporation, the Janatha Estates Development Board and Elkaduwa Plantations Company.

The government had earlier called for expressions of interest from investors for 1,514 hectares of land, 10 tourist bungalows and scenic locations, and 15 inactive factories managed by the three plantation entities.

A total of 470 investors submitted expressions of interest, Jayatissa said, after which shortlisted applicants were invited to submit detailed proposals.

“The government received 44 proposals covering 50 land and property lots.”

“Cabinet approved the proposal to lease 15 selected land and property plots to investors on a long-term basis.”

The government expects the initiative to attract private investment and improve the utilization of underused plantation-sector assets, he said.

He did not respond to reporters’ questions on how long the lease periods are, or how much the government hopes to raise through the leasing, or if the lands and properties will be distributed among parties loyal to the government.

Historically, most lands under the SLSPC and JEDB originated from the 1972 and 1975 land reform laws, when large privately owned plantations were taken over by the state. Many tea, rubber and coconut estates were nationalized and later placed under state plantation entities. (Colombo/Oct27/2026)

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