An Echelon Media Company
Friday November 13th, 2026

It’s going to be a bumpy 2020

A New Year dawns and as always, we begin to hope for a better and more successful twelve months. For us of the fourth estate, life continues attempting to make sense of the economic and political challenges the country will face.

The political drama begins on January 3 when President Gotabaya Rajapaksa delivers his policy statement in Parliament.

In the House will be the same people who were there over the past four years, except that Prime Minister Mahinda Rajapaksa and his 15 member Cabinet will be occupying the government benches.

Seated opposite the PM will be the new Leader of the Opposition Sajith Premadasa who was the New Democratic Front candidate at the November Presidential election.

What happens after the “Throne” speech will be interesting.

President Rajapaksa has the power to prorogue Parliament, shutting down the business of the House for another period as he did, soon after the elections.

However, under the 19th Amendment to the Constitution, such a second prorogation can be seen as “arbitrary” if there is no reason for this action and it could be challenged in court.

Anura Kumara Dissanayake being welcomed by crowds at his hometown of Thambuththegama/JVP Media

As Janatha Vimukthi Peramuna leader Anura Kumara Dissanayake pointed out the policy statement needs to be debated and the views and the concerns of the Members of Parliament aired. At a press conference held on Dec 26, he said the party has information that the President wants to prorogue on Friday the 3rd, and demanded that it not be done.

Shutting down Parliament will rob the chance for the Opposition to air its views, bring the clamour of the streets into the House and criticize the government.

At the same time, Parliament has to function in some form for the government to enact legislation, pass votes on account and introduce amendments to fulfil its manifesto.

The New Parliament and the struggle for nominations

Come February 28, President Rajapaksa has promised to dissolve parliament and a Parliamentary General election is expected to be called for the last week of April, probably the 25th of that month.

The SLPP will go all out to win a two-thirds majority in the House in order to bend the Constitution to its will and most importantly restore full Executive powers to the President.

That is why the two months of Parliament is crucial for all the opposition political parties as they can begin their campaign against the government in the House.

The opposition political parties will need all the help they can get to make a mark.

The principal opposition, the United National Party which got a sound thrashing in the Presidential elections because of rampant in-fighting appears to not have learnt its lessons and continues to turn on itself and is looking like a heap of scrap.

The challenger Sajith Premadasa and Prime Minister Ranil Wickremesinghe share a smile at Ranala during the presidential election campaign/PM’s Media

Party “reorganizing”, code for getting rid of former Prime Minister Ranil Wickremesinghe as the Party Leader, is going nowhere and although the party has announced that Premadasa will be its Prime Ministerial candidate, the Leader stubbornly clings to his post. Premadasa has publicly said he cannot lead the campaign without being the party leader.

The party cannot even hold a meeting it appears, as plans for a meeting of the MPs slated for Dec 30th at its headquarters in Kotte did not take place. Wickremesinghe and Premadasa were to meet also on Monday to sort out their differences, but that too did not happen.

In this state, surely the UNP cannot give the leadership to the opposition, not only to win the election which at this stage seems a daunting task, but even to build a strong Opposition in Parliament.

Another interesting issue to watch will be the nomination process for the Parliamentary elections.

In his first press conference held a month after he was elected President Rajapaksa said the public “looks at our traditional politicians with disgust.” It was a telling comment; his hard-core backers are hopeful new type of Parliamentarian who could command greater confidence in the public will be elected.

Therefore there will be a tussle between the “professional politicians” and the technocrats as well as ex-military men and women who formed the “Viyath Maga” group to get their names on the nomination lists.

There are early signs of this happening.  A Rajapaksa stalwart, Media Academic and former Media Secretary Dr Charitha Herath declined the post of Lake House Chairman, usually a plum state media job, to as he said on twitter to “serve in a bigger capacity.”

The President too seems to be wanting more of these professionals in Parliament, bringing a new element into governance. It will be somewhat like the Chinese model where technocrats are moved into political positions to make government more efficient.

But what of the traditional politicians? Will the Sri Lanka Podujana Peramuna strike a balance between the two groups? What we can certainly expect is a tussle between the two, and only time will tell, which of the two would emerge victorious.

And while that tussle takes place, the third force in the governing alliance, the Sri Lanka Freedom Party is bound to suffer. Its members who entertain the idea of entering Parliament will have to stand in line behind the SLPP as well as the Viyath Maga hopefuls.

The Tyrannosaurus Rex in the room

Beyond politics, the T-Rex in the room will be Sri Lanka’s huge international debt.  In the third quarter of this year, Sri Lanka has to pay back an instalment of a mind-boggling US$ 4.8 billion, the highest this country has paid in its history.

The government has already reduced value-added tax and income tax, cutting government revenues significantly. It may have to raise money through international bonds or other instruments. Fitch ratings has already downgraded Sri Lanka.

In their only Press Conference during the presidential campaign, the current Prime Minister when asked how they plan to pay off the debts, answered: “don’t worry we know how to get the money.” So, the elder Rajapaksa, who is also the Finance Minister will have to work some magic and deliver on the promises made.

President Gotabaya Rajapaksa congratulates his brother Mahinda after the latter was sworn in as Prime Minister/PMD

There are signs that the government is preparing the ground for some austerity measures.

At least two Ministers, Bandula Gunewardene and Mahinda Amaraweera have talked of “tightening belts.” Two Monks, Mururththetuwe Ananda Thero and Omalpe Sobhitha Thero, both close supporters of the Prime Minister, have asked Buddhists to donate money to the government.

In fact stories of how the Buddhists in Thailand opened the collection boxes in the temples and donated money when the Thai King made such an appeal, has been doing the rounds.

As the President has stated, expectations of the electorate that brought him to power are high; reforming government services to deliver a more efficient service, safeguarding national security and providing a good life for all.

Will it be as easy as he and his supporters think? The challenges are many, and he will have to learn to be both politician and manager, and not step on too many toes!

As for the Millenium Challenge Compact (MCC) deal with the USA, which the Rajapaksa camp used to scare voters to win more votes, it is now more than a possibility that it will be signed. And will Arjuna Mahendran of Bond scam fame be brought to trial? Probably not; after all, he is said to have disappeared!

All this points to a pretty tumultuous 2020, so hang on to your hats, it promises to be quite a bumpy ride!

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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