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Friday October 9th, 2026

“No need to write, David,” impatient EU tells Cameron

BRUSSELS, June 26 (Reuters) – Britain need not send a formal letter to the European Union to trigger a two-year countdown to its exit from the bloc, EU officials said, implying British Prime Minister David Cameron could start the process when he speaks at a summit on Tuesday.

"’Triggering’ … could either be a letter to the president of the European Council or an official statement at a meeting of the European Council duly noted in the official records of the meeting," a spokesman for the council of EU leaders said.

A second EU official, asked about mounting frustration among leaders with the British prime minister’s delay in delivering the formal notification required to launch divorce proceedings, said: "It doesn’t have to be written. He can just say it."

Cameron will brief the other 27 national leaders over dinner at a European Council summit in Brussels on Tuesday on the outcome of Thursday’s referendum at which Britons voted to leave the EU, prompting him to announce he will resign.

On Friday, he said he would leave it to his successor as Conservative party leader and premier to trigger Article 50 of the EU treaty, which sets out a two-year process to quit the bloc. That appeared to be a reversal of a pledge to launch the process immediately after the vote. It has angered EU leaders who want a quick settlement to limit uncertainty.

Some European leaders still expect Cameron himself to start the process in the coming days or weeks, officials said on Saturday. British officials were not immediately available.

Some Brexit campaigners have long said that Britain should aim to negotiate a comprehensive new relationship with the EU, seeking access to markets without submitting to EU rules or open migration, before binding itself into the two-year timetable that would be fixed for talks if Article 50 is triggered.

Such talk worries EU officials and leaders who fear that a prolonged haggling with London will further increase the risk of a domino effect of nationalist-led demands for exit from other states. They do not see a legal way to force Britain to start the process but have piled political pressure on Cameron to honour his pledge to launch Article 50 negotiations and respect the popular vote.

MUST BE EXPLICIT

The Council spokesman made clear that leaders cannot simply choose to interpret something Cameron says as the trigger without the prime minister saying clearly he means it to be.

"The notification of Article 50 is a formal act and has to be done by the British government to the European Council," the spokesman said. "It has to be done in an unequivocal manner with the explicit intent to trigger Article 50.

"Negotiations of leaving and the future relationship can only begin after such a formal notification. If it is indeed the intention of the British government to leave the EU, it is therefore in its interest to notify as soon as possible."

Since the shock vote on Thursday, won 52-48 percent by the Leave camp in defiance of polls and the bulk of the British establishment, there have been calls in Britain for the result to be reviewed or for parliament to ignore the referendum.

The second EU official, asked whether Britain could launch the process and then ask to stay, said that was not foreseen by the treaty: "Once you trigger it, you cannot take it back."

If a state fails to agree a departure treaty with the others, EU law simply stops applying to it after two years. (Reporting by Alastair Macdonald; Editing by Bill Rigby)

Sri Lanka sells extra Rs8bn Treasury bills after auction

ECONOMYNEXT – Sri Lanka has sold 8,000 million rupees of treasury bills offered on tap at average rates of 9.44 percent and 9.95 percent, the public debt management office said, bringing the total of bills sold in the week to 88 billion rupees.

Total market subscription was 16,025 million rupees.

The debt office sold a 6-month bill at 9.44 percent.

The debt office sold a 12-month bill at 9.95 percent.

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Sri Lanka Treasury bill yields rise marginally, Rs80bn sold

On Wednesday (7) the debt office raised 80 billion rupees of 3, 6 and 12 month bills. (Colombo/Oct9/2026)

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Foreign investors buy Sri Lanka rupee bonds after selling for two weeks

ECONOMYNEXT – Foreign investors bought Sri Lanka rupee bonds for the first time in three weeks in the week ended on October 01, Central Bank data showed, amid a stable rupee.

With the latest inflows, the island nation has witnessed net foreign buying in 14 weeks in the last 16.

Offshore investors bought a net 1,821 million rupees (US$5.5 million) worth of Sri Lanka rupee bonds. They sold a net Rs.16.5 billion worth of rupee bonds in the last two weeks.

The inflows helped boost foreign holdings in government securities to 196.8 billion rupees.

Analysts said a stable local currency helped foreign buying last week.

The rupee had been steady for more than three years before the sharp depreciation in May with the Central Bank citing higher oil and vehicle imports amid a lingering conflict in the Middle East.

The rupee has fallen 6.2 percent through October 2 this year.

Globally, investors are cautious about economic growth due to the impact of the latest Middle East escalation.

The island nation has enjoyed a total inflow of around 57.5 billion rupees into rupee bonds so far this year, following a net inflow of 71.5 billion rupees last year.

The island nation has seen an uptick in inflation in the last six months following a nearly 50 percent hike in fuel prices.

The government raised fuel prices last week after reducing in the last weeks of June and August.

The Central Bank raised its key monetary policy rate by 100 basis points in May to curb inflationary pressure stemming from higher demand.

Before the May rate hike, the Central Bank kept its key policy rates steady since May 2025 after reducing them by 825 basis points over 24 months since June 2023 and foreign investors have been buying rupee bonds despite slight depreciation in the local currency (Colombo/October 08/2026)

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Sri Lanka rupee closes at 330.95/331.00 to US dollar spot, bond yields steady

ECONOMYNEXT – Sri Lanka’s rupee closed at 330.95/331.00 to the US dollar in the spot market on Thursday, from 330.90/331.00 the previous day, while bond yields closed broadly steady, dealers said.

A bond maturing on 01.08.2030 closed flat at 11.25/35 percent.

A bond maturing on 15.10.2030 closed at 11.30/40 percent, down from 11.35/40 percent.

A bond maturing on 01.02.2031 closed at 11.35/45 percent, down from 11.40/45 percent.

A bond maturing on 15.12.2032 closed at 11.75/80 percent, up from 11.70/80 percent.

A bond maturing on 15.10.2034 closed at 12.05/15 percent, up from 12.05/10 percent. (Colombo/Oct8/2026)

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Sri Lanka, IMF in talks over new “long term growth targeted” deal after March 2027: Minister

ECONOMYNEXT – Sri Lanka is in discussion with the International Monetary Fund (IMF) on a new programme after the completion of the current Extended Fund Facility (EFF), Deputy Finance Minister Anil Jayantha told Parliament on Thursday.

“The current IMF EFF program is on track to conclude successfully in March 2027, marking the completion of its economic reform and recovery efforts under the arrangements,” the Deputy Minister said in response to a question raised by the opposition.

“In parallel, discussions are currently underway regarding the options beyond the current program, reflecting a shift from crisis-driven support towards a more sustainable, long-term growth-targeted engagement model.”

Sri Lanka sought IMF deal after the island nation experienced an unprecedented economic collapse that culminated in its first-ever sovereign default in April 2022.

Severely depleted foreign exchange reserves, exacerbated by years of loose fiscal policies, high-profile tax cuts, organic farming mandates that damaged agricultural yields, and the economic blow dealt by the COVID-19 pandemic, left the island nation unable to service its $51 billion external debt stock.

The resulting crisis triggered severe shortages of fuel, medicines, and staple foods, hyperinflation exceeding 70%, and widespread public protests that ultimately forced the resignations of key government figures, including former President Gotabaya Rajapaksa.

The four-year, $3 billion EFF program was conditioned on a rigorous slate of macroeconomic and structural reforms, including tax hikes, energy cost-reflective pricing, expenditure controls, and strict central bank independence.

Central to the arrangement was a complex sovereign debt restructuring process, requiring the island nation to negotiate bilateral debt relief with major sovereign creditors, such as China, India, and Paris Club members, alongside commercial international sovereign bondholders.

The implementation of the EFF has since driven a significant macroeconomic turnaround, marked by a stabilizing exchange rate, a rebuild of gross official foreign exchange reserves, and a return to positive GDP growth.

However, maintaining compliance with program targets has generated considerable social and political friction.

Demands for broader anti-corruption measures, tax fairness, and enhanced social safety nets remain high as the government balances strict IMF revenue targets against domestic pressures to alleviate the elevated cost of living. (Colombo/October 08/2026)

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Sri Lanka stocks close down 1.38-pct; LMF crossing pushes turnover

ECONOMYNEXT – Sri Lanka’s Colombo Stock Exchange closed lower on Thursday, CSE data showed, with the benchmark All Share Price Index falling 1.38 percent.

The ASPI was down 283.21 points at 20,234.34, while the more liquid S&P SL20 was down 0.82 percent, or 47.82 points, at 5,768.58.

Positive contributors to the ASPI were HNB Life (up 3.04 percent at 144.25 rupees), Renuka Holdings (up 2.16 percent at 37.90 rupees), Odel (up 2.06 percent at 9.90 rupees), and Hayleys (up 0.22 percent at 223.00 rupees).

Carson Cumberbatch (down 3.39 percent at 676.25 rupees), Distilleries Company of Sri Lanka (down 2.85 percent at 51.10 rupees), Hemas Holdings (down 2.56 percent at 30.50 rupees), Dialog Axiata (down 1.34 percent at 44.10 rupees), and Hatton National Bank (down 0.99 percent at 375.50 rupees) were top negative contributors.

Market turnover was 2.74 billion rupees.

High turnover was largely driven by crossing transactions, with Lanka Milk Foods recording crossings of about 1 billion rupees and Sunshine Holdings seeing a crossing of around 300 million rupees. (Colombo/Oct08/2026)

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Sri Lanka’s SEC urges public not to deposit, invest in Quantum AI Limited  

ECONOMYNEXT – Sri Lanka’s Securities and Exchange Commission (SEC) has warned the public in dealing with a company called Quantum AI Limited for trading and investment and urged them not to deposit any funds.

The regulator, on its X platform, stated it “wishes to inform the public that Quantum AI Limited is not licensed, registered, or authorized by the SEC to conduct securities trading, investment services, or any other regulated capital market activities in Sri Lanka.”

“The public is strongly advised not to deposit funds, invest, or engage in any trading or investment activities through Quantum AI Limited.”

“Before investing, always verify that the entity is duly licensed or registered by the SEC. Protect your investments. Deal only with SEC authorized market intermediaries.” 

Officials from Quantum AI Limited were not immediately available for comment on the SEC’s statement. 

Sri Lanka has increasingly seen illegal firms taking deposits and investments while promising higher returns.

Last week, the Central Bank warned the public against investing in plantation companies that are not regulated by it. (Colombo/October 08/2026) 

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