An Echelon Media Company
Friday October 9th, 2026

Not a surrogate for the Rajapaksas, insists Sri Lanka president; claims opposition is split

Image credit: Palki Sharma/Twitter

ECONOMYNEXT – The Rajapaksas have their share of responsibility for Sri Lanka’s financial crisis but his critics in the now-divided opposition who shirked their responsibility also played a part in the collapse of the country’s political system, President Ranil Wickremesinghe said insisting that he’s not a “surrogate” for the powerful dynasty.

In an interview with India’s Firstpost, Wickremesinghe told journalist Palki Sharma on Wednesday November 22 that both the ruling Sri Lanka Podujana Peramuna (SLPP) and the main opposition Samagi Jana Balawegaya (SJB) are now split.

Asked if he agrees with a recent Supreme Court verdict that held former President Gotabaya Rajapaksa, then Prime Minister Mahinda Rajapaksa, then Finance Minister Basil Rajapaksa and a number of officials of that government responsible for Sri Lanka’s worst financial crisis in decades, Wickremesinghe said: “Well, that is what the court has said.”

Pressed by Sharma, Wickremesinghe stopped short of concurring with the verdict but said “The crisis took place during their time” and added later on in the interview that the Rajapaksas have “their share of responsibility”.

Wickremesinghe also defended his controversial participation in a birthday celebration organised for former PM Mahinda Rajapaksa last week, claiming that the two have always wished each other for their birthday and, this time, he had merely accepted an invitation by Rajapaksa’s son Namal, who incidentally abstained from voting for Wickremesinghe’s 2024 budget. Wickremesinghe said he would accept an invitation to any parliamentarian’s birthday celebration if he could find the time.

The president also criticised the opposition for “ducking” from their responsibility to take over following the resignation of Prime Minister Rajapaksa in May 2022 and again in July following the resignation of President Gotabaya Rajapaksa. The whole political system had collapsed as a result, he claimed.

“So the whole politics of this country has been topsy-turvy. There were a lot of irresponsible actions by everyone. So I think you have to look into all that, not merely one part of it,” he said.

“So you’re saying the Rajapaksas alone are not to blame?”

“The Rajapaksas have their share of responsibility.”

Sri Lanka had been used to a system of “slogans” designed to make the people happy and no one was prepared to make the “hard decisions”, Wickremesinghe said explaining his decision to take over.

“So if you look into that, the record is not good for anyone. As far as President Rajapaksa and PM Rajapaksa are concerned, they were there at that time. But it was a process that had started. Let’s say that they left office, what would’ve happened if the opposition was not willing to take over and I was not there?”

“I’m not defending the Rajapaksas. I’m saying Rajapaksas are responsible, but then [there was] no one to take responsibility thereafter. The critics are the ones who ran away,” he said.

Asked if he feels pressure from the SLPP, the president said: “Sometimes they have their requirements. They come along. Other times they won’t. It’s sort of not a normal parliament.”

Insisting that he’s not a surrogate for the Rajapaksa family, Wickremesinghe said the SLPP, the party controlled by them, is now split.

“One half is working with the SJB. The other half is with me. If you ask me if the whole of the Rajapaksas’ party is supporting me, no. And if you ask me if the whole of the SJB is supporting [opposition leader] Sajith Premadasa? No. All parties are split,” he said.

“I just asked people to get together, to pull the country out. And I got this majority. If I didn’t have the numbers, what would’ve happened?” (Colombo/Nov23/2023)

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)

Continue Reading

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)

Continue Reading

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)

Continue Reading

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)

Continue Reading

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) 

Continue Reading

Sri Lanka’s 2027 appropriation bill sets 20% rise in recurrent spending from last year, less capex

ECONOMYNEXT – Sri Lanka’s 2027 appropriation bill tabled in Parliament with details of allocations for each ministry, has increased recurrent expenditure by a fifth and cut capital expenditure by 5.4 percent compared to the last year.

The bill sets out 3,240.2 billion rupees as current spending, more than a fifth higher than allocated for last year.

It also shows the capital expenditure has been set at 1,752.5 billion, 5.4 percent less than allocated for last year.

The capex also does not conform to the capex in the formal budget presentation.

It also sets a borrowing limit of 3,800 billion rupees.

The borrowing includes roll-overs and does not correspond to the new financing (deficit) shown in the budget presentation.

The presentation of the Appropriation Bill on Wednesday (07) is considered the first reading of the budget.

In his capacity as the Minister of Finance, President Anura Kumara Dissanayake will present the second reading of the Appropriation Bill (the Budget Speech) on November 12. Seven days have been allocated, from November 13 to 20, for the second reading debate.

According to the Appropriation Bill, the largest allocation has been made to the Ministry of Finance, Planning and Economic Development, amounting to Rs.856.8 billion.

Provincial Councils are allocated Rs. 659.9 billion; the Ministry of Public Administration, Provincial Councils and Local Government has been allocated Rs. 651 billion, Ministry of Health and Media Rs. 590.5 billion, Ministry of Transport, Highways and Urban Development Rs. 500 billion, Ministry of Defence Rs. 458 billion, and Ministry of Education, Higher Education and Vocational Education Rs. 328 billion.  (Colombo/October 08/2026)

Continue Reading