An Echelon Media Company
Monday November 9th, 2026

Opinion: Moving Towards Necessary Balance

#Stopforcedcremations – Demonstrations against the forced cremations of Muslims who die of Covid have popped up across the North and East

ECONOMYNEXT – As the New Near dawns the government appears to be moving in the direction of more inclusivity in both domestic and foreign policy. The most contentious domestic political issue over the past nine months, and growing in intensity to include public demonstrations, has been that of the disposal of bodies of persons who succumb to the coronavirus. The Sri Lankan claim to be exceptional in the world in respect of the practice of enforced cremation has been met with the opposition and increasingly public agitation of the Muslim community to whom burial is a matter of religious faith and is a human right guaranteed under the constitution and international law. Until recently the experts in the medical and scientific field consulted by the government and elevated to government committees were adamant in taking the position that burials should not be permitted on safety grounds.

The willingness of the government to go ahead for over nine months with a policy that has been challenged both on scientific and religious grounds both locally and internationally needs to be understood. The Muslim countries worldwide have joined hands to ask the Sri Lankan government to respect the right to burial. However, the proponents of cremation, both amongst the scientific community and the general public, have a worldview that is centred on their own ethnic identity and its historical experiences. They see the need to assert their dominance or risk losing ground as occurred in the distant past. When these primordial fears are set in opposition to those of the ethnic and religious minorities who are vested with equal citizenship rights, and in addition are contrary to international practices, the outcome is bound to be contested, divisive and harmful to the country as a whole.

A more recently appointed expert committee appointed by the government on the issue of the disposal of bodies of Covid infected persons has adopted a more pluralist perspective and recommended both cremation and burial as options. This will provide the government with a science-based rationale to change the present policy that has divided the country. It will be to the credit of the government that even as it moves towards accommodation within the country, it is moved to accommodation in the foreign policy sphere as well. The government’s ability to eschew polarization in foreign policy can be seen in its ability to tide over the foreign exchange crisis by negotiating to raise USD3.5bn in currency swaps from China and India who are rivals on the international front as well as in relation to Sri Lanka where they have both being vying to take the first place. In recent years the Chinese presence has increased significantly in terms of economic enterprises operating within the country including the country’s ports.

Indian Support

With Sri Lanka being just 30 kilometres away from India and having overlapping territorial seas that can harbour security threats to itself, it can be expected that India would have concerns about Sri Lanka’s growing closeness and dependence on China for both economic and political sustenance. The Sri Lankan government would have no interest in taking sides in the rivalries of China and India and making itself part of a big power struggle by siding with one over the other. The decision to lease out the Eastern terminal of Colombo port to an Indian owned company which is in partnership with the Japanese government can assuage Indian concerns regarding China’s potential security threat to itself by giving them also a similar presence in the country’s ports. This is a positive action as India is not only physically close to Sri Lanka but is also culturally close, which makes it the closest to Sri Lanka in more ways than one.

For the past three decades since the signing of the Indo-Lanka Peace Accord of 1987, India has sought to be a benefactor to Sri Lanka offering more and asking for less. The cynical actions of the Indian government in the early to mid-1980s, when it decided to train and arm the Tamil militancy that pushed the country into protracted ethnic war will always be remembered in Sri Lanka. However, the Indian efforts to make amends need to be appreciated. During the final decade of the war, India gave its military and diplomatic support to overcome the LTTE threat. The amends that India has made comes in three important ways. The first is economic, in which India has emerged to be among the top three aid donors along with China and Japan. Indian economic support is wide-ranging including the construction of railways, providing housing for war victims, ambulances countrywide and educational scholarships. India has also offered to sign a free trade agreement which Sri Lanka has not been prepared to accept so far due to fear of being overwhelmed by much bigger and wealthy Indian economic enterprises.

The second area of India’s support has come in the form of political support in international forums, particularly those in which Sri Lanka is politically vulnerable due to its blemished human rights record due to wars and authoritarian rule when it was capable of doing much better. In the votes taken at the UN Human Rights Council, India invariably voted along with Sri Lanka in opposing international sanctions of any sort being imposed on Sri Lanka. Only once did it abstain from voting for either side in 2014. India’s support has been particularly helpful to Sri Lanka as it provides leadership to other developing countries which tend to look to India for guidance. The forthcoming session of the UNHRC in Geneva in March will be particularly important as the issue of the UNHRC resolution 30/1 of 2015 will be coming up, and the present Sri Lankan government’s unilateral withdrawal from commitments made by the previous government will be taken up.

Provincial Councils

The third area of Indian support to Sri Lanka has been in regard to supporting a political solution to the ethnic conflict in the country that has dogged it since the time of Independence and which successive government leaders have tried to bring to a conclusion. The current framework of devolution of power which is suited for ethnically and regionally diverse countries such as Sri Lanka is an outcome of the Indo Lanka Peace Accord of 1987. It induced the Sri Lankan government to amend the constitution through the 13th Amendment to establish provincial councils. This was a challenge that previous Sri Lankan leaders starting from S W R D Bandaranaike in 1957 to Dudley Senanayake in 1965 had attempted to do but failed. The early models of devolution of power, which those earlier generations of leaders proposed, would have given the ethnic minorities the power of limited self-government in the areas in which they are a majority. They were akin to asymmetrical devolution as they were not meant to be operating outside of the Northern and Eastern provinces.

It was India’s pledge to stop the ongoing war with the LTTE by disarming it that prompted President J R Jayewardene to give the necessary political leadership to ensure that the 13th Amendment was passed into law. This constitutional amendment provided the framework for devolution of power on a uniform basis to the entire country rather than to the North and East alone on the principle of one country, one law, which the current President Gotabaya Rajapaksa champions. The provincial council system has been in operation for over three decades. Those who have been a part of the system and been chief ministers and government officials within them have expressed their belief that this system can be improved. The ethnic minorities support the system of provincial councils but the ethnic majority and nationalist politicians are opposed to it.

The decision of the government to further postpone provincial council elections till the proposed new constitution is formulated is an indication that the present government or some of its leaders may wish to amend the provincial council system or eliminate it entirely. However, there are also other reasons that may have motivated the government to make this decision, including the widening Covid infection and the expense involved in holding the elections which could be used for other urgent purposes. In any event, if the provincial council system is to be modified, abolished or replaced with another system of power-sharing, this needs to be done with the concurrence of the ethnic minorities and not be unilaterally imposed on them. At a time when Indian is supportive of Sri Lanka, it needs also to be kept in mind that India lost the lives of over one thousand of its soldiers to implement the Indo Lanka Peace Accord, and former Indian Prime Minister Rajiv Gandhi who was the co-architect of the Accord also lost his life as a result. Any change in the system of devolution of power needs to be a considered one. (Colombo, January 6, 2010)

Jehan Perera is the Executive Director of the National Peace Council

(Edited by Arjuna Ranawana)

Sri Lanka stocks close up 1.37-pct, banks lead turnover

ECONOMYNEXT – Sri Lanka’s Colombo Stock Exchange closed up on Monday, CSE data showed, with the benchmark All Share Price Index moving up 1.37 percent.

The ASPI was up 291.72 points at 21,531.37, while the more liquid S&P SL20 was up 1.67 percent, or 100.96 points, at 6,146.34.

Positive contributors to the ASPI were Commercial Bank of Ceylon (up 2.86 percent at 216.00 rupees), Hatton National Bank (up 1.52 percent at 399.75 rupees), Asiri Hospital Holdings (up 12.86 percent at 31.60 rupees), Tokyo Cement Company (up 5.22 percent at 84.70 rupees), and Access Engineering (up 3.93 percent at 81.90 rupees).

Carson Cumberbatch (down 4.24 percent at 712.00 rupees), Richard Pieris and Company (down 2.43 percent at 28.10 rupees), LOLC Holdings (down 0.62 percent at 400.00 rupees), Renuka Holdings (down 2.63 percent at 37.00 rupees), and Chevron Lubricants Lanka (down 0.61 percent at 204.25 rupees) were top negative contributors.

Market turnover was 3.33 billion rupees. The S&P/CSE Banks Industry Group led turnover with 667.76 million rupees.

The session saw heavy crossings, according to Raynal Wickremeratne, Head of Research and Strategy at NDB Securities. Significant crossings included Keells (23 million rupees), Distilleries Company (27.7 million rupees), Sunshine Holdings (30.6 million rupees), Commercial Bank (32.4 million rupees), Ceylon Tobacco Company (35.6 million rupees), Hatton National Bank (39.5 million rupees), Prime Lands (40.5 million rupees), and HAS Holdings (41.5 million rupees).

In corporate news, Hayleys Retail Holdings Ltd announced it has partnered with supply chain software provider Blue Yonder to build and scale an AI-native grocery supermarket chain across Sri Lanka. (Colombo/Nov09/2026)

 

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Sri Lanka’s Hayleys Retail to launch supermarket chain with Blue Yonder

ECONOMYNEXT — Hayleys Retail Holdings Ltd has selected supply chain software provider Blue Yonder to build its grocery retail operations from the ground up, the two companies said in a joint statement.

Hayleys Retail, a member of Sri Lanka’s diversified conglomerate Hayleys Group, plans to open several stores in the near future to serve consumers across the country. The agreement marks Blue Yonder’s first retail customer in Sri Lanka.

“Our entry into supermarket retail is about bringing that same commitment to quality and reliability closer to everyday Sri Lankan consumers,” Mohan Pandithage, Chairman and Chief Executive of Hayleys PLC said.

“With Blue Yonder, our teams will have AI-driven insight to deliver a seamless, consistent shopping experience across every store,” he said.

Hayleys, which accounts for approximately 5 percent of Sri Lanka’s export income and operates across 17 business sectors, is entering the large-scale supermarket space by drawing on its group strengths in manufacturing, logistics, and services.

The company selected Blue Yonder to connect its data across merchandising and shelf space, deploy artificial intelligence agents to catch operational issues early, and scale its business into a national network without changing platforms.

The rollout will begin with merchandise operations to manage suppliers, items, costs, and pricing, followed by machine learning capabilities to forecast demand and balance store inventory during seasonal peaks.

“Hayleys Retail is choosing one where AI is the foundation rather than an add-on—connected data and agentic AI built into core merchandising operations, and planning that learns as the business grows,” Antonio Boccalandro, President, APAC at Blue Yonder said.

The retailer plans to use the platform to automate routine store tasks and adjust inventory according to real-time sales and local market trends as its store footprint grows. (Colombo/Nov09/2026)

 

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Sri Lanka’s Citrus Leisure extends Lotus Tower management pact

ECONOMYNEXT – Sri Lanka listed hospitality firm Citrus Leisure said it has extended an agreement to manage consumer-facing and entertainment spaces at the Colombo Lotus Tower, which includes revolving restaurant Blue Orbit, until June next year.

The initial agreement signed between Citrus Leisure and Colombo Lotus Tower Management Company (Private) Limited (CLTMC) is due to expire on December 11.

“The Board of Directors of CLTMC at meeting held on 2nd November 2026 has resolved to extend the term of the Management Agreement and continue the existing Management Agreement until 30th June 2027, to which the company has given its concurrence,” the company said in a market filing.

Citrus Leisure Plc opened its revolving restaurant at the Lotus Tower in December 2023.

The company signed a 3-year agreement with CLTMC in May 2023 to provide services in the management of (l) the banquet hall 1 on the 25th floor, (2) the banquet hall 2 on the 26th floor, (3) the revolving restaurant on the 27th floor, (4) the 6 suites situated on the 28th floor and the kitchen in the basement floor of the Colombo Lotus Tower.

The 350-meter or 1,150-feet tower, the tallest in South Asia, was built at a cost 104.3 million US dollars with 80 percent of the money borrowed from Exim Bank of China.

Located in the commercial heart of Colombo, the tower has been called a symbolic landmark of Sri Lanka as well as a colossal white elephant and has been mired in controversy for years. (Colombo/Nov9/2026)

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CIC Holdings Sept quarter net profit rises 20-pct to Rs1.7bn

ECONOMYNEXT — Sri Lanka conglomerate CIC Holdings recorded a net profit of 1.66 billion rupees for the quarter ended September 30, rising 20.3 percent from 1.38 billion rupees in the same quarter last year, interim accounts showed.

The group posted basic earnings per share of 0.87 rupees for the September quarter, up from 0.73 rupees a year earlier.

Quarterly revenue grew 3.4 percent to 20.89 billion rupees from 20.20 billion rupees, supported by broad-based growth across industrial solutions, livestock, and healthcare segments, which counterbalanced relative demand moderation in agricultural inputs.

Cost of sales rose 5.3 percent to 15.20 billion rupees, outpacing revenue growth and causing gross profit to contract marginally by 1.2 percent to 5.68 billion rupees.

Results from operating activities dropped 7.3 percent to 2.66 billion rupees from 2.87 billion rupees, impacted by higher operating overheads.

Selling expenses expanded 6.8 percent to 2.15 billion rupees, and general and administrative expenses climbed 5.8 percent to 1.07 billion rupees, while other operating income dropped 29.6 percent to 117.40 million rupees.

However, operating profits were cushioned by an impairment reversal on trade receivables of 85.83 million rupees, turning around from an impairment provision of 23.38 million rupees in the corresponding quarter last year.

Net finance costs climbed 35.4 percent to 712.25 million rupees from 526.01 million rupees.

The increase was driven by a 30.8 percent rise in finance expenses to 771.46 million rupees, primarily reflecting higher interest expenses on loans to finance elevated working capital and inventory requirements.

The quarter’s bottom line was strongly bolstered by CIC’s equity-accounted investment in John Keells Holdings PLC (JKH).

Share of profit from equity-accounted investees surged more than fourfold to 590.50 million rupees from 257.87 million rupees, driven by JKH’s strong profit expansion during the period.

The group also recognized a gain on bargain purchase of 55.59 million rupees during the quarter resulting from additional share purchases in JKH where the proportionate net asset value exceeded acquisition cost, compared to no such gain a year earlier.

With associate income gains offsetting operating margin contraction and higher borrowing costs, group pre-tax profit held virtually flat at 2.59 billion rupees, down 0.11 percent.

Income tax expense fell 29.4 percent to 606.24 million rupees from 858.71 million rupees, driving total group profit for the period up 14.1 percent to 1.98 billion rupees.

Total group assets stood at 108.58 billion rupees as of September 30, up from 99.75 billion rupees at the end of March 2026.

Group net asset value per share increased to 25.52 rupees from 22.10 rupees a year earlier.

CIC Holdings’ ordinary voting shares closed at 27.80 rupees at the end of September.(Colombo/Nov09/2026)

 

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Sri Lanka stocks trend up; ASPI gains 0.78-pct

ECONOMYNEXT – Sri Lanka’s Colombo Stock Exchange was trading higher on Monday, CSE data showed, with the benchmark All Share Price Index moving up 0.78 percent.

The ASPI was up 165.73 points at 21,405.38, while the more liquid S&P SL20 was up 0.61 percent, or 37.04 points, at 6,082.42.

Positive contributors to the ASPI were Commercial Bank (up 1.55 percent at 213.25 rupees), Ceylon Cold Stores (up 2.61 percent at 128.00 rupees), Asiri Hospital Holdings (up 10.00 percent at 30.80 rupees), Hemas Holdings (up 1.27 percent at 32.00 rupees), and Ambeon Holdings (up 6.02 percent at 37.00 rupees).

Namunukula Plantations (down 3.92 percent at 63.70 rupees), LOLC Holdings (down 0.62 percent at 400.00 rupees), and Chevron Lubricants Lanka (down 0.12 percent at 205.25 rupees) were top negative contributors.

Market turnover was 428.31 million rupees. Capital goods led turnover with 82.53 million rupees. (Colombo/Nov09/2026)

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Sri Lanka rupee at 332.54/58 to US dollar spot, bond yields steady

ECONOMYNEXT – Sri Lanka’s rupee was quoted at 332.54/58 to the US dollar spot on Monday, stronger from 332.55/60 Friday, while bond yields held broadly steady, dealers said.

A bond maturing on 15.09.2029 was quoted at 10.90/95 percent, up from 10.85/95 percent.

A bond maturing on 01.08.2030 was quoted at 11.00/10 percent, down from 11.05/10 percent.

A bond maturing on 01.02.2031 was quoted at 11.10/20 percent, up from 11.10/15 percent.

A bond maturing on 15.12.2032 was quoted at 11.58/68 percent, up from 11.55/65 percent.

A bond maturing on 01.06.2033 was quoted at 11.80/95 percent, up from 11.80/85 percent.

A bond maturing on 15.10.2034 was quoted at 12.08/15 percent, up from 12.05/12 percent.

A bond maturing on 15.08.2036 was quoted flat at 12.30/40 percent.

The telegraphic transfer rate for the dollar was 328.05 buying, 337.05 selling; the euro was 363.3528 buying, 377.1336 selling; pound was 437.5954 buying, 451.7038 selling.

On the Colombo Stock Exchange the All Share Price Index was up 0.78 percent, or 165.42 points, at 21,405; while the S&P SL20 was up 0.58 percent, 35.19 points, at 6,080.

90,000 million rupees Treasury bills are to be issued through an auction on November 11. (Colombo/Nov9/2026)

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