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Tuesday October 27th, 2026

Opinion: Questions as to whether another review of the 20A is a sham to distract critics

ECONOMYNEXT – Prime Minister Mahinda Rajapaksa combines years of experience in politics with undeniable charisma and an extraordinary ability to manipulate the most complicated situations to his advantage.

With controversy arising over the proposed 20 Amendment to the Constitution, is the Prime Minister using these skills to divert attention?

That bulldozed building in Kurunegala

Let’s take a look at an event that took place on the eve of the Parliamentary General Elections

Supposedly unknown parties bulldozed an old building in Kurunegala in the dead of night which some said was a house of ill-fame,  while the Archeological Commissioner said was an ancient site.

Various guardians of our collective heritage emerged from the woodwork, particularly citizens of that ancient city, to voice their outrage against the perpetrator, and creating a politically sensitive issue on the eve of the poll.

The good citizens of Kurunegala guessed who had done the deed because the ruling-party Mayor Thushara Sanjeeva disputed publicly that the demolished building was an ancient site and called it a “cheap brothel.”

Enter the PM,  who promptly appointed a committee of worthies to examine the issue. Let’s not forget, that the PM contested the parliamentary election from that District.

Within days, the committee recommended that the perpetrator be arrested, the Police formed six teams to look for the city’s First Citizen as headlines screamed “Manhunt.”

Sanjeeva, whom the police could not find, won a court order preventing his arrest and everyone was appeased. The outraged do-gooders calmed down and praised the PM for his actions and the Mayor was freed to campaign for MR and Johnston Fernando.

Another review of the 20th Amendment

Similarly, MR  appointed another Committee comprising Ministers and Members of Parliament to review the 20th Amendment to the Constitution.

This is a curious event, because the proposed 20A, a was approved by Cabinet last week without changes.

In a two-hour session, the Ministers approved the proposal with none objecting to any clause.

Cabinet approval is the second of the several legal steps that are needed to turn it into law.

This new committee handed in its report to the PM yesterday, September 15, and is to present their findings of the proposed Amendment to the Cabinet of Ministers today, Wednesday, September 16.

Why re-examine it now?

Former Election Watchdog Rajith Keerthi Tennekoon asks the question why it is necessary to constitute a committee to study it and report back to Cabinet after the Ministers had already approved it.

It is probably because the Opposition and Civil Society has been able to raise enough of a stink to cause a smidgen of doubt in the minds of some Ministers as well.

There have been some murmurings emerging from the various smaller parties that constitute the Sri Lanka Podujana Party behemoth, partly because of how the Cabinet goodies have been distributed, SLPP sources said.

A few SLPP MPs and some strong supporters on the outside have also called for changes.

However, the party has come down hard on the dissidents, threatening disciplinary action against any naysayers.

Internationally, individual countries as well as multilateral agencies including the United Nations has expressed concern about its authoritative bent.

The 20A is a document that opposition commentators say takes us back to the1978, highly authoritarian, Basic Law enacted by the then J R Jayewardene government.

At that time President Jayewardene said there was “nothing he could not do except turn a woman into a man and a man into a woman.”

Our reading of the 20A confirms this view as the proposal concentrates power in the president as never before.

It takes away the powers from Parliament and vests it in an all-powerful presidency which has blanket immunity, can appoint Judges, including to the Supreme Court, emasculates the Constitutional Council and the independent commissions and stops the Auditor-general from examining the offices of the President and the Prime Minister, among other things.

Tennakoon says “all power will move to a kitchen Cabinet.”

In a chat with EconomyNext, Tennekoon also debunks the government’s position that all these changes were presented to voters during the campaign.

He says the government amassed a two-thirds majority in Parliament without clearly explaining what amendments were to be brought.

“They clearly don’t have the mandate to make these changes,” the former Governor said.

Questioned by the media, government leaders, including Justice Minister Mohamed Ali Sabri ducked the authorship of the 20 A. Opposition MPs are calling the new Constitution “an illegitimate child.”

On Monday, Education Minister G L Peiris told reporters that the “Cabinet takes collective responsibility for the 20A.”

Peiris, who authored the much more liberal 17A in 1988 that created independent elections commissions, said the 20A “merely clarifies some items such as whether the President can hold the Defense Portfolio.”

“A better constitution will be brought in later,” Peiris said.

In that, he said there will be “electoral reform which includes some first-past-the-post members elected and a campaign finance act that will curb spending by candidates.”

Civil Society has, for decades, advocated for both,  as the elections are marred by heavy spending and widespread corruption.

“It is a sham,” says Tennakoon. “Why can’t they bring all the changes at once?”

There is also the very present danger that once the 20A in its current form is passed into law, the government will be vested with so much power that it will not be interested in making any compromises.

 

Is MR selling us a dummy pass?

 

The Prime Minister is an avid Rugby fan and in that game, often an attacking player will pretend to pass the ball to distract the defence and send them in the wrong direction, a move called a “dummy.”

Doing it successfully is called “selling a dummy.” So is this committee a dummy that will distract the naysayers and keep them quiet for a while, or will it be a genuine review?

(Colombo, September 16, 2020)

By Arjuna Ranawana

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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