An Echelon Media Company
Tuesday October 27th, 2026

Opinion: Strong Government must be disciplined and deliver development

The sun sets over the Parliament at Shri Jayewardenepura

ECONOMYNEXT – The government has announced that the draft 20th Amendment Bill will be presented to parliament today, Tuesday September 22. It will be the same version that caught the country by surprise when it first made its appearance to the public on September 3. The extreme nature of the proposed amendment, which has been the cause of much disquiet, is epitomized by the power it seeks to give the president to sack the prime minister and ministers at his discretion and to dissolve the parliament after a year of its election. Undoubtedly it was concerns within the ranks of those elected to parliament from within the government side itself that prompted Prime Minister Mahinda Rajapaksa to appoint a committee consisting of parliamentarians of stature to give their opinion on the proposed 20th Amendment and to suggest further amendments to it.

There are disturbing features about the draft 20th Amendment. The most significant is the overwhelming power it seeks to give the institution of the presidency by transferring the powers currently vested in other institutions to it. The proposed amendment immediately evoked protests from the opposition political parties and civil society and was soon followed by more subdued expressions of dissent from within the government itself. Government members have not openly criticized the erosion of parliamentary powers but instead, appear to have chosen the option of stating their objections to less significant clauses in the proposed 20th Amendment. One of these is the removal of the ban on dual citizens from contesting for political office and the removal of the oath against promoting separatism in the country.

Another troubling feature of the 20th Amendment is the unwillingness of anyone to claim the responsibility for its creation. It can be expected that those elected to parliament would not wish to take the responsibility for the proposed amendment which seeks to erode their own position. This has resulted in President Gotabaya Rajapaksa stepping forward to take responsibility as the head of the government along with the rest of the government as a collective group. The president may be feeling the burden of the heavy responsibility placed upon him by popular expectations. His frustrations are becoming more evident as he has begun pointing out the inefficiencies that exist not only the governmental system but also the wider society. These inefficiencies in the public service can be attributed to politicization during the past decades for which past administrations have to take equal responsibility.

POLITICALLY ASTUTE

The parliamentary committee appointed by the prime minister to look into the issues arising out of the draft amendment has not presented their conclusions to the general public or incorporated their ideas into the draft amendment. As a result, it will be the same draft that made its appearance on September 3 that has been presented to parliament. It appears that the government’s current position is that the 20th Amendment bill will be presented to parliament in its original formulation and changes to it, if any, will take place in the course of the parliamentary debate regarding it (during the Committee Stage). This could be politically astute, from the government’s perspective. From a political transformative perspective, it offers scope for parliamentarians to engage in a meaningful process of consultations to achieve sufficient consensus following an intellectual discourse.

There are, however, two consequences that flow from the direct presentation of the draft amendment to parliament without any changes. On the one hand, this will have the adverse effect of making it more difficult for those opposed to the draft amendment to take it before the courts of law. As they will have only a limited time frame of one week to file their cases in the courts, they will have to file their objections to the original version of the 20th Amendment and not to the subsequent changes that may take place as a result of the parliamentary process. A second consequence flowing from the strategy of seeking amendments to the draft 20th Amendment in parliament itself is that it will conceal the division within the government on the question of the amendment.

The government’s decision not to share the results of the deliberations of the prime minister’s committee with the general public could be due to the concern that the division of the government members into two camps will be seen. On the other hand, a debate in parliament will bring in the opposition political parties so that the lines of division would be more complex. For instance, the opposition parliamentarians would not wish the president to have the power to dissolve the parliament after the passage of one year, which is likely to be shared by government members also. On the other hand, the opposition is also likely to bring up other issues such as the need to safeguard the independence of institutions such as the courts of law and the auditor general’s office.

STRONG GOVERNMENT

The 20th Amendment is a reaction to the problems in the 19th Amendment which showed the possibility of deadlock within the executive branch of government when the president and parliamentary majority were of two minds. President Gotabaya Rajapaksa is reported to have informed the cabinet of ministers that without the changes proposed in the draft 20th Amendment it was difficult to run the country. However, the parliament was also elected by the people and has a five-year mandate and the powers being withdrawn are so significant that they may require a referendum. Indeed, parliament is more representative of the plural and diverse nature of society and of the different ethnic and religious communities and needs to be empowered rather than being disempowered.

Among the extreme features of the proposed 20th Amendment is the power to be transferred to the president to appoint all judges and top state officials at his discretion and to exclude many government departments and government-owned entities from being centrally audited. The question is why an equally sovereign body that is parliament is denied this power. The fate of the strong government that was elected in 2010 in the aftermath of the end of the three-decade-long war, which pledged to develop the country, and of which much was expected, and which failed, must not happen again. The main flaw there was that power was centralized in the institution of the presidency at the expense of the others and corruption and abuse of power got out of control.

Strong governments in which one institution dominates all others and in which there are no checks and balances rarely deliver good results to the people so that they enjoy the benefits of development and the protection of human rights. Strong governments that deliver both, of which there are many examples in the world and particularly in the Western world but now also in the eastern countries such as Japan and South Korea, operate under the rule of law, with checks and balances and take severe action against those found engaging in corrupt practices. They are an outcome of disciplined systems of government which deliver constructive results to the people over the longer term. Recent examples of South Korea and Malaysia are cases in point. (Colombo September 22, 2020)

Dr Jehan Perera is Executive Director at the National Peace Council

(Edited 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)

Continue Reading

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)

Continue Reading

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)

Continue Reading

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)

Continue Reading

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)

Continue Reading

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)

Continue Reading