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Monday November 9th, 2026

South Asia’s smaller countries have a principled stand on Ukraine war

ECONOMYNEXT – It’s nearly a hundred days since Russia invaded Ukraine and escalated a simmering conflict limited to the Eastern part of the country into a full-scale war that involves nearly two hundred thousand Russian troops.
The conflict has impacted Europe and the West deeply, sending oil prices and subsequently the cost of other commodities soaring and fears that the world order itself will be deeply affected.

South Asia’s response to the war is also being discussed widely and on May 31, a webinar organized by the Friedrich Neumann Foundation for Freedom brought representatives from the smaller nations on the subcontinent to express their views.

Entitled Ukraine Crisis: Assessing South Asia’s response, the discussion was moderated by Pramit Pal Chaudhuri Senior Adviser at the Rhodium Group and Foreign Editor, Hindustan Times.

Joining the discussion as panellists were Dr Abdul Hannan Waheed, Editor and Writer, Maldives Business Standard, Gopilal Acharya, Journalist and founder of the “Journalist” in Bhutan and Major General (Retd) Binoj Basnyat, a Strategic Analyst of Nepal.

Addressing participants at the beginning of the webinar, Dr. Marcus Faber, a member of the German Federal Parliament (Bundestag) who also sits on the Parliament’s Defense Committee, emphasized it was important for Asian nations to be engaged in the issue.

“We should do everything to stop Russia and do everything to protect the democracy that is under attack here because the result of the conflict will affect the rest of the world. If the attack is successful against democracy, then there will be other dictatorships willing to attack other democracies,” Dr. Faber said.

He called on Asian nations to join the condemnation of Russia because “we need the rule of law to prevail. Otherwise, this kind of action can happen in Asia”.

The South Asian region remains divided on the Ukraine issue.

These divisions came out into the open in the United Nations General Assembly on March 2 when all the smaller nations in the region except for Sri Lanka, supported the resolution condemning Russia for invading Ukraine while the bigger countries abstained.

Afghanistan took a neutral position but voted in favor of the resolution condemning Russia. The reason, as Chaudhuri explained was that the neutral position was adopted by the Taliban government in Kabul and the vote condemning Russia came from the pro-Western Islamic Republic, the government in exile.

Bangladesh took a neutral position and also abstained from voting. Bhutan and Nepal criticized Russia and voted in favour of the resolution. The Maldives took a neutral position but voted in favor of condemning the invasion.

Like Bangladesh, Sri Lanka was neutral and abstained from voting. This was the same position that India took, but New Delhi issued a statement saying it supports the sovereignty and integrity of countries without mentioning Ukraine.

Pakistan also abstained from voting, according to the United Nations website.
Moderator Chaudhuri commented that it appeared the smaller countries “voted on principle while the bigger countries voted on interests.”

In a previous FNF webinar on Asia’s engagement in the Russian –Ukrainian conflict, panellists from India, Bangladesh, and Sri Lanka pointed to their close historical ties with the former Soviet Union as reasons why they could not condemn Moscow. Both India and Bangladesh have close ties to Russia and the Soviets helped India and Bangladesh during the latter’s war of liberation in 1971.

India continues to have military cooperation with Russia. Sri Lanka too is constrained in condemning Russia, as the latter is one of the biggest buyers of Sri Lanka Tea and also attracts a significant number of tourists from that country.

Acharya, a Bhutanese journalist, agreed that the Russian invasion of Ukraine does pose a threat to the rest of the world. “Ukraine is a democracy, and this is unacceptable to the rest of the world.”

He also said that the political parties in Bhutan all agreed that their country should condemn the invasion.

“We are one of the smallest countries in the region and have to live next to China and India,” he pointed out.

Nepal is also in a similar situation. Though more populated than Sri Lanka, Nepal has also to deal with the two giant neighbours. Its position was the same as Bhutan with Maj. Gen.

Basnyat said Nepal had to consider “various disputations” between India and China and the “annexation of Tibet and Sikkim.” He also said that with regards to border issues and relationships with the neighbours the political parties in Parliament have reached a consensus and supported the anti-Russia vote.

In the case of the Maldives, the government had realized that even to be neutral and abstain from voting would be supporting the invasion. Dr Hannan explained that there was a consensus to condemn the invasion.

“Maldives is trying to balance the relationships. Although the two main political parties differ in their international stands, for instance, the current government sways in the direction of India and democracy, and the Opposition PPM leans towards China and therefore Russia.”

The Maldives is heavily dependent on Russian tourists and there are mixed sentiments about the war on Ukraine, says Dr Hannan. “This year the highest number of tourists, some 15.5 percent were from Russia.” At the time of the invasion, there were 8,000 Russian tourists and over 800 Ukrainians in the Maldives.

Maldivians, he says have a good opinion of Russians, adding that those who visit the Maldives on vacation are not politically involved.

Because the Russian state-run English language TV channel RT is broadcast in the Maldives there are many Maldivians who believe in the justification of the invasion Dr Hannan observed. “They have believed all the conspiracy theories,” presented on RT he said.

Acharya adds that the issues of small states living among the “rising giants of Asia, India and China is a challenge. The vulnerability of what Ukraine is facing is something we understand.

We are developing ‘Gross National Happiness’ as soft power, as a thought-leader despite its small size. But the main issue we talk about in Bhutan is the vulnerability of small states because nothing seems to be sure. You have an assurance today but that is thrown out the window tomorrow.”

He also pointed out that Bhutan does not have relationships with the big five Security Council members. Bhutan’s main relationship is with India. “This time we broke ranks with India and voted for the resolution. But as long as India can look after our interests, we should be ok.”

Chaudhuri also directed the conversation toward the behaviour of social media with regard to the conflict. Noting that Russia and Ukraine as well as the West were utilizing social media for their propaganda campaigns, he stated that Ukraine’s efforts, in particular, have been impactful.

“The number of videos it has laid out and the way their soldiers have been interviewed is impressive.”
Asked what the reaction in Bhutan is to social media around the conflict, Acharya said that it is “providing many different perspectives.”

He warned that people should be conscious when consuming social media.

“Ukraine has been very successful at projecting itself as a victim of an unnecessary invasion and seeking out humanitarian and military assistance.” He also noted that Ukrainian President Volodymyr Zelensky appears to be using social media very well.

Maj Gen Bisnyat echoed the sentiments of the smaller nations, pointing out that the larger countries in the region had failed to seek common ground on the issue, through regional bodies such as the South Asian Association for Regional Cooperation (SAARC).

He would like to see these Organisations put to good use, in helping nations in the region to negotiate with each other for the free flow of commodities and other supplies that may be impacted by the conflict in Europe. “Why don’t we act as South Asians and address common problems and get common answers,” he asked.

However, other panellists were of the opinion that SAARC was an ineffectual organisation with little consensus on major issues, with Acharya saying that he does not see the regional body taking a common stand. “SAARC is a weak organisation and has not taken a courageous stand since its inception,” he said. Unfortunately, South Asia will remain divided.

Panelists were agreed that South Asian regions will suffer severe food shortages if the European conflict drags on.
Russia and Ukraine are major suppliers of food and fertilizer. Fuel shortages and thereby rising fuel prices globally will impact these smaller and relatively poorer countries. The consensus was that the faster the war is brought to an end the better it will be for this region. (Colombo/Jun08/2022)

Sri Lanka rupee closes at 332.53/59 to US dollar spot, bond yields edge up

ECONOMYNEXT – Sri Lanka’s rupee closed at 332.53/59 to the US dollar spot on Monday, from 332.55/60 the previous day, while bond yields closed higher, dealers said.

A bond maturing on 15.09.2029 closed at 190/98 percent, up from 10.85/95 percent.

A bond maturing on 01.08.2030 closed at 11.07/12 percent, up from 11.05/10 percent.

A bond maturing on 01.02.2031 closed at 11.30/40 percent, up from 11.10/15 percent.

A bond maturing on 15.12.2032 closed at 11.65/70 percent, up from 11.55/65 percent.

A bond maturing on 01.11.2033 closed at 11.95/12.00 percent, up from 11.90/95 percent.

A bond maturing on 15.10.2034 closed at 12.10/15 percent, up from 12.05/12 percent.

A bond maturing on 15.08.2036 closed at 12.40/50 percent, up from 12.30/40 percent. (Colombo/Nov9/2026)

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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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