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Tuesday September 1st, 2026

Sri Lanka, Brazil to sign agreement to implement sugarcane project

ECONOMYNEXT — Sri Lanka’s Cabinet has approved a proposal to sign a complementary adjustment agreement with Brazil to implement a sugarcane project, minister Nalinda Jayatissa said.

Sri Lanka originally entered into a basic Technical Cooperation Agreement with Brazil on September 16, 2008, aimed at promoting bilateral cooperation across mutually beneficial sectors.

“According to the basic agreement on technical cooperation signed between Sri Lanka and Brazil, it is required that the programs and projects under it are implemented through complementary coordination agreements,” Jayatissa said.

Under the framework of that initial agreement, specific programs and projects require execution through separate Complementary Adjustment Agreements.

At a previous Cabinet meeting in May, approval was granted to sign a project collaboration agreement among the Brazilian Cooperation Agency, the Federal University of São Carlos, Sri Lanka’s Ministry of Industries and Entrepreneurship Development, and the Sugarcane Research Institute. (Colombo/September01/2026)

Sri Lanka’s anti-graft body challenges amendments to Anti-Corruption Act

ECONOMYNEXT – Transparency International Sri Lanka (TISL), a non-government organization fighting corruption, has challenged the proposed amendment to the Anti-Corruption Act by President Anura Kumara Dissanayake’s government, citing that some clauses are inconsistent with the country’s constitution.

“TISL warns that the proposed amendments introduce severe policy regressions, create major loopholes, restrict civic space and violate Fundamental Rights,” the TISL said in a statement.

“Far from strengthening anti-corruption efforts, they threaten transparency, accountability, and public trust by undermining the asset declaration regime, meaningful right to information and stripping off judicial oversight on the Authority’s discretion to refrain from prosecuting.”

Prime Minister Harini Amarasuriya officially presented the new amendment bill to Parliament on August 19, 2026.

It seeks to amend the 2023 Anti-Corruption Act to align it with UN standards and satisfy conditions under the International Monetary Fund (IMF) Extended Fund Facility.

According to the government, the amendment bill is designed to refine the 2023 parent act by addressing operational bottlenecks and institutional inefficiencies.

The amendment aims to introduce mandatory secondary fines, requiring convicted individuals to pay up to three times the value of property acquired through corrupt acts or match the total financial loss caused to the state.

It also aims to revoke unlawful non-monetary advantages (such as fraudulent public appointments or administrative privileges) upon conviction.

However, TISL’s petition outlines several key areas of constitutional challenge against the proposed Bill.

The TISL said the proposed amendment authorizes the Commission to empower the Director-General of the Commission to Investigate Allegations of Bribery or Corruption (CIABOC) to decide whether to refrain from prosecuting accomplices in exchange for full disclosure, completely bypassing the requirement for Magistrate authorization.

“This proposed amendment concentrates discretionary decision-making authority in the position of the Director-General without judicial oversight and accountability, exposing the office to potential manipulation, external threats, political pressure and corruption vulnerabilities,” it said.

“Eliminating judicial oversight threatens the integrity of corruption prosecution and the credibility of the Commission’s enforcement mandate.”

It also said the Bill proposes to amend the Act and raise the threshold of State or public-corporation shareholding from 25% to 50% for officers required to submit asset declarations.

“This change would exempt senior officers of state-linked companies where the State holds less than 50% shares. These entities exercise public functions and manage substantial public assets and contracts,” the TISL said.

“A fixed 50% threshold ignores the reality of effective control through board appointments or voting rights and directly conflicts with the Right to Information (RTI) Act, which uses a 25% ownership threshold.”

The proposed amendment seeks to repeal a section that will remove the requirement for public officials to declare the assets and liabilities of cohabitants who share their common household for at least six months prior to the declaration, it said.

“Repealing this provision with no justification, allows corrupt officials to conceal illicit wealth by registering assets in the names of cohabiting household members who are not spouses or dependents. This hampers effective verification and cross-checking.”

TISL also warned that the Bill proposes to amend the Act to grant the CIABOC broad, undefined and arbitrary discretion to redact “any other information” it considers violating an individual’s privacy.

“This open-ended power risks excessive redaction of key financial details that are vital for identifying conflicts of interest or unexplained wealth.”

It inserts a new subsection that criminalises citizens from using redacted asset declarations for any purpose other than making formal submissions under Section 86, the TISL said.

“It criminalizes any other use of public information, making it an offence punishable by summary trial with a fine up to Rs. 100,000, imprisonment for up to one year, or both.”

“Policing what the public can do with public information creates a severe chilling effect on civic space, journalism, and free media. The freedom of expression guaranteed under Article ​​ of the Constitution includes the right to receive and impart information.”

The Bill also proposes to repeal and replace a section which would make bailing the exception and remand the norm. The petition highlights that this provision is vague, constitutionally overbroad, lacks clarity, and fails to provide adequate guidelines, violating the principles of proportionality and fundamental rights.

“TISL’s petition urges the Supreme Court to determine that the relevant clauses of the Bill are inconsistent with key provisions of the Constitution and requests the Court to determine that these provisions cannot become law unless they are passed by a two-thirds majority in Parliament and approved by the People at a Referendum.” (Colombo/September 01/2026)

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Sri Lanka to submit regulations on 68 Port City strategic businesses to parliament

ECONOMYNEXT — Sri Lanka’s Cabinet of Ministers has approved submitting gazetted regulations to Parliament designating 68 entities in the Colombo Port City as Secondary Businesses of Strategic Importance.

The proposal was presented under the provisions of the Colombo Port City Economic Commission Act No. 11 of 2021.

The designated entities span information technology, consulting services, business process outsourcing (BPO), logistics, infrastructure hybrid/combined business models, and public enterprises.

“The Regulations have been published in the Extraordinary Gazette Notification dated 10-04-2026 designating those 68 businesses as Secondary Businesses of Strategic Importance,” minister Nalinda Jayatissa said.

The move follows the initial approval of the 68 entities by the Cabinet on March 30, and their subsequent publication in an Extraordinary Gazette notification dated April 10.

The government is focused on establishing a transparent and functional ecosystem to attract foreign capital, Jayatissa said in response to questions on past project disruptions and investor shortages.

“Our objective is to develop the Colombo Port City into an investment-friendly environment. What is currently underway is preparing the necessary framework and removing the existing bottlenecks,” Jayatissa said. (Colombo/Sep1/2026)

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Sri Lanka stocks close marginally down; ASPI dips 0.08-pct

ECONOMYNEXT – Sri Lanka’s Colombo Stock Exchange closed down on Tuesday trading, CSE data showed, with the benchmark All Share Price Index moving down 0.08 percent.

The ASPI was down 16.47 points at 21,322.22, while the more liquid S&P SL20 was down 0.34 percent, or 20.36 points, at 5,989.32.

Positive contributors to the ASPI were Browns Investments (up 7.55 percent at 5.70 rupees), Vallibel One (up 2.03 percent at 90.30 rupees), Singer (Sri Lanka) (up 2.78 percent at 81.20 rupees), Access Engineering (up 0.94 percent at 75.10 rupees), and Ceylon Cold Stores (up 1.25 percent at 121.75 rupees).

John Keells Holdings (down 2.01 percent at 19.50 rupees), DFCC Bank (down 1.76 percent at 125.75 rupees), Dialog Axiata (down 0.86 percent at 46.00 rupees), and Aitken Spence (down 1.41 percent at 140.00 rupees) were top negative contributors.

Market turnover was 2.32 billion rupees. Food, Beverage & Tobacco led turnover with 400.53 million rupees.

Kapruka Holdings disclosed a proposed variation in the application of its IPO funds.

The company’s management concluded that launching a personal cargo marketplace was not commercially viable and recommended reallocating 50 million rupees of unutilized IPO proceeds toward working capital requirements, subject to shareholder approval at the upcoming AGM.

Kapruka Holdings shares closed up 1.07 percent at 18.90 rupees. (Colombo/September01/2026)

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Sri Lanka cabinet approves immigration control pact with China

ECONOMYNEXT – Sri Lanka’s cabinet has approved signing a bilateral agreement on immigration control cooperation with China to facilitate legitimate travel and combat transnational crime minister Nalinda Jayatissa said.

The agreement between Sri Lanka’s Department of Immigration and Emigration and the National Immigration Administration of the People’s Republic of China aims to enhance institutional coordination, intelligence sharing, and border management.

“Facilitating visa and immigration matters for citizens engaged in business, investment, and tourism, while taking strict measures against organized crime and trafficking of persons,” Jayatissa said.

The agreement will also facilitate official visits between institutional heads and support training workshops to upgrade the knowledge and skills of immigration officers.

The proposal was cleared by the Attorney General and the Ministry of Foreign Affairs, Foreign Employment and Tourism before receiving cabinet approval.

Responding to questions on whether the agreement was prompted by the involvement of Chinese tourist-visa holders in online scams, Jayatissa dismissed any link between criminal arrests and the bilateral pact.

“There is no link between those arrests and the MoUs we enter into. This agreement comes as a result of extensive discussions held over a considerable period,” Jayatissa said.

Jayatissa said foreign nationals from various regions, including European and Central Asian countries, engage in illegal activities and are dealt with by law enforcement and the courts.

The partnership is a broader institutional initiative covering capacity building, information exchange, and security cooperation rather than a reaction to specific crimes, he said. (Colombo/Sep1/2026)

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Cabinet approves Sri Lanka-South Korea criminal legal assistance pact

ECONOMYNEXT – Sri Lanka’s cabinet of ministers have approved a proposal to sign a Mutual Legal Assistance agreement in criminal matters with South Korea, minister Nalinda Jayatissa said.

“The agreement allows mutual cooperation between the states to gather evidence, serve judicial documents, and exchange information to investigate or prosecute criminal offenses across borders,” he told reporters.

The idea was first proposed in 2023 but the relevant agreement had not been signed. (Colombo/Sep1/2026)

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Sri Lanka sells extra Rs5bn Treasury bonds after auction

ECONOMYNEXT – Sri Lanka has sold 5,000 million rupees of bonds offered on tap at average rates set at an auction last week, bringing the total of bonds sold in the week to 55 billion, data from the Public Debt Management Office showed.

The issue offered 50 billion rupees.

The debt office sold a 1 August 2030 maturity bond (LKB00530H016) at a weighted average yield rate of 10.54 percent.

The debt office sold a 15 March 2035 maturity bond (LKB02035C155) at a weighted average yield rate of 11.70 percent.

Total market subscription was 14,50 million rupees.

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Sri Lanka sells Rs50bn in 2030 and 2035 bonds

Last Tuesday, 50 billion rupees in 2030 and 2035 bonds were sold.
(Colombo/Sep1/2026)

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