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Monday September 21st, 2026

Sri Lanka cabinet spokesman bats for China FTA as crisis haunts 

ECONOMYNEXT – Sri Lanka’s Cabinet Spokesman Bandula Gunawardena backed a ling dragged Free Trade Agreement (FTA) with China as a way to move away from the ongoing unprecedented economic crisis which has started to haunt millions of the island nation’s people.

Sri Lanka is proceeding with multiple free trade agreements including with China and Singapore five years after talks with Beijing on the FTA were suspended following concerns over upper hand by China.

“We can get countries like China, Vietnam, Singapore, and Malaysia as examples which  have entered free trade agreements,” Gunawardena told a weekly cabinet media briefing on Tuesday (03) when asked about the progress of Chinese FTA talks.

“If we do not enter the agreement, the consequences are when other countries get the goods with the tax relief our country’s producers will not be able to compete with them,” he said.

“The export number, currently around $12 billion, has to be increased to around $20-25 billion, so that we will be able to overcome this crisis.”

Sri Lanka is caught in a geopolitical cold war between China and India with the backing of the United States, analysts say. That cold war has led Sri Lanka to be extremely cautious in dealing with both Asian powers and even to forego some investment opportunities.

However, the economic crisis and sovereign debt default have compelled the island nation to look into all available avenues to ensure more foreign inflows to move away from the crisis.

Sri Lanka had to temporarily stop FTA talks with China in 2018 under the last administration because Beijing disagreed with Colombo’s demand for a review of the deal after 10 years.

“The solution for this (crisis) is to improve the forex earnings and to cease the forex flowing out of the country and  improve the number of foreign reserves we own,” Gunawardena said.

“There is a risk in bringing down essential items such as fuel, chemical fertilizer, raw materials to run factories, medicine, and other machines. The debt restructuring and a plan to repay the debts have to be done.”

“Whether we like it or not, we have to enter the foreign market as soon as possible, and to increase export income, we have to sign many free trade agreements as much as possible.”(Colombo/Jan03/2023)

Sri Lanka rupee closes at 330.75/90 to US dollar spot, bond yields flat

ECONOMYNEXT – Sri Lanka’s rupee closed at 330.75/90 to the US dollar in the spot market on Monday, improving from 330.75/331.25 the previous day, while bond yields closed flat, dealers said.

A bond maturing on 15.09.2027 closed flat at 9.85/10.00 percent.

A bond maturing on 15.12.2028 closed flat at 10.50/70 percent.

A bond maturing on 15.12.2029 closed at 10.85/95 percent.

A bond maturing on 01.08.2030 closed at 11.15/20 percent, down from 11.20/25 percent.

A bond maturing on 01.02.2031 closed at 11.30/33 percent.

A bond maturing on 15.12.2032 closed at 11.50/55 percent, down from 11.60/70 percent.

A bond maturing on 01.11.2033 closed at 11.70/80 percent, down from 11.80/88 percent.

A bond maturing on 15.10.2034 closed at 11.90/12.00 percent, down from 11.95/12.05 percent. (Colombo/Sep21/2026)

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Sri Lanka’s Resus Energy commissions 2MW solar power plant

ECONOMYNEXT — Sri Lanka’s Resus Energy has commissioned a 2MW solar power plant located in Damana, Ampara, with commercial operations officially commencing on September 18, the company said in a market filing.

The renewable energy facility was developed and implemented by Resus Eastern Solar, a wholly owned subsidiary of Resus Energy.

The plant is expected to generate and supply approximately 3.5 GWh of clean energy annually to the national grid.

The commissioning further expands the company’s renewable energy portfolio while supporting Sri Lanka’s broader transition toward sustainable energy generation.

Shares closed at 8.70 rupees, down 1.14 percent. (Colombo/September21/2026)

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Sri Lanka parliamentarians visit China, South Africa for regional forums

ECONOMYNEXT – Two groups from Sri Lanka’s Parliament visited China and South Africa last week for a traditional medicine forum and the Commonwealth Parliamentary Conference.

The team participating in the 2026 Shanghai Cooperation Organisation (SCO) Forum on Traditional Medicine in Nanchang, Jiangxi Province, China were Speaker Jagath Wickramaratne, Deputy Minister of Health Hansaka Wijemuni, and Managing Director of the Sri Lanka Ayurveda Drug Corporation Marasinghege Jayalal.

Organised by the Good-Neighborliness, Friendship and Cooperation Commission of the Shanghai Cooperation Organisation and the People’s Government of Jiangxi Province, the forum brought together senior officials, health authorities, traditional medicine practitioners, experts, academics, researchers and representatives of the traditional medicine industry to promote cooperation.

Wickramaratne said there was potential for strengthened cooperation between Sri Lanka and China in traditional medicine, including in the areas of medicinal plants, scientific research, education and training, quality standards, technology and the development of safe and effective traditional medicine products.

The team also met with several Chinese investors to discuss potential investment opportunities in Sri Lanka, including investments related to rice-based products.

Separately, a Parliamentary team participated at the 69th Commonwealth Parliamentary Conference in Cape Town, South Africa.

The team comprised Deputy Minister of Mass Media Kaushalya Ariyarathna, Deputy Minister of Cooperative Development Upali Samarasinghe, Members of Parliament Sagarika Athauda, Ilankumaran Karunanathan, Sugath Wasantha de Silva, (CPwD Asia Regional Champion) and Suranga Rathnayake, Secretary-General of Parliament and Secretary of the CPA Sri Lanka Branch Kushani Rohanadeera, and Senior Parliamentary Interpreter Edirisinghe Arachchige Amarasena.

Ariyarathna chaired Workshop C of the 10th CWP Conference, examining approaches to incorporating gender equality into legislation, parliamentary procedures, committee scrutiny, budgeting and post-legislative oversight.

The CPA New Parliamentarian Award 2026 was presented to de Silva for his contribution to promoting inclusive parliamentary democracy, including advancing disability rights and inclusive governance.

Rohanadeera participated in the meeting of the Society of Clerks-at-the-Table (SoCATT), which brought together parliamentary officials from Commonwealth Parliaments to exchange institutional practices and discuss parliamentary administration and procedure. (Colombo/Sep21/2026)

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Sri Lanka stocks close lower; ASPI drops 0.37-pct

ECONOMYNEXT – Sri Lanka’s Colombo Stock Exchange closed down on Monday, CSE data showed, with the benchmark All Share Price Index moving down 0.37 percent.

The ASPI was down 77.08 points at 20,979, while the more liquid S&P SL20 was down 0.39 percent, or 22.89 points, at 5,906.

Positive contributors to the ASPI were Aitken Spence (up 0.73 percent at 138.50 rupees), Nations Trust Bank (up 0.58 percent at 305.00 rupees), and HNB Life (up 2.14 percent at 143.00 rupees).

Melstacorp (down 0.96 percent at 180.75 rupees), Hatton National Bank (down 0.52 percent at 379.75 rupees), ACL Cables (down 1.92 percent at 92.00 rupees), and Access Engineering (down 1.42 percent at 76.30 rupees) were top negative contributors.

Market turnover was 750.35 million rupees. Capital goods led turnover with 154.1 million rupees, followed by food, beverage and tobacco with 110.9 million rupees.

Blue Diamonds Jewellery said Andrew Lee steppe down as chairman with effect from September 16. (Colombo/Sep21/2026)

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Sri Lanka economic summit to focus on energy transition

ECONOMYNEXT – As the country seeks to strengthen energy security while reducing its dependence on fossil fuels, the energy sector will be a key area of discussion at the Sri Lanka Economic & Investment Summit 2026, organised by The Ceylon Chamber of Commerce on 12-13 October 2026.

The session, “Beyond Fossil Dependence: Balancing Security, Sustainability, and Growth,” will examine how Sri Lanka can diversify its energy sources, accelerate renewable energy adoption and attract investment while ensuring a reliable energy supply for businesses and households.

Discussions will also consider the infrastructure and policy frameworks needed to support the country’s transition towards a modern and competitive energy system.

Edore Onomakpome – Regional Infrastructure Industry Manager – Bangladesh, Sri Lanka and Nepal, at the International Finance Corporation will keynote the session, and join the panel discussion featuring G M R D Aponsu – Secretary to the Ministry of Energy, Damitha Kumarasinghe – Director General, Public Utilities Commission of Sri Lanka, and Manjula Perera – Managing Director, WindForce.

The discussion will be moderated by Sheran Fernando – Senior Advisor, Plus94.

The session will also explore the role of public-private collaboration in developing new energy solutions, encouraging investment and creating opportunities within Sri Lanka’s evolving energy sector.

It will consider how energy policy and investment decisions can support both economic expansion and the country’s longer-term sustainability objectives.

Registrations are now open at https://sleis.chamber.lk/. For more information, contact Alikie on 011 558 8805 (alikie@chamber.lk) or Shanuka on 0701082541 (events.division@chamber.lk). (Colombo/Sep21/2026)

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ADB launches $6bn push for healthier seas and coastal economies

MANILA, PHILIPPINES — The Asian Development Bank (ADB) has announced it will mobilize up to 6 billion dollars through 2030 to confront the mounting threats facing Southeast Asia’s seas and strengthen the blue economy that the region’s food supplies, jobs, and trade depend on.

“The ocean is not just an environmental priority; it is the economic foundation of Southeast Asia,” said ADB President Masato Kanda.

“When marine ecosystems degrade, the damage reaches the fishing net, the family table, and the flooded doorstep. We will put up to $6 billion behind the work of restoring fisheries, building resilient coastal infrastructure, and stopping waste before it reaches the water.”

Kanda announced the ASEAN Blue Economy Initiative at the 58th Association of Southeast Asian Nations (ASEAN) Economic Ministers’ Meeting in Metro Manila.

The initiative runs from 2026 to 2030, and forms part of the $30 billion ADB pledged in May to mobilize for ASEAN priorities by 2030, delivered in its role as the region’s main bank.

Southeast Asia produces about one-fifth of the world’s fisheries and aquaculture output, and its ports, coastal logistics, and tourism sustain trade, jobs, and local income.

However, this natural capital is eroding as ecosystems degrade, plastic waste accumulates, and fishing pressure mounts.

Modeled estimates put expected coastal flood damage across the region at about $11.5 billion a year.

The initiative supports the ASEAN Blue Economy Framework and its Implementation Plan (2026–2030).

Under the initiative, ADB’s support will focus on three areas: strengthening the policy, institutional, and data foundations that credible investment depends on; scaling investment in ASEAN’s priority blue sectors, including fisheries, aquaculture, coastal resilience, and port-linked value chains; and reducing marine pollution through circular economy solutions and innovative finance that brings in private capital.

Because much marine pollution begins inland, the initiative will also improve water and solid-waste systems upstream.

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