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Monday November 9th, 2026

Sri Lanka carbon credits need reform to be globally traded

ECONOMYNEXT- Sri Lanka’s Carbon Crediting Scheme (SLCCS) needs to be further strengthened to be recognized globally, two World Bank specialists said, while lauding efforts made by early adopters.

World Bank’s Climate and Energy Specialist Prajwal Baral and Carbon Finance specialist Keisuke Iyadomi in an official blog post said that Sri Lanka has only now managed to ‘catch the low carbon development train’.

SLCCS is a voluntary program which supports greenhouse gas emission reduction and enables companies to earn Sri Lanka Certified Emission Reduction Units (SCERs) for their efforts to reduce emissions.

These units can either be used offset emissions or to be traded among fellow companies.

Dilmah, a tea company, has achieved carbon neutral status through the scheme, while competitors Eswaran Brothers and Bogawantalawa Tea Estates have achieved the same feat outside the SLCCS.

Firms in other countries already trade carbon credits they generate internationally whereas Sri Lanka is yet to reach that level.

There is a lack of demand for carbon credits generated in Sri Lanka in international markets as credibility has yet to be built.

“The SLCCS program itself needs to be further strengthened and recognized as a credible scheme in the global carbon market,” the Baral and Iyadomi said.

“For this, the framework for monitoring, reporting, and verification, and for registry needs to be strengthened and made internationally compatible.”

“Once the scheme attains high international standards, the SCERs generated from any type of non-export-oriented industries could boost the demand for carbon credits both domestically and internationally.”

Major carbon emittors in industries, transportation, waste and electricity have yet to demand carbon credits, as they have no financial and non-financial incentives to do so, the World Bank specialists said.

The government could implement tax cuts to enable the use of carbon credits and invest in greener technologies, they said.

Sri Lanka has ambitious carbon-reduction targets under its Nationally Determined Contribution to the United Nations Framework for Combatting Climate Change.

Carbon emissions in Sri Lanka, which is highly vulnerable to climate change, have more than doubled over the last 15 years.

Meanwhile, Sri Lankan Airlines is recognized worldwide for its ‘Flygreen’ program.

The full blog post follows:

Sri Lanka catches the low carbon development train

In Sri Lanka, one of the world’s largest tea companies has become carbon neutral.

From late 2018, Dilmah Tea, a family firm with a market presence in over a hundred countries, began to offer a complete range of carbon-neutral products.

Furthermore, Sri Lankan Airlines, the country’s national carrier, has become one of only six airlines globally to be accredited for its ‘Flygreen’ program. Other companies are hoping to follow.

So, what has Sri Lanka done to make this happen?

With its CO2 emissions increasing by more than 100% over the last 15 years, the country – which is highly vulnerable to effects of climate change – has submitted ambitious carbon-reduction targets under its Nationally Determined Contribution to the UNFCCC.

One of the ways in which it aims to achieve these targets is through the Sri Lanka Carbon Crediting Scheme (SLCCS).

The scheme – voluntary in nature – allows companies to reduce their carbon footprint by trading domestically in carbon.

Under the scheme, companies can use their efforts to reduce emissions – such as generating clean power from hydro and solar – to earn Sri Lanka Certified Emission Reduction Units (SCERs).

By earning these units, companies can offset their own emissions, or trade their carbon credits with other companies.

Dilmah Tea has already used this scheme to offset a part of its carbon footprint with the help of two mini-hydropower projects on their tea estates in Queensberry and Craighead.

Other tea producers such as Eswaran Brothers and Bogawantalawa Tea Estates have also declared carbon-neutral status through non-SLCCS projects.

Nonetheless, the lack of demand for carbon credits has prevented the program from fully taking off.

Critically, the carbon-heavy sectors such as transport, electricity, industry, and waste – that have the primary onus of meeting the country’s emission reduction goals – have not yet fully entered the race to reduce their carbon footprint.

The reasons are not difficult to find. They have little to no financial or non-financial incentive to do so.

Even so, by following a three-pronged approach, Sri Lanka can help ensure that these carbon-heavy sectors do not miss the low carbon development train :

First, the government needs to create a better enabling environment that encourages industries to adopt low-carbon or more energy-efficient technologies in their entire value chain.

For instance, reducing taxes and import duties for a wide range of green technologies, or giving low emitters priority in government procurement could encourage the companies to adopt lower-carbon technologies and use more of the SLCCS credits. (Colombo/Oct09/2019)

Second, the SLCCS program itself needs to be further strengthened and recognized as a credible scheme in the global carbon market.

For this, the framework for monitoring, reporting, and verification (MRV), and for registry needs to be strengthened and made internationally compatible.

Once the scheme attains high international standards, the SCERs generated from any type of non-export-oriented industries could boost the demand for carbon credits both domestically and internationally.

Third, Sri Lanka needs to train more low carbon experts through a well-structured capacity building and education program.

For instance, companies could be encouraged to use the MRV system at their manufacturing plants and to learn more about the best-available low-carbon technologies that qualify under the SLCCS.

The world over, countries are gearing up for low-carbon economic development.

The World Bank Group (WBG)’s latest report, “State and Trends of Carbon Pricing 2019” shows that, globally, 57 regional, national and sub-national carbon pricing initiatives have already been implemented or are scheduled for implementation.

Sri Lanka cannot afford to be left behind. Since 2018, the World Bank’s Partnership for Market Readiness (PMR) – a grant-based trust fund – has been providing the country with funding and technical assistance for piloting carbon-pricing instruments that reduce GHG emissions.

With the right regulatory and policy support, and global initiatives such as the PMR, the exemplary initiatives taken by Sri Lanka’s tea industry could easily be replicated by other companies too.

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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