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Wednesday August 26th, 2026

Sri Lanka considers medical cannabis export amid worst ever forex crisis

ECONOMYNEXT – Facing its worst forex crisis yet and a threat of sovereign default looming, Sri Lanka is considering a proposal to export medical cannabis amid strong resistance to seeking International Monetary Fund (IMF) assistance in debt restructuring.

Sisira Jayakody, State Minister of Indigenous Medicine Promotion, told parliament on Tuesday (30) that Sri Lanka will introduce the legal framework necessary to export medical cannabis in the next three months.

The proposal from the ruling Sri Lanka Podujana Peramuna (SLPP) minister comes as the island nation’s government is slowly losing its grip on the economy with import controls tightly in place amid appeals to exporters and foreign migrants to bring foreign currency into Sri Lanka.

“High quality medical cannabis can be used to treat cancer, neuro diseases, mental disorders, as a painkiller and also in the beauty culture industry. But it was banned when we were under British rule,” Jayakody said.

The MP said the government plans to seek parliamentary approval in the next three months for the export of medical cannabis cultivated in Sri Lanka and it will strictly be for export purposes only, he said.

In 2020, Minister of Trade Bandula Gunawardena also said exporting medicinal cannabis will be profitable to Sri Lanka. However, there was no consensus for last year’s proposal in the government ranks, with Chamal Rajapaksa, older brother of President Gotabaya Rajapaksa and State Minister of Internal Security, opposing it and Prime Minister Mahinda Rajapaksa declaring a tough stance against those promoting the legalisation of marijuana.

However, Jayakody on Tuesday (30) said the department is now taking measures to legalise some of the local medicines.

He also said, without spending fast-depleting foreign reserves to purchase  raw materials to produce Ayurvedic medicine, the department has now started a project under ‘Osudharanai Medicine gardens’  ‘ to create medicine gardens across villages in Sri Lanka.

Sri Lanka’s foreign exchange reserves have depleted by around 70 percent in the first 10 months of the year to 2.3 billion US dollars. Reserves are on the declining trend given Sri Lanka has a trade deficit and its foreign remittances as well as tourism revenue have also been dwindling.

Central Bank Governor Ajith Nivard Cabraal had planned to boost the reserves through bilateral loans and currency swaps. However, nothing has been materialised so far, though Cabraal last week said discussions for swaps and government-to-government loans are under way but details were not revealed due to “radio silence”. (Colombo/Nov30/2021)

Sri Lanka’s Anthoney’s Farms named global sustainability leader

ECONOMYNEXT – New Anthoney’s Farms was named among global sustainability leaders for its use of the Sustainable US Soy and Fed with Sustainable US Soy labels, a distinction that placed a Sri Lankan poultry producer alongside some of the world’s most established agribusiness names at Soy Connext 2026 in Chicago this August.

The summit, organised by the US Soybean Export Council (USSEC), drew a record turnout of more than 800 delegates to the Hyatt Regency Chicago.

In 2023, New Anthoney’s Farms became the first company in South Asia to secure the Sustainable US Soy licence, verified under the US Soy Sustainability Assurance Protocol.

That early adoption has since made the company a reference point for USSEC when discussing what responsible sourcing looks like in practice, and it sits at the foundation of Anthoney’s Feeds, the group’s feed milling operation, which supplies the protein rich, traceable feed behind the company’s antibiotic free standard.

Sri Lanka was 2025’s largest market in the world for containerised US soybean meal, importing roughly 255,000 tonnes last year to feed a domestic animal feed industry producing close to 1.3 million metric tons annually, with poultry as its biggest customer, the company said.

16 Sri Lankan poultry producers and feed millers currently hold the Sustainable US Soy licence.

Over four decades, New Anthoney’s Farms built its identity around a single, then unusual, commitment: raising poultry without antibiotics at any stage of production.

Today, the company describes itself as Sri Lanka’s only fully antibiotic free poultry producer, a claim that has become central to both its consumer proposition and its investment case.

In June, the International Finance Corporation, a member of the World Bank Group, announced it would invest up to USD 10 million in New Anthoney’s Farms Group.

The investment is designed to expand production capacity, strengthen supply chain efficiency and widen access to safe, affordable poultry across the domestic market.

The company expects to export 1,936 metric tons of poultry annually, roughly 10 percent of total output and a 29 percent increase on 2024 levels, generating an estimated USD 4.95 million in additional foreign exchange earnings by 2032.

The IFC investment carries a social dimension that extends beyond the company’s own balance sheet.

Smallholder farmers currently contribute around 40 percent of New Anthoney’s production, and the expansion is expected to create more than 900 new jobs while benefiting at least 200 smallholder farmers through contract farming and outgrower schemes, with roughly 22 percent of participants expected to be women and 80 percent from low income households.

Sri Lanka’s poultry sector remains a critical source of affordable protein and food security, yet smallholder farms, which make up 85 percent of the sector, supply less than 30 percent of total output, often held back by constraints in productivity and market access.

Strengthening that value chain, rather than simply scaling one company’s output, is central to how the investment has been framed.

“Founded in 1986 as a smallholder enterprise, New Anthoney’s Farms Group is proud to enter its next phase of growth through this partnership,” said Neil Suraweera, CEO of New Anthoney’s Farms Group, of the IFC deal.

“This collaboration represents a paradigm shift for us, reinforcing our commitment to world class governance, transparency and operational excellence, while upholding the highest standards of social and environmental sustainability.” (Colombo/Aug26/2026)

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Sri Lanka sells extra Rs12bn Treasury bills after auction

ECONOMYNEXT – Sri Lanka has sold 12,000 million rupees of treasury bills offered on tap at average rates of 9.06 percent, 9.44 percent and 9.89 percent, the public debt management office said, bringing the total of bills sold this week to 132 billion rupees.

Total market subscription was 91,029 million rupees.

The debt office sold a 3-month bill at 9.06 percent.

The debt office sold a 6-month bill at 9.44 percent.

The debt office sold a 12-month bill at 9.89 percent.

On Monday (24) the debt office raised 120 billion rupees of 3, 6 and 12 month bills.

Read more
Sri Lanka Treasury bill yields drop further, Rs120bn sold

All 3 bills were later offered on tap. (Colombo/Aug26/2026)

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Sri Lanka to host WHO Universal Health and Preparedness Review

ECONOMYNEXT – Sri Lanka’s Cabinet of Ministers has approved a proposal to host the World Health Organization’s (WHO) Universal Health and Preparedness Review to improve national readiness for health emergencies minister Nalinda Jayatissa told.

The proposal was submitted by the Minister of Health and Mass Media after the government agreed to an invitation extended to Sri Lanka by the Director-General of the WHO.

The initiative is a voluntary process led by the host country and peer-reviewed by other member states to help nations identify, prevent, and respond to health emergencies.

“The review will be conducted with the support of the highest level of government commitment, based on a whole of government and whole of society approach,” Jayatissa said.

The review aims to upgrade Sri Lanka’s existing crisis frameworks by evaluating preparedness systems across multiple sectors of administration and public life.

“The review will go beyond previous assessment processes to strengthen inter-sectoral coordination, build optimal governance structures, and ensure financial commitment,” Jayatissa said.

The government stated that hosting the review marks a key step forward in reaffirming Sri Lanka’s ongoing commitment to strengthening its health security systems. (Colombo/Aug25/2026)

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Sri Lanka rupee closes at 328.50/60 to US dollar spot, bond yields down

ECONOMYNEXT – Sri Lanka’s rupee closed at 328.50/60 to the US dollar in the spot market on Tuesday, stronger from 329.00/10 the previous day, while bond yields closed down, dealers said.

A bond maturing on 15.09.2027 closed at 9.45/60 percent, down from 9.50/65 percent.

A bond maturing on 15.02.2028 closed flat at 10.00/10 percent.

A bond maturing on 15.10.2028 closed at 10.10/20 percent, down from 10.15/25 percent.

A bond maturing on 15.12.2029 closed at 10.35/45 percent, down from 10.45/50 percent.

A bond maturing on 01.08.2030 closed at 10.50/60 percent, down from 10.75/85 percent.

A bond maturing on 15.10.2030 closed at 10.55/62 percent, down from 10.80/90 percent.

A bond maturing on 15.12.2032 closed at 11.15/25 percent, down from 11.25/30 percent.

A bond maturing on 15.10.2034 closed at 11.55/60 percent, down from 11.70/75 percent.

A bond maturing on 15.08.2036 closed at 11.85/90 percent, down from 11.97/12.02 percent. (Colombo/Aug25/2026)

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Sri Lanka stocks close down, capital goods lead turnover

ECONOMYNEXT – Sri Lanka’s Colombo Stock Exchange closed down on Tuesday trading, CSE data showed, with the benchmark All Share Price Index moving down 0.31 percent.

The ASPI was down 65.12 points at 21,279.65, while the more liquid S&P SL20 was down 0.24 percent, or 14.59 points, at 5,994.81.

Positive contributors to the ASPI were Haycarb (up 2.69 percent at 190.75 rupees), LOLC Finance (up 6.00 percent at 5.30 rupees), Melstacorp (up 0.26 percent at 190.50 rupees), Hayleys (up 0.33 percent at 226.75 rupees), and Sampath Bank (up 0.18 percent at 140.00 rupees).

Cargills (Ceylon) (down 4.44 percent at 650.50 rupees), Dialog Axiata (down 1.49 percent at 46.40 rupees), and Citizens Development Business Finance (down 7.04 percent at 37.00 rupees) were top negative contributors.

Market turnover was 796.92 million rupees. Capital goods led turnover with 153.15 million rupees, followed by Materials with 138.64 million rupees.

HNB Finance announced the appointment of Talpawila Kankanamge Don Aruna Prasad Samarasinghe as Chairman of the Board of Directors, effective August 28, following the retirement of Rajive Dissanayake.

The company said Samarasinghe holds a relevant interest in 1,089,705,785 voting shares through Hatton National Bank. (Colombo/August25/2026)

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Sri Lanka sells Rs50bn in 2030 and 2035 bonds

ECONOMYNEXT – Sri Lanka has sold 50 billion rupees in 2030 and 2035 bonds, data from the public debt management office showed.

All offered 30 billion rupees of 01 August 2030 (LKB00530H016) bonds were sold at an average yield of 10.54 percent.

All offered 20 billion rupees of 15 March 2035 (LKB02035C155) bonds were sold at an average yield of 11.70 percent.

Both bonds are available on tap. (Colombo/Aug25/2026)

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