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Monday November 9th, 2026

Sri Lanka goes for nationwide Local Government polls after 7 years

ECONOMYNEXT – Sri Lanka will go for long delayed nation-wide Local Government (LG) for the first time in seven years with the election is seen as a litmus test for President Anura Kumara Dissanayake’s Marxists Janatha Vimukthi Peramuna (JVP)-led ruling National People’s Power (NPP) amid falling popularity.

NPP won the presidential election and parliament election in 2024, but has so far struggling to fulfil its key promises made during the last year’s election campaign including bringing back hidden money in foreign countries and arresting the culprits who are involved in some key corruption and murder cases.

The election also comes at a time when all opposition parties have launched a campaign to expose President Dissanayake administration’s alleged misleading false statements in the past.

The elections, scheduled for Tuesday (06), will serve not only as a litmus test for the government’s popularity but also as a referendum on the promises made during its rise to power.

After more than two years without elected LG bodies, these elections carry significant political and administrative implications. They come at a time when public trust in politicians has dwindled, economic woes continue, and hopes for genuine reform remain largely unmet.

The voting will start at 0700 hours and end at 1600 hours local time with 17.2 million people out of the 21.5 million population are eligible to vote to elect 8,287 members into 339 local government bodies which includes 28 Municipal Councils, 36 Urban Councils, and 275 Pradeshiya Sabha, the country’s Election Commission said.

R M A L  Rathnayake, the Chairman of the Election Commission requested the voters to use their franchise rights as early as possible on Tuesday.

“If you have not received the polling card, you still can collect it from your post office. If you cannot collect it, still you can vote with a valid identity card,” he said in a recorded video sent to the media.

 

Critically Important

The LG polls are critically important for President Dissanayake’s government, which came to power last year amid a wave of popular support following the collapse of the previous administration.

The president, backed by a coalition led by the JVP-dominated NPP, swept into office promising sweeping reforms, anti-corruption measures, and a reset of Sri Lanka’s political culture.

However, after nearly half-an-year in office, the momentum has noticeably slowed, and many of the transformative policies remain either partially implemented or stalled.

For a government that campaigned on radical change, the LG polls represent the first real electoral challenge since assuming office.

A strong showing would reaffirm public trust and provide the political capital needed to push ahead with reforms that have so far faced resistance from the bureaucracy and entrenched interests.

Conversely, a weak performance would signal waning support and embolden opposition forces, potentially destabilizing the administration’s broader reform agenda, political analysts say.

It is also a test of the NPP’s ability to translate national-level rhetoric into grassroots support.

Postponed LG Polls

Over the last two years, Sri Lanka has functioned without elected LG bodies, a situation that has significantly weakened local governance.

Administrators appointed by the central government currently oversee local affairs, leading to growing frustration among communities over lack of accountability, transparency, and responsiveness.

These unelected officials often lack the mandate or incentive to address local concerns effectively, contributing to a sense of democratic deficit.

LG bodies play a critical role in the day-to-day lives of citizens by managing public services, infrastructure, community development, and welfare schemes.

In a country with deep regional disparities, the absence of functioning LG institutions undermines participatory democracy and development.

Their restoration is essential for revitalizing civic engagement, ensuring effective service delivery, and decentralizing power—key goals of President Dissanayake’s stated reform agenda.

Thus, holding LG elections is not merely a political necessity but a constitutional and democratic imperative.

People’s Decision

For ordinary Sri Lankans, the LG polls offer a rare opportunity to assert their voice in a system that has often marginalized public participation.

In the aftermath of the economic crisis and political upheavals of recent years, many citizens feel betrayed by successive governments.

The LG election is their chance to either reaffirm their support for the current government or signal discontent through the ballot box.

The expectations are high with people wanting jobs, better public services, local development, and an end to corruption and inefficiency.

Many also see the LG elections as a way to hold the government accountable for its performance, particularly on economic management, inflation control, and cost of living issues.

Voter turnout and participation levels will thus be a crucial indicator of public sentiment and political engagement, though many political analysts expect the turnout in the May 6 polls will be less than the last year’s elections. .

Government’s Popularity

Despite the initial optimism surrounding President Dissanayake’s leadership, public support appears to be eroding.

The government’s failure to deliver tangible results in key areas such as economic recovery, justice for corruption, and systemic reform has bred disillusionment.

Critics argue that while the rhetoric remains strong, the actual governance has been marked by delays, bureaucratic inertia, and compromises with elements of the old guard.

Moreover, cost of living remains high despite disinflation for the past eight months, food, and unemployment continues to plague the youth.

These everyday challenges have a direct impact on the electorate’s perception of government performance.

While many still believe in the president’s sincerity, frustration is growing over the slow pace of change and the gap between campaign promises and lived reality.

The LG polls will reflect whether the government still enjoys a honeymoon period—or if the public has begun to lose patience.

Promises

In the run-up to the LG elections, government leaders have renewed their pledges to bring about structural reforms, expand local development, and root out corruption.

They have promised to strengthen decentralization, empower LG institutions, and ensure more efficient and accountable service delivery.

Additionally, there is renewed focus on digitizing local governance, improving transparency, and increasing public participation in decision-making.

However, many voters remain skeptical. Past promises of ending nepotism, prosecuting corrupt officials, and revamping the economy have yet to materialize.

Some NPP-led leaders have touted their record of clean governance and pragmatic solutions, but these examples remain isolated.

Whether these promises can sway an increasingly cynical electorate remains to be seen.

Much depends on the credibility of candidates, the clarity of vision at the local level, and the government’s ability to show progress in the weeks leading up to the election.

Opposition Campaign

One of the more striking aspects of the LG election landscape is the apparent weakness of opposition parties, analysts say.

The United National Party (UNP), once a dominant force, has been significantly diminished following its poor performance in national elections.

The Sri Lanka Podujana Peramuna (SLPP), which suffered a major loss of legitimacy following the 2022 economic collapse and mass protests, continues to struggle with internal divisions and a tainted reputation.

The main opposition Samagi Jana Balawegaya (SJB), led by Opposition Leader Sajith Premadasa, has failed to present a compelling alternative narrative that resonates widely with the electorate.

Much of the opposition’s weakness stems from a lack of clear leadership, fragmented alliances, and failure to build grassroots support.

Without a coherent strategy or message, they are unable to capitalize on the government’s shortcomings.

This disarray plays to the advantage of the ruling coalition, which—despite its own challenges—still appears more unified and organized.

However, this dynamic also raises concerns about the quality of democratic competition and the lack of effective checks and balances.

Likely Outcome

Predicting the outcome of the LG polls is challenging given the complexity of Sri Lanka’s political landscape. However, in the absence of strong opposition, the ruling NPP is expected to win, but with fewer votes than it got in the last parliamentary polls.

Though the NPP is likely to win as a single party in most of the 339 bodies, the party is expected to struggle to establish the councils in some bodies given the mixed electoral system in place, analysts say.

A low voter turnout, which is likely particularly from disillusioned youth and economically marginalized groups, could also skew outcomes in unpredictable ways.

If the government manages to secure a clear majority in LG bodies, it will be seen as an endorsement of its mandate and provide breathing space to push forward with reforms.

However, if the results show a significant erosion of support or gains for independent or minor party candidates, it could force a recalibration of government strategy and possibly trigger internal dissent.

More importantly, the results will serve as a barometer for national elections in the future and set the tone for the remainder of Dissanayake’s presidency. (Colombo/May 05/2025)

Sri Lanka’s flash floods in capital point to systemic institutional failure, ignored directives

ECONOMYNEXT – As torrential monsoon downpours transformed Sri Lanka’s commercial capital’s thoroughfares into raging brown rivers on Friday (06) submerging vehicles, paralyzing public transit, and inundating critical facilities like the National Hospital, the crisis was framed by authorities as an act of nature.

But for the millions of residents wading through waist-deep water, the disaster was not merely meteorological. It was man-made, preventable, and a glaring testament to gross institutional negligence.

Vraîe Cally Balthazaar, the Mayor of the island nation’s biggest local governing body Colombo Municipal Council (CMC) posted on her FaceBook (Meta) platform just a week ago before the floods that people in her ward “have had to live with the risk of flooding for years” after the stormwater drain running through the Jawatta Public Cemetery collapsed in 2019.

She said in the post that she promised the residents that the CMC would get the repairs done before the end of September, and she was happy to say that the CMC has “managed to complete the work by September 15.

“And sometimes, something as simple as fixing a drain can make a real difference to an entire neighbourhood,” Balthazaar said.

However, the flash floods saw the same area heavily flooded despite the ‘fixing’ by the CMC.

Just 24 days before the floods, Prime Minister Harini Amarasuriya herself issued a direct, unequivocal order to government officials and municipal authorities to treat the cleaning of Colombo’s canal and drainage systems as an exceptional priority.

She directed to expedite the work and complete it within two weeks to ensure proper rainwater management amid anticipated increases in rainfall.

Prime Minister Amarasuriya issued these directives while addressing the Colombo District Coordinating Committee meeting held on October 13 at the Narahenpita District Secretariat.

During the meeting, officials from divisional secretariat offices, the Agrarian Development Department, and the Provincial Irrigation Department highlighted existing challenges in cleaning drainage and canal systems, noting issues such as a shortage of technical officers and difficulties faced in formulating plans and estimates.

Her instruction came in response to early meteorological indicators pointing toward an intensifying inter-monsoonal rainfall season.

But the floods last week proved that these directives had been ignored, delayed, and left unimplemented by the very bodies sworn to protect the city’s populace.

Recognizing the chronic vulnerability of the commercial capital’s low-lying geography, the Prime Minister instructed relevant stakeholders to systematically clear Colombo’s primary canals, secondary outlets, and subterranean drainage systems.

Crucially, the directive came with a strict deadline: a two-week window to complete the comprehensive clearing of blockages, silt, and solid waste that choke the city’s waterways.

Colombo would not have had last week’s floods, had the Prime Minister’s instruction been heeded and executed.

But the Prime Minister’s instruction designed precisely to preempt the catastrophic urban flooding that has chronically plagued Colombo during heavy weather was ignored.

Yet, when the skies opened up last Friday (06), the two-week deadline had long expired into the ether of bureaucratic inaction.

The canals remained congested with plastic debris, unauthorized construction bottlenecks, and thick layers of silt.

The drainage systems, starved of maintenance, failed instantly.

Neither the central government machinery nor the Colombo Municipal Council (CMC) can wash their hands of accountability.

The ‘Clean Sri Lanka’ programme under the current government has been created to deal with prevention of flooding among many other ambitious goals.

“The responsibility for this damage must be borne by the President even more than the Mayor,” former Urban Development and Megapolis Minister Champika Ranawaka, a strong government critic, said on his YouTube platform.

“He is the head of the disaster management apparatus, and ‘Clean Sri Lanka’ operates under his direct leadership. Because of his actions and their administrative conduct, the entire state machinery has been brought to a standstill.”

Anatomy of Municipal Paralysis

When orders from the higher office like Prime Minister of the state can be casually sidelined by municipal inertia, it exposes a profound fracture in governance, one where public safety is compromised by institutional paralysis.

At the heart of Colombo’s drainage crisis is a systemic failure of local governance and inter-agency coordination.

The Colombo Municipal Council, tasked with the day-to-day stewardship of municipal infrastructure, waste management, and local drainage networks, has long operated in an administrative comfort zone characterized by reactive posturing rather than proactive mitigation.

When the Prime Minister’s directive was issued in mid-October, it should have triggered an immediate emergency mobilization.

Municipal work crews, heavy machinery, and desilting operations ought to have been deployed across every vulnerable ward, from the commercial hubs of Fort and Pettah to densely populated residential quarters like Borella, Wellawatte, and Grandpass.

Instead, citizens witnessed what can only be described as administrative inertia.

Bureaucratic red tape, sluggish procurement of maintenance contracts, and a lack of accountability mechanisms meant that instructions from the Prime Minister trickled down into endless committee meetings rather than field operations.

By treating a critical pre-monsoon cleanup as a routine administrative task rather than an urgent, life-saving imperative, municipal officials displayed a reckless disregard for urban risk management.

The government repeatedly said it has collected ample tax revenue to run the country. But that money could not be used urgently to protect the Colombo city when it was evident what was going to happen as per Prime Minister Amarasuriya’s instructions.

Furthermore, the failure extends beyond mere delayed cleanups to encompass chronic structural enforcement failures.

Over decades, Colombo’s natural hydrological buffers including its wetlands, marshes, and secondary flood retention areas have been systematically degraded or encroached upon by uncoordinated commercial and residential developments.

When drainage systems are clogged with garbage while vital retention pathways are blocked by concrete, even a standard heavy downpour is bound to trigger catastrophe.

Friday’s deluge merely exposed the cumulative cost of this willful administrative blindness.

Economic Toll of Negligence

The consequences of this systemic failure were borne immediately by ordinary citizens and critical public infrastructure.

The inundation of the National Hospital of Sri Lanka, where floodwaters unprecedentedly breached critical service areas, should be considered a national scandal.

That a premier healthcare institution can be crippled within 2 hours of heavy rain, jeopardizing patient care and compromising sterile environments, illustrates the deadly stakes of municipal failure.

Beyond the hospitals, small business owners watched their livelihoods float away, commuters were stranded for hours in gridlocked, submerged buses, and low-income families residing in underserved settlements suffered extensive property damage.

For an urban economy trying to anchor Sri Lanka’s fragile post-crisis recovery, recurring paralyzing floods exact a heavy toll in lost productivity, infrastructure damage, and emergency response costs.

Accountability

The CMC and government have pointed fingers at the illegal structures erected under past governments for the latest disaster. But this government has already been in power for two years.

In the aftermath of the disaster, routine finger-pointing between central agencies and municipal bodies also has begun, with officials attempting to deflect blame onto unprecedented rainfall volumes.

But meteorological data offers no refuge for negligent administrators.

The rainfall, while heavy, was seasonally anticipated; indeed, it was precisely why the Prime Minister issued her October directive.

When a directive issued by the second-in-command of the country is left gathering dust on a municipal desk while citizens face preventable devastation, the social contract breaks down.

The current government and the Colombo Municipal Council cannot hide behind excuses of resource constraints or administrative oversight.

Preventing flash floods requires more than issuing seasonal press releases or convening post-disaster committees after the water has receded.

It demands rigorous enforcement, transparent institutional accountability, and a zero-tolerance approach to administrative lethargy.

If the authorities cannot execute basic drainage maintenance, Colombo will remain structurally vulnerable, hostage to the next raincloud, and failed by the very institutions meant to protect it. (Colombo/November 08/2026)

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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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