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Friday November 13th, 2026

Sri Lanka government heading into a perfect storm: Opinion

ECONOMYNEXT – Sri Lanka is heading for a perfect storm around the end of the year as political and community opposition to the government rises amid looming food and fuel shortages.
Just in the past few days there have been more significant protest campaigns that should worry the government.

Hundreds of Catholics, including many priests and nuns lined the road leading to the Supreme Court on Nov 8 as a petition filed by Rev Cyril Gamini Fernando, a spokesman for the Catholic church calling on the apex court to prevent his arrest by the Criminal Investigation Department was heard. The protestors who were joined by some members of the Buddhist Clergy as well, did not shout slogans or hold placards. Instead, some silently prayed the Rosary.

Fr Cyril Gamini, as he is popularly known, had earned ire of the head of the State Intelligence Service Major General Suresh Salley by raising the question of how the intelligence agencies could have been unaware of the existence of the National Towheed Jamaat and its leader Mohammed Zaharan. He was participating in a webinar along with Malcolm Cardinal Ranjith on Oct 24 hosted by a group of Sri Lankan expatriates based in Australia. This group is among many that have formed overseas by concerned Sri Lankan Catholics calling for justice for the Easter Sunday attacks.

Maj Gen Salley complained that he had been defamed by this comment and called for an investigationalleging that the priest had endangered national security and incited communal disharmony. He could have been charged under the Sri Lankan Law modelled on the International Convention on Civil and Political Rights (ICCPR). The law has been abused by the Sri Lanka police in prosecuting several people including a Sinhala short story writer in the Kurunegala area and a Tamil language poet from Kattankudy.

Links between the intelligence services and Zaharan have been spoken of before. Prof Rajan Hoole in his book on the Easter Tragedy enumerated the many times Zaharan had been arrested but had been released due to pressure from the Security Forces. Several cabinet ministers have spoken about it and former Army Commander and Samagi Jana Balavegaya MP Sarath Fonseka gave more details in a speech in Parliament.

The Supreme Court ruled in Fr Cyril Gamini’s favor and the Attorney General’s Department pledged that the priest would not be arrested.

The following day saw a mass protest, a raucous parade of several thousand angry people from the Negombo area, a predominantly Catholic region of the island. They were calling for justice for the Easter Sunday attacks as well as protesting a government move to acquire and sell lands around the Negombo lagoon. The lands are within the Muthurajawela wet zone protected under the Ramsar treaty.Many people said they would lose their property if the government goes ahead and acquires their lands. The protest shut down the Negombo urban area and the police did not intervene. The protestors were joined by members of the Catholic clergy from parishes in the area.

The Catholic Church’s demand that the investigations into the Easter attack reveal who was the mastermind behind the blasts that killed some 260 people is gathering strength. The Church has shown it is unstoppable and is willing to fight for answers. Cardinal Ranjith has openly expressed his anger and disappointment against the government for failing to come up with answers to questions his congregationhas raised.

The Cardinal who was seen as leaning towards the Rajapaksas in the past has stood firm with his congregation on this issue. Fr Cyril Gamini is the public face of the protest and has been addressing concerned Catholic groups that are agitating for answers.

In the meantime, many famers’ groups worried about low yields after the government abruptly stopped the import of artificial fertilizer have continued to protest against the government, burning effigies of Agriculture Minister Mahindanda Aluthgamage and staging demonstrations in many areas.

The country’s teachers and Principals are also on the warpath after promised salary revisions were not granted to their protest. In early November teachers and principals in the Mawanella area surrounded a local police station alleging that the police had failed to arrest a governing party local councilor who had assaulted protesting teachers and parents.

And now riding on this wave of anti-government feeling the main opposition SJB wants to organize mass protests led by farmers next week on Nov 16. SJB MP Dr Harsha de Silva was quoted as saying “anyone” can join.

Inside the government the eleven smaller parties in the coalition have been making meek sounds of protest as well. These parties which include the Sri Lanka Freedom Party, Wimal Weerawansha’s National Freedom Front and Udaya Gammanpila’s Pivithuru Hela Urumaya have tried to form a caucus within the Sri Lanka Podujana Peramuna alliance. Although they have had several meetings with Prime Minister Mahinda Rajapaksa to address their concerns, they are yet to leave the government or appear to reconcile.

The SLFP has been complaining of poor treatment by the leaders of the government and the SLPP General Secretary Sagala Kariyawasam told reporters that the smaller parties could leave the government if they wished to. While most of the dissidents are not raising their voice too high veteran Communist Party Member D E W Gunesekara called the current Cabinet the worst he has ever seen and “a bunch of buffaloes.” He also said that President Gotabaya Rajapaksa is a “scarecrow” using a Sinhala term that can also mean he is without life.

Prime Minister Mahinda, however, seems to be more in touch with the feelings of the SLPP’s constituency. At the party convention held last week he upbraided the SLPP members for not being in touch with constituents. “We have to do politics with the farmers, teachers and others,” he said.

Coming up shortly of course are the Budget proposals. Most Sri Lankans are hoping there will be some relief for them from the rising cost of living and lack of jobs. But Finance Minister Basil Rajapaksa has not been promising anything. Most likely the government may go ahead with cutting government pensions and other measures to pull the government out of its financial woes.

With rising protests, embarrassing questions over the Easter Sunday attacksand a perception among the ordinary people that the government is inept, the ingredients are there for a perfect storm.

Sri Lanka stocks close down 0.60-pct, dragged by HNB and LOLC

ECONOMYNEXT – Sri Lanka’s Colombo Stock Exchange closed down on Friday, CSE data showed, with the benchmark All Share Price Index moving down 0.60 percent.

The ASPI was down 133.22 points at 22,024.18, while the more liquid S&P SL20 was down 1.06 percent, or 67.55 points, at 6,298.02.

The ASPI ended the week up 784.53 points from last Friday.

Positive contributors to the ASPI were Dialog Axiata (up 0.40 percent at 50.20 rupees), Distilleries Company of Sri Lanka (up 0.52 percent at 58.30 rupees), Aitken Spence (up 3.60 percent at 151.00 rupees), Ceylon Tobacco Company (up 1.05 percent at 1,828.50 rupees), and LOLC Finance (up 1.96 percent at 5.20 rupees).

Hatton National Bank (down 1.88 percent at 403.75 rupees), Richard Pieris and Company (down 6.21 percent at 27.20 rupees), LOLC Holdings (down 2.17 percent at 405.00 rupees), Sampath Bank (down 1.91 percent at 154.00 rupees), and Singer (Sri Lanka) (down 2.40 percent at 77.30 rupees) were top negative contributors.

Market turnover was 3.23 billion rupees. Capital goods led turnover with 869.21 million rupees. (Colombo/Nov13/2026)

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Sri Lanka MP slams budget speech for omitting Tamil national question

ECONOMYNEXT – A Sri Lanka legislator has voiced strong disappointment that the President’s budget speech failed to make a single mention of the Tamil national question.

“It is very unfortunate that in His Excellency the President’s speech, there has not been a single word mentioned about the Tamil national question. Not a single word,” Shanakiyan Rasamanickam said.

“A budget speech generally, is a policy direction of the government for the next year. The budget speech is not only a statement of the country’s fiscal position or the economy’s position. It is the country’s, the government’s, plan, or what the government plans to do the following year. That’s a policy statement.”

Former presidents would at least mention the Tamil question even if it was not resolved, he said.

Former President Ranil Wickremesinghe in his speech, in his policy statement, he would mention: “The Tamil national question must be resolved,” Rasamanickam said.

Former Presidents Maithripala Sirisena and Gotabaya Rajapaksa also mentioned that the national ethnic question must be resolved, he added.

“Every President, every country’s Head of State, in their policy statements, have acknowledged the fact that there is an unresolved national issue, the Tamil national question, that it needs to be resolved. Various governments have proposed various mechanisms; none of them have succeeded, but at least it was mentioned.”

This year’s budget made allocations for the Office of Missing Persons, and the Office of Reparations.

“But the domestic mechanism is a mechanism that the victim community has rejected. So you all are allocating money to a mechanism where the victim community is not going to be part of.”

Last year’s budget 1 billion was allocated to be spent on the Trincomalee and Jaffna airports.

“Where was that 1 billion for the Trincomalee and Jaffna airports spent last year?”

“The trajectory of this government, Honourable Deputy Speaker, is worrying to me. It’s really worrying to me. Because if the objective is to say that there is no Tamil national question, if the objective is to say that you all have resolved any ethnic issue that this country faced, then Honourable Deputy Speaker, then I think the Tamil people will teach this government a very, very, very harsh lesson in the future.” (Colombo/Nov13/2026)

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Sri Lanka sells extra Rs6.5bn Treasury bills after auction

ECONOMYNEXT – Sri Lanka has sold 6,500 million rupees of treasury bills offered on tap at an average rate of 9.95 percent, the public debt management office said, bringing the total of bills sold in the week to 85.562 billion rupees.

The issue offered 90 billion.

Total market subscription was 6.5 billion rupees.

The debt office sold a 12-month bill at 9.95 percent.

On Wednesday (11) the debt office raised 79 billion rupees of 3, 6 and 12 month bills after offering 90 billion.

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Sri Lanka Treasury bill yields hold broadly steady, less bills sold

The settlement date is November 13. (Colombo/Nov13/2026)

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Access Engineering Sept quarter group net profit surges 200-pct to Rs4.75bn

ECONOMYNEXT — Sri Lanka’s Access Engineering PLC recorded a group net profit attributable to equity holders of Rs. 4.75 billion for the quarter ended September 30, surging 200 percent from Rs. 1.58 billion a year earlier, interim accounts showed.

Basic earnings per share rose to Rs. 4.08 for the September quarter, up from Rs. 1.58 previously.

Quarterly group revenue expanded 36 percent to Rs. 20.39 billion from Rs. 14.94 billion, underpinned by condominium property handovers — reflected in inventories dropping Rs. 7.69 billion since March to Rs. 35.71 billion — alongside strong automobile sales and steady civil engineering execution.

Cost of sales rose at a slower 27 percent to Rs. 14.34 billion, lifting gross profit by 64 percent to Rs. 6.05 billion and expanding gross margins to 29.7 percent from 24.7 percent.

Other income jumped 144 percent to Rs. 259.9 million, while administrative expenses rose 75 percent to Rs. 1.14 billion, leaving operating profit up 64 percent at Rs. 5.16 billion.

However, finance costs more than doubled, rising 107 percent to Rs. 1.18 billion on elevated group borrowings of Rs. 43.74 billion, partly offset by finance income climbing 302 percent to Rs. 42.2 million.

Share of results from equity-accounted investees rose 122 percent to Rs. 26.7 million, pushing pre-tax profit up 56 percent to Rs. 4.05 billion.

Income tax swung to a net reversal of Rs. 186.6 million from an expense of Rs. 804.1 million, boosted by deferred tax assets on unrelieved losses from a 100 percent enhanced capital allowance claimed by 60 percent-owned radiopharmaceutical subsidiary Access Medical Tracers (Private) Limited.

Total period profit rose 136 percent to Rs. 4.24 billion, with non-controlling interest declining 24 percent to Rs. 164.9 million following last year’s buyout of minority shareholders in Harbour Village (Private) Limited.

No separate exchange gain or loss was itemized in quarterly earnings, though foreign currency translation via associates recorded a Rs. 17.4 million loss in other comprehensive income, alongside USD 16.6 million in corporate guarantees.

Notes also flagged an expected Rs. 1.45 billion recovery from the terminated South Asia Commercial and Logistics Hub project, a Rs. 225 million post-quarter legal settlement already provided for, and a Supreme Court appeal over a 2011/12 PAYE tax ruling.

Group assets stood at Rs. 132.4 billion as of September 30, with net asset value per share at Rs. 46.70, as the Employees’ Provident Fund raised its stake to 5.69 percent.

Access Engineering shares closed at 80.00 rupees at the end of September and are currently trading around 85.80 rupees. (Colombo/Nov13/2026)

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Sri Lanka private sector says timely implementation of Budget 2027 key

ECONOMYNEXT – Private sector body, The Ceylon Chamber of Commerce, said it was encouraged by the broad direction of Budget 2027, noting that it reinforces Sri Lanka’s commitment to economic transformation while maintaining policy continuity, macroeconomic stability, and fiscal discipline.

“This continuity is particularly important as the country seeks to transition from economic stabilisation to a more durable, investment-led growth trajectory.”

The chamber also noted several areas where the Budget could have placed greater emphasis to strengthen the country’s growth prospects.

“In particular, there is a need for a stronger focus on attracting Foreign Direct Investment (FDI), accelerating factor market reforms, particularly in land and labour, and fast-tracking public procurement reforms to improve the efficiency and speed of project implementation.

“More targeted and actionable proposals could have been introduced to unlock the potential of sectors with significant growth opportunities, including tourism, agriculture, IT/BPO and logistics.”

The chamber said the budget contains positive measures aimed at enhancing competitiveness, and external sector resilience, while presenting opportunities for focus on sectors that can accelerate growth.

“A number of the key structural reforms identified in last year’s Budget have been carried forward and strengthened, providing greater certainty and predictability to businesses and investors.

“These include the continued implementation of the Trade National Single Window (TNSW), the phased removal of para-tariffs, the rollout of the Digital ID framework, efforts to expand market access through new Free Trade Agreements (FTAs), the strengthening of one-stop-shop investment facilitation mechanisms, progress on Customs reforms, the expansion of Bandaranaike International Airport (BIA), enhanced financing support for SMEs, and reforms relating to the management of State-Owned Enterprises.”

The CCC said that more than 20 proposals submitted by it have been reflected in Budget 2027.

These include measures to strengthen investor facilitation through the establishment of a professionally managed investment promotion agency; continued efforts to improve trade facilitation and export competitiveness; the Government’s consideration of a successor programme with the International Monetary Fund (IMF); accelerated progress on key legislative reforms; the expansion of digital government services; and the promotion of cashless payments and broader digital adoption. The Budget has also captured several priorities relating to energy security, including the accelerated deployment of Battery Energy Storage Systems (BESS) and investments in fuel storage infrastructure, initiatives to optimize underutilized agricultural land, measures to support the expansion of the digital economy and the IT/BPO sector, and tax reforms to support exporters, including the acceptance of newly VAT-registered exporters as eligible exporters.

“The inclusion of these priorities reflects the value of sustained public-private dialogue and demonstrates increasing alignment between national policy objectives and the needs of a competitive, export-oriented economy.

“The priority now must be effective and timely implementation to translate policy commitments into investment, competitiveness, exports and sustainable growth.” (Colombo/Nov13/2026)

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Sri Lanka stocks trend lower day after budget reading

ECONOMYNEXT – Sri Lanka’s Colombo Stock Exchange was trending lower on Friday, CSE data showed, with the benchmark All Share Price Index moving down 0.66 percent.

The ASPI was down 146.78 points at 22,011, while the more liquid S&P SL20 was down 0.94 percent, or 59.99 points, at 6,306.

Positive contributors to the ASPI were Access Engineering (up 1.30 percent at 85.80 rupees), LAUGFS Gas (up 3.31 percent at 49.90 rupees), Ceylon Tobacco Company (up 1.13 percent at 1,830 rupees), Ceylon Cold Stores (up 0.80 percent at 126 rupees), and Namunukula Plantations (up 1.79 percent at 68.10 rupees).

LOLC Holdings (down 1.03 percent at 409.75 rupees), Hatton National Bank (down 0.61 percent at 409 rupees), Sunshine Holdings (down 3.81 percent at 30.30 rupees), and Sampath Bank (down 1.91 percent at 154 rupees) were top negative contributors.

Market turnover was 1.55 billion rupees. Capital goods led turnover with 459.57 million rupees. (Colombo/Nov13/2026)

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