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Friday October 16th, 2026

Sri Lanka may target old people, poorer car owners in Japan-backed controls: report

ECONOMYNEXT – Sri Lanka may bring tough regulations on old cars which are owned by the less affluent and old couples who use them occasionally to visit the doctor or weekend shopping to put them off the road, a media report said.

"Sri Lanka is seriously considering the possibility of removing old 15 years and over un-roadworthy vehicles numbering around 1.2 million from the roads to meet more efficient transportation needs of urban areas," Sri Lanka’s The Sunday Times newspaper said quoting un-named sources as Sri Lanka’s Transport ministry.

The report claimed that old vehicles are a major cause for "road traffic accidents, vehicular congestion and air pollution."

Sri Lanka already has emission standards and if the test is passed there it is not relevant whether the car is old or new.

Due to high government taxes, massive amounts of capital which would otherwise be used for productive purposes is tied up in cars. Especially a used car in Sri Lanka can cost up to 5 to 10 times the price in a free country with higher living standards.

As a result cars in Sri Lanka must run for longer periods to make efficient use of the capital tied up in them.

Hybrid Congestion

Traffic congestion in Sri Lanka, especially the capital is caused by new hybrid cars as can be seen by anyone who drives around in Colombo.

"The reason is very simple. It is only the more affluent who can afford modern, expensive larger cars," an analyst who had been watching developments in the transport sector said.

"They travel more miles per day and users do not even walk to the shop. In fact when they go to exercise in the morning they go in hybrid cars and you can see them parked in exercise hotspots.

"Twenty year old cars are not owned by people who can afford to cause much congestion. They are used to visit the doctor and do some weekend shopping. You can see some older couples going around in 1980s and 1970s vehicles."

The Sunday Times newspaper said the regulations to put old cars off the road was proposed in an masterplan for urban transport funded by Japan.

Japan has road tax system that effectively relatively new cars off the road so that a powerful motor vehicle manufacturing lobby can keep selling new cars to citizens.

A road tax and other regulations go up exponentially with each passing year penalising ordinary people and generating more profits for car makers.

Predictably The Sunday Times quoted an official connected to a motor car sales industry as welcoming the intervention to put old cars off the road.

But there are some concessions to old people and the disabled in Japan.

Re-Use

The used cars put off the road in Japan by state intervention are exported to other Asian nations, Africa, New Zealand and Australia making better use of natural resources ranging from steel to plastic to glass and extending their useful life and that of the planet.

The total amount of pollution caused by a vehicle is not merely a function of its age, but the number of miles it is operated and whether the fuel is diesel or petrol.

Economic analysts say far move pollution is caused by diesel vehicles which are promoted by subsidized diesel in Sri Lanka.

Diesel is under-priced in Sri Lanka by rulers who believe that inflation is caused by diesel, though diesel is more expensive to import, causes more pollution and is now a known carcinogen. This has promoted the use of diesel guzzling, pick-up trucks, vans and SUVs.

Though petrol and LP gas powered cars produces mostly carbon dioxide – a life giving non-polluting gas essential for plant and human life – and water as effluents diesel cars produce a host of additional gases including oxides of nitrogen and sulfour as well as particulates that may be harmful to health.

Volkeswagen is now in hot water for falsifying diesel emission tests in California.

The Sunday Times report said Nimal Siripala de Silva the new minister was also agreeable to the plan.

Easy Target

Analysts say targeting weak members of society who are too old or too poor to speak up may be easy but it won’t solve the problems of congestion or pollution.

Analysts say instead of penalizing weaker members of society such as retired people and the poor, by forcing their cars off the road, rulers who own tax free SUV – many driven by diesel – rulers should look at creating conditions for a high quality, fast, urban mass transport.

It should be unsubsidized by taxes which are needed to put more beds for poor cancer patients sleeping on the ground in the city’s main hospital every night.

Colombo’s poor already use public bus transport, and the less poor use motorcycles but to wean away affluent people driving hybrid cars and causing traffic congestion in the capital, a high quality public transport system such as light rail or mass rapid transit system is needed.

Japan has already indicated to willingness to fund an LRT.

The planned regulations to put old cars off the road comes as pre-1970s cars owned by the super-rich has been exempted from emission tests.

The new administration is also planning to ramp up manufactured exports which would also cause more pollution, rather than leap-frogging further into the services trade. If there a plans to import pollution by exporting backward-integrated hard goods to other countries, taking old cars off the road makes little sense. (Colombo/Aug25/2015)

Sri Lanka’s Vidullanka secures $1.35mn mini hydro contract in Fiji

ECONOMYNEXT — Sri Lanka energy firm Vidullanka has received a Letter of Acceptance for a 1.35 million US dollar mini hydro Engineering, Procurement, and Construction (EPC) contract in Fiji, the company said in a market filing.

The contract was awarded by the Department of Energy under Fiji’s Ministry of Public Works, Meteorological Services and Transport.

Under the project scope, Vidullanka will execute the turnkey EPC works, covering the design, supply, installation, testing, and commissioning of a 100-kilowatt (kW) mini hydro facility located at Buca Village in Fiji.

“This contract marks Vidullanka PLC’s entry into the Pacific island region’s renewable energy sector, building upon the Group’s established track record of international EPC execution in South America (Guyana) and East Africa,” the company said.

The company had submitted its original bid for the tender on December 18, 2025, and received the official Letter of Acceptance dated October 13, 2026.

“The award further reinforces the Group’s strategy to diversify its revenue streams into foreign-currency-denominated EPC and specialized technical engineering service contracts,” the company stated.

Vidullanka said it will now complete the procedural and administrative formalities required under the tender conditions leading up to the execution of the formal agreement with the Fijian awarding agency.

The company added that further disclosures will be made to the Colombo Stock Exchange once the formal contracts are signed. (Colombo/Oct16/2026)

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US grants $17mn to modernise Colombo port digital systems

ECONOMYNEXT – The United States has announced a 17 million US dollar grant to modernise digital systems and maritime documentation at the Port of Colombo, the Sri Lanka Ports Authority (SLPA) said.

US Ambassador to Sri Lanka Eric Stern Meyer announced the grant during a visit to the Colombo port, following discussions with senior maritime officials and government ministers.

The funding is aimed at upgrading Sri Lanka’s Maritime Single Window and Port Community System, which manage documentation, regulatory clearances, and data sharing across the port.

“This funding will support the digital infrastructure used for maritime documentation, regulatory procedures, and information exchange among port stakeholders,” Ambassador Meyer said.

The planned digital upgrade is designed to improve coordination between the SLPA, Customs, terminal operators, shipping lines, and other key agencies involved in daily cargo handling.

“Better integration of maritime data and administrative processes will reduce paperwork, improve cargo clearance, and support more efficient vessel and cargo operations,” SLPA Chairman Parakrama Dissanayake said.

Modernising these core digital systems is vital to strengthening trade facilitation at the Port of Colombo, which operates as a primary transshipment hub in the Indian Ocean, officials noted. (Colombo/Oct16/2026)

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Sri Lanka’s Amana Takaful adds claim tracking, document submission on app

ECONOMYNEXT – Sri Lanka’s Amana Takaful Insurance has introduced live motor claim tracking and digital document submission through its mobile application to enhance customer transparency.

The updated platform features trilingual capabilities in English, Sinhala, and Tamil to improve accessibility across Sri Lanka.

The new Motor Claims Workflow lets customers track the status and progress of their motor claims through the app.

“This enables customers to remain informed at each stage of the process without having to rely solely on traditional follow-up channels,” the company said.

Customers can also digitally submit the documents required to support the settlement of their claims.

Necessary supporting documents can be uploaded through the mobile app.

“By combining real-time visibility into the claims journey, digital document submission and access in all three languages, Amana Takaful continues to make its services more transparent, convenient and accessible to customers across the country.” (Colombo/Oct16/2026)

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Ajith Medis to head Sri Lanka’s SMB Finance

ECONOMYNEXT – Sri Lanka’s SMB Finance PLC has appointed Lansage Ajith Prasanna Medis as chief executive officer of the company with effect from October 16.

Medis does not have a relevant interest in shares issued by the company, SMB Finance said in a market filing.

A brief profile provided by the company is reproduced below:

Professor Ajith Medis has extensive experience in academia, financial services, business strategy, and management.

He joined academia in 2002 after a decade of working with LOLC, People’s Merchant Bank, and Mitsui & Company.

He previously held senior positions in the financial services sector, including Chief Executive Officer of PMF Finance PLC, Director of Alliance Finance PLC, Overseas Consultant to the Indian School of Business in Hyderabad, and many others.

He has also provided consultancy services to over 30 finance companies in various capacities, both local and overseas.

His expertise includes implementing turnaround strategies for ailing entities, enhancing top- and bottom-line performance for growth, and restoring corporate fundamentals.

Professor Medis holds a Bachelor of Commerce (Special Honors) degree from the University of Kelaniya, a Master of Business Administration from the University of Sri Jayewardenepura, and a PhD in Strategy from Management and Science University, Malaysia.

He also holds a Postgraduate Diploma in Marketing from the Chartered Institute of Marketing in the UK and a Certified Management Accountant qualification from Australia.

His combined academic expertise, financial-sector experience, and strategic management background will contribute to the leadership and future development of SMB Finance PLC. (Colombo/Oct16/2026)

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Sri Lanka stocks trend up, ASPI gains 0.60-pct

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

The ASPI was up 119.48 points at 20,090.63, while the more liquid S&P SL20 was up 0.63 percent, or 36.09 points, at 5,735.11.

Positive contributors to the ASPI were Dialog Axiata (up 3.29 percent at 43.90 rupees), Commercial Bank of Ceylon (up 0.51 percent at 199.00 rupees), Sri Lanka Telecom (up 4.54 percent at 82.90 rupees), and Sampath Bank (up 1.45 percent at 140.00 rupees).

Distilleries Company of Sri Lanka (down 1.57 percent at 50.00 rupees), Ambeon Holdings (down 3.98 percent at 31.40 rupees), Tokyo Cement Company (Lanka) (down 2.28 percent at 72.80 rupees), Singer (Sri Lanka) (down 0.56 percent at 70.60 rupees), and Ceylon Tobacco Company (down 0.56 percent at 1,768.00 rupees) were top negative contributors.

Market turnover was 170.32 million rupees. Capital goods led turnover with 36.64 million rupees. (Colombo/Oct16/2026)

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Sri Lanka rupee at 331.15/25 to US dollar spot, bond yields steady

ECONOMYNEXT – Sri Lanka’s rupee was quoted flat at 331.15/25 to the US dollar in the spot market on Friday, while bond yields were steady, dealers said.

A bond maturing on 15.10.2028 was quoted flat at 10.60/70 percent.

A bond maturing on 15.06.2029 was quoted at 10.95/11.05 percent.

A bond maturing on 15.10.2030 was quoted at 11.41/45 percent, up from 11.40/45 percent.

A bond maturing on 01.12.2031 was quoted at 11.65/73 percent, up from 11.65/70 percent.

A bond maturing on 15.12.2032 was quoted at 11.75/90 percent, up from 11.75/85 percent.

A bond maturing on 15.01.2033 was quoted at 11.85/95 percent, up from 11.95/12.00 percent.

A bond maturing on 15.10.2034 was quoted flat at 12.20/30 percent.

The telegraphic transfer rate for the dollar was 326.70 buying, 335.70 selling; the euro was 363.6850 buying, 377.4658 selling; pound was 432.5942 buying, 446.7026 selling.

On the Colombo Stock Exchange the All Share Price Index was up 0.56 percent, or 111.97 points, at 20,083; while the S&P SL20 was up 0.63 percent, 35.68 points, at 5,734. (Colombo/Oct16/2026)

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