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Monday September 7th, 2026

Sri Lanka misses payment to Asian Development Bank: Prime Minister

ECONOMYNEXT – Sri Lanka has missed a payment to Manila-based Asian Development Bank blocking fresh funds Prime Minister Ranil Wickremesinghe said amid warnings that the currency crisis-hit country could be locked out of multilateral funding in a new blow.

The Asian Development Bank and the World Bank also continued to fund Sri Lanka by re-purposing loans after the country was cut off from capital markets when it was downgraded to CCC.

The ADB and World Bank had just promised around 160 million each to Sri Lanka, Wickremesinghe said but the loan from the Manila-based lender was blocked.

“But because we could not repay three million US dollars last month it is stuck,” Wickremesinghe said.

“We are finding money for that.”

Multilateral Warning

Sri Lanka is facing the prospect of being locked out of financial assistance from multilateral organisations if its repayments are not maintained.

“If we do not pay the IMF (International Monetary Fund) and World Bank, that money will also not come,” ex-Finance Minister Ali Sabry said.

“That is the problem. As the Prime Minister said there are some payments due to ADB. It is a very big problem.”

Sri Lanka has already suspended repayments for international sovereign bonds, commercial bank loans, Exim bank loans and bilateral loans.

But multilateral lenders, as senior creditors are excluded.

“We decided on April 12, that we would not pay ISBs and everyone else except multilateral,” Sabry said.

“We did that because we had no option. By the 18th (of April) we had to pay 78 million dollars and we had to pay 105 million US dollars to a Chinese bank. We announced and defaulted.”

Sri Lanka is now negotiating a loan with the IMF. By April 2022, Sri Lanka had to pay 106.34 million US dollars and 12.4 million US dollars had been paid so far.

“Whether the payment is a billion or 10 billion we do not have a million to pay,” Wickremesinghe said promising to provide statistics to the parliament soon.

Sri Lanka had to repay 7,139 million US dollars in the year from March 2022. In April Sri Lanka had to pay 250 million US dollars made up of 145 million US dollars of principle and 106 million in interest.

Opposition legislator Harsha de Silva said from now on there were about 5.5 billion dollars to be paid in the coming 12 months, and 2.5 billion was suspended, leaving about 3.0 billion to be repaid.

Sri Lanka’s central bank is also deep in debt, owing money to the IMF, Reserve Bank of India and swap counterparties.

Sri Lanka was hit with chronic monetary instability from 2015 to 2022 as money was printed to keep interest rates down under ‘flexible inflation targeting’ and ‘output gap targeting’ triggering three currency crises, excessive foreign borrowings and eventual default.

Sri Lanka is now facing the worst currency crisis created by its 72-year-old soft-pegged central bank.

An attempt to shift to a floating exchange rate has so far not succeeded due to a surrender rule though interest rates have been raised to slow domestic credit and halt or reduce money printing.

With monetary stability yet to be restored authorities are now chasing after 3-4 billion US dollars of ‘bridging finance’.

Money will have to be printed to pay the salaries of state workers, Prime Minister Wickremesinghe said which will likely trigger more forex shortages. (Colombo/May18/2022)

EU, CFI partner with Sri Lanka to boost green journalism

At the signing of the partnership agreement in Paris to implement the EU-funded Media Capacity Building Programme in SL

ECONOMYNEXT – Sri Lanka has signed agreements with the French media development agency, Canal France International (CFI), backed by the European Union-funded Green Recovery Facility programme, to strengthen the reporting of environmental, climate, and economic stories across the country.

“This initiative provides an opportunity for journalists to broaden this coverage by exploring a wider range of environmental issues, including climate finance, green investment, sustainable development, biodiversity, and the policy and economic dimensions of the green transition,” the EU Delegation to Sri Lanka said.

The programme will support journalists in strengthening their technical and investigative skills to explore these issues in greater depth and produce sustained, evidence-based reporting.

Participants will be equipped with tools to analyse complex climate finance issues, examine public policies, and follow the flow and impact of green investments.

“By empowering reporters to translate highly technical financial and governance concepts into accessible public-interest narratives, this project ensures that everyday citizens understand how green policies impact their livelihoods, energy prices, and communities.

“It aims to mainstream the lens of ‘just transition’ and gender equity by encouraging the voices and perspectives of women and vulnerable populations to be heard, considered, and taken into account in the national environmental discourse.”

Implemented by Expertise France (EF), with Canal France International (CFI), the Sri Lanka Press Institute (SLPI), and the Ministry of Mass Media, it moves beyond traditional classroom-based learning.

Key highlights of the initiative include:

– Trilingual Foundation Training: Intensive capacity building for 60 journalists across Sinhala, Tamil, and English media to ensure nationwide reach and inclusivity.
– Mentored “Story Labs”: The rollout of six intensive Story Labs where journalists will receive direct editorial mentoring to investigate, produce, and publish high-quality, data-driven green transition stories
– Youth Outreach: Engaging journalism students and young media practitioners through university and youth activities to develop stories on green transition and public policy issues.
– Learning and Sharing Networking Event: Bringing together journalists, experts, policymakers, and key stakeholders to share learning, showcase stories produced through the programme, reflect on knowledge gained, and develop future story ideas on green transition issues.

“This initiative aims to strengthen the role of Sri Lankan media as a vital catalyst for informed public dialogue, enabling journalists to engage the public as the nation advances its sustainable economic recovery.”

Environmental journalism in Sri Lanka has traditionally given attention to natural disasters and their impacts. (Colombo/Sep7/2026)

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Sri Lanka, UNDP sign $4.5mn coastal biodiversity pact

ECONOMYNEXT – Sri Lanka has signed an agreement with the UNDP for a five-year, 4.507 million dollar conservation project funded by the Global Environment Facility (GEF).

The projects aims to promote sustainable economic benefits through the conservation of critical biodiversity and ecosystem services in the Eastern and Southern coastal regions of Sri Lanka.

It will strengthen biodiversity conservation, ecosystem resilience, and nature-based economic opportunities across the Ampara, Batticaloa, and Hambantota districts.

Key focus areas:
– Strengthening governance & institutional capacity for landscape/seascape management
– Improving financing for nature-based solutions
– Demonstrating ecosystem-based management in coastal areas
– Advancing awareness, knowledge, and gender mainstreaming
– Strengthening monitoring & evaluation for sustainable impact

“Through a community-focused, multi-sectoral approach, this project will help safeguard Sri Lanka’s terrestrial, coastal, and marine ecosystems while building climate resilience and sustainable livelihoods for coastal communities,” the UNDP said.

The agreement was signed by K R Uduwawala, Secretary to the Ministry of Environment, and Azusa Kubota, UNDP Resident Representative in Sri Lanka, with Mohan Heenatigala, Director of Biodiversity (MOE), and other UNDP representatives in attendance. (Colombo/Sep7/2026)

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Sun Siyam Pasikudah set to capitalize on Sri Lanka’s trending wellness status

ECONOMYNEXT – Sun Siyam Pasikudah is looking to capitalize on wellness travel after Sri Lanka was named the world’s top trending wellness travel destination for the year, recording a 100 percent surge in global demand according to the State of Retreats 2026 Report by BookRetreats.com, as highlighted by TimeOut Asia.

Among the platform’s tracked destinations, Sri Lanka posted the highest year on year growth in wellness travel interest anywhere in the world.

A survey of 1,040 American travellers found that 49 percent plan to spend on wellness retreats in 2026, ranking the category above spa treatments, supplements and even gym memberships.

The Global Wellness Institute projects the global wellness tourism industry will reach 1.4 trillion US dollars by 2027.

Part of the Sun Siyam Privé Collection, the Sun Siyam Pasikudah resort has 34 suites, spread across garden and beachfront pavilions.

Outdoor bathrooms open onto private plunge pools. Terraces face a coral reef that sits just offshore, close enough that guests can be snorkelling above it within minutes of leaving their room.

Pasikudah, on the east coast, has none of the density of Sri Lanka’s more established southern beaches, better known to divers and marine biologists than to holiday planners.

“What makes the property a genuine wellness address, though, is less about amenity and more about rhythm. Days here are shaped around the coast rather than a schedule,” the company said.

Ayurvedic treatments at the resort’s boutique spa are built for restoration rather than indulgence, drawing on the same doctor led traditions that have put Sri Lanka on the global wellness map.

The Ayurvedic journey begins with a consultation with the resident doctor, before moving into rituals such as hot oil hair treatments, ayurvedic hand massages and herbal soaks, alongside therapeutic options like lymphatic drainage and Thai massage, and nurturing body wraps that range from a cooling aloe vera application to a coffee scrub, the company said.

Guests can extend the experience through the spa’s hydrotherapy area, steam room, sauna and plunge pools, included with any treatment booked.

Sun Siyam Pasikudah’s guest experience includes cooking sessions with the resort’s chefs where guests work alongside local cooks to build coconut based curries from scratch, learning to balance spice, acidity and richness. (Colombo/Sep7/2026)

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Sri Lanka stocks trend up on Monday

ECONOMYNEXT – Sri Lanka’s bourse opened the week in green with the main All Share Price Index moving up 0.17 percent in early trading.

The ASPI was up 36.73 points at 21,657.17; while the S&P SL20 was up 0.54 percent, or 32.73 points, at 6,091.65.

Market turnover was 446 million rupees.

Standard Capital, Softlogic Holdings, Kelsey Developments, Hela Apparel Holdings, Nation Lanka Finance, Blue Diamonds Jewellery, Bimputh Lanka Investments, Asia Capital and Anilana Hotels and Properties remained in the watchlist for non-submission of annual reports for the year ended 31st March 2026.

Greentech Energy, Laugfs Gas, Exterminators, Janashakthi Finance, Tess Agro, Eastern Merchants, Lake House Printers and Publishers, Industrial Asphalts, were transferred to the watchlist for non-submission of annual reports for the year ended 31st March 2026.

Top positive contributors to the ASPI were Dialog Axiata (up 50 cents at 49 rupees), HNB (up 2 rupees at 382), Commercial Bank (1 rupee at 206), Access Engineering (up 1.40 rupees at 80.50) and ACL Cables (up 1.90 rupees at 97.80).

Top negative contributors were Haycarb (down 6.50 rupees at 212), Colombo Dockyard (down 1 rupee at 125.25), John Keells Holdings (flat at 19.60), Browns Investments (down 10 cents at 5.20 rupees), and Ceylon Cold Stores (down 1.50 at 126 rupees). (Colombo/Sep7/2026)

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Sri Lanka rupee at 328.20/40 to US dollar spot, bond yields flat

ECONOMYNEXT – Sri Lanka’s rupee was quoted at 328.20/40 to the US dollar in the spot market on Monday, while bond yields were steady, dealers said.

A bond maturing on 15.02.2028 was quoted at 9.95/10.10 percent.

A bond maturing on 01.07.2028 was quoted at 10.05/15 percent.

A bond maturing on 15.10.2029 was quoted at 10.32/42 percent.

A bond maturing on 15.12.2029 was quoted at 10.35/45 percent.

A bond maturing on 01.08.2030 was quoted at 10.65/75 percent.

A bond maturing on 15.10.2030 was quoted at 10.70/80 percent.

A bond maturing on 15.12.2032 was quoted at 11.10/20 percent.

A bond maturing on 01.06.2033 was quoted at 11.42/50 percent.

A bond maturing on 01.11.2033 was quoted at 11.50/60 percent.

A bond maturing on 15.10.2034 was quoted at 11.70/80 percent.

A bond maturing on 15.08.2036 was quoted at 11.85/95 percent.

The telegraphic transfer rate for the dollar was 323.8000 buying 332.8000 selling; euro was 373.5165 buying, 387.2973 selling; and pound was 436.3610 buying, 450.4694 selling.

On the Colombo Stock Exchange the All Share Price Index was up 0.28 percent, or 60.79 points, at 21,681; the S&P SL20 was up 0.39 percent, 23.37 points, at 6,082. (Colombo/Sep7/2026)

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Sri Lanka’s Hambantota Port welcomes new gen NYK carrier

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ECONOMYNEXT – Sri Lanka’s Hambantota International Port has welcomed NYK’s Azalea Leader, which made its maiden call to the port in August.

Azalea Leader is a 200-metre long new generation LNG dual-fuel pure car and truck carrier (PCTC). The ship was built in 2026 and sails under  the Liberian flag and is capable of transporting 4,810 vehicles and another 47 units for local discharge. The new gen carrier has a maximum carrying capacity of 7,000 units.

The ship also has Exhaust Gas Recirculation (EGR) technology on its main engine to reduce Nitrogen Oxide emissions.

Hambantota’s importance in logistics routes have been on the rise, with significant volume routed through Hambantota to the Middle East, with the Azalea embarking from Singapore.

“The maiden call of Azalea Leader is significant because we are increasingly seeing shipping lines deploy their newest and most sophisticated vessels through Hambantota,”Wilson Qu, CEO, HIPG, said in a press release.

“It demonstrates the pivotal role HIP is developing in the regional RoRo sector and showcases the potential of the port as automotive volumes moving through Hambantota continue to grow.” (Colombo/September06/2026)

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