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Saturday October 10th, 2026

Sri Lanka MPs set aside differences to break out pitchforks over YouTube comment

ECONOMYNEXT – In a rare display of unity, Sri Lanka’s parliamentarians across the aisle spoke as one demanding legal action against an ordinary citizen for expressing an opinion deemed insulting to Buddhism, the country’s most widely practised faith.

Sepal Amarasinghe, a popular YouTuber known for being a freethinker and non-believer, was on the receiving end of a torrent of venom from legislators representing almost all political parties on Thursday January 05 over a comment he had allegedly made on the sacred tooth relic of the Buddha, which Buddhists believe resides in the Temple of the Tooth in Kandy.

Amarasinghe’s YouTube channel has nearly 80,000 subscribers and the outspoken man, instantly recognisable from his voluminous grey beard, is well known on social media for his unorthodox views that challenge what he claims are parochial traditions and customs. He is also known for his biting, unfiltered political commentary and his tendency to take on religious extremists of all faiths.

A recent video of his appears to have drawn the ire of Sri Lankan government and opposition legislators alike, who accused Amarasinghe of using derogatory and inflammatory language to describe the tooth relic, an object venerated by millions of voters.

MP Wimal Weerawansa, a staunch nationalist who now sits in the opposition as an independent, did not mince his words.

“There are all sorts of bearded loons on social media who promote various political parties. They’re now insulting the sacred tooth relic, in offensive language. If anybody chooses not to believe in the sacred tooth relic, they’re free to do so, but they have no right to hurt the sentiments of those who do believe,” he said.

“This descent to savagery must not be allowed. Action must be taken against it immediately,” he added.

Justice Minister Wijeyadasa Rajapakshe said nobody in the world has the right to insult the tooth relic, which is an object venerated not just in Sri Lanka but by Buddhists across the world.

“Our feelings as Buddhists and those of our venerable monks have been hurt by this insult,” said Rajapakshe, adding that an organised campaign was under way to bring the Buddhist clergy into disrepute and that Amarasinghe was evidently a leader of this group.

The minister said legal action must be initiated in terms of Section 290 of the Penal Code and in terms of the International Convention on Civil and Political Rights (ICCPR) Act.

Section 290 of the Penal Code reads: “Whoever destroys, damages, or defiles any place of worship, or any object held sacred by any class persons, with the intention of thereby insulting the religion of insult the any class of persons or with the knowledge that any class of persons is likely to consider such destruction, damage, or defilement as an insult to their religion, shall be punished with imprisonment of either description for a term which may extend to two years, or with fine, or with both.”

The use of the ICCPR in Sri Lanka on matters of faith has been controversial. Fiction writer Shakthika Sathkumara was famously detained under provisions of the ICCPR over a short story he had written in 2019. In May 2020, the United Nations Working Group on Arbitrary Detention said the Government of Sri Lanka was in contravention of its international human rights obligations for Sathkumara’s pre-trial detention. The UN body said he was detained for peacefully exercising his right to freedom of expression.

Sathkumara, who was subsequently discharged, faced up to 10 years in prison if he was found guilty as he was charged under Section 3(1) of the ICCPR Act and Art 291(B) of the Penal Code, which deals with propagating hatred and incitement of racial or religious violence.

Rajapakshe said legal action will be taken against Amarasinghe who he claimed was attempting to create a religious conflict in the country.

In Amarasinghe’s videos, however, there is no evidence of him trying to instigate a conflict, but his harsh and apparently indiscriminate criticism of dogma of all mainstream faiths may be deemed derogatory by those who take offence at his content.

Main opposition Samagi Jana Balawegaya (SJB) MP Lakshman Kiriella quoting Amarasinghe claimed that he had called the sacred tooth relic a ‘labba’, which literally translates to a type of fruit but is often a euphemism for male genitalia.

Kiriella temporarily distracted the collective outrage when he claimed that Amarasinghe had previously chaired a cooperation under the government of ex President Gotabaya Rajapaksa, an allegation quickly refuted by Agriculture Minister Mahinda Amaraweera.

“As far as we know, he had absolutely no connection to anyone in the government. I actually know him as someone who was involved in the Aragalaya,” said Amaraweera, evidently relishing the fresh opportunity to paint the anti-Rajapaksa street protests in a negative light.

However, Kiriella was unable to name which cooperation Amarasinghe had allegedly headed.

MP Weerawansa, meanwhile, who rose to speak again, claimed that a “radical, non-religious” group hell bent on hurting the feelings of Buddhists.

“They have their own political beliefs. There can be non-religious people, but they have no right to hurt the sentiments of a believer. Non-believers can continue to not believe. But they have no right to insult beliefs, or to call the sacred tooth relic a <redacted>. There is no need for that kind of democracy in this country. What kind of democracy is this?” said Weerawansa, positively seething.

When Deputy Speaker Ajith Rajapakse attempted to allow the next MP to speak, Weerawansa shot back: “Are you a non-believer too?”

His anger rising, the Colombo district MP said: “Protecting the sacred tooth is the foremost duty of the state. Can these thuppahi hipaatuwan be allowed toinsult it with offensive language?”

State Minister of Tourism Diana Gamage, meanwhile, who has incidentally come under fire from the religiously inclined for her proposals to promote night life in Colombo, claimed that Amarasinghe and others like him resort to such tactics to claim assylum abroad.

“We must definitely take action against this. On top of that, action must be taken to prevent these people from leaving the country,” she said.

Janatha Vimukthi Peramuan (JVP)-led National People’s Power (NPP) leader Anura Kumara Dissanayake was somewhat more tactful in his comments. The JVP has often been associated with freethinking “radicals” online, and the government has claimed more than once that the formerly revolutionary party was behind the more violent elements of the recent anti-government protest movement.

“We know that our country was once embroiled in a war. There was much bloodshed. There were then religious conflicts. There was bloodshed there too. The way this country can move forward is not through conflict on ethnic or religious lines.

“From time to time, situations like this emerge. Various groups want to create different forms of fundamentalist conflicts. As a government and as a society we must be mindful that such things can give rise to major conflicts. I think everyone has a responsibility to not allow such a situation,” he said. (Colombo/Jan05/2023)

Sri Lanka Central Bank stubbornly defends 5% inflation target

ECONOMYNEXT – Sri Lanka Central Bank stubbornly defended the 5% inflation target it recommended and signed with the government for the next three years citing that it was the only “optimal solution” and rubbished claims that the target is high and erodes the purchasing power of the general public.

Economists and monetary policy critics have strongly advocated that the Central Bank lower its official inflation target from 5% to 2%, emphasizing that a lower target is essential to break the country’s historical cycle of currency instability.

Proponents of the 2% target argue that a 5% baseline implicitly embeds a continuous, compounding erosion of domestic purchasing power, increasing price levels by over 15% across a three-year window.

In a country recovering from hyperinflation, critics contend that a targeted 5% annual inflation creates an environment where nominal prices and living costs permanently outpace real wage growth, continually straining lower- and middle-income households.

However, the Central Bank recommended to the government and signed a three-year agreement to maintain the 5% inflation target for the three years through October 2029.

Central Bank Governor Nandalal Weerasinghe explained at a panel discussion with his junior officers that countries choose inflation targets depending on their growth potential and ability to grow.

“So, this is where one can argue, why 2% inflation, is it better? Looking at the purchase power, it looks better, but it’s not better,” he told the gathering in response to a question.

“It is worse, because it will create a country that can grow, much lower below its potential…. It’s not welfare optimization. It will make a lot of people worse off than it will make a lot of people better off.”

A primary structural argument for adopting a 2% inflation target centers on external stability and protecting the Sri Lankan rupee.

When Sri Lanka maintains a 5% inflation target while its key international trading partners such as the United States, Eurozone, and major Asian economies  aim for 2%, a structural inflation differential of around 3% is built directly into the economy.

According to economic theory and historical precedent, this persistent inflation gap exerts steady downward pressure on the domestic currency, forcing nominal exchange rate depreciation.

Advocates argue that lowering the target to 2% would align Sri Lanka with global standards, anchor long-term exchange rate expectations, and prevent recurring balance-of-payments vulnerabilities.

Only 5%

However, Weerasinghe said the 5% target has the “right balance” and the Central Bank had conducted extensive research before arriving at the decision.

“I think, we don’t see any other counterfactual to say, it’s not 5%, it’s 4%, or 2%, or 3%, or 6%, or 7%,” he said.

“A lower inflation target can make the solution worse than what we think…. It won’t be better because everyone can be benefited out of higher growth.”

“If you are coming to a solution, where inflation can drag down the growth below potential, that won’t be the optimal solution.”

“We are all convinced and that’s why we have made the recommendation, government also agreed.”

He said the central bank will reassess and come up with the right level that could be lower in the future and that decision will be data-driven and evidence-based.

Analysts have stressed that a 2% inflation target is critical for lowering long-term interest rates and encouraging capital investment.

Under a 5% target, which carries an allowed accountability band of 2 percentage points, permitting inflation to fluctuate between 3% and 7%, lenders and foreign bondholders demand a higher inflation risk premium to compensate for potential price volatility.

This inflates domestic borrowing costs for both private enterprises and the government. By committing to a tighter 2% anchor, the central bank would provide greater policy credibility, reduce nominal interest rates across the yield curve, and foster a far more predictable environment for long-term private sector investment and debt sustainability.

The data showed, the Central Bank missed the inflation targets for most quarters in the three-year period through end September 2026.

The Bank has blamed lower energy prices for disinflation and missing the target below the lower band of 3% and higher energy prices for breaching the target above upper limit of 7%. (Colombo/October 09/2026)

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Sri Lanka rupee closes at 330.85/95 to US dollar spot, bond yields edge up

ECONOMYNEXT – Sri Lanka’s rupee closed at 330.85/95 to the US dollar in the spot market on Friday, from 330.95/331.00 the previous day, while bond yields closed slightly higher, dealers said.

A bond maturing on 01.08.2030 closed at 11.30/35 percent, up from 11.25/35 percent.

A bond maturing on 15.10.2030 closed at 11.37/40 percent, up from 11.30/40 percent.

A bond maturing on 01.02.2031 closed at 11.42/47 percent, up from 11.35/45 percent.

A bond maturing on 15.12.2032 closed at 11.75/85 percent, up from 11.75/80 percent.

A bond maturing on 15.10.2034 closed at 12.10/15 percent, from 12.05/15 percent. (Colombo/Oct9/2026)

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Sri Lanka stocks close up, ASPI gains 0.41-pct

ECONOMYNEXT – Sri Lanka’s Colombo Stock Exchange closed higher on Friday, CSE data showed, with the benchmark All Share Price Index moving up 0.41 percent.

The ASPI was up 82.57 points at 20,316.91, while the more liquid S&P SL20 was up 0.45 percent, or 26.19 points, at 5,788.75.

The ASPI ended the week down 496 points from last Friday, amidst a mixed week of trading.

Positive contributors to the ASPI were Dialog Axiata (up 0.91 percent at 44.50 rupees), Hatton National Bank (up 0.93 percent at 379.00 rupees), Commercial Bank of Ceylon (up 0.38 percent at 200.00 rupees), Richard Pieris and Company (up 4.30 percent at 26.70 rupees), and Laugfs Gas (up 7.35 percent at 40.90 rupees).

SMB Finance (down 9.09 percent at 1.00 rupee), LOLC Holdings (down 1.25 percent at 415.25 rupees), Haycarb (down 1.37 percent at 198.50 rupees), and Industrial Asphalts (Ceylon) (down 16.67 percent at 0.50 rupees) were top negative contributors.

Market turnover was 1.05 billion rupees. Diversified financials led turnover with 233.69 million rupees, followed by capital goods with 200.09 million rupees.

During the session, crossings in Lanka Milk Foods (LMF) in the first half of the trading day drew market interest, Raynal Wickremeratne, Head of Research and Strategy at NDB Securities, said.

“Usually 20,000 is also a psychological limit,” Wickremeratne said. “When it comes back closer to that, people also might feel like it’s worth buying, so that’s why sometimes coming close to that you might have a bit of a move.” (Colombo/Oct09/2026)

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Sri Lanka Customs’ September revenue exceeds target by 32-pct

ECONOMYNEXT – Sri Lanka Customs exceeded its September target by 32.1 percent, while the revenue in the first nine months of 2026 jumped around 22 percent compared to the same period last year, official data showed.

Customs’ September revenue target was set at 195.6 billion rupees. However, the revenue-collecting body collected 258.3 billion rupees that month, exceeding the target by nearly a third, according to official data.

It also exceeded the cumulative target for the first nine months by 29.2%, achieving 2,117 billion rupees.

Last year, Customs collected a record 2,551 billion rupees in revenue, exceeding a revised target of 2,241 billion rupees for the year and achieving 64.2% higher revenue than the previous year’s revenue of 1,553 million rupees.

Customs has set a revenue target of 2,207 billion rupees for this year, 13.5% less than last year as it expects a significant decline in car imports. Data showed it achieved 95.9% of this year’s target in the first nine months.

Analysts expect the revenue collecting body to achieve its 2026 full year target by mid-October,

Sri Lanka Customs’ revenue jump is largely due to stronger enforcement, improved valuation practices, and a rebound in import volumes after years of contraction.

Following the 2022 economic crisis, imports fell sharply as the country imposed restrictions to conserve foreign exchange.

However, with the stabilization of reserves, the relaxation of certain import controls, and a steady recovery in consumer demand, customs collections from import duties, excise, and other levies have risen.

Officials note that tighter monitoring of under-invoicing and misdeclaration of goods has also contributed to boosting state revenue.

The combined effect of increased import activity, currency movements, and stricter enforcement has positioned Customs as one of the top revenue sources for the Treasury in 2025, providing a vital cushion as the state works to meet fiscal targets under the IMF-supported program. (Colombo/October 09/2026)

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IESL, Dialog open Sri Lanka entrepreneurs challenge

ECONOMYNEXT – The Institution of Engineers, Sri Lanka (IESL) and Dialog Axiata have launched the IESL National Startup Challenge, for aspiring entrepreneurs to transform innovative ideas into commercially viable, investment-ready startups.

The competition invites Engineering undergraduates, practitioners and participants in an Open Category for Non-Engineers to submit ideas across 12 innovation verticals.

“The IESL National Startup Challenge is designed to turn innovative ideas into viable businesses by connecting aspiring entrepreneurs with industry expertise, mentorship and continuous practical support,” Eng Jasmine Nanayakkara, Chairperson of the Entrepreneurship Forum at the Institution of Engineers, Sri Lanka, said.

“By encouraging our engineers and aspiring founders to create, commercialise and scale solutions, we aim to contribute to new ventures, new opportunities and meaningful job creation for Sri Lanka’s skilled and educated next generation.”

Participants will progress through idea development, pitching, incubation, prototyping, validation, minimum viable product development and business scaling, supported by industry experts, mentors and ecosystem partners.

The programme will culminate in a Top 10 selection, with the first-place winner receiving an award of 1 million rupees.

Each of the Top 10 teams will receive a Dialog Digital Startup Support Package valued at 250,000 rupees, comprising selected Dialog digital products and services.

Dialog is providing technical expertise, mentors and digital resources to help participating teams develop, validate and scale their solutions.

“Dialog is extending its digital capabilities, mentorship and ecosystem support to help promising teams progress from concept to validation and investment readiness,” Dialog Axiata said.

The National Startup Challenge also brings together a network of partners, including The Ceylon Chamber of Commerce as Ecosystem and Mentoring Partner, Helago as Official Mobility Partner, Helakuru as Official Digital News Partner, and Real Life as Official Climate Action Partner.

Applications are now open via www.iesl.lk/announcements, giving aspiring entrepreneurs an opportunity to access the resources and funding they need to succeed. Applications close on 16th November 2026. For more information, contact mgr.pub@iesl.lk / 071 109 4393. (Colombo/Oct9/2026)

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Sri Lanka stocks trend higher, ASPI up 0.86-pct

ECONOMYNEXT – Sri Lanka’s Colombo Stock Exchange opened higher on Friday, CSE data showed, with the benchmark All Share Price Index moving up 0.86 percent.

The ASPI was up 174.62 points at 20,408.96, while the more liquid S&P SL20 was up 0.86 percent, or 49.77 points, at 5,812.33.

Positive contributors to the ASPI were Commercial Bank (up 0.88 percent at 201.00 rupees), Dialog Axiata (up 1.59 percent at 44.80 rupees), Distilleries Company of Sri Lanka (up 1.76 percent at 52.00 rupees), and Hatton National Bank (up 1.20 percent at 380.00 rupees).

SMB Finance (down 9.09 percent at 1.00 rupee), Haycarb (down 0.75 percent at 199.75 rupees), Malwatte Valley Plantations (down 1.79 percent at 55.00 rupees), and Odel (down 4.04 percent at 9.50 rupees) were top negative contributors.

Market turnover was 343.62 million rupees. Capital goods led turnover with 77.51 million rupees.

E.B. Creasy & Company PLC announced that it has executed a corporate guarantee of 50 million rupees with effect from September 30, 2026, on behalf of its subsidiary, E. B. Creasy Logistics Ltd, guaranteeing banking facilities obtained by the company. The company stated that the delay in making the disclosure was due to a delay in receiving official notification from the bank on the execution of the guarantee. (Colombo/Oct09/2026)

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