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Tuesday September 8th, 2026

Sri Lanka PM says star grading hotels outdated

ECONOMYNEXT- Giving hotels a government approved star rating is obsolete, as tourists prefer to rate accommodation based on how much they spent instead, Sri Lankan Prime Minister Ranil Wickremesinghe said at the Hotel Show Colombo 2018.

“We are used to grading hotels, 3-star, 4-star, 5-star, but now the tourist who come, they like to grade on how much they spend on luxury,” Wickremesinghe said.

He said that tourists have different grading criteria for hotels, boutique hotels, homestays or hostels.

Online booking engines such as booking.com and Agoda follow such a system, allowing market forces to determine the quality of luxury, services and amenities provided by each type of accommodation type based on ratings and reviews given by tourists who had stayed in each property.

The Premier’s remarks came just days before the state’s industry regulator, the Sri Lanka Tourism Development Authority, awarded star classifications for hotels for 2018, and pushed for mandatory grading of hotels under the star system.

He said that when he stayed in Scotland, he hadn’t stayed at a 5-star hotel, as factors other than the hotel building had influenced his decision.

“I happened to take a break in Scotland. I went to the hotel room, it was 3.5-stars. Environment 4.5-stars. Food 5-stars.  That’s how the hotel is rated,” he said.

“I told someone in the industry, the problem we have is that we have some hotels which have 5-stars, the environment is 2.5-stars and the food is 3-stars. So we have to look at how we grade hotels,” he said. (COLOMBO, 27 July, 2018)
 

Judiciary concerns could hurt Sri Lanka’s foreign investments: Opposition leader

ECONOMYNEXT – Sri Lanka risks losing foreign direct investments if international trust in the judiciary is compromised, Opposition Leader Sajith Premadasa has warned, citing the Commonwealth Lawyers Association’s unfulfilled meeting request regarding recent constitutional bench decisions.

“If foreign investors perceive that Sri Lanka does not have an independent judiciary, does not have democracy, especially that there is no trust in the justice system, what will happen?

“There will be less foreign direct investments coming into the country,” Premadasa told parliament.

He said President of the Commonwealth Lawyers Association (CLA) Steven Thiru’s request to meet Justice Minister Harshana Nanayakkara or the Ministry Secretary was not met, and this sends a negative message to the international community.

Thiru visited Sri Lanka to observe proceedings challenging the constitutionality of the proposed 22nd amendment to the Constitution of Sri Lanka and to meet with concerned parties.

“You know that for us to attract foreign direct investments we must have the international confidence.

“Now a bad message is going out to investors.

“According to Stephen Thiru, if a perception is created that there is court packing, bench fixing, it’s not good for the country. It’s not good for democracy.”

“You know the latin saying “Nemo judex in causa sua,” which means “No one should be a judge in their own cause.” There is conflict of interest.”

Petitions against the 22nd amendment to the Constitution should have been heard by a full bench picked according to seniority, Premadasa pointed, and there should have been right to reply.

“Some petitions were not given the opportunity to be heard.”

The government promised express development but was fast tracking destroying democracy, Premadasa said.

“Without foreign direct investments we can’t develop this country.” (Colombo/Sep8/2026)

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Sri Lanka stocks trend down midday Tuesday

ECONOMYNEXT – Sri Lanka’s Colombo Stock Exchange indices were trading down on Tuesday midday, CSE data showed, with the benchmark All Share Price Index moving down 0.36 percent.

The ASPI was down 78.75 points at 21,544.91, while the more liquid S&P SL20 was down 0.29 percent, or 17.55 points, at 6,049.00.

Positive contributors to the ASPI were Richard Pieris and Company (up 1.92 percent at 26.50 rupees), Tri-State Asian Partners (up 4.33 percent at 31.30 rupees), Colombo Dockyard (up 1.01 percent at 125.00 rupees), and Vidullanka (up 2.74 percent at 22.50 rupees).

Ceylinco Insurance (down 6.72 percent at 2,900.00 rupees), Hayleys (down 1.16 percent at 235.25 rupees), and Dialog Axiata (down 0.41 percent at 48.60 rupees) were top negative contributors.

Market turnover was 720.4 million rupees. Insurance led turnover with 310.4 million rupees.

Nations Trust Bank is looking to raise 13.8 billion rupees through a rights issue of 3 ordinary non-voting convertible shares for every 22 ordinary voting shares and/or ordinary non-voting convertible shares.

The shares will be offered at 305 rupees each. (Colombo/September08/2026)

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Sri Lanka’s Nations Trust Bank to raise Rs13.8bn in rights issue

ECONOMYNEXT – Sri Lanka’s Nations Trust Bank is looking to raise 13.8 billion rupees through a rights issue of 3 ordinary non-voting convertible shares for every 22 ordinary voting shares and/or ordinary non-voting convertible shares.

They will be offered at 305 rupees each.

The funds will be used to strengthen NTB’s Common Equity Tier 1 capital position, the bank said, “enabling sustainable growth and greater scale while ensuring that adequate buffers are maintained to absorb heightened risks”.

NTB will issue 45,467,286 ordinary voting shares.

The issue is subject to CSE and shareholder approvals. (Colombo/Sep8/2026)

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Sri Lanka rupee at 328.30/40 to US dollar spot, bond yields flat

ECONOMYNEXT – Sri Lanka’s rupee was quoted at 328.30/40 to the US dollar in the spot market on Tuesday, slightly weaker from 328.25/30 the previous day, while bond yields held broadly steady, dealers said.

A bond maturing on 15.02.2028 was quoted flat at 10.00/10 percent.

A bond maturing on 15.12.2029 was quoted at 10.45/55 percent, down from 10.50/55 percent.

A bond maturing on 01.08.2030 was quoted flat at 10.75/80 percent.

A bond maturing on 15.10.2030 was quoted at 10.80/85 percent.

A bond maturing on 01.02.2031 was quoted at 10.85/95 percent.

A bond maturing on 15.12.2032 was quoted at 11.15/30 percent.

A bond maturing on 15.01.2033 was quoted at 11.32/35 percent.

A bond maturing on 01.06.2033 was quoted at 11.60/65 percent.

A bond maturing on 01.11.2033 was quoted flat at 11.60/70 percent.

A bond maturing on 15.10.2034 was quoted at 11.77/83 percent, up from 11.75/83 percent.

A bond maturing on 15.08.2036 was quoted at 11.85/93 percent down from 11.85/95 percent.

The telegraphic transfer rate for the dollar was 323.95 buying, 332.95 selling; for the euro was 374.3312 buying; 388.1120 selling; 437.6639 buying, 451.7723 selling.

On the Colombo Stock Exchange the All Share Price Index was up 0.16 percent, or 34.47 points, at 21,658; while the S&P SL20 was up 0.22 percent, or 13.37 points, at 6,079.

An auction of 80,000 million rupees Treasury bills is scheduled for Wednesday (9). (Colombo/Sep8/2026)

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Sri Lanka hosts 11 Asian nations to showcase JICA-backed farming success

Group photo of high officials and international participants

ECONOMYNEXT – The Japan International Cooperation Agency (JICA) and the Agriculture Department will bring 33 participants from 11 Asian countries to learn from Sri Lanka’s experience in implementing the Smallholder Horticulture Empowerment and Promotion (SHEP) Approach.

SHEP Approach, originally developed in Kenya, promotes a transformation in farmers’ mindsets from “Grow and Sell” to “Grow to Sell” by encouraging production decisions based on market demand.

Due to its proven effectiveness in improving farmers’ livelihoods, the approach is now being implemented in more than 60 countries worldwide and has been adopted by various development organizations and partners.

Shigeo Honzu, Chief Representative of the JICA Sri Lanka Office, highlighted Sri Lanka’s achievements in successful implementation of SHEP approach.

Following study sessions in Japan for 2 weeks, participants will spend 5 days from September 7 to 11 in Sri Lanka observing how the SHEP Approach has been adapted and institutionalized within the country’s agricultural extension system.

Participants will visit the Dedicated Economic Center (DEC) in Keppetipola where they will conduct market surveys and interact directly with traders, buyers, farmers, and agricultural extension officers.

They will visit SHEP farmer groups in the Nuwara Eliya District to learn directly from farmers who have successfully adopted SHEP approach.

SHEP approach was introduced to Sri Lanka by a technical cooperation project by JICA through July 2021 to March 2026.

Implementation of the approach is continuing through the efforts of the Department of Agriculture and Provincial Departments of Agriculture.

JICA works closely with development partners to promote market-oriented agriculture, strengthen farmers’ livelihoods, and contribute to sustainable agricultural transformation in Sri Lanka and beyond. (Colombo/Sep8/2026

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Sri Lanka Central Bank buys US$579mn in August amid rupee appreciation 

ECONOMYNEXT – Sri Lanka’s Central Bank bought a net US$579 million in August, official data showed, amid a stabilizing local currency that touched a four-year low in the May this year.

It was the highest highest net absorption by the Central Bank from the domestic foreign exchange market since March 2024, the official data showed. 

The Central Bank did not sell any dollars in August, after selling more than US$211 million in May on a net basis for the first time in 22 months.

The Central Bank has net bought US$1,484 million in the first eight months of 2026 following a net purchase of US$2 billion last year.

The rupee was under high downward pressure in May as the imports bill for fuel rose unusually high following the Middle Eastern escalation amid continued demand for dollars to buy new vehicles.

The Central Bank has been buying dollars aggressively from the market to boost foreign currency reserves to meet the targets the country agreed with the IMF under the US$3 billion external fund facility and to repay the island nation’s multilateral and bilateral loans.

The Central Bank’s aggressive reserve building comes ahead of the repayment of foreign debts to sovereign bond holders in April 2028. (Colombo/September 07/2026)

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