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Saturday October 31st, 2026

Sri Lanka political parties do ad-hoc nominations to fill 25 pct female quota

ECONOMYNEXT – Sri Lankan women’s participation in local government rely on ad hoc appointments made by male party leaders, as opposed to democratic internal processes, a study by the International Foundation for Electoral Systems has found.

Women’s participation is also seen as a secondary matter in relation to broader political party agendas, according to the study ‘An Assessment of Women’s Political Representation through the 25 percent Quota in Sri Lanka’.

The study was based on the 25 percent mandatory quota for women’s political representation in parties contesting for local government, implemented through the Local Authorities (Amendment) Act No. 1 of 2016.

“Political parties were unprepared to field the large number of female candidates necessary for the election as mandated by the quota; political parties did not have the adequate internal structures that could ensure a democratic and transparent selection process; political parties did not have sufficiently strong women’s wings that enabled them to choose from a pool of already trained and experienced women,” the report found.

The report said that as the nomination of women under the new quota system “remained completely in the hands of political parties”, the quota alone did not “mandate a democratic process for the selection of candidates for giving them nominations”.

The ad hoc process, the report described, found that party leaders engaged in various “democratic” and “undemocratic” means to fulfil the obligation, in order to contest as a party in the upcoming elections.

The report notably found that certain leaders tended to rely on their existing political links to field candidates and fell back on the system of political families, which continues to dominate the Sri Lankan political system.

“One political party representative, after admitting that it was difficult to gauge the exact process through which candidates were selected, pointed out that it is very difficult to find female candidates who are not related to political families,” the report said.

“Why have women had to ask for a quota? It is because women have not had the equal opportunity to enter into the world of politics,” MP Sudarshani Fernandopulle said at the event to announce the study findings on Tuesday (30).

Fernandopulle said that though Sri Lanka regards itself as a pioneer in enabling women’s participation in politics, Lankan women still remain much behind their counterparts in other nations within the realm of politics.

“We speak of Sri Lanka as the nation which produced the world’s first female Prime Minister, and female President. However, women still struggle to gain an equal footing in the political landscape,” she said.

The study found that women’s participation in local government has increased from less than 2 percent to 22 percent since the establishment of the quota, though the quota has mandated 25 percent participation.

“This is why the collaborative effort of civil society, women’s groups and parliamentary forums talking about a quota is important.”

“Many criticise this quota system saying that it undermines the potential of women, but where is the opportunity for women to contest for votes? When you take the mainstream parties, when it comes to nominations rounds, women aren’t even considered for nominations. Women aren’t in decision-making positions in the parties, they’re sidelined to women’s groups. Most of these women’s groups are, more often than not, formed to help male candidates win.”

“This is a good chance for women to enter politics, unlike us who were enabled to enter through our husband’s, father’s or brother’s death. We don’t ask for this quota to remain permanently, but until women have equal opportunity, this quota should be adhered to.”

The quota itself would not solve the larger problems faced by women in local government, which include the lack of patronage and financial support from parties, disproportionate levels of violence and lack of trust from voter bases, Kumudini Samuel, Executive Committee Member of Development Alternatives with Women for a New Era, a global network of feminist scholars, researchers and activists, said.

“The quota in this formulation for Sri Lanka was only meant to increase the number of women, we need to do a lot more to improve participatory democracy,” Samuel said.

“Apart from the attitudes towards women, there’s a whole range of other things: The patronage politics, the corruption, the level of entitlement within political parties, and also politicians, both men and women.”

An ideological shift in the overall political culture, which would be reflected in political structures and systems, is key, she said.

“We have to realise the target of 25 percent, and gradually this quota should be removed,” MP Eran Wickremeratne said, adding that the quota system was a second best option. “For the time being we have to push for the quota for nominations.”

“We know women are more qualified than men. From O/Ls, A/Ls, University and in the professional sphere, everywhere you see women having gone far in education levels,” Wickremeratne said.

“What we need is data sensitive and gender sensitive budgeting. For example, though women are statistically ahead in education performance levels they are only 35 percent of the total workforce. How do we make this 50 percent participation?”

The study was authored by S A Prabha M Manuratne, Harindra B Dissanayake, Rajni Gamage and Kanaka Abeygunawardena. (Colombo/Jan31/20024)

Foreign investors dump Sri Lanka rupee bonds for second straight week

ECONOMYNEXT – Foreign investors sold Sri Lanka rupee bonds for a second straight week in the week ended on October 30, Central Bank data showed, amid depreciation pressure on the rupee currency.

With the latest outflows, the island nation has seen net foreign selling in four of the last 20 weeks.

Offshore investors sold a net Rs. 8,605 million (US$26.1 million) worth of Sri Lanka rupee bonds in the week ended on October (29).

The net selling extended the net foreign outflows from the rupee bonds to Rs. 22.4 billion in the last four weeks.

Despite outflows in the last two week, the island nation has seen a total inflow of around Rs. 49.7 billion into local currency bonds so far this year, following a net inflow of 71.5 billion rupees last year.

Analysts said foreign investors sold rupee bonds amid downward pressure on the local currency.

The rupee had been steady for more than three years before the sharp depreciation in May with the Central Bank citing higher oil and vehicle imports amid a lingering conflict in the Middle East.

The rupee has fallen 6.8 percent through October 30, this year.

Globally, investors are cautious about economic growth due to the impact of the latest Middle East escalation.

The rupee has stabilized after the Central Bank raised its key monetary policy rate by 100 basis points in May to curb inflationary pressure stemming from higher demand.

The island nation has seen an uptick in inflation in the last seven months following a nearly 50 percent hike in fuel prices.

The government raised fuel prices in the last week of September after reducing them in June and August.

Before the May rate hike, the Central Bank kept its key policy rates steady since May 2025 after reducing them by 825 basis points over 24 months since June 2023 and foreign investors have been buying rupee bonds. (Colombo/October 31/2026)

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Sri Lanka’s monthly exports hit record high in September 2026; petroleum, machineries help

Containers are shown at Ningbo-Zhoushan port on August 15, 2021. Suo Xianglu/VCG/Getty Images/CNN

ECONOMYNEXT – Sri Lanka’s monthly exports hit a historical record high in September 2026 led by industrial exports such as petroleum and machinery, the data released by the Central Bank showed.

Merchandise export earnings jumped 21 percent to US$1,377 million in September, surpassing the previous peak of US$1,302 million recorded in July 2025, the Central Bank said.

Industrial exports rose 27.7 percent in the month compared to September 2025 with the export of petroleum products jumping 130 percent to US$149.9 million and machinery and mechanical appliances rising 72 percent to US$70 million, the data showed.

The total exports in the first nine months saw a gain of 5.4 percent to US$10,754.2 million, the official data showed.

The expansion in petroleum re-exports has been anchored by increased maritime transshipment traffic and higher bunkering demand at Sri Lanka’s ports, while mechanical and electrical machinery exports have benefited from expanding regional manufacturing supply chains.

However, despite these periodic growth spurts, several structural and policy bottlenecks hinder Sri Lanka from scaling up to become a top global exporter.

The country remains constrained by a relatively narrow export basket heavily dominated by traditional apparel, tea, and rubber, alongside high domestic energy and logistical costs that weaken price competitiveness.

Furthermore, persistent trade friction such as non-tariff barriers, limited deep-tier integration into global value chains (GVCs), regulatory delays in investment approvals, and capital scarcity for advanced technological R&D continues to cap high-value industrial expansion, preventing local engineering and refined petroleum processing industries from reaching global scale (Colombo/October 30/2026) 

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Sri Lanka inflation remains CB’s upper limit for fourth straight month in Oct; rises to 40-mo high

TukTuks in Colombo, should they be disciplined and regulated?/Amitha Thennekoon EconomyNext

ECONOMYNEXT – Sri Lanka’s overall rate of inflation, as measured by the Colombo Consumer Price Index (CCPI), rose to more than three-year high of 8.3 percent in October 2026, up from the previous month’s 8.0 percent and breached the Central Bank’s upper inflation target rate of 7 percent for the fourth month, data from the state statistics office showed.

The CCPI for all items in October rose to 209.9, recording an increase of 0.8 index points or 0.4 percent compared to 209.1 in September.

“This represents an increase in expenditure value of Rs.666.63 in the market basket,” the Department of Census and Statistics said in a statement.

The island nation’s economy witnessed upward price adjustments after the government raised fuel prices by nearly 50 percent following a supply shortage due to Middle East escalation, amid higher global oil prices.

It last raised the fuel prices with effect from October 1.

Year-on-year food inflation accelerated to 8.8 percent this month, its highest since May 2023 and rising from 8.7 percent in September.

However, the Restaurant and Hotels category along with Transport accounted for 87 percent of this month’s rise in inflation, the data showed.

Non-food inflation, year on year, rose to 8.0 percent this month, up from the previous month’s 7.7 percent.

Core inflation, year on year, accelerated to a more than three-year high of 5.6 percent in October 2026 from 5.4 percent in the previous month.

The Central Bank kept its Overnight Policy Rate steady in its latest monetary policy meeting last month and said inflation expected be higher single digit through the first quarter of 2027 and ease to 5 percent thereafter. (Colombo/October 30/2026)

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Sri Lanka rupee closes at 332.50/62 to US dollar spot, bond yields steady

ECONOMYNEXT – Sri Lanka’s rupee closed at 332.50/62 to the US dollar spot on Friday, from 332.55/65 the previous day, while bond yields closed broadly steady, dealers said.

A bond maturing on 01.08.2030 closed at 11.57/65 percent, up from 11.55/60 percent.

A bond maturing on 01.02.2031 closed at 11.85/85 percent, up from 11.70/75 percent.

A bond maturing on 15.12.2032 closed at 12.10/20 percent.

A bond maturing on 01.06.2033 closed at 12.20/35 percent.

A bond maturing on 15.08.2036 closed at 12.80/95 percent. (Colombo/Oct30/2026)

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Sri Lanka stocks close down on Friday; ASPI falls 0.62-pct

ECONOMYNEXT – Sri Lanka’s Colombo Stock Exchange closed down on Friday, CSE data showed, with the benchmark All Share Price Index falling 0.62 percent.

The ASPI was down 124.82 points at 20,142.33, while the more liquid S&P SL20 was down 0.40 percent, or 23.28 points, at 5,750.64.

Positive contributors to the ASPI were Union Assurance (up 4.08 percent at 68.90 rupees), Distilleries Company of Sri Lanka (up 1.10 percent at 55.10 rupees), Ceylon Tobacco Company (up 0.59 percent at 1,795.00 rupees), and John Keells Holdings (up 0.55 percent at 18.20 rupees).

Ambeon Holdings (down 10.72 percent at 30.80 rupees), LOLC Holdings (down 3.66 percent at 375.25 rupees), Royal Ceramics Lanka (down 2.98 percent at 42.30 rupees), Hatton National Bank (down 1.31 percent at 377.75 rupees), and Dialog Axiata (down 0.68 percent at 44.00 rupees) were top negative contributors.

Market turnover was 958.58 million rupees. The Banks industry group led turnover with 185 million rupees.

Commercial Bank recorded a crossing turnover of 50.00 million rupees, according to Dewangi De Silva, Assistant Manager – Research at NDB Securities.

Softlogic Finance PLC recorded a net loss of 100.6 million rupees for the quarter ended September 30, 2026, swinging from a net profit of 84.3 million rupees in the comparative period last year.

The company’s board recommended a 5-for-12 rights issue at 2.50 rupees per share to raise 1.00 billion rupees to strengthen core capital and expand vehicle leasing, subject to shareholder approval on November 13, 2026. (Colombo/Oct30/2026)

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Sri Lanka trade body pushes AI adoption to boost regional SME exports

ECONOMYNEXT — Sri Lanka’s Export Development Board (EDB) has launched an initiative to drive artificial intelligence (AI) adoption among regional small and medium-sized enterprises (SMEs), aimed at sharpening their competitiveness in volatile international markets.

The state export promoter recently concluded a practical workshop in Kandy, drawing 55 regional SME exporters and entrepreneurs to explore how emerging digital applications can optimize day-to-day operations and lower transaction costs.

The program, sponsored by Habib Bank, focused on deploying AI tools across critical export functions, including global market research, foreign buyer identification, digital marketing automation, and predictive customer engagement.

“The interactive sessions demonstrated how AI-powered platforms can help SMEs significantly reduce the time and resource drain associated with routine administration, thereby improving strategic decision-making and opening up new international market corridors,” the EDB said in a statement.

Uditha Bandara, Chief Executive and Founder of Bluechip Tech Limited and Bluechip Technologies Asia, who served as the primary resource person, demonstrated practical deployments of digital tools to bridge capabilities for smaller firms competing globally.

The Kandy workshop forms part of a wider, ongoing digital strategy by the EDB to build out the technological frameworks of outstation enterprise clusters, helping local exporters insulate their margins through higher productivity and process innovation. (Colombo/Oct30/2026)

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