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Friday October 16th, 2026

Sri Lanka President chides his own party over reconciliation

ECONOMYNEXT – Sri Lanka President Maithripala Sirisena has sent a message of disapproval to members of his own party who have shown dissent over the government’s handling of the war crimes issue at the UN Human Rights Council.

Shortly after returning from New York where he addressed the UN general assembly, Sirisena in an address from the Presidential Palace in Colombo parised effiorts of Prime Minister Ranil Wickremesinghe and the government.

He singled out Wickremesinghe’s "untiring commitment" and thanked Foreign Minister mangala Samaraweera and his diplomats for saving Sri Lanka from economic sanctions that Western nations were about to slap on Sri Lanka.

While he was heaping praise on the UNP-led administration, Sri Lanka Freedom Party stalwarts who only a few hours earlier had claimed credit should go only Siripala, were forced to nod in agreement with the president.

The president made no new announcement at the Friday evening statement which was followed by a banquet, but the seating arrangements showed that the president was keen to show he had had roped in the dissidents.

Wickremesinghe was the only UNP member to be seated along with the President while apart from Arjuna Ranatunga and Ven. Athuraliya Ratana all the others — Susil Premajayantha, Nimal Siripala, Dilan Perera, John Seveniratne, Dumina Dissanayake, Mahinda Samarasinghe and Anura Priyadharshana yapa are all SLFP members.

Sirisena predictably did not take any questions.

Already there was intense criticism over his son accompanying him to the General Assembly of the UN following in the footsteps of his predecessor Mahinda Rajapakse who had similarly used tax payers’ money for his son sojourn in New York.

The welcome for President Sirisena was also controversial. A president who spent less than 65,000 rupees for his simple swearing in ceremony at Independence Square in January had spent over LKR nine million for the welcome at the airport.

State television commentators were waxing eloquent on the  conquering hero returning to the motherland after defeating powerful world forces. Traditional drummers and the rush of sycophants would have made Rajapaksa proud.

A senior minister in the government was ready to give Sirisena the benefit of the doubt.

"All these things have been arranged by local party organisers who are looking for brownie points," he told reporters at the president’s house on Friday night.

"There were two Muslim SLFP stalwarts who had a cutout war to demonstrate who could put up more eye sores in praise of Sirisena."

The UN Human Rights Council resolution does not have the words “hybrid courts” and was also not prescriptive, the president said claiming that it was a victory for Sri Lanka.

He said he will consult all political leaders as well as religious dignitaries on the proposed domestic mechanism to address accountability for alleged war crimes.

Sri Lanka has about 18 months to come up with an internationally acceptable inquiry that will also include independent foreign judges, prosecutors andtechnical experts.

Although Sri Lanka managed to secure a softening of the language of the resolution that was adopted unanimously, the subtext is clear that Colombo had undertaken to ensure some form of international involvement to underwrite the independence of any investigative mechanism.

Sirisena getting his senior SLFP stalwarts to the president’s house and putting them on television while he praised the resolution could give the impression that the SLFP is also on board although the Rajapaksa faction has made it clear that they will oppose any involvement of foreigners. (Colombo/Oct03/2015)

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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Sri Lanka services expands at slower rate in September 2026: PMI

ECONOMYNEXT – Sri Lanka’s services sector expanded at a slower rate in September 2026, according to a Purchasing Managers Index compiled by the central bank, which registered an index value of 60.5, compared to 65.6 the previous month.

“Business Activity increased in September 2026, reflecting improvements across several sub-sectors, led by financial services, with notable contributions from education and professional services,” CBSL said.

New businesses increased in September 2026, registering 60.9 from August’s 60.0, due to the expansion in the financial services, with positive contributions from the insurance, education, professional, and other personal services sub-sectors.

Employment increased in September, “as firms across several sectors increased recruitment to meet operational needs and support business expansion”.

Backlogs of Work declined in the month, although at a slower rate compared to the previous month.

Broader global economic uncertainties continued to pose downside risks to the outlook, CBSL said. (Colombo/Oct15/2026)

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Sri Lanka manufacturing PMI steady at 53.0 in September, growth continues

ECONOMYNEXT – Sri Lanka’s manufacturing sector expanded at a steady rate in September 2026, registering a value of 53.0 on a Purchasing Managers Index compiled by the central bank, same as the previous month.

“This indicates that manufacturing activities continued to expand at a similar pace during the month,” CBSL said, noting the outlook remains positive, driven largely by optimism on year-end seasonal demand.

The New Orders sub-index expanded in the month, registering 51.0, attributed to positive developments in both the food and beverages and textiles and wearing apparel manufacturing sectors.

The Production sub-index also registered 51.0, for the same reason.

The Employment sub-index expanded at a slower pace, registering 52.6, from the previous 54.8.

The Stock of Purchases sub-index moderated towards the neutral threshold, “indicating broadly unchanged inventory levels during the month,” CBSL said.

Suppliers’ Delivery Times sub-index remained lengthened in September. (Colombo/Oct15/2026)

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

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

A bond maturing on 01.08.2030 closed flat at 11.35/40 percent.

A bond maturing on 15.10.2030 closed at 11.40/45 percent, up from 11.37/43 percent.

A bond maturing on 01.02.2031 closed flat at 11.45/50 percent.

A bond maturing on 15.12.2032 closed flat at 11.75/85 percent.

A bond maturing on 15.10.2034 closed at 12.20/30 percent, up from 12.12/20 percent. (Colombo/Oct15/2026)

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Sri Lanka’s Sampath Bank to raise Rs10bn in debenture sale

ECONOMYNEXT – Sri Lanka’s Sampath Bank plans to raise 10 billion rupees through the issuance of Basel III-compliant debentures, it said in a market filing.

Up to 100 million listed, rated, unsecured, subordinated, redeemable 5-year (2026/ 2031) and 7-year (2026/ 2033) instruments will be offered at 100 rupees each.

The proposed instruments will carry a non-viability conversion feature, the company said.

Initially 70 million debentures will be issued, and another 30 million in the event of an oversubscription of the initial issue.

Fitch rates Sri Lanka Sampath Bank’s Rs10bn debenture issue A(lka)

The issue has received CSE approval.

The subscriptions list opens on October 20. (Colombo/Oct15/2026)

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