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Wednesday October 14th, 2026

Sri Lanka President rejects foreign pressure over war crimes

ECONOMYNEXT – President Maithripala Sirisena asked the United Nations and member states not to pressure Sri Lanka in dealing with war crimes and ensuring non-recurrence of human rights violations nearly a decade after ending the island’s separatist war.

Addressing the 73rd United nations general Assembly in New York on Tuesday evening (Sri Lanka Wednesday morning) President Sirisena repeatedly asked foreigners to back off Sri Lanka.

“Allow us to solve our problems,” Sirisena said. “A country’s independence is very important.”

He insisted that he had improved the country’s human rights record and also taken steps to ensure ethnic unity and prevent the country slipping back to conflict.

He also paid tribute to Sri Lankan security forces for crushing separatist Tamil Tiger rebels and ensuring peace and stability in the island after decades of war.

“Look at our country with new ideas with a new perspective and help my country,” the President said while addressing the UNGA in Sinhalese.

He made no reference to the UN Human Rights Council resolution seeking a credible investigation into allegations that Sri Lankan troops killed thousands of Tamil civilians in the final months of the war.

The UNHRC resolution calls for a credible independent investigation in to allegations of rights abuses said to have been committed by both government forces as well as the Liberation Tigers of Tamil Eelam (LTTE).

The UN has also been highly critical of the LTTE for using child soldiers, using civilians as human shields, deploying suicide bombers and targeting civilians. Any move to drop investigations will also leave the Tamil Tigers off the hook.

Eleven days ago, Sirisena told local media heads that he will make fresh proposals to the United Nations seeking a reprieve from war crimes allegations, including accusations that troops killed 40,000 Tamil civilians during the final months of the war.

However, in his speech to the UNGA, there was no fresh proposal, but an assertion of Sri Lanka’s sovereignty.

Before leaving for New York, Sirisena had promised to unveil a raft of proposals and also make written submissions to the Human Rights Council in Geneva for its consideration at the next sessions in March 2019.

"I will also make a written request to the Human Rights Council to settle the allegations against our troops," Sirisena said on September 15 in Colombo. "I want to tell them to remove these charges. We can amicably resolve this issue."

Former president Mahinda Rajapakse crushed the Tamil Tigers in a no-holds-barred military campaign that ended in May 2009. He also insisted that forces under his command did not kill a single civilian and refused to accept any investigation.

Unlike Rajapaksa, Sirisena has pledged to ensure accountability for wartime atrocities, but subjecting army to scrutiny in the majority-Sinhalese country has proved controversial.

Sirisena had acknowledged there may have been excesses and had promised to set up an accountability mechanism. He is yet to deliver on the pledge however.

Last year, Sirisena sought and received a two-year extension of a deadline to implement the 2015 resolution. The new deadline expires in March next year, but it is not clear what action the rights body could take if Sri Lanka fails to comply.

At least 100,000 people were killed during the separatist war between government forces and rebels from the Tamil Tigers group, with atrocities recorded by both sides.

Although there has been no investigation of the military, Sirisena has set up an Office of Missing Persons to trace more than 20,000 people still missing. (COLOMBO, September 26, 2018)

Sri Lanka’s Standard Capital exits loss-making paints subsidiary

ECONOMYNEXT — Sri Lanka listed investment company Standard Capital has disposed of its stake in subsidiary Standard Paints (Pvt) Ltd for a nominal consideration of 1650 rupees, saying the move would improve its financial position as the subsidiary carried a negative equity value.

In a disclosure to the Colombo Stock Exchange, Standard Capital said its board had previously decided on August 24, to either strike off the subsidiary or dispose of its equity stake for a nominal value.

The company subsequently sold its holdings in Standard Paints on September 28, comprising a 65 percent stake represented by 6.5 million ordinary voting shares and 100 percent of the subsidiary’s 10 million preferential shares.

The shares were disposed of for a total consideration of 1650 rupees. (Colombo/Oct14/2026)

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Global borrowing costs rise as bond yields increase: Fitch

Fitch Ratings-London: The recent sharp and widespread increase in government bond yields represents a significant increase in real global borrowing costs.

Bond yields have risen to multi-decade highs in the US, Germany, UK and Japan in recent weeks, as highlighted in Fitch Ratings’ latest Economic Monitor chart pack.

Ten-year government bond yields have risen in major global markets since the previous Fitch-20 Economic Monitor in June. US yields averaged 4.99% in September, up from 4.47% in June; 3.50% from 3.00% in Germany;
5.46% from 5.06% in the UK; and 2.99% from 2.65% in Japan. In Korea there also was a marked increase, with yields averaging 4.45% from 4.18% in June.

The chart pack highlights another notable development: the pick-up in world trade growth, driven by an IT investment boom that has boosted capital goods imports in the US. Trade growth has surged in several countries, including Mexico, Korea, Canada and Indonesia.

The quarterly ‘Fitch-20 Economic Monitor’ (formerly ‘20/20 Vision’) chart pack covers the 20 major economies (the Fitch-20) that are the focus of Fitch’s Economics team’s global macro analysis, and plots five years of high-frequency economic data for 20 variables, with consistent coverage across each country.

‘Fitch-20 Economic Monitor: September 2026’ is available by clicking the link above or at www.fitchratings.com.

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Sri Lanka to get $100mn ADB loan to strengthen skills training

ECONOMYNEXT – Sri Lanka’s cabinet has approved obtaining a 100 million dollar results-based loan from the Asian Development Bank (ADB) to implement a Skills Development System Transformation Programme aimed at strengthening the country’s technical and vocational education and training (TVET) sector.

“The financing package comprises 50 million dollars in regular ordinary capital resources and 50 million dollars in concessional ordinary capital resources,” minister Nalinda Jayatissa said.

The funds are intended to support sector reforms and the development of a more effective skills development system aligned with labour market needs, he claimed. (Colombo/Oct14/2026)

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

Fitch Ratings – Singapore: Fitch Ratings has assigned Sampath Bank PLC’s (AA-(lka)/Stable) proposed Sri Lankan rupee-denominated Basel III-compliant subordinated debentures of up to LKR10 billion a final National Long-Term Rating of ‘A(lka)’.

The proposed debentures, which will mature in five and seven years, will be listed on the Colombo Stock Exchange. The bank plans to use the proceeds to supplement its Tier 2 capital base to maintain capital adequacy compliance as well as to support loan book growth.

The proposed debentures will qualify as Basel III-compliant regulatory Tier 2 capital. The debentures include a non-viability clause that states they will convert to ordinary voting shares upon the occurrence of a trigger event, as determined by the Governing Board of the Central Bank of Sri Lanka.

The final rating is the same as the expected rating assigned on 10 September 2026 and follows the receipt of documents conforming to information already received.

Key Rating Drivers

Fitch rates the proposed Basel III Tier 2 debentures two notches below the bank’s National Long-Term Rating of ‘AA-(lka)’. This reflects Fitch’s baseline notching for loss severity for this type of debt and our expectations of poor recoveries. There is no additional notching for non-performance risks, as the proposed debentures do not incorporate going-concern loss-absorption features.

Sampath’s National Long-Term Rating is used as the anchor rating for this instrument because the rating reflects the bank’s standalone financial strength and best indicates the risk of the bank becoming non-viable.

Fitch affirmed Sampath’s ratings on 17 August 2026. See our latest rating action commentary, Fitch Affirms Sampath Bank at ‘AA-(lka)’; Outlook Stable , for the key rating drivers and sensitivities.

Rating Sensitivities

Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade
A downgrade of the bank’s National Long-Term Rating will lead to a downgrade of the subordinated debt rating.

Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade
An upgrade of the bank’s National Long-Term Rating will lead to an upgrade of the subordinated debt rating.

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Oman’s OQ Trading wins Sri Lanka LPG deal at Aramco price plus $133.93

ECONOMYNEXT – Sri Lanka’s cabinet has approved the proposal to award the contract for the supply of 420,000 metric tonnes (±20%) of Liquefied Petroleum Gas (LPG) to Oman’s OQ Trading Limited for a period of 12 months commencing 1 January 2027, minister Nalinda Jayatissa said.

The contract provides for the supply of 420,000 metric tonnes (±20%) of LPG, including a guaranteed minimum quantity of 336,000 metric tonnes, at a price of Saudi Aramco Contract Price plus US$133.93 per metric tonne on a Cost, Insurance and Freight (CIF) basis, Jayatissa said.

International competitive bids were invited for the procurement, and 4 bids were received.

“The contract was awarded to M/s OQ Trading Limited, the lowest substantially responsive bidder,” he told reporters. (Colombo/Oce14/2026)

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Sri Lanka stocks continue to slide, ASPI drops 0.14-pct

ECONOMYNEXT – Sri Lanka’s Colombo Stock Exchange were trending down on Wednesday, nearing the psychological 20,000 mark, CSE data showed, with the benchmark All Share Price Index moving down 0.14 percent.

The ASPI was down 27.26 points at 20,050.22, while the more liquid S&P SL20 was down 0.02 percent, or 0.96 points, at 5,729.14.

Positive contributors to the ASPI were LOLC Holdings (up 3.08 percent at 418.00 rupees), Vallibel One (up 2.21 percent at 87.90 rupees), Asiri Hospital Holdings (up 4.98 percent at 25.30 rupees), Ambeon Holdings (up 3.45 percent at 33.00 rupees), and Haycarb (up 1.55 percent at 197.00 rupees).

Commercial Bank of Ceylon (down 0.25 percent at 198.00 rupees), SMB Finance (flat at 1.00 rupee), Hayleys (down 0.23 percent at 221.50 rupees), and Odel (down 7.41 percent at 10.00 rupees) were top negative contributors.

Market turnover was 318.20 million rupees. Retailing led turnover with 100.89 million rupees. (Colombo/Oct14/2026)

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