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Friday November 13th, 2026

Sri Lanka should build pandemic prevention in to urban plans: IPS

ECONOMYNEXT – Sri Lanka should build pandemic prevention and recovery initiatives in future urban planning, a Colombo-based think tank said as Coronavirus spread in low income high rises in the city and lockdowns hurt incomes.

“Disaster-risk-reduction planning and response and pandemic prevention planning must be incorporated into urban planning in Sri Lanka,” IPS researcher Chathurga Karunanayake said.

“As suggested by Pan American Health Organization (PAHO), this can include measures such as establishing an emergency operations center, continually assessing needs, identifying resources, planning for response, implementing the response, and preparing communities for recovery.”

Sri Lanka’s Colombo Municipality health officers tested under-served communities in Colombo during the first half of the year after one of their workers got sick.

However in the current wave, where cases that turned up from a fish market were initially mis-identified as coming from Minwangoda, large numbers spread around north Colombo and elsewhere.

Colombo City spread over 37 square kilometres is densely populated with daytime population of 700,000 and 600,000 migrants who travel daily, Colombo Municipal Council Chief Medical Officer Ruwan Wijayamuni said May 2020.

“Colombo North, Colombo Central, is where most of the labour and workers in the city live,” told local media.

“Many industries, offices and ministries and private firms are in Borella, Colombo West and Colombo East.

“Colombo North is like Paris. One square kilometre has 24,000 persons. Singapore is about 14,000 to 15,000.18,000 is average. This is a very high density.”

Meawhile Karunanayake said small housing unit makes those in congested areas more vulnerable to pandemics.

“Not only do these small housing units lack basic amenities such as sanitation, water, and ventilation, but their placement also makes social distancing an impossible task,” the note said.

“In such neighbourhoods, residents tend to congregate in public spaces and visit neighbours.”

“Tracking and controlling socialising patterns in highly congested areas adds to the challenges making lockdowns and curfews redundant.”

In Colombo, an estimated 68,812 households are located in 1,499 underserved settlements accounting for more than half of the city’s population.

A Sri Lanka household survey had shown that 74 percent of these settlements have less than 50 housing units and a majority of residents in urban areas are employed in self-managed, low wage jobs in the informal sector, earning daily wages.

“The informal nature of their employment, with no protective measures, makes them vulnerable to sudden earning losses, access to food and other basic needs,” she said.

“This in turn exposes them to higher risks, when they are compelled to ignore precautionary measures in desperate attempts for survival.”

“Building resilience and ensuring preparedness is a worthwhile investment compared to costs that have to be incurred when managing an emergency unprepared,” the report said.

” In this regard, addressing shortcomings in urban public healthcare facilities is important.”

Pandemic Recovery in Urban Settings: Planning for the Unplanned – by Chathurga Karunanayake

Urbanisation has intensified many of the most pressing global challenges over the last few decades. Today, responding to the COVID-19 pandemic has become top priority for the vast majority of towns and cities across the world, which account for over 95 per cent of total reported COVID-19 cases according to the UN-Habitat COVID-19 Response Plan.

Research also shows that densely populated areas and underserved settlements without access to basic infrastructure facilities, those in strategic locations with high land value, those on reservations required for new infrastructure and those on the periphery with adequate housing requiring only improvement of infrastructure continue to provide a ready channel for the resurgence of pandemics.

Sri Lanka is no exception to these realities. Densely populated and underserved areas, including slums and shanties, have seen the incidence of a high number of COVID-19 positive cases during the past few months. Given that well-developed urban areas generally react fast in terms of mitigation efforts, the hardest hit during pandemics are those in less developed areas. They are also vulnerable to such outbreaks highlighting the urgency with which solutions to these issues need attention.

As the world responds to the COVID-19 pandemic and works towards recovery, Sri Lanka should explore ways of halting the spread of future pandemics, stimulating recovery, and building resilience in underprivileged urban settings. This blog discusses how Sri Lanka can address these challenges.

COVID-19: Impact in Urban Settings

Despite lack of exposure to similar pandemics in the past, Sri Lanka was exemplary in curtailing the first wave of the COVID-19 crisis. Early measures adopted by the country, such as self-isolation, contact tracing, referring suspected cases to quarantine centres, curfews, lockdowns, and closure of schools and workplaces made this possible. However, the numbers (Figure 1) could have been further controlled had there been proper urban planning procedures. This is especially so, given that some large clusters were located in small urbanized areas in Colombo.

The outbreak in Bandaranayake Mawatha, Colombo is an excellent example of how diseases spread in underserved settlements in urban areas. The cluster consisted of small living spaces, home to around 62 families on a 20 perch land. Not only do these small housing units lack basic amenities such as sanitation, water, and ventilation, but their placement also makes social distancing an impossible task. In such neighbourhoods, residents tend to congregate in public spaces and visit neighbours. Tracking and controlling socialising patterns in highly congested areas adds to the challenges making lockdowns and curfews redundant.

Note:Incidence of outbreaks is based on Sri Lanka’s COVID-19 live situational analysis dashboard as of 15 May 2020, 4 p.m. Source: Health Promotion Bureau, Sri Lanka (2020) and Redefining Urban Areas in Sri Lanka, Weeraratne (2016)

According to the 2016 Household Income and Expenditure Survey (HIES), urban areas are home to a majority of families living in shanties and slums. Nevertheless, the current administrative definition of ‘urban’ significantly underestimates the real extent of urbanisation in Sri Lanka.

According to UN-Habitat III, in Colombo, an estimated 68,812 households are located in 1,499 underserved settlements accounting for more than half of the city’s population; about 74% of these scattered and small settlements have less than 50 housing units.

Furthermore, a majority of slum dwellers in urban areas are employed in self-managed, low wage jobs in the informal sector, earning daily wages. The informal nature of their employment, with no protective measures, makes them vulnerable to sudden earning losses, access to food and other basic needs. This in turn exposes them to higher risks, when they are compelled to ignore precautionary measures in desperate attempts for survival.

Initiatives to improve underserved settlements

In the recent past, successive governments have undertaken many initiatives to improve the conditions of slums, shanties, and other underserved settlements in urban areas. After the war, the Urban Development Authority (UDA) embarked on a project to rehouse underserved settlements as part of the Colombo City Beautification project.

Several regulatory reforms have also been implemented: (1) a policy decision to relocate 66,000 low-income people from underserved settlements into high-rise housing in 2010; (2) a national housing programme named ‘Janasevana’ aimed at building one million houses during 2010-2015; and (3) the ongoing Colombo Urban Regeneration Project to construct 30,000 low-cost housing units within the next three years, and another 40,000 units in the three years thereafter.

However, much more remains to be done – particularly in terms of urban planning and management – as exposed by COVID-19. The pandemic has allowed room to re-think, re-plan, and re-design urban settings to be more resilient to future outbreaks.

Building Better

Building resilience and ensuring preparedness is a worthwhile investment compared to costs that have to be incurred when managing an emergency unprepared.

In this regard, addressing shortcomings in urban public healthcare facilities is important. As recommended in IPS’ Sri Lanka State of the Economy 2020 report, rectifying long standing and often neglected issues that weaken healthcare systems such as expanding designated hospitals for infectious diseases, investing in intensive care units, expanding testing capacities in hospitals and incorporating enhanced channels for informing and educating the under-privileged communities are some key measures to strengthen the health policy response.
In terms of assisting livelihoods of the underprivileged, it is important to promote economic inclusion.

While the provision of funds and food rations at a subsidised rate is beneficial, it is important that more emphasis is given to permanent solutions. In doing so, as suggested by The World Bank, slum upgrading can include aspects such as improving marketplaces and kiosks for street vendors and supporting local employment opportunities through labour-intensive works.

Living conditions of slum dwellings need improvements coupled with relocation activities. This requires proper urban planning to manage Sri Lanka’s dense population and enforcement of policies to ensure a successful relocation exercise, not only in urban centres but also in peri-urban areas and suburbs. Urban planning should focus on informal settlements and the urban poor that have been disproportionately affected by the pandemic. As a solution to high dense populations living in small areas, a threshold level of population density per square mile can be adopted, based on extensive research.

Disaster-risk-reduction planning and response and pandemic prevention planning must be incorporated into urban planning in Sri Lanka. As suggested by Pan American Health Organization (PAHO), this can include measures such as establishing an emergency operations center, continually assessing needs, identifying resources, planning for response, implementing the response, and preparing communities for recovery.

Chathurga Karunanayake is a Research Assistant at IPS and holds a BA in Economics (Honors) from the University of Colombo. She also holds a DipLCM from the University of West London, UK. (Talk to Chathurga – chathurga@ips.lk).

Sri Lanka stocks close down 0.60-pct, dragged by HNB and LOLC

ECONOMYNEXT – Sri Lanka’s Colombo Stock Exchange closed down on Friday, CSE data showed, with the benchmark All Share Price Index moving down 0.60 percent.

The ASPI was down 133.22 points at 22,024.18, while the more liquid S&P SL20 was down 1.06 percent, or 67.55 points, at 6,298.02.

The ASPI ended the week up 784.53 points from last Friday.

Positive contributors to the ASPI were Dialog Axiata (up 0.40 percent at 50.20 rupees), Distilleries Company of Sri Lanka (up 0.52 percent at 58.30 rupees), Aitken Spence (up 3.60 percent at 151.00 rupees), Ceylon Tobacco Company (up 1.05 percent at 1,828.50 rupees), and LOLC Finance (up 1.96 percent at 5.20 rupees).

Hatton National Bank (down 1.88 percent at 403.75 rupees), Richard Pieris and Company (down 6.21 percent at 27.20 rupees), LOLC Holdings (down 2.17 percent at 405.00 rupees), Sampath Bank (down 1.91 percent at 154.00 rupees), and Singer (Sri Lanka) (down 2.40 percent at 77.30 rupees) were top negative contributors.

Market turnover was 3.23 billion rupees. Capital goods led turnover with 869.21 million rupees. (Colombo/Nov13/2026)

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Sri Lanka MP slams budget speech for omitting Tamil national question

ECONOMYNEXT – A Sri Lanka legislator has voiced strong disappointment that the President’s budget speech failed to make a single mention of the Tamil national question.

“It is very unfortunate that in His Excellency the President’s speech, there has not been a single word mentioned about the Tamil national question. Not a single word,” Shanakiyan Rasamanickam said.

“A budget speech generally, is a policy direction of the government for the next year. The budget speech is not only a statement of the country’s fiscal position or the economy’s position. It is the country’s, the government’s, plan, or what the government plans to do the following year. That’s a policy statement.”

Former presidents would at least mention the Tamil question even if it was not resolved, he said.

Former President Ranil Wickremesinghe in his speech, in his policy statement, he would mention: “The Tamil national question must be resolved,” Rasamanickam said.

Former Presidents Maithripala Sirisena and Gotabaya Rajapaksa also mentioned that the national ethnic question must be resolved, he added.

“Every President, every country’s Head of State, in their policy statements, have acknowledged the fact that there is an unresolved national issue, the Tamil national question, that it needs to be resolved. Various governments have proposed various mechanisms; none of them have succeeded, but at least it was mentioned.”

This year’s budget made allocations for the Office of Missing Persons, and the Office of Reparations.

“But the domestic mechanism is a mechanism that the victim community has rejected. So you all are allocating money to a mechanism where the victim community is not going to be part of.”

Last year’s budget 1 billion was allocated to be spent on the Trincomalee and Jaffna airports.

“Where was that 1 billion for the Trincomalee and Jaffna airports spent last year?”

“The trajectory of this government, Honourable Deputy Speaker, is worrying to me. It’s really worrying to me. Because if the objective is to say that there is no Tamil national question, if the objective is to say that you all have resolved any ethnic issue that this country faced, then Honourable Deputy Speaker, then I think the Tamil people will teach this government a very, very, very harsh lesson in the future.” (Colombo/Nov13/2026)

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Sri Lanka sells extra Rs6.5bn Treasury bills after auction

ECONOMYNEXT – Sri Lanka has sold 6,500 million rupees of treasury bills offered on tap at an average rate of 9.95 percent, the public debt management office said, bringing the total of bills sold in the week to 85.562 billion rupees.

The issue offered 90 billion.

Total market subscription was 6.5 billion rupees.

The debt office sold a 12-month bill at 9.95 percent.

On Wednesday (11) the debt office raised 79 billion rupees of 3, 6 and 12 month bills after offering 90 billion.

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Sri Lanka Treasury bill yields hold broadly steady, less bills sold

The settlement date is November 13. (Colombo/Nov13/2026)

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Access Engineering Sept quarter group net profit surges 200-pct to Rs4.75bn

ECONOMYNEXT — Sri Lanka’s Access Engineering PLC recorded a group net profit attributable to equity holders of Rs. 4.75 billion for the quarter ended September 30, surging 200 percent from Rs. 1.58 billion a year earlier, interim accounts showed.

Basic earnings per share rose to Rs. 4.08 for the September quarter, up from Rs. 1.58 previously.

Quarterly group revenue expanded 36 percent to Rs. 20.39 billion from Rs. 14.94 billion, underpinned by condominium property handovers — reflected in inventories dropping Rs. 7.69 billion since March to Rs. 35.71 billion — alongside strong automobile sales and steady civil engineering execution.

Cost of sales rose at a slower 27 percent to Rs. 14.34 billion, lifting gross profit by 64 percent to Rs. 6.05 billion and expanding gross margins to 29.7 percent from 24.7 percent.

Other income jumped 144 percent to Rs. 259.9 million, while administrative expenses rose 75 percent to Rs. 1.14 billion, leaving operating profit up 64 percent at Rs. 5.16 billion.

However, finance costs more than doubled, rising 107 percent to Rs. 1.18 billion on elevated group borrowings of Rs. 43.74 billion, partly offset by finance income climbing 302 percent to Rs. 42.2 million.

Share of results from equity-accounted investees rose 122 percent to Rs. 26.7 million, pushing pre-tax profit up 56 percent to Rs. 4.05 billion.

Income tax swung to a net reversal of Rs. 186.6 million from an expense of Rs. 804.1 million, boosted by deferred tax assets on unrelieved losses from a 100 percent enhanced capital allowance claimed by 60 percent-owned radiopharmaceutical subsidiary Access Medical Tracers (Private) Limited.

Total period profit rose 136 percent to Rs. 4.24 billion, with non-controlling interest declining 24 percent to Rs. 164.9 million following last year’s buyout of minority shareholders in Harbour Village (Private) Limited.

No separate exchange gain or loss was itemized in quarterly earnings, though foreign currency translation via associates recorded a Rs. 17.4 million loss in other comprehensive income, alongside USD 16.6 million in corporate guarantees.

Notes also flagged an expected Rs. 1.45 billion recovery from the terminated South Asia Commercial and Logistics Hub project, a Rs. 225 million post-quarter legal settlement already provided for, and a Supreme Court appeal over a 2011/12 PAYE tax ruling.

Group assets stood at Rs. 132.4 billion as of September 30, with net asset value per share at Rs. 46.70, as the Employees’ Provident Fund raised its stake to 5.69 percent.

Access Engineering shares closed at 80.00 rupees at the end of September and are currently trading around 85.80 rupees. (Colombo/Nov13/2026)

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Sri Lanka private sector says timely implementation of Budget 2027 key

ECONOMYNEXT – Private sector body, The Ceylon Chamber of Commerce, said it was encouraged by the broad direction of Budget 2027, noting that it reinforces Sri Lanka’s commitment to economic transformation while maintaining policy continuity, macroeconomic stability, and fiscal discipline.

“This continuity is particularly important as the country seeks to transition from economic stabilisation to a more durable, investment-led growth trajectory.”

The chamber also noted several areas where the Budget could have placed greater emphasis to strengthen the country’s growth prospects.

“In particular, there is a need for a stronger focus on attracting Foreign Direct Investment (FDI), accelerating factor market reforms, particularly in land and labour, and fast-tracking public procurement reforms to improve the efficiency and speed of project implementation.

“More targeted and actionable proposals could have been introduced to unlock the potential of sectors with significant growth opportunities, including tourism, agriculture, IT/BPO and logistics.”

The chamber said the budget contains positive measures aimed at enhancing competitiveness, and external sector resilience, while presenting opportunities for focus on sectors that can accelerate growth.

“A number of the key structural reforms identified in last year’s Budget have been carried forward and strengthened, providing greater certainty and predictability to businesses and investors.

“These include the continued implementation of the Trade National Single Window (TNSW), the phased removal of para-tariffs, the rollout of the Digital ID framework, efforts to expand market access through new Free Trade Agreements (FTAs), the strengthening of one-stop-shop investment facilitation mechanisms, progress on Customs reforms, the expansion of Bandaranaike International Airport (BIA), enhanced financing support for SMEs, and reforms relating to the management of State-Owned Enterprises.”

The CCC said that more than 20 proposals submitted by it have been reflected in Budget 2027.

These include measures to strengthen investor facilitation through the establishment of a professionally managed investment promotion agency; continued efforts to improve trade facilitation and export competitiveness; the Government’s consideration of a successor programme with the International Monetary Fund (IMF); accelerated progress on key legislative reforms; the expansion of digital government services; and the promotion of cashless payments and broader digital adoption. The Budget has also captured several priorities relating to energy security, including the accelerated deployment of Battery Energy Storage Systems (BESS) and investments in fuel storage infrastructure, initiatives to optimize underutilized agricultural land, measures to support the expansion of the digital economy and the IT/BPO sector, and tax reforms to support exporters, including the acceptance of newly VAT-registered exporters as eligible exporters.

“The inclusion of these priorities reflects the value of sustained public-private dialogue and demonstrates increasing alignment between national policy objectives and the needs of a competitive, export-oriented economy.

“The priority now must be effective and timely implementation to translate policy commitments into investment, competitiveness, exports and sustainable growth.” (Colombo/Nov13/2026)

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Sri Lanka stocks trend lower day after budget reading

ECONOMYNEXT – Sri Lanka’s Colombo Stock Exchange was trending lower on Friday, CSE data showed, with the benchmark All Share Price Index moving down 0.66 percent.

The ASPI was down 146.78 points at 22,011, while the more liquid S&P SL20 was down 0.94 percent, or 59.99 points, at 6,306.

Positive contributors to the ASPI were Access Engineering (up 1.30 percent at 85.80 rupees), LAUGFS Gas (up 3.31 percent at 49.90 rupees), Ceylon Tobacco Company (up 1.13 percent at 1,830 rupees), Ceylon Cold Stores (up 0.80 percent at 126 rupees), and Namunukula Plantations (up 1.79 percent at 68.10 rupees).

LOLC Holdings (down 1.03 percent at 409.75 rupees), Hatton National Bank (down 0.61 percent at 409 rupees), Sunshine Holdings (down 3.81 percent at 30.30 rupees), and Sampath Bank (down 1.91 percent at 154 rupees) were top negative contributors.

Market turnover was 1.55 billion rupees. Capital goods led turnover with 459.57 million rupees. (Colombo/Nov13/2026)

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