ECONOMYNEXT – Foreign investors sold Sri Lanka rupee bonds for the second straight week in the week ended on September 25, Central Bank data showed, despite a slight appreciation on the  rupee currency.

It was the second time they sold the bonds in the last 15 weeks.

Offshore investors sold a net 9,169 million rupees (US$27.8 million) worth of Sri Lanka rupee bonds, extending the net foreign selling to Rs.16.5 billion in he last two weeks.

Before the two weeks, they bought 92 billion rupees (US$280 million) worth rupee bonds in the previous 13 straight weeks.

The outflows reduced the foreign holdings in government securities to 196.9 billion rupees, down from the  highest figure the Central Bank published in its Weekly Economic Indicators two weeks ago.

Analysts said the net outflows started after tghe rupee depreciation.

The rupee currency’s selling rate fell to a near three-year low of 354 against the U.S. dollar on May 21 before recovering and gaining to the 332 level in the week ended on September 11.

However, last week it gained slightly against the U.S. dollar.

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 6.2 percent through September 25 this year.

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

However, the island nation has enjoyed a total inflow of around 55.7 billion rupees into rupee bonds so far this year, following a net inflow of 71.5 billion rupees last year.

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

The government reduced fuel prices twice, in the last weeks of June and August.

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

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 despite slight depreciation in the local currency (Colombo/September 29/2026)

ECONOMYNEXT – Sri Lanka’s Cabinet has approved a proposal to gazette the Attorney General-cleared amendments to the more than century-old Trust Ordinance and submit them to Parliament, the Cabinet Spokesman said, in a move to increase ownership transparency in trusts.

The Financial Action Task Force (FATF), the global watchdog for anti-money laundering and counter-terrorism financing (AML/CFT), has placed heavy emphasis on the transparency of legal arrangements,  such as trusts.

The move comes after trusts were seen as vulnerable to abuse as vehicles for hiding illicit gains, concealing ultimate beneficial ownership (UBO), and facilitating tax evasion or money laundering.

Sri Lanka has committed to the FATF for legal changes to align the law related to trusts with international standards to ensure that competent authorities have timely access to accurate, adequate, and up-to-date information on trust creators, trustees, and beneficiaries.

Cabinet Spokesman Nalinda Jayatissa said the latest cabinet deciusion was based on the observations submitted by the Task Force on Prevention of Money Laundering and Financing for Terrorism and a 2024 Cabinet approval to amend the Trust Ordinance No. 9 of 1917 including amendments proposed by the Financial Intelligence Unit of the Central Bank.

“The Attorney General has granted clearance for the Trust (Amendment) Draft Bill formulated by the Legal Draftsman,” Jayatissa, also the Minister of Health and Media told reporters at the weekly post-Cabinet media briefing.

“Therefore, the Cabinet of Ministers approved the resolution furnished by the Minister of Justice and National Integration to publish the said draft bill in the government gazette notification and submit it to Parliament for its concurrence.”

The amendments are seen as a key step in Sri Lanka’s efforts to overhaul its legal framework against money laundering and terrorism financing.

The move also comes as Sri Lanka undergoes a periodic assessment by the Asia/Pacific Group on Money Laundering (APG).

Passing these mutual evaluations is crucial to preventing Sri Lanka from being placed on the FATF “Grey List,” which harms international banking access, credit ratings, and foreign trade.

Closing statutory loopholes in century-old laws like the 1917 Trust Ordinance is a major prerequisite.

The proposed changes include statutory requirements to identify and register the ultimate beneficial owners, settlors, trustees, and beneficiaries of express trusts.

It will also ensure enhancing the mechanisms for legal registration of trusts and facilitating information-sharing among the FIU, law enforcement, and tax authorities.

It also imposes explicit obligations on trustees to obtain and hold accurate basic and beneficial ownership information, and to provide this information to financial institutions during customer due diligence (CDD). (Colombo/September 29/2026)

ECONOMYNEXT – Sri Lanka’s Ministry of Transport, Highways and Urban Development has awarded a 2.89 billion rupees (excluding value added tax) contract to Maga Engineering (Pvt) Ltd to extend the Baseline Road by 0.86 kilometeres, minister Nalinda Jayatissa said.

The Baseline Road Extension Project Phase III involves the improvement of the road section from Kirulapone Junction to Dutugemunu Street on the Colombo-Horana Road.

“The stretch of road is planned to be upgraded to six lanes with infrastructure facilities such as an underpass, signalized intersections, pedestrian facilities, and drainage system improvements,” Jayatissa told reporters.

Bids were called for the work, 7 bids were received, and Maga Engineering was the lowest responsive bidder, Jayatissa said. (Colombo/Sep29/2026)

ECONOMYNEXT – Sri Lanka’s rupee closed at 330.70/90 to the US dollar in the spot market on Tuesday, from 330.90/331.05 the previous day, while bond yields closed slightly higher, dealers said.

A bond maturing on 01.08.2030 closed at 11.25/35 percent, up from 11.25/30 percent.

A bond maturing on 15.10.2030 closed at 11.30/40 percent, up from 11.25/35 percent.

A bond maturing on 01.02.2031 closed at 11.35/45 percent, up from 11.30/40 percent.

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

A bond maturing on 15.10.2034 closed at 12.05/10 percent, up from 11.95/12.05 percent. (Colombo/Sep29/2026)

ECONOMYNEXT — The cabinet of ministers has approved a proposal for the Telecommunications Regulatory Commission of Sri Lanka (TRCSL) to acquire spectrum and service quality monitoring systems valued at 9.25 million US dollars, funded by the Asian Development Bank (ADB).

The procurement falls under the ‘Digital Transformation Enhancement Project’, for which the Ministry of Digital Economy and the Department of External Resources received approval to partner with the ADB.

“The Telecommunications Regulatory Commission of Sri Lanka, a key implementing agency of this project, requires a spectrum management and monitoring system, as well as a system to monitor service quality and the quality of user experience,” Nalinda Jayatissa said.

Of the total 9.25 million US dollars in estimated external funding, 8 million US dollars has been allocated for the spectrum management and monitoring system, while 1.25 million US dollars is earmarked for the service quality and user experience system.

“Under the item ‘Spectrum Management and Monitoring System,’ we expect to establish a fully integrated spectrum management system to manage the radio frequency spectrum efficiently and effectively, conduct continuous monitoring over it, and guarantee the necessary rights for spectrum users,” Jayatissa said in response to questions.

He added that the quality of service system will not be tied to a single vendor and will enable interoperability, allowing service performance and user experience across telecom networks to be accurately measured, analyzed, and reported.

The government expects the overall project to support large-scale data storage and processing, while ensuring reliable, affordable, and uninterrupted digital services across the country. (Colombo/Sep29/2026)

ECONOMYNEXT – Sri Lanka’s Cabinet of Ministers has approved setting up a committee to advise the government on repatriating cultural artefacts taken out of the country during the colonial era, minister Nalinda Jayatissa said.

The move is based on international provisions that allow nations to request the return of these.

“Under Articles 7 and 13 of the 1970 UNESCO Convention on the Means of Prohibiting and Preventing the Illicit Import, Export and Transfer of Ownership of Cultural Property, a state has the right to request the return of cultural property belonging to it that is currently held abroad,” Jayatissa said.

The “Committee for the Repatriation of Sri Lankan Cultural Heritage Held Abroad” will be chaired by the Additional Secretary (Cultural Promotion and Foreign Affairs) of the Ministry of Buddhasasana, Religious and Cultural Affairs.

Responding to questions from journalists regarding Sri Lankan antiquities in the British Museum in London and previous inquiries made in 2008, Jayatissa said the initiative covers all artifacts held overseas.

“Antiquities taken from our country across various periods when we were subjugated are held in various museums and institutions around the world. This committee was appointed specifically to take action regarding all of them,” Jayatissa said.

He added that historical documents are also included under the committee’s scope, noting that all items of antique and historical value that can possibly be retrieved will be taken into consideration.

In 2023, 6 artifacts — including the cannon of Lewke Disawe from the Rijksmuseum in Amsterdam, two large cannons, two Kastane swords, and a knife — were returned by The Netherlands. (Colombo/Sep29/2026)