Economy

Sri Lanka Thailand FTA to unlock untapped trade and investment: President

Sunday February 4, 2024 7:16 am

ECONOMYNEXT – A free trade agreement with Thailand during the visit of Prime Minister Srettha Thavisin will allow the two countries to benefit from potential trade and investment that is untapped at the moment, President Ranil Wickremesinghe has said.

“There is considerable potential to develop tourism, trade and other areas of economic cooperation between Sri Lanka and Thailand,” President Wickremesinghe was quoted as saying in a statement after bilateral discussion the a delegation led by Prime Minster Thaivisin.

“We see great potential for enhanced investments from Thailand coming into Sri Lanka and we discussed possible areas for collaboration.”

“There is significant potential for the expansion of trade and investment ties between our two countries which have remain largely untapped.”

Sri Lanka has also signed an agreement to co-operate on gem and jewellery.

A new bilateral air services agreement was also signed. Thai air will begin daily flights to Sri Lanka from March 31.

The statement by President Ranil Wickremesinghe after concluding bilateral discussions is reproduced below:

I am extremely pleased to welcome Prime Minister Thavisin and accompanying high level delegation including the Deputy Prime Minister and Minister of Commerce and the Deputy Minister of Foreign Affairs to Sri Lanka. I want to thank Prime Minister Thavisin for accepting my invitation to be the Guest of Honour at the celebration of the 76th anniversary of Sri Lanka’s independence, which will be held tomorrow.

The main focus of this visit is accelerating economic cooperation between Sri Lanka and Thailand. There is significant potential for the expansion of trade and investment ties between our two countries which have remain largely untapped.

The Prime Minister and I witnessed the signing of the Sri Lanka-Thailand Free Trade Agreement (SLTFTA) a short while ago. This is the second FTA Sri Lanka is concluding with an ASEAN partner, the first being with Singapore. The two sides worked expeditiously to conclude this agreement highlighting the strong interest of both Governments on this important endeavour. This is a milestone in our economic partnership and operationalizing the FTA will be a priority. The FTA is expected to boost trade and investment ties between the two countries.

Additionally, we have renewed the Air-Services Agreement to enhance connectivity between the two countries and a MoU has been concluded between the Gems and Jewellery Research and Training Institute of Sri Lanka and the Gems and Jewellery Institute of Thailand. Both of these agreements will enhance economic, trade and tourism exchanges.

Today, we have also had a very productive discussion on elevating Sri Lanka –Thailand relations. During the bilateral discussion between our two delegations which concluded a little while ago, we covered a wide range of areas of cooperation. There is considerable potential to develop tourism, trade and other areas of economic cooperation between Sri Lanka and Thailand. We see great potential for enhanced investments from Thailand coming into Sri Lanka and we discussed possible areas for collaboration.

We have also had a detailed exchange on cooperation in the agriculture and fisheries sectors which both countries have a keen interest in pursuing.

In the area of Tourism we have spoken in particular on promoting the Buddhist tourism routes and marine tourism. In order to facilitate travel between the two countries, we have agreed to consider entering into an agreement for a visa free travel arrangement on

reciprocal basis. Our officials will work towards finalizing this arrangement early.
I thank the Prime Minister and the Government of Thailand for the assistance extended by the Thailand International Cooperation Agency (TICA) over the years for capacity building, sharing of expertise, and training provided to Government officials in Sri Lanka by the Thai side in areas including fisheries, SMEs, tourism, climate change, public health, and agriculture.

We have also had a very useful discussion on cooperation in the area of defence and intend to augment our defence sector cooperation in the future. In particular sharing information and intelligence between defence establishment of both countries to curb transnational organized crime including human trafficking, drug smuggling, money laundering and financing of terrorism is important.

We also discussed that Sri Lanka and Thailand have cooperated well in regional fora such as BIMSTEC, IORA, ACD and the ASEAN Regional Forum (ARF). I congratulated Thailand on the initiatives undertaken during their Chairmanship of BIMSTEC in particular the Bangkok Vision 2030 which aims to propel BIMSTEC towards a prosperous, resilient, and open region, fostering sustainable and balanced growth.

As partners in the Indian Ocean region, we look forward to collaborating with Thailand along with other IORA partners within IORA which Sri Lanka is chairing at present.

The two countries have also worked well at various multilateral fora. I highlighted to the Prime Minister that there is much that needs to be done by likeminded countries of the Global South such as Thailand and Sri Lanka to create an effective impact in shaping the evolving new world order.

As you are aware, Sri Lanka has made significant progress in economic stabilization since the economic crisis of 2022. One of my principle strategies of economic growth and prosperity is to enhance bilateral trade, particularly with proven future potential of the East Asian and ASEAN region including Thailand. We are ready to engage with external partners and our aim is to ensure prosperity for our people.

With the advent of the Asian century, we believe there is expanded scope for cooperation between our Sri Lanka and Thailand, building on the traditional friendship that we already share.
One of the foremost tenets of my government’s foreign policy is deepening economic integration with the Southeast Asia region.

We also wish to be a part of the RCEP (Regional Comprehensive Economic Partnership) which is the world’s largest free trade pact, encompassing 15 Asia-Pacific economies and covering about 30% of the world’s

gross domestic product and population. As Sri Lanka begins to stabilize its economy and regain international confidence towards recovery and growth, we are looking at Thailand’s support as Sri Lanka undertakes this very important journey of economic transformation and integration with Asia.

Our business communities will be meeting following this briefing at the Sri LankaThailand Business Forum. I am pleased to see that a high-level business delegation of 21 companies from Thailand are also in Sri Lanka representing inter alia food and food processing, healthcare, energy, hospitality, tourism, fisheries, agriculture and manufacturing sectors during this visit, demonstrating the keen interest on building synergies with the Sri Lankan business community.

This will be a very useful opportunity for our companies to hear from the Prime Minister and me directly and understand the potential for trade and business. We will be creating many more such opportunities for our companies to interact more regularly, in the future.

I want to thank you Prime Minister Thavisin and accompanying high level delegation for your visit to Sri Lanka which has further cemented our existing historical and religious connections as in the economic sphere and I look forward to working closely on the initiatives we have taken during this visit

Bonds & Forex

Sri Lanka rupee closes at 332.53/59 to US dollar spot, bond yields edge up

Monday November 9, 2026 5:05 pm

ECONOMYNEXT – Sri Lanka’s rupee closed at 332.53/59 to the US dollar spot on Monday, from 332.55/60 the previous day, while bond yields closed higher, dealers said.

A bond maturing on 15.09.2029 closed at 190/98 percent, up from 10.85/95 percent.

A bond maturing on 01.08.2030 closed at 11.07/12 percent, up from 11.05/10 percent.

A bond maturing on 01.02.2031 closed at 11.30/40 percent, up from 11.10/15 percent.

A bond maturing on 15.12.2032 closed at 11.65/70 percent, up from 11.55/65 percent.

A bond maturing on 01.11.2033 closed at 11.95/12.00 percent, up from 11.90/95 percent.

A bond maturing on 15.10.2034 closed at 12.10/15 percent, up from 12.05/12 percent.

A bond maturing on 15.08.2036 closed at 12.40/50 percent, up from 12.30/40 percent. (Colombo/Nov9/2026)

Markets

Sri Lanka stocks close up 1.37-pct, banks lead turnover

Monday November 9, 2026 3:29 pm

ECONOMYNEXT – Sri Lanka’s Colombo Stock Exchange closed up on Monday, CSE data showed, with the benchmark All Share Price Index moving up 1.37 percent.

The ASPI was up 291.72 points at 21,531.37, while the more liquid S&P SL20 was up 1.67 percent, or 100.96 points, at 6,146.34.

Positive contributors to the ASPI were Commercial Bank of Ceylon (up 2.86 percent at 216.00 rupees), Hatton National Bank (up 1.52 percent at 399.75 rupees), Asiri Hospital Holdings (up 12.86 percent at 31.60 rupees), Tokyo Cement Company (up 5.22 percent at 84.70 rupees), and Access Engineering (up 3.93 percent at 81.90 rupees).

Carson Cumberbatch (down 4.24 percent at 712.00 rupees), Richard Pieris and Company (down 2.43 percent at 28.10 rupees), LOLC Holdings (down 0.62 percent at 400.00 rupees), Renuka Holdings (down 2.63 percent at 37.00 rupees), and Chevron Lubricants Lanka (down 0.61 percent at 204.25 rupees) were top negative contributors.

Market turnover was 3.33 billion rupees. The S&P/CSE Banks Industry Group led turnover with 667.76 million rupees.

The session saw heavy crossings, according to Raynal Wickremeratne, Head of Research and Strategy at NDB Securities. Significant crossings included Keells (23 million rupees), Distilleries Company (27.7 million rupees), Sunshine Holdings (30.6 million rupees), Commercial Bank (32.4 million rupees), Ceylon Tobacco Company (35.6 million rupees), Hatton National Bank (39.5 million rupees), Prime Lands (40.5 million rupees), and HAS Holdings (41.5 million rupees).

In corporate news, Hayleys Retail Holdings Ltd announced it has partnered with supply chain software provider Blue Yonder to build and scale an AI-native grocery supermarket chain across Sri Lanka. (Colombo/Nov09/2026)

Information Technology

Sri Lanka’s Hayleys Retail to launch supermarket chain with Blue Yonder

Monday November 9, 2026 3:12 pm

ECONOMYNEXT — Hayleys Retail Holdings Ltd has selected supply chain software provider Blue Yonder to build its grocery retail operations from the ground up, the two companies said in a joint statement.

Hayleys Retail, a member of Sri Lanka’s diversified conglomerate Hayleys Group, plans to open several stores in the near future to serve consumers across the country. The agreement marks Blue Yonder’s first retail customer in Sri Lanka.

“Our entry into supermarket retail is about bringing that same commitment to quality and reliability closer to everyday Sri Lankan consumers,” Mohan Pandithage, Chairman and Chief Executive of Hayleys PLC said.

“With Blue Yonder, our teams will have AI-driven insight to deliver a seamless, consistent shopping experience across every store,” he said.

Hayleys, which accounts for approximately 5 percent of Sri Lanka’s export income and operates across 17 business sectors, is entering the large-scale supermarket space by drawing on its group strengths in manufacturing, logistics, and services.

The company selected Blue Yonder to connect its data across merchandising and shelf space, deploy artificial intelligence agents to catch operational issues early, and scale its business into a national network without changing platforms.

The rollout will begin with merchandise operations to manage suppliers, items, costs, and pricing, followed by machine learning capabilities to forecast demand and balance store inventory during seasonal peaks.

“Hayleys Retail is choosing one where AI is the foundation rather than an add-on—connected data and agentic AI built into core merchandising operations, and planning that learns as the business grows,” Antonio Boccalandro, President, APAC at Blue Yonder said.

The retailer plans to use the platform to automate routine store tasks and adjust inventory according to real-time sales and local market trends as its store footprint grows. (Colombo/Nov09/2026)

Stocks & Companies

Sri Lanka’s Citrus Leisure extends Lotus Tower management pact

Monday November 9, 2026 1:16 pm

ECONOMYNEXT – Sri Lanka listed hospitality firm Citrus Leisure said it has extended an agreement to manage consumer-facing and entertainment spaces at the Colombo Lotus Tower, which includes revolving restaurant Blue Orbit, until June next year.

The initial agreement signed between Citrus Leisure and Colombo Lotus Tower Management Company (Private) Limited (CLTMC) is due to expire on December 11.

“The Board of Directors of CLTMC at meeting held on 2nd November 2026 has resolved to extend the term of the Management Agreement and continue the existing Management Agreement until 30th June 2027, to which the company has given its concurrence,” the company said in a market filing.

Citrus Leisure Plc opened its revolving restaurant at the Lotus Tower in December 2023.

The company signed a 3-year agreement with CLTMC in May 2023 to provide services in the management of (l) the banquet hall 1 on the 25th floor, (2) the banquet hall 2 on the 26th floor, (3) the revolving restaurant on the 27th floor, (4) the 6 suites situated on the 28th floor and the kitchen in the basement floor of the Colombo Lotus Tower.

The 350-meter or 1,150-feet tower, the tallest in South Asia, was built at a cost 104.3 million US dollars with 80 percent of the money borrowed from Exim Bank of China.

Located in the commercial heart of Colombo, the tower has been called a symbolic landmark of Sri Lanka as well as a colossal white elephant and has been mired in controversy for years. (Colombo/Nov9/2026)

Markets

CIC Holdings Sept quarter net profit rises 20-pct to Rs1.7bn

Monday November 9, 2026 11:50 am

ECONOMYNEXT — Sri Lanka conglomerate CIC Holdings recorded a net profit of 1.66 billion rupees for the quarter ended September 30, rising 20.3 percent from 1.38 billion rupees in the same quarter last year, interim accounts showed.

The group posted basic earnings per share of 0.87 rupees for the September quarter, up from 0.73 rupees a year earlier.

Quarterly revenue grew 3.4 percent to 20.89 billion rupees from 20.20 billion rupees, supported by broad-based growth across industrial solutions, livestock, and healthcare segments, which counterbalanced relative demand moderation in agricultural inputs.

Cost of sales rose 5.3 percent to 15.20 billion rupees, outpacing revenue growth and causing gross profit to contract marginally by 1.2 percent to 5.68 billion rupees.

Results from operating activities dropped 7.3 percent to 2.66 billion rupees from 2.87 billion rupees, impacted by higher operating overheads.

Selling expenses expanded 6.8 percent to 2.15 billion rupees, and general and administrative expenses climbed 5.8 percent to 1.07 billion rupees, while other operating income dropped 29.6 percent to 117.40 million rupees.

However, operating profits were cushioned by an impairment reversal on trade receivables of 85.83 million rupees, turning around from an impairment provision of 23.38 million rupees in the corresponding quarter last year.

Net finance costs climbed 35.4 percent to 712.25 million rupees from 526.01 million rupees.

The increase was driven by a 30.8 percent rise in finance expenses to 771.46 million rupees, primarily reflecting higher interest expenses on loans to finance elevated working capital and inventory requirements.

The quarter’s bottom line was strongly bolstered by CIC’s equity-accounted investment in John Keells Holdings PLC (JKH).

Share of profit from equity-accounted investees surged more than fourfold to 590.50 million rupees from 257.87 million rupees, driven by JKH’s strong profit expansion during the period.

The group also recognized a gain on bargain purchase of 55.59 million rupees during the quarter resulting from additional share purchases in JKH where the proportionate net asset value exceeded acquisition cost, compared to no such gain a year earlier.

With associate income gains offsetting operating margin contraction and higher borrowing costs, group pre-tax profit held virtually flat at 2.59 billion rupees, down 0.11 percent.

Income tax expense fell 29.4 percent to 606.24 million rupees from 858.71 million rupees, driving total group profit for the period up 14.1 percent to 1.98 billion rupees.

Total group assets stood at 108.58 billion rupees as of September 30, up from 99.75 billion rupees at the end of March 2026.

Group net asset value per share increased to 25.52 rupees from 22.10 rupees a year earlier.

CIC Holdings’ ordinary voting shares closed at 27.80 rupees at the end of September.(Colombo/Nov09/2026)