ECONOMYNEXT — Sri Lanka will launch a 100-million-dollar Asian Development Bank (ADB) funded development program aimed at strengthening social safety nets, livelihoods, and care services for vulnerable groups.

The Macro-Recovery Sector Development Program for Promoting Resilience and Inclusive Economic Opportunities will run from November 2026 to October 2031 across Kegalle, Matale, Mullaitivu, Kilinochchi, Batticaloa, and Nuwara Eliya districts.

Financed via a concessional loan from the ADB, the initiative seeks to address economic vulnerabilities exacerbated by climate impacts.

“Around 56 percent of the country’s population faces multi-dimensional vulnerabilities, which severely impact women, youth, elderly citizens, persons with disabilities, and rural as well as estate communities,” Vijitha Herath, Minister of Foreign Affairs told journalists.

The project will operate under policy and investment components across three core areas.

Entrepreneurship training, market access, financial linkage will be provided, and 30,000 selected Aswesuma families will receive a seed capital grant of 200,000 rupees, in two installments.

New regulations, along with training for care workers, as well as five elderly day-care centers will be established for elderly care.

A Social Protection Plan will be created to reform the system.

The Cabinet of Ministers approved the implementation proposal submitted by the Minister of Rural Development, Social Security, and Community Empowerment.

ECONOMYNEXT – Sri Lanka’s rupee closed at 328.70/329.00 to the US dollar in the spot market on Tuesday, weaker from 328.25/30 the previous day, while bond yields closed broadly steady, dealers said.

A bond maturing on 15.09.2027 closed at 9.55/85 percent, up from 9.55/75 percent.

A bond maturing on 15.10.2028 closed at 10.10/20 percent.

A bond maturing on 15.12.2029 closed flat at 10.50/55 percent.

A bond maturing on 01.08.2030 closed at 10.73/78 percent, up from 10.75/80 percent.

A bond maturing on 15.12.2032 closed at 11.25/35 percent, up from 11.15/25 percent.

A bond maturing on 01.11.2033 closed at 11.70/80 percent, up from 11.60/70 percent.

A bond maturing on 15.10.2034 closed at 11.80/90 percent, up from 11.75/83 percent.

A bond maturing on 15.08.2036 closed at 11.85/93 percent, up from 11.85/95 percent. (Colombo/Sep8/2026)

ECONOMYNEXT – Viet Nam budget airline Vietjet is offering Sri Lankan travellers Eco tickets from 90 dollars one-way (inclusive of taxes and fees) and 22 percent off Deluxe fares on its Colombo–Ho Chi Minh City route.

The sale runs from 22:30 on 7 September to 21:30 on 10 September (Sri Lanka time).

The promotional Eco fares are available across Vietnam domestic and international routes, while the Deluxe discount applies to international flights using the promo code SALE99.

The travel period is between 10 September 2026 and 31 March 2027 (blackout dates apply).

“Passengers can savour Vietnamese favourites such as pho, banh mi and Vietnamese iced milk coffee, alongside international dishes, while cultural and entertainment programmes add an extra touch of Vietnamese spirit at 10,000 metres above the ground,” the airline said

Vietjet connects Sri Lankan travellers to Vietnam and to a fast growing network across Asia, Australia, and soon, Europe.

The airline will launch services from Hanoi to Almaty and Prague in October, marking its debut in the European Union market. (Colombo/Sep8/2026)

ECONOMYNEXT — Sri Lanka will invite fresh tenders for the returfing of synthetic running tracks at the Sugathadasa National Sports Complex after the only qualified bidder submitted a price significantly above initial estimates, the government said.

The project covers the resurfacing of the 400-meter, 200-meter, and 80-meter synthetic tracks under the Sugathadasa National Sports Complex Authority, with an estimated total cost of 1.06 billion rupees.

Previous cabinet approvals for the project were granted in October 2025 and March 2026, after which tenders were called following the International Competitive Bidding procedure.

“Three bids were received for the tender, but upon evaluation, the sole qualified bidder submitted a price 70 percent higher than the estimated project cost,” Minister Vijitha Herath said.

Following the evaluation, the High-Level Procurement Committee recommended scrapping the initial procurement round and calling for fresh bids.

The Cabinet of Ministers approved the proposal presented by the Minister of Youth Affairs and Sports to recall bids to select a suitable contractor to execute the returfing project.

ECONOMYNEXT – Sri Lanka’s Colombo Stock Exchange closed down on Tuesday trading, CSE data showed, with the benchmark All Share Price Index moving down 0.38 percent.

The ASPI was down 81.43 points at 21,542.23, while the more liquid S&P SL20 was down 0.03 percent, or 1.58 points, at 6,064.97.

Positive contributors to the ASPI were Hatton National Bank (up 0.46 percent at 383.25 rupees), Cargills (Ceylon) (up 1.36 percent at 688.75 rupees), Richard Pieris and Company (up 1.92 percent at 26.50 rupees), Vidullanka (up 5.02 percent at 23.00 rupees), and National Development Bank (up 0.67 percent at 112.00 rupees).

Ceylinco Insurance (down 6.71 percent at 2,900.25 rupees), Sampath Bank (down 0.54 percent at 139.25 rupees), and Nations Trust Bank (down 1.76 percent at 307.25 rupees) were top negative contributors.

Market turnover was 1.466 billion rupees. Insurance led turnover with 339.59 million rupees.

Nations Trust Bank disclosed the reconstitution of its Board Audit Review Committee following a board meeting on September 7, 2026, appointing Independent Non-Executive Director Ananda Jayawardana as a member.  (Colombo/September08/2026)

ECONIOMYNEXT – Sri Lanka’s cabinet of Ministers has approved the establishment of the  National Trade Negotiation Committee “to guide trade negotiations with potential bilateral or regional trade partners as well as review the existing trade deals before deciding fresh agreement, Cabinet Spokesman and Foreign Minister Vijitha Herath said.

“The objective of the committee is to review the current trade agreement and to amend the clauses in the them if there are some disadvantages to us,” Herath told reporters at the post-cabinet media briefing on Tuesday,

It is not only for the trade agreements with India and China, but all the other existing trade agreements as well as the new agreements as well, he said.

The move comes after the cabinet decided to implement the recommendations submitted by the committee appointed to review Sri Lanka’s current Free Trade Agreements and the future path regarding Free Trade Agreements.

The government document on this week’s cabinet decision stated that Cabinet has taken the recommendations into consideration and the need to establish a National Trade Negotiation Committee and a Trade Policy Advisory Committee has been recognized so that Sri Lanka can adopt a more targeted, sequential, and evidence-based approach for conducting negotiations on future Free Trade Agreements.

The document also said the decision is also to ensure a sustainable and meaningful stakeholder consultation process for that purpose.

The Cabinet also approved the proposal to appoint the Secretary to the Ministry of Trade, Commerce, Food Security, and Cooperative Development as the Chairman of the National Trade Negotiation Committee and the Chief National Trade Negotiator.

It also approved to establish 12 subject-specific sub-committees along with technical working groups required under the National Trade Negotiation Committee and appoint a Trade Policy Advisory Committee consisting of trade experts, researchers engaged in research related to the field of trade, and business community, professional associations, civil society, and relevant government officials.

These experts will advise the National Trade Negotiation Committee on its operational and technical aspects, to submit policy recommendations to the Cabinet on matters related to trade agreements, and to ensure sustainable consultation and communication mechanisms regarding Free Trade Agreements.

Sri Lanka’s approach to free trade agreements (FTAs) has evolved significantly, progressing from its historical landmark 1998 agreement with India, the first of its kind in South Asia, to a more recent strategy focused on deeper integration with Southeast Asian markets, exemplified by its 2018 pact with Singapore and a newly signed 2024 FTA with Thailand. 

The geopolitics surrounding its two most dragged-out FTA negotiations, however, are dominated by the ongoing rivalry between India and China for influence over the island nation’s strategically vital maritime location. 

Colombo’s persistent, decade-long struggle to finalize a comprehensive Trade in Services agreement with India (currently the Economic and Technology Cooperation Agreement, or ETCA) is primarily hindered by intense domestic pressure from powerful Sri Lankan professional and business lobbies, who fear that liberalization will lead to an influx of Indian professionals and crowd out local industries. 

In stark contrast, the protracted, multi-year delay in concluding an FTA with China stems less from popular resistance and more from a fundamental asymmetry in the negotiating relationship.

While China pushes for swift, total tariff liberalization beneficial to its massive manufacturing sector, Sri Lankan negotiators continue to drag their feet, demanding specialized concessions and revenue safeguards to mitigate the profound trade deficit that already exists between the two nations. (Colombo/September 08/2026)