ECONOMYNEXT — Sri Lanka’s Cabinet of Ministers has approved a new performance- and sustainability-based framework for collective agreements in State-Owned Enterprises (SOEs), which will take effect from January 1, 2027, minister Nalinda Jayatissa said.

The decision follows an earlier cabinet decision when the government decided to extend existing collective agreements in state enterprises under their current terms and conditions until December 31, 2026, while preparing a revised structure for 2027.

To facilitate the transition, the Secretary to the Treasury appointed an expert committee tasked with reviewing the current collective agreement mechanism and formulating the new framework.

Following consultations with relevant stakeholders, the committee submitted its report.

According to Jayatissa, the expert committee recommended aligning workplace pacts with key statutory regulations:

“It is recommended that collective agreements be implemented within state-owned enterprises, subject to the Industrial Disputes Act, the Trade Unions Ordinance, the Shop and Office Employees Act, and other relevant labour laws.”

The new structure also addresses employee incentives and financial returns.

“Recommendations have also been put forward regarding a framework for profit-sharing and bonuses.” (Colombo/Oct27/2026)

ECONOMYNEXT – Sri Lanka’s Cabinet has approved a proposal to award a road improvement contract to cover an additional section of roadway in the Central Province to Asset Engineering (Pvt) Limited, minister Nalinda Jayatissa said.

The contract is valued at about 756.9 million rupees (excluding taxes).

The project will upgrade the road from kilometre 10+500 to kilometre 16+890 on the Norwood-Bogawanthalawa-Campion (B329) route.

Bids were called and 3 bids were received, Jayatissa said. (Colombo/Oct27/2026)

ECONOMYNEXT – Sri Lanka’s Cabinet has approved a 100 million US dollar loan agreement with the Asian Development Bank to support a macro-recovery programme aimed at strengthening economic resilience and expanding inclusive economic opportunities, minister Nalinda Jayatissa said.

The financing forms part of a larger 620 million US dollar policy-based lending package approved earlier to support Sri Lanka’s reform agenda under the International Monetary Fund’s Extended Fund Facility programme.

The latest tranche consists of a 50 million US dollar policy-based loan and a 50 million US dollar investment loan from the ADB’s ordinary capital resources.

The Department of External Resources has completed formal loan negotiations with the ADB, after which Cabinet approved a proposal submitted by President Anura Kumara Dissanayake in his capacity as Finance Minister to sign the agreement, Jayatssa said.

The Macro-Recovery Sector Development Programme was approved by Cabinet in September 2026 using part of the broader ADB funding package and is intended to support reforms designed to improve economic stability, resilience and inclusive growth. (Colombo/Oct27/2026)

ECONOMYNEXT – World football governing body FIFA plans to provide 25 million US dollars in funding to help make football Sri Lanka’s most popular sport within four years, Football Sri Lanka said in a statement on social media.

The ambitious national football development plan was discussed on October 26 at a meeting in Baku, Azerbaijan, between FIFA President Gianni Infantino, Sri Lanka’s Minister of Youth Affairs and Sports Sunil Kumara Gamage, and Football Federation of Sri Lanka (FFSL) President Jaswar Umar.

The proposed 25 million dollar funding support over the next four-year cycle will go toward national and youth teams, women’s football, and the training of coaches and referees.

“The government appreciates FIFA’s valuable support and reaffirms its full commitment to working closely with FIFA and the FFSL to advance the sport,” Sports Minister Sunil Kumara Gamage said.

Key infrastructure projects under the programme include plans to build a state-of-the-art international football stadium in the country. Development initiatives will also begin next year to establish football grounds in every district, bringing the game closer to communities nationwide.

In addition, the FFSL plans to develop approximately 40 football grounds across its member leagues by 2031.

“FIFA reiterates its firm commitment to advancing Sri Lankan football and working together to build a strong future for the sport,” FIFA President Gianni Infantino said.

Under the joint vision, FIFA will provide technical expertise and infrastructure support to the Ministry of Sports, in partnership with the FFSL, to establish a National High-Performance Centre. The facility is intended to strengthen player development, coaching standards, and clear training pathways for elite athletes across all sports.

The discussions represent an important step toward a coordinated national effort to upgrade local infrastructure, expand participation, and create greater opportunities across the football community. (Colombo/Oct27/2026)

ECONOMYNEXT – Global economic growth is expected to slow to 3.1 percent in 2026 before rebounding to 3.4 percent in 2027, with inflation rising amid geopolitical disruptions, the International Monetary Fund has said.

The IMF said the global economy has remained resilient, helped by a technology-sector upturn, policy buffers and adjustments by businesses and households to geopolitical shocks.

Global headline inflation is projected to rise to 4.7 percent in 2026 before easing to 4.1 percent in 2027, while energy-importing economies outside global technology supply chains face the weakest outlook.

However, the IMF warned that the factors supporting resilience are not unlimited and that risks remain tilted to the downside.

An escalation of conflicts, renewed trade tensions, fiscal vulnerabilities or a reassessment of expectations around artificial intelligence could weaken growth, it said.

Stronger AI investment, productivity gains from new technologies and a sustained easing of geopolitical and trade tensions could provide upside to the outlook.

The IMF also called for stronger fiscal frameworks, saying governments should rely on targeted support for vulnerable groups during cost-of-living crises while preserving market price signals and rebuilding fiscal space through revenue measures. (Colombo/Oct27/2026)

ECONOMYNEXT – The Hilton Colombo is hosting the 33rd edition of its annual Oktoberfest in Sri Lanka from October 29 to November 7, in partnership with SampathCards and Visa.

The 10-day cultural festival features authentic Bavarian food, traditional entertainment from Munich’s Oompah Bavarian Band, and exclusive ticket discounts of up to 15 percent for Sampath Cardholders.

The celebration of Bavarian culture this year brings the festive energy of the original Oompah Bavarian Band from Munich, traditional servers in authentic German attire, and an array of cultural highlights.

The 2026 edition will continue that tradition through Bavarian-themed buffet, live entertainment, games, activations and the vibrant atmosphere that has made Oktoberfest a much-anticipated annual occasion.

“At Sampath Bank, we believe the value of a card extends beyond the transaction. It is also about the experiences, moments and opportunities it brings to our customers. Our partnership with Hilton Colombo and Visa allows us to bring that philosophy to life through Oktoberfest, giving Sampath Cardholders added value as they enjoy one of Colombo’s most anticipated celebrations,” Darshin Pathinayake, Chief Business Intelligence Officer, Sampath Bank PLC, said.

“Oktoberfest at Hilton Colombo is a celebration that has become part of the fabric of Colombo’s social calendar, and we are delighted to welcome it back for its 33 rd year. Our continued partnership with SampathCards, together with Visa, enables us to create an experience that combines the authenticity of Oktoberfest with the level of Hilton hospitality and value our guests have come to expect. We look forward to welcoming our guests to another memorable celebration this year,” Kapila Mohotti, Director – Food & Beverage at Hilton Colombo, said.

“Year after year, Oktoberfest has become a much-loved tradition in Colombo, and we are proud to have been part of this journey. At Visa, we believe in turning everyday moments into extraordinary experiences and partnerships like this strengthen that promise,” Avanthi Colombage, Country Manager, Sri Lanka and Maldives, Visa, said.
(Colombo/Oct27/2026)