Political News

Sri Lanka Vietnam joint statement after President’s state visit – full text

Monday May 5, 2025 6:05 pm

ECONOMYNEXT – Sri Lanka and Vietnam has agreed to co-operate in the fields of agriculture, artificial intelligence, defence and boost trade and investments between the two nations, according to joint statement released, after a state visit by President Anura Kumara Dissanayake.

President Dissanayake has offered Sri Lanka’s expertise in archaeology and historical monuments.

The full statement is reproduced below:

JOINT STATEMENT
Between

THE SOCIALIST REPUBLIC OF VIET NAM AND THE DEMOCRATIC SOCIALIST REPUBLIC OF SRI LANKA

On the State Visit of H.E. Anura Kumara Disanayaka President of the Democratic Socialist Republic of Sri Lanka to the Socialist Republic of Viet Nam 4th – 6th May, 2025

1. At the invitation of His Excellency Luong Cuong, President of the Socialist Republic of Viet Nam, His Excellency Anura Kumara Disanayaka, President of the Democratic Socialist Republic of Sri Lanka paid a State Visit to Viet Nam from 4th – 6th May 2025. The visit takes place on the occasion of the 55th anniversary of Viet Nam – Sri Lanka diplomatic relations (1970 – 2025).

2. During the visit, President Anura Kumara Disanayaka was accorded a ceremonial welcome. President Disanayaka held bilateral meetings with General Secretary of the Communist Party of Viet Nam To Lam, President Luong Cuong, Prime Minister Pham Minh Chinh, and Chairman of the National Assembly
Tran Thanh Man.

President Dissanayake also paid tribute to President Ho Chi Minh at his mausoleum and laid a wreath at the Monument to War Heroes and Martyrs, as a gesture symbolizing the close bonds of friendship that have been built and nurtured by generations of leaders, grounded in mutual trust, respect, shared values, cultural traditions, and a profound understanding between the two nations.

3. Honouring a joint invitation extended by the Viet Nam Buddhist Sangha and the Government of Viet Nam President Anura Kumara Disanayaka attended the UN Day of Vesak celebrations on 6 May 2025 held in Ho Chi Minh City as Chief Guest and delivered the keynote address, reaffirming longstanding Buddhist ties between the two countries.

4. The Vietnamese Leaders and President Disanayaka had wide-ranging discussions on bilateral, regional and international issues of mutual interest. They noted with satisfaction the development of the traditional friendship and multifaceted cooperation between the two countries spanning 55 years since the establishment of diplomatic relations on the 21st of July 1970, underpinned by high level of political trust, close people-to-people linkages and warm sentiments between the two peoples. They affirmed the warm friendship and valuable support which both nations had accorded to each other in the course of National Development had laid a firm foundation for further strengthening and deepening of relations between Viet Nam and Sri Lanka in the coming years.

5. President Disanayaka congratulated Viet Nam on its significant achievements and remarkable progress in social and economic development. He also lauded the success of Vietnamese leadership in transforming the country into one of the fastest growing economies and a thriving manufacturing hub in the East Asia – Pacific region. The Vietnamese Leaders congratulated President Anura Kumara Disanayaka and the National People’s Power (NPP) on the victory at the recently concluded Presidential and Parliamentary elections in Sri Lanka and efforts to bring about economic stability and development in the country; convinced that Sri Lanka could play a vital role as an economic hub in the Indian Ocean region, given its strategic geographical location.

6. The two sides’ Leaders discussed and agreed on key directions to uplift bilateral relations to the next level. It was agreed to continue to promote closer political relations between Viet Nam and Sri Lanka, including increasing high-level visits and contacts, exchange of delegations at various levels as well as promoting people-to-people contacts.

7. They emphasized the need for effective implementation of existing bilateral cooperation mechanisms. In this context, the early convening of the 5th round of bilateral political consultations between the two Ministries of Foreign Affairs, the 3rd Meeting of the Sub Committee on Trade and the 4th meeting of the Joint Commission on Economic, Scientific and Technological Cooperation between Viet Nam and Sri Lanka were identified as priorities for implementation in 2025.

8. Both sides reaffirmed their commitment to strengthening cooperation in the areas of national defence and security. In this regard, the two sides agreed to review and renew the Memorandum of Understanding on Defence Cooperation, increase the exchange of Defence delegations, promote cooperation in Defence studies through the exchange of delegations between the National Defence Academy of Viet Nam and the General Sir John Kotelawala Defence University of Sri Lanka. The two sides also agreed to enhance cooperation in education and training, intelligence sharing and exchange of delegations as well as exchange experience in UN Peacekeeping operations. The importance of enhancing cooperation in combating transnational crimes inter alia terrorism, illegal immigration and cybercrimes was also underscored by the two sides. The two sides also discussed opportunities for cooperation in the area of defence industry in order to enhance the capacity building of both countries. With regard to security sector cooperation, Viet Nam and Sri Lanka agreed to strengthen ties between the two Ministries of Public Security of the two countries.

9. Both sides agreed that there remains great potentials in trade and investment between Viet Nam and Sri Lanka. In the context of the rapidly evolving global economic environment, they agreed to promote stronger cooperation, including the reviewing of the Bilateral Investment Treaty and the Avoidance of Double Taxation Agreement between Viet Nam and Sri Lanka to facilitate bilateral trade and investment.

10. Both sides agreed to take pragmatic steps to increase bilateral trade such as trade facilitation, information exchange, promote business-to-business links through trade missions, as well as business matching, exhibitions, seminars, aimed at bringing the trade turnover to 1 billion USD in the near future. The two sides agreed to collaborate, identify and pursue mutually beneficial trade leveraging on each other’s strengths.

11. The leaders agreed to boost stronger investment flows between the two countries. The Vietnamese side appreciated the investments from Sri Lanka in 33 projects with a total registered capital of more than USD 43 million as of March 31st, 2025.

12. President Disanayaka commended the steady and impressive progress of Viet Nam’s economic development and expressed Sri Lanka’s interest in attracting Foreign Direct Investments (FDIs) from Viet Nam particularly in the agriculture, food processing, manufacturing, renewable energy, electronic and automobile components, real estate, hospitality, pharmaceutical, hospitals, tele-communication, logistics, infrastructure and industrial infrastructure sectors.

13. The Leaders concurred on the importance of increasing air connectivity between the two countries based on the Air Services Agreement that was already in existence. They agreed that air connectivity will be a strong incentive to ensure rapid growth in tourism between the two countries. In this regard, both sides agreed to encourage both countries’ Airlines to soon commence direct flights. The two sides also discussed the possibility of facilitating measures to boost tourism, business and people-to-people connectivity and to promote ease of travel between Viet Nam and Sri Lanka.

14. Both sides acknowledged the significant potential for co-operation in the agriculture sector. Given the remarkable strides made by Viet Nam in advancing its agriculture sector particularly in the areas of automation, mechanization and scientific research, and in the area of post-harvest processing, President Disanayaka requested for sharing of expertise and exchanges to support the efforts of the Government of Sri Lanka to encourage agriculture modernization in the country.

15. Both sides agreed that the ongoing collaboration between the Vietnam Institute of Agricultural Engineering & Post-Harvest Technology (VIAEP), the National Institute of Post-Harvest Management (NIPHM), and the Farm Mechanization Research Center (FMRC) of Sri Lanka, alongside the Vietnam Academy of Agricultural Sciences and the Department of Agriculture of Sri Lanka, would further strengthen cooperation in the agricultural sector, fostering mutual growth and facilitating valuable knowledge exchange, and agreed to fully implement the Agriculture Work Plan for the period 2024-2026. Both sides agreed to arrange and facilitate short-term study visits for the professionals in the Agriculture sector.

16. President Disanayaka expressed Sri Lanka’s willingness to assist Viet Nam in the fields of archaeology and the preservation of cultural artifacts. With a rich heritage spanning over two millennia and extensive experience in conserving ancient sites and relics, Sri Lanka stands ready to share its expertise and best practices in support of Viet Nam’s efforts to protect and celebrate its cultural heritage. The Vietnamese side welcomed this offer with appreciation.

17. The Leaders emphasized the cultural and historical bonds between the two countries. They welcomed the joint endeavor of both sides in the project of constructing the outer wall surrounding the sapling of the Sacred Bodhi Tree gifted by Sri Lanka in 2023 at Bai Dinh spiritual complex, which is the combination of authentic Sri Lankan architectural carvings and a uniquely Vietnamese-designed fence, standing as a testament to the strong cultural and spiritual collaboration between the two countries.

18. Both sides expressed their satisfaction at the renewal of the Education Cooperation Agreement, which was signed in 1999, and encouraged both sides’ related agencies to sign a work plan for education cooperation based on the renewed Agreement. The two leaders also highlighted the importance of strengthening collaboration between higher education institutions in both countries and expressed a mutual interest in facilitating student exchanges across a range of academic disciplines.

19. President Disanayaka highlighted the importance of expanding opportunities for students, particularly through increased scholarships in the fields of science, technology, and agriculture. In response, the Vietnamese side expressed interest in receiving more scholarships in the area of Buddhist studies.

20. Both sides recognized their respective strengths in Artificial Intelligence (AI),
E-commerce, and digital transformation, and shared commitment to harnessing emerging technologies for sustainable development, improved public service delivery, and innovation-led economic growth. They agreed to enhance cooperation through capacity building, knowledge exchange, and technology transfer.

21. The Leaders expressed satisfaction at the close cooperation and support extended at regional and multilateral fora by the two countries and agreed to further deepen cooperation and coordination on issues of vital interest to the Global South.

22. The Leaders reaffirmed the importance of collective action as articulated by the United Nations Framework Convention on Climate Change (UNFCCC), emphasizing the urgent need for accessible climate financing, particularly for developing nations that remain disproportionately vulnerable due to limited adaptive capacity. They underscored that concerted international efforts, including innovative financing mechanisms and the fulfillment of commitments by developed countries, are essential to effectively mitigate global warming and address sea level rise.

23. Sri Lanka welcomes Viet Nam in hosting the signing ceremony of the United Nations Convention against cybercrime in Ha Noi in 2025.

24. Sri Lanka and Viet Nam reaffirmed the importance of maintaining peace, stability, security and freedom of navigation and underscored the significance of respect and adherence to international law, particularly the 1982 United Nations Convention on the Law of the Sea (UNCLOS) for maintaining a stable and peaceful international maritime order.

25. President Anura Kumara Disanayaka informed that advancing cooperation with Southeast Asia and ASEAN is a principal tenet of Sri Lanka’s foreign policy under his administration. Viet Nam welcomed the policy stance and underlined the need for close coordination and cooperation. In this regard, both Leaders expressed satisfaction at the active role played by Viet Nam and Sri Lanka within the ASEAN Regional Forum (ARF) as Co-Chairs of the Inter-Sessional Meeting on Disaster Relief for the period of 2023 – 2026. The Viet Nam side also took note of Sri Lanka’s interest in becoming an ASEAN Sectorial Dialogue Partner.

26. The Leaders agreed that the MoUs/Agreements signed during the visit have laid the foundation for stronger collaboration between Viet Nam and Sri Lanka in areas of significant mutual interest and would pave the way to further elevate the multifaceted bilateral partnership.

27. The Leaders expressed satisfaction with the fruitful discussions held in the spirit of mutual understanding, which contributed to further enhancing the excellent relationship between the two countries, enabling it to reach new heights.

28. President Anura Kumara Disanayaka expressed his gratitude to the State, the Government and people of Viet Nam for the warm reception and hospitality accorded during the State Visit to Viet Nam and extended invitations to General Secretary To Lam and President Luong Cuong to visit Sri Lanka at a mutually convenient time. The invitations were accepted with appreciation.

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Climate Change

Sri Lanka’s flash floods in capital point to systemic institutional failure, ignored directives

Monday November 9, 2026 6:00 pm

ECONOMYNEXT – As torrential monsoon downpours transformed Sri Lanka’s commercial capital’s thoroughfares into raging brown rivers on Friday (06) submerging vehicles, paralyzing public transit, and inundating critical facilities like the National Hospital, the crisis was framed by authorities as an act of nature.

But for the millions of residents wading through waist-deep water, the disaster was not merely meteorological. It was man-made, preventable, and a glaring testament to gross institutional negligence.

Vraîe Cally Balthazaar, the Mayor of the island nation’s biggest local governing body Colombo Municipal Council (CMC) posted on her FaceBook (Meta) platform just a week ago before the floods that people in her ward “have had to live with the risk of flooding for years” after the stormwater drain running through the Jawatta Public Cemetery collapsed in 2019.

She said in the post that she promised the residents that the CMC would get the repairs done before the end of September, and she was happy to say that the CMC has “managed to complete the work by September 15.

“And sometimes, something as simple as fixing a drain can make a real difference to an entire neighbourhood,” Balthazaar said.

However, the flash floods saw the same area heavily flooded despite the ‘fixing’ by the CMC.

Just 24 days before the floods, Prime Minister Harini Amarasuriya herself issued a direct, unequivocal order to government officials and municipal authorities to treat the cleaning of Colombo’s canal and drainage systems as an exceptional priority.

She directed to expedite the work and complete it within two weeks to ensure proper rainwater management amid anticipated increases in rainfall.

Prime Minister Amarasuriya issued these directives while addressing the Colombo District Coordinating Committee meeting held on October 13 at the Narahenpita District Secretariat.

During the meeting, officials from divisional secretariat offices, the Agrarian Development Department, and the Provincial Irrigation Department highlighted existing challenges in cleaning drainage and canal systems, noting issues such as a shortage of technical officers and difficulties faced in formulating plans and estimates.

Her instruction came in response to early meteorological indicators pointing toward an intensifying inter-monsoonal rainfall season.

But the floods last week proved that these directives had been ignored, delayed, and left unimplemented by the very bodies sworn to protect the city’s populace.

Recognizing the chronic vulnerability of the commercial capital’s low-lying geography, the Prime Minister instructed relevant stakeholders to systematically clear Colombo’s primary canals, secondary outlets, and subterranean drainage systems.

Crucially, the directive came with a strict deadline: a two-week window to complete the comprehensive clearing of blockages, silt, and solid waste that choke the city’s waterways.

Colombo would not have had last week’s floods, had the Prime Minister’s instruction been heeded and executed.

But the Prime Minister’s instruction designed precisely to preempt the catastrophic urban flooding that has chronically plagued Colombo during heavy weather was ignored.

Yet, when the skies opened up last Friday (06), the two-week deadline had long expired into the ether of bureaucratic inaction.

The canals remained congested with plastic debris, unauthorized construction bottlenecks, and thick layers of silt.

The drainage systems, starved of maintenance, failed instantly.

Neither the central government machinery nor the Colombo Municipal Council (CMC) can wash their hands of accountability.

The ‘Clean Sri Lanka’ programme under the current government has been created to deal with prevention of flooding among many other ambitious goals.

“The responsibility for this damage must be borne by the President even more than the Mayor,” former Urban Development and Megapolis Minister Champika Ranawaka, a strong government critic, said on his YouTube platform.

“He is the head of the disaster management apparatus, and ‘Clean Sri Lanka’ operates under his direct leadership. Because of his actions and their administrative conduct, the entire state machinery has been brought to a standstill.”

Anatomy of Municipal Paralysis

When orders from the higher office like Prime Minister of the state can be casually sidelined by municipal inertia, it exposes a profound fracture in governance, one where public safety is compromised by institutional paralysis.

At the heart of Colombo’s drainage crisis is a systemic failure of local governance and inter-agency coordination.

The Colombo Municipal Council, tasked with the day-to-day stewardship of municipal infrastructure, waste management, and local drainage networks, has long operated in an administrative comfort zone characterized by reactive posturing rather than proactive mitigation.

When the Prime Minister’s directive was issued in mid-October, it should have triggered an immediate emergency mobilization.

Municipal work crews, heavy machinery, and desilting operations ought to have been deployed across every vulnerable ward, from the commercial hubs of Fort and Pettah to densely populated residential quarters like Borella, Wellawatte, and Grandpass.

Instead, citizens witnessed what can only be described as administrative inertia.

Bureaucratic red tape, sluggish procurement of maintenance contracts, and a lack of accountability mechanisms meant that instructions from the Prime Minister trickled down into endless committee meetings rather than field operations.

By treating a critical pre-monsoon cleanup as a routine administrative task rather than an urgent, life-saving imperative, municipal officials displayed a reckless disregard for urban risk management.

The government repeatedly said it has collected ample tax revenue to run the country. But that money could not be used urgently to protect the Colombo city when it was evident what was going to happen as per Prime Minister Amarasuriya’s instructions.

Furthermore, the failure extends beyond mere delayed cleanups to encompass chronic structural enforcement failures.

Over decades, Colombo’s natural hydrological buffers including its wetlands, marshes, and secondary flood retention areas have been systematically degraded or encroached upon by uncoordinated commercial and residential developments.

When drainage systems are clogged with garbage while vital retention pathways are blocked by concrete, even a standard heavy downpour is bound to trigger catastrophe.

Friday’s deluge merely exposed the cumulative cost of this willful administrative blindness.

Economic Toll of Negligence

The consequences of this systemic failure were borne immediately by ordinary citizens and critical public infrastructure.

The inundation of the National Hospital of Sri Lanka, where floodwaters unprecedentedly breached critical service areas, should be considered a national scandal.

That a premier healthcare institution can be crippled within 2 hours of heavy rain, jeopardizing patient care and compromising sterile environments, illustrates the deadly stakes of municipal failure.

Beyond the hospitals, small business owners watched their livelihoods float away, commuters were stranded for hours in gridlocked, submerged buses, and low-income families residing in underserved settlements suffered extensive property damage.

For an urban economy trying to anchor Sri Lanka’s fragile post-crisis recovery, recurring paralyzing floods exact a heavy toll in lost productivity, infrastructure damage, and emergency response costs.

Accountability

The CMC and government have pointed fingers at the illegal structures erected under past governments for the latest disaster. But this government has already been in power for two years.

In the aftermath of the disaster, routine finger-pointing between central agencies and municipal bodies also has begun, with officials attempting to deflect blame onto unprecedented rainfall volumes.

But meteorological data offers no refuge for negligent administrators.

The rainfall, while heavy, was seasonally anticipated; indeed, it was precisely why the Prime Minister issued her October directive.

When a directive issued by the second-in-command of the country is left gathering dust on a municipal desk while citizens face preventable devastation, the social contract breaks down.

The current government and the Colombo Municipal Council cannot hide behind excuses of resource constraints or administrative oversight.

Preventing flash floods requires more than issuing seasonal press releases or convening post-disaster committees after the water has receded.

It demands rigorous enforcement, transparent institutional accountability, and a zero-tolerance approach to administrative lethargy.

If the authorities cannot execute basic drainage maintenance, Colombo will remain structurally vulnerable, hostage to the next raincloud, and failed by the very institutions meant to protect it. (Colombo/November 08/2026)

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)