An Echelon Media Company
Friday November 13th, 2026

Sri Lanka wants to strengthen Chinese ties in “mutually beneficial, transparent”: FM

ECONOMYNEXT – Sri Lanka is looking forward to strengthening the ties with China in a mutually beneficial and transparent manner, the island nation’s Foreign Minister Vijitha Herath said.

Participating at the Chinese Lunar New Year Reception this week at Shangri La hotel in Colombo, the Minister said China has been a valued and trusted friend to Sri Lanka, extending support during critical moments of our history and contributing significantly to our development efforts.

“Sri Lanka is grateful for the steadfast support extended by the People’s Republic of China to Sri Lanka, including during the recent weather conditions that affected the entire country as well as continued cooperation for infrastructure development, trade, investment, tourism, education, and technological sectors,” he told the gathering in Tuesday (09).

“As Sri Lanka moves forward on its path of economic growth and sustainable development, we look forward to further strengthening our ties with China in a manner that is mutually beneficial, transparent, and aligned with the aspirations of both our peoples.”

“The growing interest in language, education, tourism, and cultural cooperation between Sri Lanka and China is a testament to the deepening ties and understanding between our societies,” he said.

Since taking office in September 2024, Minister Herath’s National People’s Power (NPP) government has executed a swift pivot from its historical anti-Indian rhetoric toward a posture of pragmatic non-alignment.

Despite its key partner Janatha Vimukthi Peramuna’s (JVP) legacy of opposing Indian influence, most notably the 1987 Indo-Lanka Accord, the ruling NPP has prioritized recalibrating ties with New Delhi, recognizing India as an essential economic lifeline and security partner.

NPP leader and President Anura Kumara Dissanayake’s maiden overseas visit to India in December 2024 served as a crucial reassurance to Prime Minister Narendra Modi, where he affirmed that Sri Lanka’s territory would not be used to threaten India’s regional security interests.

This recalibration is part of a broader strategic hedging policy; following his New Delhi visit, Dissanayake traveled to Beijing in January 2025 to secure a $3.7 billion refinery deal and reaffirm support for the Belt and Road Initiative.

By balancing high-level defense cooperation with India against major infrastructure investments from China, the Dissanayake administration is attempting to maximize developmental aid while insulating the island from the zero-sum competition between the two Asian giants, geopolitical analysts say. (Colombo/February 11/2026)

Sri Lanka MP slams budget speech for omitting Tamil national question

ECONOMYNEXT – A Sri Lanka legislator has voiced strong disappointment that the President’s budget speech failed to make a single mention of the Tamil national question.

“It is very unfortunate that in His Excellency the President’s speech, there has not been a single word mentioned about the Tamil national question. Not a single word,” Shanakiyan Rasamanickam said.

“A budget speech generally, is a policy direction of the government for the next year. The budget speech is not only a statement of the country’s fiscal position or the economy’s position. It is the country’s, the government’s, plan, or what the government plans to do the following year. That’s a policy statement.”

Former presidents would at least mention the Tamil question even if it was not resolved, he said.

Former President Ranil Wickremesinghe in his speech, in his policy statement, he would mention: “The Tamil national question must be resolved,” Rasamanickam said.

Former Presidents Maithripala Sirisena and Gotabaya Rajapaksa also mentioned that the national ethnic question must be resolved, he added.

“Every President, every country’s Head of State, in their policy statements, have acknowledged the fact that there is an unresolved national issue, the Tamil national question, that it needs to be resolved. Various governments have proposed various mechanisms; none of them have succeeded, but at least it was mentioned.”

This year’s budget made allocations for the Office of Missing Persons, and the Office of Reparations.

“But the domestic mechanism is a mechanism that the victim community has rejected. So you all are allocating money to a mechanism where the victim community is not going to be part of.”

Last year’s budget 1 billion was allocated to be spent on the Trincomalee and Jaffna airports.

“Where was that 1 billion for the Trincomalee and Jaffna airports spent last year?”

“The trajectory of this government, Honourable Deputy Speaker, is worrying to me. It’s really worrying to me. Because if the objective is to say that there is no Tamil national question, if the objective is to say that you all have resolved any ethnic issue that this country faced, then Honourable Deputy Speaker, then I think the Tamil people will teach this government a very, very, very harsh lesson in the future.” (Colombo/Nov13/2026)

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Sri Lanka sells extra Rs6.5bn Treasury bills after auction

ECONOMYNEXT – Sri Lanka has sold 6,500 million rupees of treasury bills offered on tap at an average rate of 9.95 percent, the public debt management office said, bringing the total of bills sold in the week to 85.562 billion rupees.

The issue offered 90 billion.

Total market subscription was 6.5 billion rupees.

The debt office sold a 12-month bill at 9.95 percent.

On Wednesday (11) the debt office raised 79 billion rupees of 3, 6 and 12 month bills after offering 90 billion.

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Sri Lanka Treasury bill yields hold broadly steady, less bills sold

The settlement date is November 13. (Colombo/Nov13/2026)

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Access Engineering Sept quarter group net profit surges 200-pct to Rs4.75bn

ECONOMYNEXT — Sri Lanka’s Access Engineering PLC recorded a group net profit attributable to equity holders of Rs. 4.75 billion for the quarter ended September 30, surging 200 percent from Rs. 1.58 billion a year earlier, interim accounts showed.

Basic earnings per share rose to Rs. 4.08 for the September quarter, up from Rs. 1.58 previously.

Quarterly group revenue expanded 36 percent to Rs. 20.39 billion from Rs. 14.94 billion, underpinned by condominium property handovers — reflected in inventories dropping Rs. 7.69 billion since March to Rs. 35.71 billion — alongside strong automobile sales and steady civil engineering execution.

Cost of sales rose at a slower 27 percent to Rs. 14.34 billion, lifting gross profit by 64 percent to Rs. 6.05 billion and expanding gross margins to 29.7 percent from 24.7 percent.

Other income jumped 144 percent to Rs. 259.9 million, while administrative expenses rose 75 percent to Rs. 1.14 billion, leaving operating profit up 64 percent at Rs. 5.16 billion.

However, finance costs more than doubled, rising 107 percent to Rs. 1.18 billion on elevated group borrowings of Rs. 43.74 billion, partly offset by finance income climbing 302 percent to Rs. 42.2 million.

Share of results from equity-accounted investees rose 122 percent to Rs. 26.7 million, pushing pre-tax profit up 56 percent to Rs. 4.05 billion.

Income tax swung to a net reversal of Rs. 186.6 million from an expense of Rs. 804.1 million, boosted by deferred tax assets on unrelieved losses from a 100 percent enhanced capital allowance claimed by 60 percent-owned radiopharmaceutical subsidiary Access Medical Tracers (Private) Limited.

Total period profit rose 136 percent to Rs. 4.24 billion, with non-controlling interest declining 24 percent to Rs. 164.9 million following last year’s buyout of minority shareholders in Harbour Village (Private) Limited.

No separate exchange gain or loss was itemized in quarterly earnings, though foreign currency translation via associates recorded a Rs. 17.4 million loss in other comprehensive income, alongside USD 16.6 million in corporate guarantees.

Notes also flagged an expected Rs. 1.45 billion recovery from the terminated South Asia Commercial and Logistics Hub project, a Rs. 225 million post-quarter legal settlement already provided for, and a Supreme Court appeal over a 2011/12 PAYE tax ruling.

Group assets stood at Rs. 132.4 billion as of September 30, with net asset value per share at Rs. 46.70, as the Employees’ Provident Fund raised its stake to 5.69 percent.

Access Engineering shares closed at 80.00 rupees at the end of September and are currently trading around 85.80 rupees. (Colombo/Nov13/2026)

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Sri Lanka private sector says timely implementation of Budget 2027 key

ECONOMYNEXT – Private sector body, The Ceylon Chamber of Commerce, said it was encouraged by the broad direction of Budget 2027, noting that it reinforces Sri Lanka’s commitment to economic transformation while maintaining policy continuity, macroeconomic stability, and fiscal discipline.

“This continuity is particularly important as the country seeks to transition from economic stabilisation to a more durable, investment-led growth trajectory.”

The chamber also noted several areas where the Budget could have placed greater emphasis to strengthen the country’s growth prospects.

“In particular, there is a need for a stronger focus on attracting Foreign Direct Investment (FDI), accelerating factor market reforms, particularly in land and labour, and fast-tracking public procurement reforms to improve the efficiency and speed of project implementation.

“More targeted and actionable proposals could have been introduced to unlock the potential of sectors with significant growth opportunities, including tourism, agriculture, IT/BPO and logistics.”

The chamber said the budget contains positive measures aimed at enhancing competitiveness, and external sector resilience, while presenting opportunities for focus on sectors that can accelerate growth.

“A number of the key structural reforms identified in last year’s Budget have been carried forward and strengthened, providing greater certainty and predictability to businesses and investors.

“These include the continued implementation of the Trade National Single Window (TNSW), the phased removal of para-tariffs, the rollout of the Digital ID framework, efforts to expand market access through new Free Trade Agreements (FTAs), the strengthening of one-stop-shop investment facilitation mechanisms, progress on Customs reforms, the expansion of Bandaranaike International Airport (BIA), enhanced financing support for SMEs, and reforms relating to the management of State-Owned Enterprises.”

The CCC said that more than 20 proposals submitted by it have been reflected in Budget 2027.

These include measures to strengthen investor facilitation through the establishment of a professionally managed investment promotion agency; continued efforts to improve trade facilitation and export competitiveness; the Government’s consideration of a successor programme with the International Monetary Fund (IMF); accelerated progress on key legislative reforms; the expansion of digital government services; and the promotion of cashless payments and broader digital adoption. The Budget has also captured several priorities relating to energy security, including the accelerated deployment of Battery Energy Storage Systems (BESS) and investments in fuel storage infrastructure, initiatives to optimize underutilized agricultural land, measures to support the expansion of the digital economy and the IT/BPO sector, and tax reforms to support exporters, including the acceptance of newly VAT-registered exporters as eligible exporters.

“The inclusion of these priorities reflects the value of sustained public-private dialogue and demonstrates increasing alignment between national policy objectives and the needs of a competitive, export-oriented economy.

“The priority now must be effective and timely implementation to translate policy commitments into investment, competitiveness, exports and sustainable growth.” (Colombo/Nov13/2026)

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Sri Lanka stocks trend lower day after budget reading

ECONOMYNEXT – Sri Lanka’s Colombo Stock Exchange was trending lower on Friday, CSE data showed, with the benchmark All Share Price Index moving down 0.66 percent.

The ASPI was down 146.78 points at 22,011, while the more liquid S&P SL20 was down 0.94 percent, or 59.99 points, at 6,306.

Positive contributors to the ASPI were Access Engineering (up 1.30 percent at 85.80 rupees), LAUGFS Gas (up 3.31 percent at 49.90 rupees), Ceylon Tobacco Company (up 1.13 percent at 1,830 rupees), Ceylon Cold Stores (up 0.80 percent at 126 rupees), and Namunukula Plantations (up 1.79 percent at 68.10 rupees).

LOLC Holdings (down 1.03 percent at 409.75 rupees), Hatton National Bank (down 0.61 percent at 409 rupees), Sunshine Holdings (down 3.81 percent at 30.30 rupees), and Sampath Bank (down 1.91 percent at 154 rupees) were top negative contributors.

Market turnover was 1.55 billion rupees. Capital goods led turnover with 459.57 million rupees. (Colombo/Nov13/2026)

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LAUGFS Gas Sept quarter net loss widens 88-pct to Rs1.54bn

ECONOMYNEXT — Sri Lanka’s LAUGFS Gas PLC recorded a group net loss of Rs. 1.54 billion for the quarter ended September 30, 2026, widening 88 percent from a loss of Rs. 818.2 million a year earlier, interim accounts showed.

The group posted a basic loss per share of Rs. 3.99 for the September quarter, compared to a loss of Rs. 2.14 in the same period last year.

Quarterly group revenue plunged 57 percent to Rs. 5.71 billion from Rs. 13.16 billion.

The top-line contraction was primarily driven by the absence of external turnover from overseas energy trading subsidiaries — Dubai-based SLOGAL Energy DMCC and LYNQ Energy FZCO — which generated over Rs. 6.7 billion in external revenue in the prior year’s quarter.

Parent company revenue from domestic liquefied petroleum gas (LPG) operations also fell 28 percent to Rs. 4.62 billion from Rs. 6.42 billion amid local supply disruptions.

Group cost of sales declined at 52 percent to Rs. 6.18 billion from Rs. 12.75 billion, as parent company cost of sales fell just 8 percent despite lower volumes, squeezing margins.

Consequently, the group swung to a gross loss of Rs. 470.9 million, compared to a gross profit of Rs. 408.0 million a year earlier.

Selling and distribution expenses dropped 44 percent to Rs. 119.8 million on lower dispatch volumes, while administrative expenses rose 5 percent to Rs. 292.5 million.

Exchange rate depreciation did not weigh on quarterly earnings; instead, net foreign currency exchange gains surged 295 percent to Rs. 91.4 million from Rs. 23.2 million.

However, foreign exchange translation differences on overseas subsidiaries in other comprehensive income swung to a loss of Rs. 122.3 million from a gain of Rs. 126.4 million last year, widening total comprehensive loss by 157 percent to Rs. 1.67 billion.

Group operating loss stood at Rs. 703.8 million against an operating profit of Rs. 11.5 million previously.

Finance costs rose 13 percent to Rs. 789.4 million as short-term borrowings climbed to Rs. 24.85 billion from Rs. 17.19 billion a year earlier, though income tax expense fell 53 percent to Rs. 69.0 million.

Total assets stood at Rs. 43.86 billion as of September 30, while accumulated losses eroded group equity to negative Rs. 4.33 billion, leaving net asset value per share at negative Rs. 12.88.

Notes to the accounts showed parent LAUGFS Holdings held a 74.02 percent voting stake with a public float-adjusted market capitalization of Rs. 3.70 billion, and no material post-reporting events or changes in contingencies occurred.

LAUGFS Gas voting shares closed at Rs. 42.60 at the end of September, down from Rs. 55.40 a year earlier. Voting shares are currently trading around Rs. 49.90 (Colombo/Nov13/2026)

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