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Thursday October 29th, 2026

Sri Lanka’s 6-year Presidential term: problem in drafting 19th amendment explained

ECONOMYNEXT – A member of the team that drafted Sri Lanka’s 19th amendment to the constitution has explained the constraint they worked with, which has led to the possibility of a 6-year Presidential term enabled by a two thirds’ majority vote.

The deficiency in the constitution was highlighted in a report by EconomyNext on Tuesday.

President’s Counsel Jayampathy Wickramaratne, a member of the drafting team, explained that they were instructed not to make changes that required a referendum.

The team was advised that a bill to amend the constitution should be passed “only by a two-thirds majority, in keeping with the pledge of Presidential candidate Maithripala Sirisena in his election manifesto that no amendment necessitating a Referendum would be placed before Parliament.

“As such, the draft did not propose reducing the maximum period from six to five years.”

However he argues why the Presidential term should not go beyond five years in the the present case, on several grounds, including the circumstances of ex-President Gotabaya Rajapaksa’s election by the people, democratic principles and constitutional morality.

The full reponse is reproduced below:

Dear Sir,

I refer to the new item titled ‘Constitutional Error Could Give Ranil and Parliament Another Year’ written by your Political Correspondent in your esteemed journal. It is implied therein that the drafters of the Nineteenth Amendment to the Constitution ‘neglected’ to ensure that the maximum period to which the term of the President and Parliament could be extended without recourse to a Referendum was also reduced to five years while reducing the respective terms to five years.

As a member of the team that drafted the Nineteenth Amendment to the Constitution, I wish to make a clarification for the benefit of your readers. Article 83 lists the constitutional provisions which cannot be changed without a Referendum. The news item reproduces Article 83. You might note the words ‘and this Article’ in Article 83(b). Thus, to reduce the maximum period to five years, Article 83 itself must be amended, requiring a Referendum. The drafting team was well aware of this necessity.

However the government had clearly advised the drafting team that the Nineteenth Amendment Bill should be passed only by a two-thirds majority, in keeping with the pledge of Presidential candidate Maithripala Sirisena in his election manifesto that no amendment necessitating a Referendum would be placed before Parliament. As such, the draft did not propose reducing the maximum period from six to five years.

I wish to take this opportunity to express my views on whether the five-year terms of the current Parliament and the current President could be extended to six years, as the maximum period mentioned in Article 83 is six years.

When the People of Sri Lanka voted Gotabhaya Rajapakse as President and later elected the present Parliament, the term of the President and Parliament was five years.

Voters knew that Parliament could be dissolved earlier in the circumstances laid down in the Constitution and that the President could seek a fresh mandate after four years in office.

However, the upper limit of each term was clearly five years. As the People voted for a President and a Parliament for only five years, such a Parliament cannot extend the terms by even a day as that would violate the franchise already exercised by the People.

Any amendment of the Constitution that impinges on the franchise must be approved by the People at a Referendum, as the franchise (Article 3, read with Article 4) is an entrenched provision listed in Article 83. Any increase in the duration of the term of the President or Parliament can apply only to a new President or a new Parliament for whom the People vote knowing what the applicable term is.

On this issue, I take the further view that a two-thirds majority in Parliament and a 50-%-Plus-One majority of the People cannot make ANY amendment to the Constitution.

In international law, certain basic norms (jus cogens) are accepted as peremptory norms from which no derogation is permitted. Examples include prohibitions against slavery and torture, genocide, the use of armed force and piracy on the high seas and racial non-discrimination.

Similarly, are there basic norms from which a democracy such as Sri Lanka cannot derogate? Can a tyrannous majority adopt any constitution? Would the Supreme Court have the power to examine a Bill for the amendment of the Constitution or a new Constitution, certified by the Cabinet of Ministers as one that requires the People’s approval at a referendum, if certain basic democratic norms are alleged to be violated? Such questions may seem academic at first blush, but given experiences from elsewhere, should they be brushed aside?

When freedom from torture is recognised as a peremptory norm that binds the international community, can the People of Sri Lanka restrict its application within the country, invoking their sovereignty? Put differently, are there no limits to the internal dimension of sovereignty?

The Lawyers Collective recently raised the pertinent question of whether the amending process is also governed by the principle of ‘constitutional morality’, a concept which has recently gained wide acceptance in India.

Simply put, constitutional morality demands that the spirit of the Constitution be respected and should not be undermined even at the behest of the majority. It is thus a counterpoise to popular or social morality that can sometimes be undemocratic and violative of rights.

In Navtej Singh Johar v. Union of India, the Indian Supreme Court observed as follows: “The concept of constitutional morality is not limited to the mere observance of the core principles of constitutionalism as the magnitude and sweep of constitutional morality is not confined to the provisions and literal text which a Constitution contains, rather it embraces within itself virtues of a wide magnitude such as that of ushering a pluralistic and inclusive society, while at the same time adhering to the other principles of constitutionalism.”

The Court explained that it is further the result of embodying constitutional morality that the values of constitutionalism trickle down and percolate through the apparatus of the State for the betterment of each and every individual citizen of the State.

“The society as a whole or even a minuscule part of the society may aspire and prefer different things for themselves. They are perfectly competent to have such a freedom to be different, like different things, so on and so forth, provided that their different tastes and liking remain within their legal framework and neither violates any statute nor results in the abridgement of fundamental rights of any other citizen. The Preambular goals of our Constitution which contain the noble objectives of Justice, Liberty, Equality and Fraternity can only be achieved through the commitment and loyalty of the organs of the State to the principle of constitutional morality.” (AIR 2018 SC 4321).

My view is that peremptory norms that limit the internal dimension of sovereignty are found in the Preamble to our Constitution, which refers to ‘immutable republican principles of representative democracy’ that assure to ‘all peoples freedom, equality, justice, fundamental human rights and the independence of the judiciary as the intangible heritage that guarantees the dignity and well-being of succeeding generations of the People of Sri Lanka’.

Increasing the terms of the current President and Parliament who were elected for five years goes against those ‘immutable republican principles of representative democracy.’

(Dr) Jayampathy Wickramaratne, President’s Counsel

Sri Lanka stocks close up 1.5-pct, banks lead turnover

ECONOMYNEXT – Sri Lanka’s Colombo Stock Exchange closed up on Thursday, CSE data showed, with the benchmark All Share Price Index moving up 1.49 percent.

The ASPI was up 296.93 points at 20,267.15, while the more liquid S&P SL20 was up 1.26 percent, or 71.63 points, at 5,764.20.

Positive contributors to the ASPI were Distilleries Company of Sri Lanka (up 4.81 percent at 54.50 rupees), Hatton National Bank (up 2.13 percent at 382.75 rupees), Dialog Axiata (up 1.84 percent at 44.30 rupees), Sunshine Holdings (up 5.43 percent at 29.10 rupees), and Sampath Bank (up 2.33 percent at 142.50 rupees).

Vidullanka (down 2.71 percent at 21.50 rupees), East West Properties (down 3.09 percent at 65.80 rupees), Janashakthi (down 2.20 percent at 8.90 rupees), Union Assurance (down 0.90 percent at 66.20 rupees), and LOLC Holdings (down 0.13 percent at 389.50 rupees) were top negative contributors.

Market turnover was 2.27 billion rupees. The S&P/CSE Banks Industry Group led turnover with 658.6 million rupees.

“There were quite a few crossings today and also the market turnover improved quite significantly as well,” Raynal Wickremeratne, Head of Research and Strategy at NDB Securities, said.

Crossings were recorded in Hatton National Bank (375 million rupees), Commercial Bank (90 million rupees), Softlogic Life (76 million rupees), Lanka Reality Investments (46 million rupees), Tokyo Cement (29 million rupees), PickMe (22 million rupees), and LB Finance (21 million rupees). (Colombo/Oct29/2026)

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Sri Lanka may see higher inflation if higher oil prices prolong: CB governor

ECONOMYNEXT – Sri Lanka may see higher inflation if global oil prices remain expensive for a long period, Central Bank Governor Nandalal Weerasinghe said.

Inflation remained at a 40-month high of 8.1 percent in September measured by the Colombo Consumer Price Index (CCPI), mainly driven by market-reflected fuel prices and their spillover effect on the overall economy.

The state-owned Ceylon Petroleum Corporation (CPC) has raised fuel prices around 50 percent since the Middle East conflict started.

Weerasinghe told an investor forum this week that the Central Bank in June factored in the impact, hoping that oil prices would settle around $90 a barrel towards the end of the year.

“Right now, it appears now is still at an elevated level than what we expected,” Weerasinghe told an institutional investor forum organized jointly by the Colombo Stock Exchange and Securities and Exchange Commission of Sri Lanka.

“But even with that elevated level still, we think even around $100 a barrel, we should be able to manage this inflation at current levels,” he said.

He said if the higher oil prices remain “a longer period”, the island nation will see price shocks due to supply side and increased oil pricing will reflect in domestic prices.

“That’s going to see higher inflation than what we see now.”

“But still, the question is whether we need to fight with monetary policy or not… because we have to see source of inflation and whether that is creating anchoring future expectation as well as creating kind of a demand conditions on the other side.”

“Monetary policy is mainly demand-driven. That’s what we are focusing on.”

Supply-side inflation in Sri Lanka is fundamentally driven by external cost-push pressures, where escalating global oil prices act as a catalyst across the entire economic system.

The island nation relies heavily on imported fossil fuels for thermal electricity generation, freight transport, and agricultural machinery.

Higher crude oil import bills rapidly transmit through key supply chains, driving up operational costs for manufacturers, farmers, and distributors alike.

Unlike in the past, Sri Lanka cannot subsidize energy due to the IMF condition on market reflected prices in return for its US$3 billion External Fund Facility (EFF).

Producers pass surged transportation and energy expenses onto consumers, triggering sharp increases in headline and food inflation.

This price cascade hits ordinary households directly through elevated pump prices, higher electricity tariffs, and costlier daily essentials, rapidly eroding real incomes and purchasing power.

For low- and middle-income families who allocate a disproportionate share of their budgets to basic food and commuting, this escalating cost of living forces drastic cuts in household spending.

Consequently, these persistent cost-push shocks are expanding vulnerability across both rural and urban communities, pushing marginal households below the poverty line and deepening socio-economic distress. (Colombo/October 29/2026)

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Sri Lanka trade body warns new laws could risk EU GSP+ benefits

ECONOMYNEXT – Sri Lanka’s private sector trade body has submitted its observations on the proposed Protection of the State from Terrorism (PST) bill, it said, and is finalising its views on the proposed Prevention of Organised Crime bill.

The Ceylon Chamber of Commerce called for a careful review of recent draft legislation to ensure that it provides clear definitions, appropriate judicial oversight, and adequate due process safeguards.

“Such measures are essential to maintaining investor confidence, legal certainty, and Sri Lanka’s reputation as a predictable and rules-based destination for trade and investment.”

The chamber emphasised the importance of preserving Sri Lanka’s continued access to the European Union’s GSP+ trade concession, which plays a vital role in supporting exports, employment, foreign exchange earnings, and economic growth.

“In this regard, the Chamber has urged that new legislation be aligned with Sri Lanka’s international commitments and internationally accepted standards, thereby strengthening the country’s prospects for the continuation of GSP+ benefits.

“The Ceylon Chamber remains committed to constructive engagement with policymakers and other stakeholders to ensure that legislative reforms effectively address national priorities while supporting economic growth, competitiveness, and sustainable development.” (Colombo/Oct29/2026)

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Advancing human capital for durable growth: Policy priorities for Sri Lanka

The Sri Lankan economy has stabilised following a series of repeated shocks, including the Covid-19 pandemic, the economic crisis, and climate-related disasters. While economic activity has recovered, an important question remains: what will it take to sustain growth and make it durable?

The 2026 edition of the Sri Lanka State of the Economy (SOE), the annual publication of the Institute of Policy Studies of Sri Lanka (IPS), outlines the policy choices the country must make to sustain long-term growth.

To mark the release of SOE 2026, IPS hosted a roundtable discussion on 20 October, where the discussion focused on policy priorities needed to equip citizens with skills, opportunities, and resilience to drive productivity and ensure that the benefits of economic growth are shared more widely across society.

IPS Director of Research, Nisha Arunatilake, and Research Fellows Pulasthi Amarasinghe and Ganga Tilakaratne presented five chapters of the report. Emeritus Professor Lakshman Dissanayake, Senior Professor in Demography; Erandika Dissanayake, Director General of the Sri Lanka Export Development Board; Kalinga Tudor Silva; and other invitees followed with interventions.

Higher Education: Expanding Access and Aligning Skills with Labour Market Needs

Arunatilake emphasised that strategically developing the tertiary education sector is essential to durable growth.

Although Sri Lanka’s tertiary-educated population more than doubled between 2012 and 2024, and the share of adults aged 25 and over with such a qualification increased by 2.8 percentage points over the period, growth has trailed regional peers.

Growth has also been uneven, with basic degrees accounting for 87% of that growth, while postgraduate and technical qualifications remain thin.

According to the International Labour Organization, all knowledge workers—such as managers, professionals, and technicians—are expected to have a tertiary education. However, only 34.1% did so.

Gender disparities favouring women were also evident. Women make up about 57% of the tertiary-educated, but many were concentrated in occupations such as teaching, with relatively limited representation in science, engineering, and ICT, despite the higher wage returns associated with STEM qualifications.

Tertiary education can fuel innovation-led growth, but only if graduate skills match the jobs on offer.

To expand and diversify tertiary education over the long run, Arunatilake identified several near-term policy priorities, including improving the tracking of graduate output and employment outcomes, strengthening alignment between qualifications and industry demand, and expanding programmes in high-demand fields.

The Labour Market: Challenges Beyond Unemployment

Turning to the labour market, Amarasinghe examined developments between 2019 and 2024, highlighting that the recovery in output and a relatively stable unemployment rate mask persistent challenges in employment quality and productivity.

Shifts in employment across sectors have weighed on overall labour productivity growth, while the recovery has been uneven across different groups of workers.

Informality, along with structural obstacles to formalisation, remains a major concern, with two-thirds of workers in informal employment.

Around 1.95 million informal workers are in agriculture and fisheries and are vulnerable to climate-related shocks.

To tackle this, Amarasinghe proposed a three-part agenda: better skills matching through employer-linked training and vacancy information; expanding formal employment through incentivising formal job creation; and stronger income security through real wage protection and better social protection benefits linked to labour markets.

Protecting Households and Preparing for an Ageing Society

Tilakaratne highlighted the need to strengthen shock-responsive social protection.

The Household Shock Exposure Index, which covers 13 types of shocks, found that 11.4% of households faced high cumulative exposure and 56.5% moderate exposure.

Half of all households received support from at least one social protection programme and 29.5% from Aswesuma.

Yet coverage does not rise with shock exposure: among households in the bottom expenditure quintile with high shock exposure, only 55% received benefits, leaving 45% without cover.

Tilakaratne recommended enhancing the existing social registry to make it more dynamic and better integrated with disaster management and climate information systems, establishing mechanisms to scale up assistance during crises, strengthening digital payment systems, and expanding productive inclusion initiatives.

Discussing the country’s silver economy, Tilakaratne noted that Sri Lanka is South Asia’s fastest-ageing country, with the share of people aged 60 and over expected to increase from 18.3% in 2024 to 23.1% by 2042.

The health system faces gaps in meeting the needs of this growing population, including shortages of geriatric care, fragmented health information, medicine supply disruptions, and a lack of long-term care financing.

She emphasised the importance of developing a health-centred silver economy through strengthened primary healthcare, improved access to quality healthcare through greater use of digital health and ICT while addressing older adults’ digital literacy, and enhanced financial protection through reduced out-of-pocket costs and sustainable long-term care financing.

Voices from the Roundtable: Jobs, Care, and Reform

The participating stakeholders joined in the discussion following the presentations. Lakshman Dissanayake observed that policy attention has focused on labour supply while jobs also depend on employer needs, highlighting that the demand side of the labour market deserves equal attention. He called for strong partnerships between higher education institutions and the private sector so that graduate skills are better aligned with labour market needs. He additionally suggested developing the caregiving economy to tackle low female labour force participation while meeting the rising demand for elderly care.

Erandika Dissanayake stressed the connection between skills, productivity, and innovation, and noted that social protection should also address vulnerabilities faced by skilled workers. He highlighted the importance of sustainable financing arrangements to meet the social protection needs of an ageing population.

Participants also raised supply-side labour market concerns, such as low female labour force participation, population ageing, and the urgent need to reform outdated labour laws to enable employers to swiftly respond to shocks.

The discussion also highlighted the importance of aligning reforms in education, labour markets, and social protection with broader macroeconomic priorities to support durable growth.

The Way Forward: Putting People at the Centre of Growth

The roundtable highlighted that durable growth cannot rest on economic recovery alone and requires coordinated policy action across education, labour markets, social protection, and healthcare.

Strengthening links between higher education institutions and employers can help improve the alignment of graduate skills with labour market needs.

Similarly, expanding opportunities for productive formal employment and strengthening income security remain important priorities.

Improving the responsiveness of social protection systems to household vulnerabilities and preparing healthcare and care services for an ageing population are equally important for ensuring inclusive and sustainable growth.

Together, investments across all three areas can help Sri Lanka translate its economic recovery into durable and inclusive growth while strengthening resilience to future shocks. (Colombo/Oct29/2026)

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Sri Lanka stocks trend up 1.27-pct; DCSL gains

ECONOMYNEXT – Sri Lanka’s Colombo Stock Exchange opened up on Thursday, CSE data showed, with the benchmark All Share Price Index moving up 1.27 percent.

The ASPI was up 253.39 points at 20,223.61, while the more liquid S&P SL20 was up 1.16 percent, or 65.78 points, at 5,758.35.

Positive contributors to the ASPI were Distilleries Company of Sri Lanka (up 5.19 percent at 54.70 rupees), Sunshine Holdings (up 5.07 percent at 29.00 rupees), Dialog Axiata (up 1.61 percent at 44.20 rupees), Hatton National Bank (up 1.40 percent at 380.00 rupees), and Commercial Bank of Ceylon (up 0.50 percent at 200.00 rupees).

There were no significant negative contributors to the ASPI in early trade.

Market turnover was 348.62 million rupees. Diversified Financials led turnover with 92.89 million rupees.

Distilleries Company of Sri Lanka PLC (DCSL) said that its wholly owned subsidiary, DCSL Breweries Lanka Ltd, has transferred its brewing, packaging, and distribution activities to DCSL with effect from October 28.

“Accordingly, DCSL PLC will undertake the brewing, packaging and distribution of beer in addition to its existing activities of distilling, bottling and distributing hard liquor,” the company said in a market filing.

The company noted that it had obtained the approval of the Excise Department for the transfer of the relevant licenses, adding that “while this change would be convenient for the Company and the retail shops, it would not significantly impact the Group’s profits.”

Following the transfer, DCSL will produce and distribute licensed beer brands, including Heineken, Tiger, and Anchor, as well as the group’s own brands including Aliya, Bison, and DCSL beer, in the Sri Lankan market. (Colombo/Oct29/2026)

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Sri Lanka’s Distilleries Company takes over subsidiary’s beer brewing, distribution

ECONOMYNEXT – Distilleries Company of Sri Lanka PLC (DCSL) said that its wholly owned subsidiary, DCSL Breweries Lanka Ltd, has transferred its brewing, packaging and distribution activities to DCSL with effect from October 28.

“Accordingly, DCSL PLC will undertake the brewing, packaging and distribution of beer in addition to its existing activities of distilling, bottling and distributing hard liquor,” the company said in a market filing.

The company said it had obtained the approval of the Excise Department for the transfer of the relevant licenses.

“While this change would be convenient for the Company and the retail shops, it would not significantly impact the Group’s profits.”

After the transfer, DCSL PLC will produce and distribute licensed beer brands, including Heineken, Tiger, and Anchor, as well as the Group’s own brands, including Aliya, Bison, and DCSL beer, in the Sri Lankan market.

The stock was trading up 2.70 rupees at 54.70. (Colombo/Oct29/2026)

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