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Friday November 13th, 2026

Sri Lanka’s new “diplomatic” PM starts foreign aid talks amid political stability concerns

ECONOMYNEXT – Sri Lanka’s newly appointed prime minister Ranil Wickremesinghe on Friday started discussions over foreign aids for the crisis-hit island nation’s economic recovery, his office said.

Wickremesinghe, 73, who was handpicked for the job by President Gotabaya Rajapaksa on Thursday, held preliminary talks with foreign envoys representing India, Japan, United States of America, Britain, and China on Friday and the discussions focused on rapid economic recovery in the next few months.

His office did not give any further details on the foreign aid consortium.

“He is trying to get some foreign funding through a donor conference,” an aide close to the prime minister told Economy Next.

Sri Lanka is facing its worst financial crisis since the independence from British colonial rulers in 1948.

It has already suspended its 51 billion US dollar worth foreign debt repayments from April 12 as the island nation has run out of dollars even to buy the essentials for its 22 million people.

Amid extended power cuts due to lack of fuel imports, the 84.5 billion US dollar economy’s people face acute shortage of fuel, medicines, food, cooking gas, and milk powder mainly due economic mismanagement by President Gotabaya Rajapaksa’s ruling Sri Lanka Podujana Peramuna (SLPP).

Wickremesinghe’s appointment came amid continuous protests by hundreds of people near presidential secretariat demanding Rajapaksa, his brother and then Prime Minister Mahinda Rajapaksa along with the SLPP government to step down.

Mahinda Rajapaksa resigned on Monday (09) after his supporters brutally attacked hundreds of unarmed and peaceful protesters near both presidential secretariat and Temple Trees, the prime minister’s official residence, who had been demanding the resignation of the both leaders.

Diplomatic Hiccups

Wickremesinghe’s appointment also came when diplomatic relations with many foreign countries have been severed time to time under Rajapaksa.

Senior government officials have told Economy Next despite repeated request by then foreign minister G L Peiris, many countries declined to respond to his calls after a series of “cardinal errors” in international diplomacy.

Then prime minister Mahinda Rajapaksa unilaterally cancelled 500 million US dollar East Container Terminal (ECT) project which was already signed among India, Japan, and Sri Lanka in 2018.

Similarly, President Gotabaya Rajapaksa unilaterally canceled a Japanese-funded 1.5 billion US dollar Light Railway Transit (LRT) project connecting the commercial heart of capital Colombo to suburbs even after the project was under implementation.

President Rajapaksa also canceled a 480 million US dollar grant from the U.S.-based Millennium Challenge Corporation (MCC) given for rural infrastructure projects. He rejected it on the advice of an expert panel report which said based on the current status of countries which had implemented the MCC granted projects, the fate of those countries is tragic. Sources from US embassy in Colombo, however, had said contents of the expert panel report on the MCC grant was exaggerated and based on unfounded facts.

Rajapaksa government’s close relations with China also led other countries to have a “minimum level” of diplomatic relations with Rajapaksas in the past, officials from the island nation’s foreign ministry have told Economy Next.

China helped Rajapaksas with billions of US dollars in loans for post-war infrastructure between 2010 and 2015 when Mahinda Rajapaksa was the president. But many of the projects yet to give a sizable return on investment to repay the loans, which many Western nations say as “debt trap” and contributed to the country’s debt burden.

However, President Rajapaksa has said China had never dragged Sri Lanka into a debt trap.

Political Maneuvering  

The Rajapaksa government also had issues with the European Union on some commitment it had asked to fulfill in return of GSP plus, a trade concession which is annually worth over 500 million US dollars and helped the South Asian island nation’s top exports, garments.

The trade concession was signed in 2016 under the previous government, but Rajapaksa government was hesitant to implement some commitments including removal of four-decades old anti-terrorism law.

When the EU raised the issue, some members of Rajapaksa government publicly said the country cannot compromise the people’s mandate to continue the trade concession. However, the downfall in the economy compelled the government to engage with the EU and finally amend the anti-terrorism law.

The Rajapaksa government also backtracked three renewable energy projects granted to a Chinese firm in the Northern islands after Indian raised security concerns. The Chinese firm was chosen via an internationally accepted bidding process. However, Rajapaksa government unilaterally withdrew the project awarded to China, also unilaterally which resulted in China having reservations on financially assisting Rajapaksa government.

Sri Lanka’s conduct in human rights also has raised international concerns.

Former Finance Minister Basil Rajapaksa gave a liquefied natural gas (LNG) project to a US-based New Fortress Energy in an unsolicited manner while the authorities had received international bids through an internationally accepted process.

As a result of all of these diplomatic hiccups, many countries had hesitated and reservations to financially assist Rajapaksa amid many corruption allegations.

“Diplomatic PM”

Retired Sri Lankan diplomats said the new prime minister stands out in his diplomatic ways of handling the issues.

“He is a diplomatic prime minister. He knows whom to access internationally for what and when,” for retired career diplomat told Economy Next.

“This is why you see all these diplomats meet him just within 24 hours.”

Wickremesinghe in 2002 proved his ability in managing a crisis hit economy.

The island nation’s economic growth contracted in 2001 after Tamil Tiger rebels who demanded for a separate state within Sri Lana destroyed the only airport and complete fleet of state-owned SriLankan Airlines.

Wicktremesinghe became the prime minister after winning snap polls in December 2001 and approached international partners to help the country’s economy to recovery.

His long term efforts helped him to organize ‘Tokyo Donor Conference’ on June 10, 2003 which saw the participation of 51 countries and 21 international organizations.

At the end of the conference, Wickremesinge who personally participated in the event got pledges of over 4.5 billion US dollars for reconstruction and development of the entirety of Sri Lanka.

Sources close to Wickremesinghe said the plan was to have some immediate funding to ensure essentials which are in shortage for the public now.

“Once that is dealt with, his plan is to focus on the debt restructuring and IMF programme,” he told Economy Next asking not to be named.

However, many analysts say it may not be as easy as Wickremesinghe thinks.

Undiplomatic Politician

The new prime minister is seen as a stubborn and elitist leader by his own center-right United National Party (UNP) members.

Already most of the opposition political parties have said they will not support his leadership in the parliament as majority of them consider it as against the people mandate.

Some critics also see his appointment as a way out for Rajapaksas to buy time for them to evade possible prosecutions demanded by most people over the corruption charges and wealth accumulation.

Wickremesinghe’s UNP for the first time in its history failed to win any seat at the 2020 parliamentary polls. He also personally got defeated. However, he entered the parliament through a bonus seat in the 225-member legislature.

Many opposition parties including Samagi Jana Balavegaya (SJB), the Marxists Janatha Vimukthi Peramuna (JVP)-led National People’s Power, and Sri Lanka Freedom Party (SLFP) have declined to back him in the parliament and rejected his request to accept cabinet ministerial portfolio.

President’s SLPP has pledged support to Wickremesinghe, but political analysts say the new prime minister may need support of some opposition members for parliamentary majority.

Many parliamentarians see him as a leader who does not want to listen to their views, some opposition law makers have said.

Wickremesinghe wants the parliamentary majority for a new budget including some tough economic, fiscal, and public sector reforms to ensure a loan from the International Monetary Fund and to go ahead with foreign debt restructuring plans. (Colombo/May14/2022)

Sri Lanka stocks close down 0.60-pct, dragged by HNB and LOLC

ECONOMYNEXT – Sri Lanka’s Colombo Stock Exchange closed down on Friday, CSE data showed, with the benchmark All Share Price Index moving down 0.60 percent.

The ASPI was down 133.22 points at 22,024.18, while the more liquid S&P SL20 was down 1.06 percent, or 67.55 points, at 6,298.02.

The ASPI ended the week up 784.53 points from last Friday.

Positive contributors to the ASPI were Dialog Axiata (up 0.40 percent at 50.20 rupees), Distilleries Company of Sri Lanka (up 0.52 percent at 58.30 rupees), Aitken Spence (up 3.60 percent at 151.00 rupees), Ceylon Tobacco Company (up 1.05 percent at 1,828.50 rupees), and LOLC Finance (up 1.96 percent at 5.20 rupees).

Hatton National Bank (down 1.88 percent at 403.75 rupees), Richard Pieris and Company (down 6.21 percent at 27.20 rupees), LOLC Holdings (down 2.17 percent at 405.00 rupees), Sampath Bank (down 1.91 percent at 154.00 rupees), and Singer (Sri Lanka) (down 2.40 percent at 77.30 rupees) were top negative contributors.

Market turnover was 3.23 billion rupees. Capital goods led turnover with 869.21 million rupees. (Colombo/Nov13/2026)

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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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