An Echelon Media Company
Monday November 9th, 2026

Statesmanship the need of the hour as the COVID 19 crisis worsens

The government’s plans to have early general elections have suffered a setback with the decision of the Election Commission to have them on June 20 and not on May 28 as the government had hoped for. The pressure on the Election Commission to give an early date even led to fissures within it that have become a matter of public knowledge. The keenness of the government was such that the Health Minister even predicted that by April 19, the crisis would be under control with the inference that an election campaigning would not be a problem. The example was given of South Korea which held its general election in the midst of the coronavirus pandemic. This may not have been a fair comparison as the combination of early voting and electronic voting in South Korea will not be possible in Sri Lanka at its present stage of economic development.

On the public stage, government leaders continue to demonstrate confidence that the elections can be held on schedule. The situation in Sri Lanka continues to remain better than in most other countries due to the strict actions taken by the government to lockdown the country. However, the continuing coronavirus spread makes it more likely than not that even the later date of June 20 will also not be practicable. At the present time the coronavirus acceleration has got even higher than it was in March 19 when the Election Commission decided that the original date of the general elections, set for April 25 by President Gotabaya Rajapaksa, was too soon to safely conduct free and fair elections. This can be seen by the fact that the first 100 reported cases took 57 days, the second 100 took 18 days, the third 100 took 8 days, the fourth 100 took 4 days and the fifth 100 has taken just 2 days.

The unexpected rise in the number of coronavirus detections has led the government to reconsider its plans to end the long running curfew in all parts of the country and instead to clamp it down once again. The sudden discovery of large numbers of coronavirus cases within the military who have been at the forefront of the anti-coronavirus campaign has been a shocking blow to public confidence. Consequently, there is very little enthusiasm or support for early elections from the general public. Most of them would prefer if the government set aside the money for the election to give subsidies and direct assistance to the vast masses of people who are experiencing great hardship without having been able to work for their living for over a month. Even government secretariats are not functioning as staff is not turning up for work.

Constitutional Requirements

Until late last week government leaders were continuing to insist that the elections will be held on June 20 with the possibility of the election being held in stages, beginning with the least affected districts. However, President Rajapaksa appears to be more circumspect and aware of the issues of governance according to the constitution that he faces with regard to the elections. The president has stated that it is the independent Election Commission that has to decide the date on which the elections will be held. He said that the Election Commission has the right to hold the election appropriately under the present circumstances and if they want, they can take several days for the election. He also said that he was not going to pressurise the Election Commission to hold or postpone elections.

In the interview the president has also stated that according to the Constitution, the new parliament should meet within three months after the dissolution of the Parliament. This is a constitutional requirement which, if not adhered to, would give rise to a constitutional crisis. If this crisis is to be averted the last date for the new Parliament to be convened is 2 June. The question is what is to happen now that the election is only scheduled to be held on June 20 so that a new parliament cannot be convened on June 2. The constitutional option available to the president, which the opposition is urging him to take, is to re-summon the parliament he dissolved on March 2 by rescinding his proclamation that dissolved it. However, the president does not seem to be prepared to take this step at the present time.

In the context of the worsening economic and health crisis, the pressure is likely to grow on the government to agree to the further postponement of the elections. This will bring to the fore the constitutional requirement that the country must have a parliament in place within three months of the dissolution of the earlier one. This is based on the fundamental principle of division of powers. In the monarchical systems of old, the executive, legislative and judicial powers were all vested in the king. The evolution towards a democratic system meant that these three powers were separated and given to different institutions to wield. Therefore, the argument that the president can run the country without a functioning parliament and with only an unelected caretaker cabinet is not acceptable in modern democratic terms.

Opposition Commitment

Now that the Election Commission has declared the election to be on June 20, this decision will be open to legal challenge, as it has set a date beyond the three month period within which the constitution states that parliament must meet. There are two alternatives that the President can employ in such a situation. The first option will be for the president to rescind the proclamation issued on the 2nd of March 2020 that dissolved parliament. He can issue another proclamation to revoke the proclamation issued under Article 70 (5). Such a proclamation could then restore the dissolved parliament, which was initially elected by the people till the 1st of September 2020.

The president also has the option given in the constitution of temporarily summoning back parliament under Article 70 (7) of the constitution even after parliament has been dissolved if he is satisfied that an emergency has arisen and the meeting of Parliament is necessary due to that emergency. This calling back of parliament is only for a temporary period till the emergency situation is over. He can even propose to parliament to pass a law permitting the general elections to be postponed until such time the coronavirus spread is under control.

The major political parties in the opposition have made a formal offer to the government that if parliament is reconvened they will assist to pass funds and laws to deal with the present crisis. They have said, “we are duty bound to fulfill our obligations to resolve this crisis in a spirit of responsible cooperation extended to the President.” It must be borne in mind that this is a parliament in which the parliamentary majority stepped down from power voluntarily after the presidential election. If they had stayed on, they would have formed the caretaker government after the president prematurely dissolved parliament. So the pledge they have given to cooperate with the government and not to seek its defeat in parliament can be taken seriously. The president needs to respond with magnanimity as befits the times. Statesmanship on one side can give rise to statesmanship on the other side of the divide.

Sri Lanka stocks close up 1.37-pct, banks lead turnover

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)

 

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Sri Lanka’s Hayleys Retail to launch supermarket chain with Blue Yonder

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)

 

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Sri Lanka’s Citrus Leisure extends Lotus Tower management pact

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)

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CIC Holdings Sept quarter net profit rises 20-pct to Rs1.7bn

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)

 

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Sri Lanka stocks trend up; ASPI gains 0.78-pct

ECONOMYNEXT – Sri Lanka’s Colombo Stock Exchange was trading higher on Monday, CSE data showed, with the benchmark All Share Price Index moving up 0.78 percent.

The ASPI was up 165.73 points at 21,405.38, while the more liquid S&P SL20 was up 0.61 percent, or 37.04 points, at 6,082.42.

Positive contributors to the ASPI were Commercial Bank (up 1.55 percent at 213.25 rupees), Ceylon Cold Stores (up 2.61 percent at 128.00 rupees), Asiri Hospital Holdings (up 10.00 percent at 30.80 rupees), Hemas Holdings (up 1.27 percent at 32.00 rupees), and Ambeon Holdings (up 6.02 percent at 37.00 rupees).

Namunukula Plantations (down 3.92 percent at 63.70 rupees), LOLC Holdings (down 0.62 percent at 400.00 rupees), and Chevron Lubricants Lanka (down 0.12 percent at 205.25 rupees) were top negative contributors.

Market turnover was 428.31 million rupees. Capital goods led turnover with 82.53 million rupees. (Colombo/Nov09/2026)

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Sri Lanka rupee at 332.54/58 to US dollar spot, bond yields steady

ECONOMYNEXT – Sri Lanka’s rupee was quoted at 332.54/58 to the US dollar spot on Monday, stronger from 332.55/60 Friday, while bond yields held broadly steady, dealers said.

A bond maturing on 15.09.2029 was quoted at 10.90/95 percent, up from 10.85/95 percent.

A bond maturing on 01.08.2030 was quoted at 11.00/10 percent, down from 11.05/10 percent.

A bond maturing on 01.02.2031 was quoted at 11.10/20 percent, up from 11.10/15 percent.

A bond maturing on 15.12.2032 was quoted at 11.58/68 percent, up from 11.55/65 percent.

A bond maturing on 01.06.2033 was quoted at 11.80/95 percent, up from 11.80/85 percent.

A bond maturing on 15.10.2034 was quoted at 12.08/15 percent, up from 12.05/12 percent.

A bond maturing on 15.08.2036 was quoted flat at 12.30/40 percent.

The telegraphic transfer rate for the dollar was 328.05 buying, 337.05 selling; the euro was 363.3528 buying, 377.1336 selling; pound was 437.5954 buying, 451.7038 selling.

On the Colombo Stock Exchange the All Share Price Index was up 0.78 percent, or 165.42 points, at 21,405; while the S&P SL20 was up 0.58 percent, 35.19 points, at 6,080.

90,000 million rupees Treasury bills are to be issued through an auction on November 11. (Colombo/Nov9/2026)

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