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Friday October 9th, 2026

The battle ahead for what Gota and Mahinda want

The Sri Lanka Podujana Peramuna juggernaut is readying for what the brothers Mahinda and Gotabaya Rajapaksa want next.  

Within hours of his brother Gotabaya being confirmed as the new President, Prime Minister Mahinda Rajapaksa in a public statement laid out his future government’s priorities and right on top were changes to the 19th Amendment to the Constitution.

That means they want a two-thirds majority in the House or 150 seats or more, enough to change the Constitution when Parliamentary General elections are held towards the end of April.

Mahinda said that the Presidential Election was “different from other Presidential Elections” because of the “complications of the system of governance” brought about by the 19th Amendment. “After the President takes the oaths, we will be immediately studying the provisions of the 19th Amendment and planning our future course of action accordingly,” he added.

These Amendments, which Mahinda’s Parliamentary group voted for in 2015, reduced the powers of the Executive Presidency and empowered the Judiciary and independent commissions. The checks and balances thus introduced, which exist in most of the better-developed democracies in the world, were tested during the abortive October Constitutional Coup.

And the Rule of Law held.

But now Mahinda and Gotabaya see these safeguards as shackles. President Gotabaya was quoted in The Hindu newspaper where he said that the 19th is a “failure and if we get a two-thirds majority we will drop it from the Constitution”.

In other conversations, he has said that the 19th Amendment is the work of International Non-Governmental Organizations and promised his biggest backers, the Buddhist Monks of the country, that it will be changed.

He also told the Hindu, sardonically, that the 19th Amendment can work only if two brothers occupy the seats of the President and Prime Minister. He said the former government was ineffective because “they (Prime Minister Ranil Wickremesinghe and President Maithripala Sirisena) were fighting each other.”

President Gotabaya Rajapaksa delivering his inaugural address at Anuradhapura/PMD

We could argue literally until the cows come home about what the “Good Governance” government did or did not do during its shambolic, rickety rule. But the plus point in their tenure were safeguards built in the 19th Amendment. This single wide-ranging act rolled back much of the serious damage inflicted on our democracy through the Constitutional changes that were brought about by former PM Sirima Bandaranaike, former President J R Jayewardene and the Rajapaksa’s during their periods of governance respectively.

Mahinda and Gotabaya, can now see that this time around, they do not wield the untrammelled power they had when the former was President. At that time Mahinda was hailed as a King by a nation, grateful for winning the war and which elected him for a second term. In the eyes of the nation, MR could do wrong.

Today the situation is different. As the Anglican Bishop of Kurunegala Fr. Keerthisiri Fernando told RepublicNext  “in order to win elections, politicians create a fearful devil in the minds of the people and say come to me, I will keep you safe from the devil.”

That is what happened at the recently concluded Presidential poll. A Sinhala, predominantly Buddhist community, fearful of a new enemy in the form of Islamic terror voted for the strongman who they believe would keep them safe.  

But it needs to be asked whether they were also voting for constitutional changes, as the electorate did in 2015?   Is it the desire of the people to allow a government to enjoy unbridled power?

In his post-poll analysis political Scientist, Prof. Jayadeva Uyangoda points out correctly that the Rajapaksa administration will be able to carry out its work effectively, but that it must work within the framework of the 19th Amendment.

However, working within that framework does not seem what the Rajapaksa’s fancy.

The important issue ahead of the country is to harness whatever residual political will the people have, to keep the good governance framework in place. In their last term, the Rajapaksa rule became hugely unpopular because of the behaviour of many of its family members, rampant nepotism and crony capitalism.

The 2015 defeat of the Rajapaksa rule came about owing to a wide coalition that worked together towards a democratization agenda, and that was the sole reason Sirisena won.

President Gotabaya Rajapaksa has, in these early days, attempted to address some of the issues. He has opted not to be identified by the Rajapaksa symbol, the Maroon shawl, which Mahinda, Chamal and Namal sport. In fact, several eyewitnesses said that just before his swearing-in at the Ruvanveliseya, in Anuradhapura when the President-elect was handed a shawl by his brother Chamal, Gotabaya had put it aside.

President Gotabaya Rajapaksa being sworn in with his wife, son and daughter-in-law in the background/PMD

The open-necked white shirt teamed with the Grey or Black pants, has cut out a new style and branding for our new President which was very visible even during his state visit to New Delhi.  Only at Indian President Kamal Nath Kovind’s formal dinner did the Sri Lankan leader sport a buttoned-up tunic in the party colour of the SLPP.

Indian President Ram Nath Kovind and Sri Lankan President Gotabaya Rajapaksa in New Delhi/PMD

The bigger move so far has been the setting up of a committee which includes some well-known business leaders who support the President to select the heads of the numerous state-run institutions, ranging from Sri Lankan Airlines which is bleeding billions of Rupees of public money to Salusala which the government plans to shut down.  Only time will tell whether these plum positions will not be allotted to the Rajapaksa family tree or their hangers-on as was the case during their former tenure.

The SLPP troops are now readying for the General Elections. In the forefront will be the legions of Buddhist Monks armed with the slogan trumpeted by Galagodatte Gnanasara Thero who says the country should “clean the Parliament of minority community members.” Marshalled behind them are the numerous Local Government Councilors elected in February last year, who will be led by 53 Ministers. Although only 16 Ministers and the President will sit around the Cabinet table, 37 others, appointed this week as State Ministers too enjoy the same perks. 

UNP MP Ranjith Madduma Bandara pointed out at a press conference this past week that all of these ministers would have at their disposal State vehicles and staff for electioneering.  Gotabaya Rajapaksa promised things would be different under his administration, and the forthcoming parliamentary election will be a test of whether or not State resources will be used for campaigning.

What’s more, apart from all the State media institutions, two of the biggest privately owned electronic media houses, Hiru and Derana, which campaigned relentlessly for Gotabaya, will do the same for the SLPP at the forthcoming election.

Ranged against them, for the moment, is an opposition that has no advantage in the forthcoming election; a beaten and deeply divided United National Party, a JVP which seems to have lost most of its electorate, smaller political parties that are looking for leadership and a dispirited Civil Society group.

An unequal battle, but one that still needs to be fought.

Sri Lanka sells extra Rs8bn Treasury bills after auction

ECONOMYNEXT – Sri Lanka has sold 8,000 million rupees of treasury bills offered on tap at average rates of 9.44 percent and 9.95 percent, the public debt management office said, bringing the total of bills sold in the week to 88 billion rupees.

Total market subscription was 16,025 million rupees.

The debt office sold a 6-month bill at 9.44 percent.

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

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Sri Lanka Treasury bill yields rise marginally, Rs80bn sold

On Wednesday (7) the debt office raised 80 billion rupees of 3, 6 and 12 month bills. (Colombo/Oct9/2026)

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Foreign investors buy Sri Lanka rupee bonds after selling for two weeks

ECONOMYNEXT – Foreign investors bought Sri Lanka rupee bonds for the first time in three weeks in the week ended on October 01, Central Bank data showed, amid a stable rupee.

With the latest inflows, the island nation has witnessed net foreign buying in 14 weeks in the last 16.

Offshore investors bought a net 1,821 million rupees (US$5.5 million) worth of Sri Lanka rupee bonds. They sold a net Rs.16.5 billion worth of rupee bonds in the last two weeks.

The inflows helped boost foreign holdings in government securities to 196.8 billion rupees.

Analysts said a stable local currency helped foreign buying last week.

The rupee had been steady for more than three years before the sharp depreciation in May with the Central Bank citing higher oil and vehicle imports amid a lingering conflict in the Middle East.

The rupee has fallen 6.2 percent through October 2 this year.

Globally, investors are cautious about economic growth due to the impact of the latest Middle East escalation.

The island nation has enjoyed a total inflow of around 57.5 billion rupees into rupee bonds so far this year, following a net inflow of 71.5 billion rupees last year.

The island nation has seen an uptick in inflation in the last six months following a nearly 50 percent hike in fuel prices.

The government raised fuel prices last week after reducing in the last weeks of June and August.

The Central Bank raised its key monetary policy rate by 100 basis points in May to curb inflationary pressure stemming from higher demand.

Before the May rate hike, the Central Bank kept its key policy rates steady since May 2025 after reducing them by 825 basis points over 24 months since June 2023 and foreign investors have been buying rupee bonds despite slight depreciation in the local currency (Colombo/October 08/2026)

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Sri Lanka rupee closes at 330.95/331.00 to US dollar spot, bond yields steady

ECONOMYNEXT – Sri Lanka’s rupee closed at 330.95/331.00 to the US dollar in the spot market on Thursday, from 330.90/331.00 the previous day, while bond yields closed broadly steady, dealers said.

A bond maturing on 01.08.2030 closed flat at 11.25/35 percent.

A bond maturing on 15.10.2030 closed at 11.30/40 percent, down from 11.35/40 percent.

A bond maturing on 01.02.2031 closed at 11.35/45 percent, down from 11.40/45 percent.

A bond maturing on 15.12.2032 closed at 11.75/80 percent, up from 11.70/80 percent.

A bond maturing on 15.10.2034 closed at 12.05/15 percent, up from 12.05/10 percent. (Colombo/Oct8/2026)

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Sri Lanka, IMF in talks over new “long term growth targeted” deal after March 2027: Minister

ECONOMYNEXT – Sri Lanka is in discussion with the International Monetary Fund (IMF) on a new programme after the completion of the current Extended Fund Facility (EFF), Deputy Finance Minister Anil Jayantha told Parliament on Thursday.

“The current IMF EFF program is on track to conclude successfully in March 2027, marking the completion of its economic reform and recovery efforts under the arrangements,” the Deputy Minister said in response to a question raised by the opposition.

“In parallel, discussions are currently underway regarding the options beyond the current program, reflecting a shift from crisis-driven support towards a more sustainable, long-term growth-targeted engagement model.”

Sri Lanka sought IMF deal after the island nation experienced an unprecedented economic collapse that culminated in its first-ever sovereign default in April 2022.

Severely depleted foreign exchange reserves, exacerbated by years of loose fiscal policies, high-profile tax cuts, organic farming mandates that damaged agricultural yields, and the economic blow dealt by the COVID-19 pandemic, left the island nation unable to service its $51 billion external debt stock.

The resulting crisis triggered severe shortages of fuel, medicines, and staple foods, hyperinflation exceeding 70%, and widespread public protests that ultimately forced the resignations of key government figures, including former President Gotabaya Rajapaksa.

The four-year, $3 billion EFF program was conditioned on a rigorous slate of macroeconomic and structural reforms, including tax hikes, energy cost-reflective pricing, expenditure controls, and strict central bank independence.

Central to the arrangement was a complex sovereign debt restructuring process, requiring the island nation to negotiate bilateral debt relief with major sovereign creditors, such as China, India, and Paris Club members, alongside commercial international sovereign bondholders.

The implementation of the EFF has since driven a significant macroeconomic turnaround, marked by a stabilizing exchange rate, a rebuild of gross official foreign exchange reserves, and a return to positive GDP growth.

However, maintaining compliance with program targets has generated considerable social and political friction.

Demands for broader anti-corruption measures, tax fairness, and enhanced social safety nets remain high as the government balances strict IMF revenue targets against domestic pressures to alleviate the elevated cost of living. (Colombo/October 08/2026)

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Sri Lanka stocks close down 1.38-pct; LMF crossing pushes turnover

ECONOMYNEXT – Sri Lanka’s Colombo Stock Exchange closed lower on Thursday, CSE data showed, with the benchmark All Share Price Index falling 1.38 percent.

The ASPI was down 283.21 points at 20,234.34, while the more liquid S&P SL20 was down 0.82 percent, or 47.82 points, at 5,768.58.

Positive contributors to the ASPI were HNB Life (up 3.04 percent at 144.25 rupees), Renuka Holdings (up 2.16 percent at 37.90 rupees), Odel (up 2.06 percent at 9.90 rupees), and Hayleys (up 0.22 percent at 223.00 rupees).

Carson Cumberbatch (down 3.39 percent at 676.25 rupees), Distilleries Company of Sri Lanka (down 2.85 percent at 51.10 rupees), Hemas Holdings (down 2.56 percent at 30.50 rupees), Dialog Axiata (down 1.34 percent at 44.10 rupees), and Hatton National Bank (down 0.99 percent at 375.50 rupees) were top negative contributors.

Market turnover was 2.74 billion rupees.

High turnover was largely driven by crossing transactions, with Lanka Milk Foods recording crossings of about 1 billion rupees and Sunshine Holdings seeing a crossing of around 300 million rupees. (Colombo/Oct08/2026)

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Sri Lanka’s SEC urges public not to deposit, invest in Quantum AI Limited  

ECONOMYNEXT – Sri Lanka’s Securities and Exchange Commission (SEC) has warned the public in dealing with a company called Quantum AI Limited for trading and investment and urged them not to deposit any funds.

The regulator, on its X platform, stated it “wishes to inform the public that Quantum AI Limited is not licensed, registered, or authorized by the SEC to conduct securities trading, investment services, or any other regulated capital market activities in Sri Lanka.”

“The public is strongly advised not to deposit funds, invest, or engage in any trading or investment activities through Quantum AI Limited.”

“Before investing, always verify that the entity is duly licensed or registered by the SEC. Protect your investments. Deal only with SEC authorized market intermediaries.” 

Officials from Quantum AI Limited were not immediately available for comment on the SEC’s statement. 

Sri Lanka has increasingly seen illegal firms taking deposits and investments while promising higher returns.

Last week, the Central Bank warned the public against investing in plantation companies that are not regulated by it. (Colombo/October 08/2026) 

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