An Echelon Media Company
Monday November 9th, 2026

The call to postpone elections is heard again as public concern over COVID 19 rises

The containment of Covid spread in Sri Lanka relative to other countries, including its immediate neigbours, had put the government on a strong footing to face the general elections on August 5.  Since the curfew and lockdowns ended in mid-May there has been a major relaxation of tension within the country regarding the Covid virus.  Even government leaders began to take the matter lightly, as evidenced in the funeral arrangements for a former minister which saw tens of thousands of his party supporters jostling at the funeral which was attended by the most senior government leaders.  More recently President Gotabaya Rajapaksa was seen mingling with crowds of supporters at election rallies.

In this context, the identification of a new cluster of Covid infection centering around a rehabilitation centre in Polonnaruwa has caused much public agitation.  The discovery of a similar Covid cluster amongst navy personnel who were part of the security forces effort in leading the anti-Covid campaign was dealt with effectively without causing panic.  The decision of the ruling party to halt its bigger election campaign activities for three days can be viewed positively as a message of care given by government leaders that there is a serious health crisis and they are giving priority to the people’s health over their electoral activities.  The government’s decision to close all schools this week is a similar message of care in view of reports that young schoolchildren are amongst those infected.

Adding to the sense of crisis is the call by the two main opposition parties for elections to be postponed yet again.  The UNP and its breakaway SJB have shown themselves to be likeminded in seeking this postponement for a third time.  One factor that might be motivating them is the crippling division that took place within the UNP which will cost both factions a significant number of parliamentary seats at the forthcoming elections. Perhaps they feel that time will be the great healer and that if the elections are postponed for a sufficiently long period they will be able to overcome their differences and reunite.  Another hope might be to utilize a period of postponement to seek the resurrection of the last parliament in which they together held a majority.  This is unlikely to be possible in view of the Supreme Court decision in June regarding the postponement of elections.

UNDER PRESSURE

At a time when rumours with political motivations can take the centre stage, it is important that the government shares the true situation with the people.  The recent news report that a national university decided to stop its Covid testing as its positive cases were not being counted, and been rejected, needs to be investigated and clarified by independent authorities.  There has been an undercurrent of suspicion that the full spread of the Covid virus was not being disclosed for political reasons.  The elevated status recently given by Russia to Sri Lanka as only one of 13 countries that is successful in managing Covid spread and to which Russian airlines could fly to is an exception.  Neither has the EU or UK given Sri Lanka such a positive assessment nor has Sri Lanka been acknowledged as a success in managing Covid by international agencies.

 

The sudden spike in Covid infection can be politically damaging to the government.  Its ability to contain the virus formed the basis of its election campaign to demonstrate success in governance.  The success of Sri Lanka in keeping its Covid casualty figures extraordinarily low in comparison both to its neighbours and to more developed countries has been greatly appreciated by the electorate who have been witnessing the ongoing tragedies unfold in other parts of the world.  The government will need to win back the confidence of the people with regard to its success in Covid management in order to reach its ambitious target of parliamentary seats at the forthcoming general elections.

In recent weeks the government has come under pressure due to a number of factors that could have electoral implications.  One is its position on the Millennium Challenge Corporation (MCC) grant of USD 480 million from the United States.  This grant became a major campaign issue at the presidential election.  The present government leaders bitterly opposed it and claimed that it would be to the detriment of the country’s unity and national sovereignty.  However, after the US ambassador stated that a decision on the agreement will be taken after the Parliamentary election in August the issue of the government’s actual position on this grant has surfaced again. The issue over Japanese and Indian investments in Colombo Port, and in relation to the already existing Chinese role, needs also to be resolved.

FRESH MANDATE

A wide swathe of supporters of the government has also been disconcerted by the government’s unwillingness to take action against former LTTE commander Karuna who is now a political leader and campaigning for the government.  He recently claimed to have killed 2-3,000 soldiers during the war in attempting to boost his credentials with the constituencies in the Eastern province which was formerly a war zone. This has generated a major controversy with many government supporters demanding his arrest and punishment.  International human rights organisations, including the UNHRC, have issued calls for an investigation into his claims which fall into the category of war crimes.  It must also be remembered that he was deported from the UK citing human rights abuses, including the recruitment of children into combat.

However, even more, significant than these ideology and emotion-ridden issues is the continuing deterioration of the living standards of people due to the Covid-induced crisis. Many thousands of businesses are in jeopardy and tens of thousands of workers have been either laid off or are in danger of losing their jobs.  This is coupled with the problem of the expatriate Sri Lankan workforce wanting to return to the country due to inhospitable conditions abroad.  Many have lost their jobs and are at risk of Covid infection and are pleading to get back to their country, and the slowness of the repatriation process is a matter of humanitarian concern.  Hundreds of Sri Lankans living overseas flocked into the country to cast their votes at the Presidential Elections and would be feeling betrayed at their country’s reluctance to take them back when they so desperately need its refuge.

In these circumstances, there is the call for the postponement of elections.   However, this would lead to a continuation of the status quo in which the caretaker government is making decisions on huge economic investments and loans that are morally and legally beyond the scope of a caretaker government.  In addition, difficult decisions are not being made because all parties are thinking about the elections to come.   At the present time, only President Gotabaya Rajapaksa has the mandate from the people.  He has been using this to govern with the help of the security forces who are taking over the role of the civilian administration.  A government formed out of a parliament with a fresh mandate from the people will have the legitimacy and be adequately representative of the present balance of forces to take the considered and difficult decisions to cope with the manifold problems that beset the country.  (Colombo, July 14, 2020)

 

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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