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Wednesday October 14th, 2026

Turkish forces try to crush last remnants of coup after Erdogan returns

ISTANBUL/ANKARA, July 16 (Reuters) – Forces loyal to Turkey’s government fought on Saturday to crush the last remnants of a military coup attempt which collapsed after crowds answered President Tayyip Erdogan’s call to take to the streets and dozens of rebels abandoned their tanks.

More than 160 people were killed, including many civilians, after a faction of the armed forces tried to seize power using tanks and attack helicopters. Some strafed the headquarters of Turkish intelligence and parliament in the capital, Ankara, and others seized a major bridge in Istanbul.

Erdogan accused the coup plotters of trying to kill him and launched a purge of the armed forces, which last used force to stage a successful coup more than 30 years ago.

"They will pay a heavy price for this," said Erdogan, who also saw off mass public protests against his rule three years ago. "This uprising is a gift from God to us because this will be a reason to cleanse our army."

A Turkish broadcaster reported that a purge of the judiciary was also underway.

One government minister said some military commanders were still being held hostage by the plotters. But the government declared the situation fully under control, saying 161 people had been killed and 2,839 had been rounded up from foot soldiers to senior officers, including those who had formed "the backbone" of the rebellion.

A successful overthrow of Erdogan, who has ruled the country of about 80 million people since 2003, would have marked one of the biggest shifts in the Middle East in years, transforming a major U.S. ally while war rages on its border.

However, a failed coup attempt could still destabilise a NATO member that lies between the European Union and the chaos of Syria, with Islamic State bombers targeting Turkish cities and the government also at war with Kurdish separatists.

Erdogan, who had been holidaying on the southwest coast when the coup was launched, flew into Istanbul before dawn on Saturday and was shown on television outside Ataturk Airport.

Addressing a crowd of thousands of flag-waving supporters at the airport later, he said the government remained at the helm, although disturbances continued in Ankara.

Erdogan, a polarising figure whose Islamist-rooted ideology lies at odds with supporters of modern Turkey’s secular principles, said the plotters had tried to attack him in the resort town of Marmaris.

"They bombed places I had departed right after I was gone," he said. "They probably thought we were still there."

Erdogan’s AK Party has long had strained relations with the military, which has a history of mounting coups to defend secularism although it has not seized power directly since 1980.

His conservative religious vision for Turkey’s future has also alienated many ordinary citizens who accuse him of authoritarianism. Police used heavy force in 2013 to suppress mass protest demanding more freedom.

However, he also commands the admiration and loyalty of millions of Turks, particularly for restoring order to an economy once beset by regular crises. Living standards have risen steadily under his rule, and while the economy has hit serious problems in recent years, it grew a greater-than-expected 4.8 percent year-on-year in the first quarter.

Still, the violence is likely to hit a tourism industry already suffering from the bombings and a row with Russia that had appeared to have been settled, and business confidence is also vulnerable.

SMART PHONE ADDRESS

In a night that sometimes verged on the bizarre, Erdogan frequently took to social media, even though he is an avowed enemy of the technology when his opponents use it and frequently targets Twitter and Facebook.

Erdogan addressed the nation via a video calling service, appearing on the smart phone of a CNN Turk reporter who held it up to a studio camera so viewers to the network could see him.

He said the "parallel structure" was behind the coup attempt — his shorthand for followers of Fethullah Gulen, a Muslim cleric whom he has repeatedly accused of trying to foment an uprising in the military, media and judiciary.

Gulen, who lives in self-imposed exile in the United States, once supported Erdogan but became a nemesis. He denied accusations he played a role in the attempted coup and said he condemned in the strongest terms the action.

"As someone who suffered under multiple military coups during the past five decades, it is especially insulting to be accused of having any link to such an attempt. I categorically deny such accusations," Gulen said in a statement.

U.S. Secretary of State John Kerry said the United States had not received any request to extradite Gulen.

The purge appeared to go beyond the military. Citing a decision by the High Council of Judges and Prosecutors, broadcaster NTV reported that authorities had removed 2,745 judges from duty.

SOLDIERS SURRENDER

Gunfire and explosions had rocked both Istanbul and Ankara through the night after soldiers took up positions in both cities and ordered state television to read out a statement declaring they had taken power. However, by dawn the noise of fighting had died down considerably.

About 50 soldiers involved in the coup surrendered on one of the bridges across the Bosphorus Strait in Istanbul after dawn on Saturday, abandoning their tanks with their hands raised in the air. Reuters witnesses saw government supporters attack the pro-coup soldiers who had surrendered.

Earlier, about 30 pro-coup soldiers had surrendered their weapons after being surrounded by armed police in Istanbul’s central Taksim square.

They were taken away in police vans as a fighter jet repeatedly screeched overhead at low altitude, causing a boom that shook surrounding buildings and shattered windows.

Neighbouring Greece arrested eight men aboard a Turkish military helicopter which landed in the northern city of Alexandroupolis on Saturday, the Greek police ministry said, adding that they had requested political asylum.

LAWMAKERS IN HIDING

The coup began with warplanes and helicopters roaring over Ankara and troops moving in to seal off the bridges over the Bosphorus that links Europe and Asia in Istanbul.

Turkish maritime authorities reopened the Bosphorus to transiting tankers after shutting the major trade route from the Black Sea to the Aegean for several hours for security and safety reasons.

In the early hours of Saturday, lawmakers were hiding in shelters inside the parliament building, which was being fired on by tanks. Smoke rose up from nearby, Reuters witnesses said. An opposition deputy told Reuters parliament was hit three times and that people had been wounded.

A senior Turkish official said later on Saturday attacks on the parliament had "largely stopped".

A Turkish military commander also said fighter jets had shot down a helicopter used by the coup plotters over Ankara.

Momentum turned against the coup plotters as the night wore on. Crowds defied orders to stay indoors, gathering at major squares in Istanbul and Ankara, waving flags and chanting.

"We have a prime minister, we have a chief of command, we’re not going to leave this country to degenerates," shouted one man, as groups of government supporters climbed onto a tank near Ataturk airport.

Kerry said he phoned the Turkish foreign minister and underlined "absolute support for Turkey’s democratically elected, civilian government and democratic institutions".

European Council President Donald Tusk called for a swift return to Turkey’s constitutional order, saying tensions there could not be resolved by guns.

Erdogan has had often prickly relations with the EU, which worried about some of his actions including raids on Turkish media. French Foreign Minister Jean-Marc Ayrault said Paris "hopes that Turkish democracy will emerge reinforced by this test and that fundamental liberties will be fully respected".

FLIGHTS RESUME

Flag carrier Turkish Airways resumed flights on Saturday, Erdogan said.

At the height of the action, rebel soldiers took control of TRT state television, which announced a countrywide curfew and martial law. An announcer read a statement on the orders of the pro-coup faction that accused the government of eroding the democratic and secular rule of law. Turkey would be run by a "peace council" that would ensure the safety of the population, the statement said.

TRT went off the air shortly afterwards. It resumed broadcasting in the early hours of Saturday.

Turkey is one of the main backers of opponents of Syrian President Bashar al-Assad in that country’s civil war, host to 2.7 million Syrian refugees and launchpad last year for the biggest influx of migrants to Europe since World War Two.

Turkey has suffered numerous bombings and shootings this year, including an attack two weeks ago by Islamists at Ataturk airport that killed more than 40 people, as well as those staged by Kurdish militants.

After serving as prime minister from 2003, Erdogan was elected president in 2014 with plans to alter the constitution to give the previously ceremonial presidency far greater executive powers.

Sri Lanka awards Rs1.07bn Kandy-Jaffna road widening contract to Tudawe Brothers

ECONOMYNEXT – Sri Lanka’s cabinet has approved awarding a 1.070 billion rupees contract to widen a stretch of the Kandy–Jaffna Road (A009) to Tudawe Brothers (Pvt) Ltd, minister Nalinda Jayatissa said.

Bids were invited for the widening and improvement of the Kandy–Jaffna Road (A009) section extending from Km 58+240 to Km 63+000, and 8 bids were received in response, he said.

“The cabinet approved the proposal to award the contract to Tudawe Brothers (Pvt) Ltd being the lowest substantially responsive bidder, at a contract value of Rs. 1.070 billion, inclusive of contingency provisions and exclusive of Value Added Tax (VAT),” he told reporters. (Colombo/Oct14/2026)

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Sri Lanka President explains measures to speed up capital investment spending

ECONOMYNEXT – Sri Lanka has planned reforms in the public procurement system and alignment of budget and procurement timelines among key measures to speed up the spending under planned projects with capital expenditure allocated in annual budget, President Anura Kumara Dissanayake said.

Dissanayake, also the island nation’s Finance Minister said the current procurement guidelines have become a barrier for public investment projects implemented through budget-allocated capital expenditure.

Sri Lanka has spent less than 30 percent or only around Rs.385 billion of this year’s capital spending of Rs. 1,380 billion through the first nine months of this year, two government sources have told EconomyNext.

Sri Lanka’s chronic failure to utilize its full budgetary allocations for capital investment reflects deep-rooted structural inefficiencies in public financial management and project execution, analysts and economists say.

“Our upcoming budget plans for public capital expenditure of around 2 trillion rupees (Rs.2,000 billion).  Compared to when we took office, this represents a massive increase,” President Dissanayake told the gathering at the launch of the Sri Lanka Economic and Investment Summit 2026 on Monday (12).

He said his administration utilized 76 percent of the allocated capital expenditure last year. However, critics have said that this included some past loan repayments for the central highway project as well.

“Our procurement system was fundamentally built on the mindset that the state apparatus is susceptible to corruption. We created layer upon layer of regulations, and the ultimate result is that the rules have become so restrictive that nothing can get done. It reached a point where the rigidity paralyzed execution.”

“We are actively focusing on redesigning procurement mechanisms tailored for these distinct sectors,” he said, citing the current procurement system was designed merely for purchasing physical goods and there were difficulties in formulating criteria when procuring services like  global promotional campaign or repairs of defence equipments.

“Our objective is to identify these specialized domains and formulate modern procurement systems. How do we procure complex software systems? We need new procurement protocols,” he said.

“Additionally, we must operate competitively in commercial markets. SriLankan Airlines, for example, how does it procure its operational requirements while staying competitive in the market? It requires flexible, modern procurement mechanisms.”

“Defense procurement is another area. We have a fleet of helicopters that cannot undergo timely repairs because the procurement cannot be awarded within the financial year. Funds get allocated, but if the procurement isn’t finalized within that year, the allocation lapses.”

Analysts warn of lower economic growth in the future if the government fails to implement its planned capital investment projects.

The government has repeatedly said most of the spending occurs in the last quarter of the year.

Year after year, bureaucratic delays, protracted procurement disputes, politicized project selection, and a lack of technical expertise within line ministries leave a significant portion of capital expenditure unspent on the Treasury books.

This capital under-utilization carries severe long-term repercussions for the island’s economic trajectory.

By failing to deploy allocated funds into critical infrastructure such as transport networks, modernized power grids, and digital public systems, Sri Lanka suffers from lower productivity growth and worsening structural bottlenecks as well as a decline in overall gross domestic product (GDP) potential.

Procurement Timing

“Previously, the practice was that only after the budget was presented and formally passed, and after the Treasury allocated the funds to the respective Ministry Secretaries, would the procurement process commence,” President Dissanayake explained.

“Consequently, procurements routinely dragged on until August or September before reaching finalization.”

“We have changed that. For major procurements, the Treasury Secretary guarantees funding ahead of time within 2026. For instance, take the Kurunegala–Galewela expressway. Funds will officially be allocated in the 2027 budget, but we have provided Treasury assurance to the Road Development Authority that the funds will be granted in 2027.”

“This allows them to call for tenders, evaluate bids, and select contractors right now. Once the budget is passed in December, we can award the contract directly in January. Work can commence immediately at the start of 2027.”

The President also said Sri Lanka is exploring e-procurement to accelerate the process while addressing professional capacity in the public sector.

“Our public service is currently not attractive enough to recruit and retain high-caliber technical professionals. We face significant deficits in recruiting IT specialists, engineers, and executive management within the standard state salary framework,” he said.

“To attract specialized talent, we must institute specialized, competitive compensation packages. Otherwise, we cannot attract this talent.”

“We are managing a 2-trillion-rupee capital portfolio, running vast services across education and healthcare, yet the state is constrained by rigid salary scales that deter top professionals.”

“When we established GovTech, we were able to bring in leading IT experts by offering specialized salary scales. We must extend this approach to other critical domains. Can we attract a top-tier civil engineer under standard civil service pay? No, because the private sector creates more lucrative opportunities and pays substantially better.”

In a fragile post-default macroeconomic climate, the persistent shortfall of public investment sends a negative signal to international development partners and private investors, analysts say. (Colombo/October 13/2026)

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Sri Lanka rupee closes at 331.00/10 to US dollar spot, bond yields steady

ECONOMYNEXT – Sri Lanka’s rupee closed at 331.00/10 to the US dollar in the spot market on Tuesday, weaker from 330.90/331.00 the previous day, while bond yields were broadly steady, dealers said.

A bond maturing on 01.08.2030 closed at 11.30/35 percent, down from 11.30/37 percent.

A bond maturing on 15.10.2030 closed at 11.35/40 percent, down from 11.37/40 percent.

A bond maturing on 01.02.2031 closed flat at 11.42/47 percent.

A bond maturing on 15.12.2032 closed flat at 11.75/85 percent.

A bond maturing on 15.10.2034 closed at 12.12/18 percent, down from 12.15/20 percent.

An auction of 90,000 million rupees Treasury bills is scheduled on October 14. (Colombo/Oct13/2026)

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Sri Lanka sells Rs100bn in 2029, 2031 and 2036 bonds

ECONOMYNEXT – Sri Lanka has sold 100 billion rupees in 2029, 2031 and 2036 bonds, data from the public debt management office showed.

All offered 20 billion rupees of 15 September 2029 (LKB00629I154) bonds were sold at an average yield of 11.00 percent.

All offered 30 billion rupees of 1 December 2031 (LKB01031L016) bonds were sold at an average yield of 11.67 percent.

30.69 billion rupees of an offered 50 billion rupees of 15 August 2036 (LKB01136H151) bonds were sold at an average yield of 12.33 percent.

The 2029 and 2031 bonds are available on tap. (Colombo/Oct13/2026)

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Sri Lanka’s 2027 budget to “heavily” focus on rural economic empowerment: President

ECONOMYNEXT – Sri Lanka’s 2027 budget has heavily focused on rural economic empowerment with high-speed communication and modern road infrastructure with an aim to address rural poverty in rural area across the island nation, President Anura Kumara Dissanayake said.

Rural poverty in Sri Lanka remains disproportionately higher and more entrenched than in urban centers, accounting for roughly 80 percent of the island nation’s poor.

While urban areas benefit from diversified service economies, concentrated foreign direct investment, and higher-paying industrial employment, rural communities remain heavily tied to smallholder agriculture, seasonal labor, and informal enterprises.

Eradicating rural poverty has proven uniquely difficult due to structural constraints, including low agricultural productivity, land fragmentation, and poor market integration.

“This is why, through the 2026 budget, we have focused heavily on empowering rural citizens within their native regions,” President Dissanayake told the gathering at the launch of the Sri Lanka Economic and Investment Summit 2026 on Monday (12).

“This entails high-speed communication infrastructure and robust road networks connecting rural and urban centers. Through these multifaceted programs, we can address rural poverty.”

“It cannot be solved overnight with a quick-fix solution. It requires a long-term, sustained, structured, and targeted plan, and I believe we have laid the foundation for that.”

“Eradicating rural poverty is not something that can be achieved in a year or two simply by building a road or a bridge. It demands a sustained, targeted program.”

Limited Opportunities

He acknowledged that the segment needing a social safety net has grown excessively and the government has been forced to support groups that should not necessarily require state welfare.

“This is because of our failure to create new economic opportunities for the rural population. What economic avenues do they currently have? The rural populace has access to only a very limited scope of economic activities like agriculture, marine and inland fisheries, and running small, marginal village boutiques/shops,” he said.

“These are essentially their only economic opportunities. Therefore, if we are to eliminate rural poverty, our primary challenge is: how do we create new economic avenues for them?”

He said rural agriculture is restricted to small plots of land and has historically been a subsistence economy.

“It was never a commercial economy for a large portion of the population; it was subsistence-based. Consequently, looking at the extent of land and resources available to us, we cannot develop a large-scale commercial agricultural sector solely by targeting individual smallholders. That remains a poverty-alleviation and food-security mechanism; it must be viewed in that light,” he said.

Small-scale farmers frequently lack access to modern technology, cold-storage facilities, affordable credit, and efficient supply chains, leaving them exposed to volatile crop prices, middleman exploitation, and recurring climate shocks like severe droughts and floods.

Furthermore, long-standing fiscal deficits have constrained state investment in rural infrastructure, education, and non-farm employment creation, while administrative inefficiencies in targeted welfare programs such as Aswesuma have often left vulnerable agrarian households without adequate social safety nets during broader macroeconomic downturns.

Dissanayake said the focus is on enabling the rural poor to generate their own economic opportunities amid obstacles such as lack of capital, lack of technology, weak management capacity, and lack of market access.

“The responsibility of the state is to step in and fulfill these requirements,” he said.

“We have already launched a collateral-free loan scheme. They lack financial assets to pledge to banks, so we introduced collateral-free lending. That program has proven successful, channeling nearly 18 billion rupees so far. Next, we are integrating new technology.”

He said the government is relying two approaches to channel the wealth mobilized by the state toward the rural population, spending the revenue collected the Treasury for rural infrastructure development including for the rehabilitation of minor tanks and irrigation canals and community empowerment to directly link rural communities

He also said rapid communication networks between villages and cities to ensure the flow of rapid information and access opportunities and an advanced transport and road network connecting rural production to urban markets could help in creating more economic opportunities for the rural poor.  (Colombo/October 13/2026)

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Sri Lanka to set up Rs5.4-bn center for disease control

ECONOMYNEXT — Sri Lanka’s cabinet has approved a 5,431 million rupee project to establish a dedicated Center for Disease Control and Prevention (CDC) and upgrade national laboratory facilities, minister Nalinda Jayatissa said.

The proposal covers 35 identified activities under the Integrated One Health Pandemic Preparedness and Response Strengthening Project.

The work is funded through a 4,785 million rupee grant received from the Pandemic Fund alongside a 646 million rupee contribution from the Sri Lanka government, with the Asian Development Bank expected to fund the CDC’s establishment.

“Sri Lanka’s response to the COVID-19 pandemic and other zoonotic health threats has revealed shortcomings and gaps in national response mechanisms across both the human and animal health sectors,” Jayatissa said.

Although Sri Lanka maintains a routine vaccination coverage rate exceeding 95 percent, an action plan running from 2026 to 2028 was prepared with international partners to address gaps, with all project work scheduled to conclude by March 31, 2028.

“Activities to address these gaps are proposed for implementation through the Pandemic Fund, and an action plan covering the 2026–2028 period has been formulated in collaboration with funding organizations.”

Responding to questions from journalists on whether the facility would be an entirely new institution, Jayatissa confirmed plans for a standalone centre.

“On land belonging to the Ministry of Health in Mulleriyawa, we intend to construct a building of approximately 7,200 square meters as this CDC,” he said.

Jayatissa added that the project will also modernize five existing pharmaceutical warehouses, upgrade the National Medicines Regulatory Authority (NMRA) laboratory, and improve physical infrastructure at the Medical Research Institute’s National Public Health Reference Laboratory. (Colombo/Oct13/2026)

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