International Relations

United States committed to supporting Sri Lanka’s progress in IMF program: Officials

Thursday July 18, 2024 1:45 pm

ECONOMYNEXT – The United States has said it was committed to supporting Sri Lanka’s progress in its IMF program by encouraging private-sector investment, when officials of the two countries met at the 5th Sri Lanka–USA Partnership Dialogue.

“The United States expressed its commitment to supporting Sri Lanka’s progress in its IMF program by encouraging private-sector investment, enhancing its capacity to combat corruption, and addressing food insecurity for vulnerable populations,” a statement by the two governments said after the meeting concluded on July 12 in Washington, DC.

“Both delegations reiterated their intent to explore new opportunities to enhance market access, bilateral trade, investment, and tourism.”

“The delegations also welcomed continued discussions under the US-Sri Lanka Trade and Investment Framework Agreement in the coming year, where they will discuss bilateral trade issues.”

The Sri Lanka delegation was led by Secretary of the Ministry of Foreign Affairs Aruni Wijewardane and the USA side was led by Acting Under Secretary for Political Affairs of the US Department of State John Bass.

The Sri Lanka delegation included Ambassador Mahinda Samarasinghe as well as senior officials of the Sri Lanka Embassy, Washington D.C. and the Ministry of Foreign Affairs.

The USA delegation included senior representatives of the US Department of State, the US Treasury, the US Department of Defense, the US Agency for International Development, and the National Security Council, the White House.

The delegations discussed continued cooperation on maritime security, and Sri Lanka welcomed the planned arrival of the fourth High Endurance US Coast Guard Cutter transferred through the US Excess Defense Articles program and a King Air aircraft to strengthen the island nation’s maritime domain awareness and response to humanitarian and post-disaster needs, totaling $30.18 million.

The following statement was released by the Governments of the United States and Sri Lankaafter the meeting:

The United States and Sri Lanka convened the Fifth U.S.-Sri Lanka Partnership Dialogue on July 12, 2024, in Washington, D.C. to express their shared commitment to economic prosperity, security cooperation, sustainable development, democracy and human rights, and people-to-people exchanges.  The meeting was co-chaired by Acting Under Secretary for Political Affairs of the U.S. Department of State John Bass and Foreign Secretary of the Ministry of Foreign Affairs of Sri Lanka Aruni Wijewardane. The United States and Sri Lanka reaffirmed their commitment to the bilateral relationship, firmly rooted in upholding shared democratic values and respect for national sovereignty, and expressed a desire to further strengthen the partnership.

The United States welcomed the signs of economic stabilization in Sri Lanka and Sri Lanka’s steadfast commitment to the IMF program and reforms, which will lay the groundwork for recovery, financial governance, and future growth. Sri Lanka expressed its sincere appreciation for U.S. economic assistance during the past crisis, totaling more than a quarter-billion dollars. The United States continues to support Sri Lanka’s debt restructuring and economic and governance reform agenda to promote sustainable growth.

Both delegations reiterated their intent to explore new opportunities to enhance market access, bilateral trade, investment, and tourism.  The United States expressed its commitment to supporting Sri Lanka’s progress in its IMF program by encouraging private-sector investment, enhancing its capacity to combat corruption, and addressing food insecurity for vulnerable populations.  The U.S. delegation welcomed the Sri Lankan government’s increased investment in the social protection network, including measures to support women through the Women’s Empowerment Act. Sri Lanka welcomed the role of the U.S. International Development Finance Corporation (DFC), which is committing $553 million to support the development of the West Container Terminal at the Port of Colombo, an investment that provides critical infrastructure and jobs. DFC continues to explore additional opportunities to invest in Sri Lanka.  The delegations also welcomed continued discussions under the U.S.-Sri Lanka Trade and Investment Framework Agreement in the coming year, where they will discuss bilateral trade issues.

Both countries committed to continue working together to address climate change and other environmental challenges.  The United States welcomed Sri Lanka’s goal to produce 70 percent of electricity from renewable energy by 2030 and to attain carbon neutrality by 2050.  The United States is providing assistance under the U.S. Agency for International Development’s Sri Lanka Energy Program. Sri Lanka expressed appreciation for ongoing U.S. grant assistance to help meet these goals, including technical assistance to support energy sector reform and a pipeline of renewable energy projects. Sri Lanka appreciated U.S. support to achieve global climate financing targets and welcomed U.S. support on financing its energy transition as discussed during the COP 28 in 2023.

The United States expressed its intent to continue supporting the sustainable development of Sri Lanka through the U.S. Agency for International Development, including through programs to strengthen transparency, governance, and economic resilience; enhance environmental and climate resilience; and improve energy security and sustainability.  This includes the announcement of USAID’s forthcoming five-year activity to foster inclusive and sustainable agriculture-led economic growth in Sri Lanka.

The U.S. delegation reaffirmed its commitment to promote school nutrition and education cooperation for Sri Lankan children in consultation with the Sri Lankan Government.  Both sides recognized that these measures would facilitate Sri Lanka’s efforts to achieve the Sustainable Development Goals. Sri Lanka appreciated the successful nutrition campaign conducted by the U.S. Department of Agriculture (USDA)/Foreign Agricultural Service McGovern-Dole Food for Education Program PALAM/A project with Save the Children and the new five-year, $32.5 million project expansion to provide meals to about 200,000 students covered under Sri Lanka’s national school meal program.

The delegations affirmed the U.S. commitment to a free, open, and prosperous Indo-Pacific region.  Sri Lanka and the United States resolved to continue cooperation on maritime security aimed at a safe maritime domain in the Indian Ocean, including through activities undertaken under Sri Lanka’s tenure as Chair of the Indian Ocean Rim Association (IORA). Sri Lanka welcomed the planned arrival of the fourth High Endurance U.S. Coast Guard Cutter transferred through the U.S. Excess Defense Articles program and a King Air aircraft to strengthen Sri Lanka’s maritime domain awareness and respond to humanitarian and post-disaster needs, totaling $30.18 million.

Both delegations welcomed ongoing bilateral defense and security sector cooperation, including U.S. support for humanitarian demining and disaster relief and response, joint military engagements, cooperation on cyber security, and port security. The United States resolved to explore opportunities to increase support for Sri Lanka’s hydrographic mapping capabilities and training and development of personnel in this field. The United States also expressed gratitude to Sri Lanka for its participation and support in activities aimed at safety, security, and freedom of navigation in the Red Sea.

The United States welcomed steps taken by Sri Lanka to promote reconciliation and human rights and encouraged continued efforts on these issues.  Sri Lanka apprised the United States of the recent developments on reconciliation and domestic mechanisms to uphold democracy and further good governance, the rule of law and the promotion and protection of human rights. The United States encouraged Sri Lanka to continue forward on these issues inclusively, incorporating input from stakeholders. The United States appreciated the passage of anti-corruption legislation and the release of government-held lands back to the original owners in the Northern and Eastern Provinces of Sri Lanka.

Both delegations expressed strong support for ongoing cooperation between the two countries in education and culture. The delegations welcomed ongoing efforts to recognize and preserve Sri Lanka’s rich cultural heritage through the funding received from the United States over the last 23 years.  The United States emphasized the value of educational exchanges, such as the Fulbright program, and expressed interest in working together to further expand opportunities for university partnerships, joint research endeavors, and overseas study and exchanges that would benefit both countries.  The United States highlighted the launch of the U.S. Government’s Young South Asian Leadership Initiative, a regional leadership training program based out of Colombo. The delegations decided to continue collaboration on English Language teaching, teacher training, curriculum development, and other support to strengthen Sri Lanka’s education sector. The delegations lauded the return of the Peace Corps to Sri Lanka in 2024 after a 26-year hiatus.

The United States and Sri Lanka emphasized the importance of their 76-year partnership and reaffirmed their commitment to encourage progress in a broad range of areas, including in economy and development, anti-corruption, climate change, security cooperation, governance and human rights, and people-to-people exchange. (Colombo/Jul18/2024)

Markets

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

Friday November 13, 2026 3:28 pm

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)

Economy

Sri Lanka MP slams budget speech for omitting Tamil national question

Friday November 13, 2026 2:56 pm

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)

Bonds & Forex

Sri Lanka sells extra Rs6.5bn Treasury bills after auction

Friday November 13, 2026 12:32 pm

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.

The settlement date is November 13. (Colombo/Nov13/2026)

Construction and Real Estate

Access Engineering Sept quarter group net profit surges 200-pct to Rs4.75bn

Friday November 13, 2026 12:15 pm

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)

Economy

Sri Lanka private sector says timely implementation of Budget 2027 key

Friday November 13, 2026 11:43 am

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)