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Tuesday October 27th, 2026

Voting rights would give overseas Sri Lankans a voice in economic policies: IPS

ECONOMYNEXT – Voting rights would allow overseas Sri Lankan (OSL) workers a voice in economic policies that impact their remittances and financial interests back home, the Institute of Policy Studies has said.

“OSLs prefer a say in how the macroeconomy back in Sri Lanka is managed by elected officials, i.e. how does the government spend the foreign exchange OSLs regularly send as remittances?” IPS Research Fellow Dr Bilesha Weeraratne said.

“While OSLs may not have voting rights yet, those who regularly remit earnings back to Sri Lanka have already demonstrated their influence — by voting with their wallets.”

The think tank said several methods for overseas Sri Lankans to vote in the upcoming parliamentarian election have been considered including “advanced in-person (similar to postal voting in Sri Lanka), voting by mail, facsimile, or internet, as well as proxy voting.”

But achieving this goal in time for the upcoming Parliamentary election on November 14 or the pending provincial or local government elections in 2025 is not easy, IPS conceded.

The full statement is reproduced below:

Voting Beyond Borders: Can Overseas Sri Lankans Finally Have Their Say?

By Dr Bilesha Weeraratne

The recent presidential election in Sri Lanka marked a series of “firsts,” setting it apart from previous elections. It saw a record-low number of 350,516 valid voters per candidate, implementation of the Regulation of Election Expenditure Act of 2023, and a second count of votes. Notably, there was also greater engagement from Overseas Sri Lankans (OSLs) in the country’s electoral process than at any time previously.

Indeed President Anura Kumara Dissanayaka actively engaged with Sri Lankan expatriates during his campaign, visiting countries including South Korea, Australia, the USA, Canada, Sweden, the UK and Japan. Continuing a trend from the previous presidential election in 2019, there was evidence of Sri Lankans returning to vote. However, despite this enthusiasm, the long-standing debate over granting OSLs the right to vote from abroad remains unresolved. Of the OSLs, it also means 1.5 million Sri Lankan workers abroad could not vote in the recent election according to the SLBFE.

Voting with Their Wallets

While OSLs may not have voting rights yet, those who regularly remit earnings back to Sri Lanka have already demonstrated their influence—by voting with their wallets. In the run-up to the 2022 economic crisis, government efforts to attract more formal remittances by offering higher interest rates failed to convince OSLs, as the formal foreign exchange rate offered was far below the informal rate. As a result, in 2022, remittances to Sri Lanka declined by a record 42%. Compared to the steady 10-year average USD 6.4 billion inflow (from 2010 to 2020), the decline to USD 3.7 billion was the final nail in the coffin that sparked the 2022 sovereign debt default.

Figure 1: Annual remittances in USD Billion and as a Percentage of GDP: 2010-2023

Source: CBSL

Remittance and Voting Rights

The literature identifies three mechanisms for linking the receipt of remittances with political participation.

1) Income Channel: those with greater resources are able to devote more resources (both in terms of material support and time) to political activities;

2) Independence Channel: remittances reduce the dependence of recipients on the government for material prosperity; and

3) Insurance Channel -remittances promote feelings of economic security in recipients that allow them to pay more attention to non-material concerns.

While these mechanisms are for all voters in households receiving remittances, OSLs prefer a say in how the macroeconomy back in Sri Lanka is managed by elected officials, i.e. how does the government spend the foreign exchange OSLs regularly send as remittances? what are the interest rates on their savings? how is inflation feeding into the purchasing power of their remittances? how is the foreign exchange rate affecting the disposable income of their remittances? how are savings and investments of their remittances taxed? and what are the public services available to their families left behind? to name a few. The answers to such questions are linked to election promises and how governments actually perform when in office. Voting rights would allow OSLs a voice in economic policies that impact their remittances and financial interests in Sri Lanka.

Overseas Absentee Voting: A Long-Awaited Promise

Providing voting rights or Overseas Absentee Voting (OAV) has been in discussion for many years, with various candidates, including the current president, promising to make it a reality. Sri Lanka has also ratified the United Nations Convention on the Rights of All Migrant Workers and Members of their Families, which calls for migrant workers’ voting rights (Article 41). Many previous governments, though keen, have not been successful on this front. Previous efforts include a Parliamentary Select Committee for Electoral Reforms recommending voting rights for OSLs in 2021, and a Special Presidential Commission in 2023 (among other issues) being required to make recommendations on a mechanism for OSL voting rights. In 2023, the Election Commission developed a beta version of an online method for registering OSLs for voting. However, according to the Commissioner General of Elections their hands are tied “until the Parliament passes a law to enable migrant workers to vote from their destination states.”

How to Make Overseas Absentee Voting a Reality

There are many possible and sophisticated ways to implement OAV, including advanced in-person (similar to postal voting in Sri Lanka), voting by mail, facsimile, or internet, as well as proxy voting (where a duly authorised representative or a proxy vote on behalf of the absent voter). Some countries such as the Philippines, for instance, use a combination of in-person and postal voting.

For Sri Lanka, keeping things simple would be one important mindset in transitioning from an eternal election promise to making overseas absentee voting a reality. A manageable starting point could be advanced in-person in-embassy voting, which would function analogous to Sri Lanka’s postal voting system. Embassies could serve as analogous to postal voting centers for expatriates, and OLSs to postal voters.

Hence, learning from the Philippines, a few key steps in the process of allowing in-person in-embassy voting are:

1. Enshrine in the Constitution the right of qualified OSLs to vote
2. Enact an Act related to OAV
3. Define a system and the mechanism for exercising such rights, covering aspects of
a. Defining qualifications for OAV
b. Identifying a registration procedure for eligible OSL
c. Identifying voting and vote counting mechanisms.

Not an Easy Road

Implementing OAV will not be without challenges. For Sri Lankans residing in countries without a local embassy, registration and voting might require travel to the nearest consular post. While critics would highlight that time and financial cost would “deter the diaspora from proactively partaking in voting”, employees such as female domestic workers would have the added challenge of seeking “approval of their masters and traveling a long distance to both register and vote”. Mail voting or assigning longer voting periods, including weekends, could alleviate some of these concerns.

Other concerns of out-of-country voting include potential vote buying and exploitation. Activists also raise concerns about whether politically appointed staff in diplomatic missions would influence, especially the unskilled and voiceless OSLs. Therefore, there is a need for a “mechanism with checks and balances” to “prevent the integrity of the electoral result from being questioned”.

While criticisms of each optional OAV method will likely emerge, it is important to start taking initial steps toward one feasible and practical option. The issues can be ironed out with time, and more sophisticated options can be pursued.

Finally, it is important to realize that achieving this goal in time for the upcoming Parliamentary election on 14 November or the pending provincial or local government elections in 2025 is not easy. Yet, initial steps towards this change are much needed and the time is right for it. (Colombo/Nov7/2024)

Sri Lanka Cabinet approves $60mn OPEC Fund loan for Mahaweli project Phase 2

ECONOMYNEXT – Sri Lanka’s Cabinet of Ministers has approved a proposal to enter into an agreement with the OPEC Fund for International Development (OFID) to secure a 60 million US dollar loan facility for Phase 2 of the Mahaweli Water Security Investment Program (MWSIP).

The total estimated cost for Phase 2 of the program is 536.5 million dollars, which the government plans to finance through co-financing arrangements with multiple development partners. The Asian Development Bank (ADB) has already agreed to provide 200 million dollars toward the program.

“Phase 2 of the Mahaweli Water Security Investment Program is planned for implementation to achieve the Government’s long-term objectives: enhancing food security in the Dry Zone, strengthening water resource management, improving resilience to climate change, and alleviating poverty,” Minister Nalinda Jayatissa said.

Following prior cabinet approval on July 20, 2026, to begin negotiations with OFID, the development fund confirmed its willingness to provide the 60 million dollar facility in two components of 48 million dollars and 12 million dollars.

The proposal was submitted by the President in his capacity as the Minister of Finance, Planning, and Economic Development.

Under Phase 2, key construction works include finishing the remaining section of the main tunnel with about seven kilometers of excavation, constructing 68 kilometers of open and covered canals, conduits, and short tunnels, and building an eight-kilometer canal section for the Ellapothana Irrigation Project.

The project will also establish commercial farming infrastructure, including around 13 pressurized distribution networks to supply reliable irrigation water for high-value and field crops.

The cabinet paper noted that the phase will also focus on:

“Transforming agricultural production systems by introducing climate-resilient value chains and expanding farmers’ access to financial services and agricultural project-related services.” (Colombo/Oct27/2026)

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Sri Lanka stocks close up, ASPI gains 0.27-pct

ECONOMYNEXT – Sri Lanka’s Colombo Stock Exchange closed up on Tuesday, CSE data showed, with the benchmark All Share Price Index moving up 0.27 percent.

The ASPI was up 52.11 points at 19,693 (19,692.67), while the more liquid S&P SL20 was up 0.19 percent, or 10.44 points, at 5,612 (5,612.31).

Positive contributors to the ASPI were Dialog Axiata (up 0.48 percent at 42.20 rupees), Carson Cumberbatch (up 1.02 percent at 670 rupees), Ceylon Cold Stores (up 1.25 percent at 121.50 rupees), Laugfs Gas (up 5.07 percent at 37.30 rupees), and Lion Brewery (Ceylon) (up 1.86 percent at 1,849.75 rupees).

Colombo Dockyard (down 3.74 percent at 95.30 rupees), Vallibel One (down 1.19 percent at 83 rupees), Hatton National Bank (down 0.27 percent at 367.50 rupees), LOLC Finance (down 2.22 percent at 4.40 rupees), and LOLC Holdings (down 0.64 percent at 390 rupees) were top negative contributors.

Market turnover was 849.37 million rupees. Materials led turnover with 229.66 million rupees.

Digital Mobility Solutions Lanka announced a first interim dividend of 2.75 rupees per share for the financial year 2026/27, subject to withholding tax. The ex-dividend (XD) date is November 5, 2026, and the dividend payment is scheduled to be dispatched on November 25, 2026. (Colombo/Oct27/2026)

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Sri Lanka rupee closes at 332.40/50 to US dollar spot, bond yields edge up

ECONOMYNEXT – Sri Lanka’s rupee closed at 332.40/50 to the US dollar in the spot market on Tuesday, weaker from 332.25/35 the previous day, while bond yields closed slightly higher, dealers said.

A bond maturing on 15.09.2029 closed flat at 11.08/15 percent.

A bond maturing on 01.08.2030 closed at 11.55/60 percent, up from 11.45/55 percent.

A bond maturing on 01.02.2031 closed at 11.75/80 percent, up from 11.70/75 percent.

A bond maturing on 01.12.2031 closed at 11.85/95 percent, up from 11.80/90 percent.

A bond maturing on 15.01.2033 closed at 12.15/30 percent, up from 12.15/25 percent.

A bond maturing on 15.10.2034 closed at 12.5/60 percent, up from 12.45/55 percent. (Colombo/Oct27/2026)

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Sri Lanka approves performance-based framework for SOE collective agreements

ECONOMYNEXT — Sri Lanka’s Cabinet of Ministers has approved a new performance- and sustainability-based framework for collective agreements in State-Owned Enterprises (SOEs), which will take effect from January 1, 2027, minister Nalinda Jayatissa said.

The decision follows an earlier cabinet decision when the government decided to extend existing collective agreements in state enterprises under their current terms and conditions until December 31, 2026, while preparing a revised structure for 2027.

To facilitate the transition, the Secretary to the Treasury appointed an expert committee tasked with reviewing the current collective agreement mechanism and formulating the new framework.

Following consultations with relevant stakeholders, the committee submitted its report.

According to Jayatissa, the expert committee recommended aligning workplace pacts with key statutory regulations:

“It is recommended that collective agreements be implemented within state-owned enterprises, subject to the Industrial Disputes Act, the Trade Unions Ordinance, the Shop and Office Employees Act, and other relevant labour laws.”

The new structure also addresses employee incentives and financial returns.

“Recommendations have also been put forward regarding a framework for profit-sharing and bonuses.” (Colombo/Oct27/2026)

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Sri Lanka awards Rs756.9mn road project to Asset Engineering

ECONOMYNEXT – Sri Lanka’s Cabinet has approved a proposal to award a road improvement contract to cover an additional section of roadway in the Central Province to Asset Engineering (Pvt) Limited, minister Nalinda Jayatissa said.

The contract is valued at about 756.9 million rupees (excluding taxes).

The project will upgrade the road from kilometre 10+500 to kilometre 16+890 on the Norwood-Bogawanthalawa-Campion (B329) route.

Bids were called and 3 bids were received, Jayatissa said. (Colombo/Oct27/2026)

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Sri Lanka to lease 15 plantation properties to investors

ECONOMYNEXT – Sri Lanka’s Cabinet has approved the long-term leasing of 15 state plantation properties to selected local investors, minister Nalinda Jayatissa said.

The assets are owned by the Sri Lanka State Plantations Corporation, the Janatha Estates Development Board and Elkaduwa Plantations Company.

The government had earlier called for expressions of interest from investors for 1,514 hectares of land, 10 tourist bungalows and scenic locations, and 15 inactive factories managed by the three plantation entities.

A total of 470 investors submitted expressions of interest, Jayatissa said, after which shortlisted applicants were invited to submit detailed proposals.

“The government received 44 proposals covering 50 land and property lots.”

“Cabinet approved the proposal to lease 15 selected land and property plots to investors on a long-term basis.”

The government expects the initiative to attract private investment and improve the utilization of underused plantation-sector assets, he said.

He did not respond to reporters’ questions on how long the lease periods are, or how much the government hopes to raise through the leasing, or if the lands and properties will be distributed among parties loyal to the government.

Historically, most lands under the SLSPC and JEDB originated from the 1972 and 1975 land reform laws, when large privately owned plantations were taken over by the state. Many tea, rubber and coconut estates were nationalized and later placed under state plantation entities. (Colombo/Oct27/2026)

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