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Wednesday October 14th, 2026

What next? Britain, Brexit and Theresa May

AFP – Despite facing a fierce backlash to her draft Brexit deal, British Prime Minister Theresa May has vowed to fight on.

Amid cabinet resignations and moves by her own MPs to oust her, the battle to save the EU withdrawal agreement and her own political career could have a number of outcomes.

Here are some possible scenarios.

– Leadership battle –

The prime minister will face a no-confidence vote if at least 48 Conservative MPs — 15 percent of the parliamentary party — request one in formal letters to a backbench Tory leader.

Several Conservatives have predicted that tally is now close, after leading Brexiteer Jacob Rees-Mogg and others submitted letters Thursday.

A majority of the party’s 315 MPs would then have to vote against May in order to oust her — a far more remote prospect in the eye of many commentators.

If she won, she could not be challenged again for a year.

She vowed Thursday to fight any contest.

A victorious May could press on with her Brexit plan ahead of Britain’s scheduled departure from the EU on March 29, 2019.

If she is ousted, a new Tory leader would be selected by party members from a choice of two contenders nominated by MPs.

The process normally takes weeks and, while it could be done faster, it could disrupt the current Brexit timetable.

A new prime minister might also want to reopen negotiations with Brussels.

– May’s way –

May has survived several previous political crises during the Brexit process and could yet see off a leadership challenge and, though difficult, win approval for her plan in parliament.

MPs will vote in early December, after EU leaders sign off on the deal at a special summit on November 25.

Conservatives have 315 MPs in the 650-seat House of Commons, but command a slim majority due to an alliance with the 10 MPs in Northern Ireland’s Democratic Unionist Party (DUP).

The number of MPs so far who say they will reject the deal, however, means May would require the support of a significant number of Labour’s 257 MPs — which currently looks unlikely.

The EU parliament will also have to approve the deal in early 2019.

– Snap election –

If MPs reject May’s withdrawal agreement, it could lead to a general election — normally held every five years but which can be called in exceptional circumstances.

The DUP say it will vote against the Brexit deal as it stands, and could withdraw support on all legislation.

This could prompt a motion of no confidence in the government from Labour.

The government would then have 14 days to win a vote of confidence or face a general election.

Alternatively, two-thirds of MPs could simply vote for a new election at any point.

The opposition Labour grassroots movement Momentum launched a social media campaign on Friday to encourage voters to contact their MPs and urge them to vote against the deal.

– No deal –

Another outcome of rejecting May’s plan, if there is no new renegotiation with the EU, is that Britain leaves with no agreement at all.

Legal, security and economic ties with the EU would be severed on March 29, 2019, potentially leaving planes grounded, expatriates with no rights and goods stuck at borders.

Last-minute negotiations could still result in some mini-deals in areas such as aviation to avert a potential catastrophe, while Britain’s trade with the bloc would be conducted under World Trade Organisation rules.

– People’s Vote –

There are growing calls in Britain for a second referendum with an option to stay in the European Union.

But both parliamentary arithmetic and limited time are barriers.

A majority of MPs must agree and May’s Conservatives are predominantly opposed while Labour remains on the fence.

Experts also say it would take at least five months to legislate, organise and hold another vote, requiring the EU to agree to delay Brexit.

Fears have also been expressed about widespread public anger at a rerun of the 2016 vote.

Sri Lanka’s Standard Capital exits loss-making paints subsidiary

ECONOMYNEXT — Sri Lanka listed investment company Standard Capital has disposed of its stake in subsidiary Standard Paints (Pvt) Ltd for a nominal consideration of 1650 rupees, saying the move would improve its financial position as the subsidiary carried a negative equity value.

In a disclosure to the Colombo Stock Exchange, Standard Capital said its board had previously decided on August 24, to either strike off the subsidiary or dispose of its equity stake for a nominal value.

The company subsequently sold its holdings in Standard Paints on September 28, comprising a 65 percent stake represented by 6.5 million ordinary voting shares and 100 percent of the subsidiary’s 10 million preferential shares.

The shares were disposed of for a total consideration of 1650 rupees. (Colombo/Oct14/2026)

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Global borrowing costs rise as bond yields increase: Fitch

Fitch Ratings-London: The recent sharp and widespread increase in government bond yields represents a significant increase in real global borrowing costs.

Bond yields have risen to multi-decade highs in the US, Germany, UK and Japan in recent weeks, as highlighted in Fitch Ratings’ latest Economic Monitor chart pack.

Ten-year government bond yields have risen in major global markets since the previous Fitch-20 Economic Monitor in June. US yields averaged 4.99% in September, up from 4.47% in June; 3.50% from 3.00% in Germany;
5.46% from 5.06% in the UK; and 2.99% from 2.65% in Japan. In Korea there also was a marked increase, with yields averaging 4.45% from 4.18% in June.

The chart pack highlights another notable development: the pick-up in world trade growth, driven by an IT investment boom that has boosted capital goods imports in the US. Trade growth has surged in several countries, including Mexico, Korea, Canada and Indonesia.

The quarterly ‘Fitch-20 Economic Monitor’ (formerly ‘20/20 Vision’) chart pack covers the 20 major economies (the Fitch-20) that are the focus of Fitch’s Economics team’s global macro analysis, and plots five years of high-frequency economic data for 20 variables, with consistent coverage across each country.

‘Fitch-20 Economic Monitor: September 2026’ is available by clicking the link above or at www.fitchratings.com.

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Sri Lanka to get $100mn ADB loan to strengthen skills training

ECONOMYNEXT – Sri Lanka’s cabinet has approved obtaining a 100 million dollar results-based loan from the Asian Development Bank (ADB) to implement a Skills Development System Transformation Programme aimed at strengthening the country’s technical and vocational education and training (TVET) sector.

“The financing package comprises 50 million dollars in regular ordinary capital resources and 50 million dollars in concessional ordinary capital resources,” minister Nalinda Jayatissa said.

The funds are intended to support sector reforms and the development of a more effective skills development system aligned with labour market needs, he claimed. (Colombo/Oct14/2026)

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Fitch rates Sri Lanka Sampath Bank’s Rs10bn debenture issue A(lka)

Fitch Ratings – Singapore: Fitch Ratings has assigned Sampath Bank PLC’s (AA-(lka)/Stable) proposed Sri Lankan rupee-denominated Basel III-compliant subordinated debentures of up to LKR10 billion a final National Long-Term Rating of ‘A(lka)’.

The proposed debentures, which will mature in five and seven years, will be listed on the Colombo Stock Exchange. The bank plans to use the proceeds to supplement its Tier 2 capital base to maintain capital adequacy compliance as well as to support loan book growth.

The proposed debentures will qualify as Basel III-compliant regulatory Tier 2 capital. The debentures include a non-viability clause that states they will convert to ordinary voting shares upon the occurrence of a trigger event, as determined by the Governing Board of the Central Bank of Sri Lanka.

The final rating is the same as the expected rating assigned on 10 September 2026 and follows the receipt of documents conforming to information already received.

Key Rating Drivers

Fitch rates the proposed Basel III Tier 2 debentures two notches below the bank’s National Long-Term Rating of ‘AA-(lka)’. This reflects Fitch’s baseline notching for loss severity for this type of debt and our expectations of poor recoveries. There is no additional notching for non-performance risks, as the proposed debentures do not incorporate going-concern loss-absorption features.

Sampath’s National Long-Term Rating is used as the anchor rating for this instrument because the rating reflects the bank’s standalone financial strength and best indicates the risk of the bank becoming non-viable.

Fitch affirmed Sampath’s ratings on 17 August 2026. See our latest rating action commentary, Fitch Affirms Sampath Bank at ‘AA-(lka)’; Outlook Stable , for the key rating drivers and sensitivities.

Rating Sensitivities

Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade
A downgrade of the bank’s National Long-Term Rating will lead to a downgrade of the subordinated debt rating.

Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade
An upgrade of the bank’s National Long-Term Rating will lead to an upgrade of the subordinated debt rating.

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Oman’s OQ Trading wins Sri Lanka LPG deal at Aramco price plus $133.93

ECONOMYNEXT – Sri Lanka’s cabinet has approved the proposal to award the contract for the supply of 420,000 metric tonnes (±20%) of Liquefied Petroleum Gas (LPG) to Oman’s OQ Trading Limited for a period of 12 months commencing 1 January 2027, minister Nalinda Jayatissa said.

The contract provides for the supply of 420,000 metric tonnes (±20%) of LPG, including a guaranteed minimum quantity of 336,000 metric tonnes, at a price of Saudi Aramco Contract Price plus US$133.93 per metric tonne on a Cost, Insurance and Freight (CIF) basis, Jayatissa said.

International competitive bids were invited for the procurement, and 4 bids were received.

“The contract was awarded to M/s OQ Trading Limited, the lowest substantially responsive bidder,” he told reporters. (Colombo/Oce14/2026)

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Sri Lanka stocks continue to slide, ASPI drops 0.14-pct

ECONOMYNEXT – Sri Lanka’s Colombo Stock Exchange were trending down on Wednesday, nearing the psychological 20,000 mark, CSE data showed, with the benchmark All Share Price Index moving down 0.14 percent.

The ASPI was down 27.26 points at 20,050.22, while the more liquid S&P SL20 was down 0.02 percent, or 0.96 points, at 5,729.14.

Positive contributors to the ASPI were LOLC Holdings (up 3.08 percent at 418.00 rupees), Vallibel One (up 2.21 percent at 87.90 rupees), Asiri Hospital Holdings (up 4.98 percent at 25.30 rupees), Ambeon Holdings (up 3.45 percent at 33.00 rupees), and Haycarb (up 1.55 percent at 197.00 rupees).

Commercial Bank of Ceylon (down 0.25 percent at 198.00 rupees), SMB Finance (flat at 1.00 rupee), Hayleys (down 0.23 percent at 221.50 rupees), and Odel (down 7.41 percent at 10.00 rupees) were top negative contributors.

Market turnover was 318.20 million rupees. Retailing led turnover with 100.89 million rupees. (Colombo/Oct14/2026)

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