Tuesday January 6, 2026 6:07 pm
Tuesday January 6, 2026 6:07 pm
ECONOMYNEXT – Sri Lanka’s cabinet has approved the purchase of 350 housing units from the Harbour View Residencies built by the Urban Development Authority, for Police officers, minister Nalinda Jayatissa said.
“The Cabinet approved the proposal to purchase 350 housing units for the Sri Lanka Police and to have adequate parking facilities constructed for those by the UDA, to provide housing to officers serving in the police divisions in Colombo and its suburbs,” Jayatissa told reporters.
The UDA’s Harbour View Residencies housing project, consisting of 14 floors with 452 housing units, at Cyril C Perera Mawatha, Colombo 13, was built to provide housing to government and semi-government officers. (Colombo/Jan6/2025)
Wednesday January 7, 2026 6:49 am
Wednesday January 7, 2026 6:49 am
ECONOMYNEXT – Sri Lanka’s central government debt fell to 93.1 percent of gross domestic product by September 2025, from 96.1 percent at the beginning of the year, official data show, though currency debasement has worsened since then.
Sri Lanka’s domestic debt, calculated in rupees, rose by 391 billion rupees to 18,701 billion rupees by September 2025, and foreign debt rose by 545 billion rupees to 10,974 billion rupees, based on central bank debt data.
Treasury guaranteed debt from 1,432 billion rupees (about 4.79 percent of GDP) in December 2024 to 1,385 billion rupees (4.34 percent of GDP) by August 2025 which is the latest publicly available data.
With publicly guaranteed debt fell from 100.9 percent of GDP in December 2024 to 97.38 percent 97.38 by August based on rolling nominal GDP for the four quarters ending in September 2024.
The rupee depreciated from 292.58 to the US dollar to 302.61 by September due to flawed exchange rate policy and excessive dollar purchases that created excess liquidity, even as people paid taxes to improve budgets and the national debt.
The rupee has since depreciated to 310 to the US dollar.
The budget deficit was only 441 billion rupees in the period as people paid taxes and the government kept spending under check while the debt expanded by 937 billion rupees.
If the central bank continues to deny sound money, tax hikes cannot fix debt crises and low inflation expectations (failure to anticipate the effects central bank monetary debasement in advance) will eventually lead to social unrest, EN’s economic columnist Bellwether says.
Fiscal gains made by then-Finance Minister Mangala Samaraweera in 2019 was also swept aside by central bank’s currency depreciation and rate cuts, bringing prudent fiscal policy into disrepute and pushing up energy enterprise losses.
Critics have pointed out that macro-economists in the age-of-inflation escape accountability for currency depreciation by claiming that exchange rates are market determined, through exchange rates values are a result of the outcomes of operating framework of one central bank against another.
Macro-economists started to escape accountability for currency deprecation in the 1980s, and were able to perpetuate unsound money, pushing the country into higher than Great Inflation and undermining budgets and economic reforms of the post 1978 administration.
East Asian countries went in the opposite direction.
Exchange rates are an outcome of only monetary policy in clean floats, exchange rate policy in hard pegs which have no monetary policy, and a confused mix of monetary and exchange rate policies in reserve collecting central banks with so-called flexible exchange rates (soft-pegs).
Analysts have urged the parliament to curb the discretionary powers of the central bank ensure sound money and stability and end monopolies that choke the Treasury of foreign exchange forcing it into a debt trap so that the risk of a second default is minimized.
(Colombo/Jan07/2025)
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Tuesday January 6, 2026 5:52 pm
Tuesday January 6, 2026 5:52 pm
ECONOMYNEXT – Sri Lanka Tourism Development Authority (SLTDA) will start a leakage survey towards the end of this month to determine the accurate revenue from tourism, its chairman said.
After the latest survey conducted early this year, the SLTDA has revised down per day spending from foreign visitor to US$148 from the early US$171 decided through a survey a decade ago.
“There will be another survey coming up at the end of this month, the leakage survey,” Buddhika Hewawasam, the SLTDA Chairman told reporters on Monday at a media briefing held in Colombo.
The survey is to determine how many dollars remaining in Sri Lanka out of 148 dollars, he said.
In the tourism sector, leakage refers to the portion of money spent by tourists that leaves the host country’s economy instead of circulating locally.
This happens through mechanisms like imports of food and drinks for foreigners, repatriation of profits by foreign-owned hotels or airlines, foreign worker remittances, and overseas marketing costs.
While some leakage is inevitable in any open economy, it can be alarmingly high, which means only a fraction of tourism revenue benefits local communities, jobs, and development.
A leakage survey is a systematic that measures the extent of outflow, often through data on supply chains, ownership structures, import dependencies, and expenditure patterns.
For countries reliant on tourism, especially developing or island nations, conducting these surveys is crucial for accurate assessment of true economic benefits, formulating policies to reduce leakage, promote sustainable and equitable development, enhancing competitiveness and resilience, as well as support responsible tourism goals. (Colombo/January 06/2026)
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Tuesday January 6, 2026 5:21 pm
Tuesday January 6, 2026 5:21 pm
ECONOMYNEXT – Sri Lanka’s rupee closed at 310.00/10 to the US dollar in the spot market Tuesday, weaker from 309.75/85 the previous day, dealers said, while bond yields edged up on the short end and remained steady across the rest of the yield curve.
Analysts have warned the central bank not to push the rupee down by over-purchasing dollars above its deflationary policy which will eventually push up energy and food costs, even when US monetary policy is relatively benign.
When the central bank buys dollars at 310 to the US the market is signalled to push the rupee down, analysts say.
Unlike other buyers like the Treasury or ordinary importers, central bank purchases create new money and the rupee stays down from heavily one sided purchases.
To stop the new rupees from boomeranging on the forex markets, the rupee have to be extinguished, sterilized through deflationary policy.
The central bank has busted the rupee from 4.77 to 310 to the US dollar escaping accountability, especially after 1980.
A bond maturing on 15.12.2026 closed flat at 8.50/60 percent.
A bond maturing on 15.09.2027 closed at 9.00/05 percent, up from 8.95/9.05 percent.
A bond maturing on 15.12.2028 closed at 9.20/30 percent.
A bond maturing on 15.12.2029 closed at 9.70/73 percent, down from 9.73/75 percent.
A bond maturing on 01.07.2030 closed at 9.77/80 percent, down from 9.77/81 percent.
A bond maturing on 01.10.2032 closed at 10.30/40 percent.
The rupee has weakened from 293.25/75 to the US dollar last year, amid record current account surpluses and improvement in budget, denying the usual scapegoats macro-economists point to after depreciating currencies. (Colombo/Jan6/2026)
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Tuesday January 6, 2026 5:14 pm
Tuesday January 6, 2026 5:14 pm
ECONOMYNEXT – Sri Lanka’s cabinet of ministers has approved a proposal to award the procurement of printing and supply of vehicle number plates to M/s South Asian Technologies (Pvt) Ltd, minister Nalinda Jayatissa said.
Sri Lanka’s vehicle registration system has been in crisis for months, with delays by the country’s Department of Motor Traffic in providing plates.
In 2025, the country lifted import controls on vehicles leading to an influx of new vehicles. But a shortage of plates saw most of the brand new vehicles on the roads with paper signs.
Four bids were submitted for the printing and supply of vehicle number plates to the Department of Motor Transport, Jayatissa told reporters.
“Cabinet approved the proposal to award the procurement of printing and supply of vehicle number plates to the Department of Motor Traffic for a period of 05 years to M/s South Asian Technologies (Pvt) Ltd.” (Colombo/Jan6/2025)
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Tuesday January 6, 2026 4:59 pm
Tuesday January 6, 2026 4:59 pm
ECONOMYNEXT – Sri Lanka will have to spend more than 350 million dollars to re-build railway tracks damaged by Cyclone Ditwah, Deputy Minister of Transport Prasanna Gunasena said.
Upcountry tracks were the most severely damaged while the Northern and Southern coastal tracks were the least affected.
The Rambukkana to Kadugannawa track is estimated to cost 74 million dollars Deputy Minister Gunasena said in comments broadcast over Sri Lanka’s Derana television.
The Nanu Oya to Badulla track, one of the most severely affected lines, was estimated to cost around 127 million dollars, to his recollection.
Re-building the Gampola to Nawalapitiya track was estimated at 35 million dollars
Kotawella to Nanuoya track was estimated at 68 million dollars.
The Kadugannawa to Peradeniya section of the track is estimated to cost around 2 million dollars.
Replacing a Colonial-era bridge Peradeniya in Kandy, popularly known as the ‘Yaka Palama, with a double-tracked bridge would cost at least 18 million dollars.
The Northern track between Mahawa and Kankesanthurai is expected to cost around 4 to 5 million dollars.
The Batticaloa line would also add to the cost, he said.
“We have we spend a huge amount of money to bring the Department of Railways back to what it was before Cyclone Ditwah,” Gunasena said.
“But we will be in a better position. The tracks will be new with newer technology. So there will be an improvement.
Rockfalls and landslides from Cyclone Ditwah had damaged tracks in 91 places with 73 bridges and 38 smaller culverts also hit, officials had said earlier.
RELATED:
Cyclone Ditwah damages Sri Lanka railway track in 91 places, 73 bridges : Deputy Minister
Sri Lanka railway tracks ‘left hanging’ by Cyclone Ditwah : GM
The railway track was ‘hanging’ in 15 places with the ground disappearing from under the tracks, General Manager of Railways Ravindra Padmapriya had said immediately after the cycloine, with only a third of the track operable immediately after the cyclone.
RELATED : Sri Lanka budget deficit to rise 1.4-pct in 2026 on Cyclone spending
Sri Lanka has increased capital spending by 1 percent of gross domestic product to 2 percent in 2026 in a revised budget for Cyclone Ditwah related damages. (Colombo/Jan06/2026)
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Tuesday January 6, 2026 4:56 pm
Tuesday January 6, 2026 4:56 pm
ECONOMYNEXT – Sri Lanka’s Colombo Stock Exchange (CSE) continued to see positive investor sentiment on banking shares and selected capital goods, with these sectors contributing to the All Share Price Index gaining 1.21 percent, or 278.16 points to close up at 23,292.91.
The more liquid S&P SL20 index gained 2.19 percent to close at a six week high of 6,379.11 on Tuesday. The index surpassed the 6,364.61 mark on November 21, data on its site showed.
The top contributors to the ASPI on Tuesday were HNB (up 17.50 rupees at 417.50), Commercial Bank (up 5.25 rupees at 212.50), John Keells (up 50 cents at 22.10 rupees), NDB (up 6 rupees at 147), and Sampath Bank (up 2.75 rupees at 151.25).
Commercial Bank, John Keells, Laugh Gas and Sanasa Development Bank recorded crossings.
The All Share Total Return Index (ASTRI) rose 2.96 percent while the S&P SL20 Total Return Index increased to 3.35 percent in the session.
Market turnover rose to 6.5 billion rupees from the previous session’s 5.7 billion rupees.
Share volume stood at 154,747,777 with 42,361 trades recorded in the session.
The exchange recorded 87 million rupees in net foreign outflow led by Digital Mobility Solutions (Lanka) (21 million rupees).
Lanka IOC revised its fuel prices from 6 January following the fuel price raise by the state run Ceypetco. The stock rose 1.75 rupees to close at 132.
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In Asia, equity markets rallied amidst the US kidnapping of the Venezuelan president.
Tokyo’s Nikkei 225 benchmark index topped its all time high record on Tuesday with the positive momentum seen in blue chip counters and across the board, Japan’s Mainichi newspaper said. The index closed 1.32 percent higher from Monday at 52,518.08.
India’s Nifty 50 was trading 0.28 percent lower at 26,175.60 while the Sensex index was 0.44 percent weaker at 85,063.34.
Meanwhile, Pakistan’s Karachi Stock Exchange 100 index was trading 1.45 percent up at 185,062.10 at close.
Hong Kong’s Hang Seng index ended 1.38 percent stronger at 26,710.45.
Singapore’s benchmark Straits Times Index (STI) climbed 0.27 percent or 59.47 points to close at 4,739.970.
As at 4.20 pm Sri Lankan time, spot gold was trading at 4,455.30 US dollars, up 0.46 percent. (Colombo/Jan06/2026)
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