Sri Lanka’s CPC reduces debt to Iran to US$130mn by June through tea barter

Tuesday November 4, 2025 10:30 am

ECONOMYNEXT – Sri Lanka’s state-run Ceylon Petroleum Corporation has reduced its debt to National Iranian Oil Company, to 130.6 million dollars by June 2025 down from 191 million a year earlier, a Finance Ministry report said.

The settlements were made through a Tea for Oil Barter Agreement, the report said.

Sri Lanka’s Ceylon Petroleum Corporation is forced to borrow from suppliers whenever forex shortages emerge from inflationary open market operations or other liquidity injections made to suppress interest rates.

The debts to Iran first emerged in a currency crisis around 1999/2001.

In later currency crises, especially the serial currency crises triggered through flexible inflation targeting/potential output targeting the CPC borrowed through private supplier credit which were later converted to state bank loans. (Colombo/Nov04/2025)

Tuesday November 4, 2025 1:35 pm

ECONOMYNEXT – Sri Lanka’s cabinet has approved a proposal to buy 100 motorcycles with an engine capacity of 125cc and 50 three-wheelers for the country’s Special Task Force, so it can raid criminals minister Nalinda Jayatissa said.

“So that it can efficiently and effectively carry out duties such as curbing the menace of drugs and suppressing organized underworld groups,” Jayatissa told reporters.

Of the 314 motorcycles currently available to carry out the duties assigned to the force, about 90% are more than 10 years old and are subject to constant technical defects, he said.

“This has become an obstacle to the raids carried out by the Special Task Force.”

However, 125 cc bikes and 3-wheelers are not capable of high speeds and riders are also more exposed than in any other vehicle.

The Special Task Force operates 76 main camps, 23 sub-camps and 14 special units. (Colombo/Nov4/2025)

The delegation led by H K M Hameez, President of the Sri Lanka–Canada Business Council of the Ceylon Chamber of Commerce met minister Sunil Handunnetti before leaving

Tuesday November 4, 2025 10:29 am

ECONOMYNEXT – A Sri Lankan business group is exploring opportunities in investment and partnerships in education, agriculture, information technology and tourism on a trip to Canada, the Ceylon Chamber of Commerce said.

The group includes representatives from several key industries who are meeting Canadian business leaders, government officials, and industry bodies in Toronto, Ottawa, and other cities.

“Their discussions will focus on how Sri Lankan and Canadian companies can partner to explore new commercial opportunities and promote two-way investment,” the chamber said.

The trip is organised by the Sri Lanka – Canada Business Council of The Ceylon Chamber of Commerce, with the Canada–Sri Lanka Business Convention, and the support of the High Commission of Sri Lanka in Canada.

Agriculture sector talks focused on opportunities for Canadian investment in Sri Lanka’s agri-tech innovation, food processing, and sustainable farming practices.

“The team is also exploring opportunities with IT firms and startups to share ideas on digital innovation, while tourism meetings centre on building stronger travel links and co-promoting destinations.”

They will participate in the Canadian Bureau for International Education (CBIE) Conference, where discussions are taking place on joint degree programmes, academic exchanges, and research collaborations between universities in both countries.

The team is meeting Canadian companies, startups, and business chambers to “identify areas of partnership”. (Colombo/Nov4/2025)

Tuesday November 4, 2025 10:00 am

ECONOMYNEXT – Sri Lanka’s rupee opened weaker at 304.54/60 to the US dollar in the spot market Tuesday from 304.45/55 the previous day, dealers said, while bond yields were broadly steady.

A bond maturing on 15.03.2028 was quoted at 9.03/05 percent.

A bond maturing on 15.09.2029 was quoted at 9.53/55 percent.

A bond maturing on 15.05.2030 was quoted at 9.65/69 percent.

A bond maturing on 15.03.2031 was quoted at 10.00/05 percent.

A bond maturing on 15.12.2032 was quoted at 10.40/48 percent.

An auction of 77,500 million rupees Treasury bills was ongoing.

The telegraphic transfer rates for the American dollar was 300.8000 buying, 307.8000 selling; the British pound was 393.5574 buying, and 404.9192 selling, and the euro was 343.8045 buying, 355.1677 selling.

The Colombo Stock Exchange opened up; The ASPI was up 0.34 percent, or 78.83 points, at 23,007.14; the S&P SL20 was up 0.01 percent, or 0.43 points, at 6,252.83. (Colombo/Nov4/2025)