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The phrase ‘The Children of ’56’ coined by Mervyn de Silva in 1973 (Sri Lanka: The End of Welfare Politics, South Asian Review, UK, 1973), recorded as such in the published doctoral thesis of Prof. Gamini Samaranayake, was plagiarised and popularised in Sinhala by the founding ‘philosopher’ of Jathika Chinthanaya.

I am literally a child of ’56. That was the year Ceylon/Sri Lanka’s two-party system was born with the replacement in power of the dominant postcolonial party the UNP, commencing the alternation in power of two democratic parties/coalitions, two decades before India passed that landmark of political development. 2026 is the 70th anniversary year of the birth of the island’s two-party system.

The shocking success of the JVP, leaping from 3 seats and 3% to the Presidency and a 2/3rds majority in Parliament was possible only because of the crisis of the two-party system and the two main political traditions:

The SLFP had been the most successful political party in the country. Under two leaders, Chandrika Bandaranaike Kumaratunga and Mahinda Rajapaksa, it led the country for two decades uninterruptedly from 1994 to 2014.

Before 1994 and CBK, the SLFP led by Sirimavo Bandaranaike had been in the Opposition for 17 years.

The SLFP suffered two crashes:

When the SLFP-led coalition Government’s popularity was free-falling with the OPEC oil price shock (1973), its economic policy was criticised imprecisely as ‘too far to the left’, which meant in reality, too far in the direction of ‘statism’ and ‘self-sufficiency’. Sirimavo Bandaranaike attempted to course-correct by removing Dr. NM Perera and the LSSP from the Government and appointing Felix Dias Bandaranaike as Finance Minister. He was accurately perceived as ‘too far to the authoritarian right’, and further jeopardised the centre-left SLFP and the constricted coalition (SLFP-CPSL).

The SLFP crashed to its worst defeat with the TULF scoring more seats in the 1977 parliament. The party’s crisis was compounded by the dismal showing of its candidate Hector Kobbekaduwa at the Presidential election of October 1982 against incumbent JR Jayewardene.

But there was one option which if exercised could have mitigated the crisis of the UF coalition in the 1970s, narrowed the margin between the Jayewardene UNP and the SLFP candidate in October 1982, and shortened the SLFP’s 17-year spell of defeat.

The SLFP had within its topmost ranks a figure who was seen simultaneously as a moderate democrat in economics and governance, but also a progressive who enjoyed the support of the LSSP- CPSL and the USSR. That was the SLFP’s Deputy Leader and the UF Government’s Deputy Prime Minister who acted for Madam Bandaranaike when she was overseas: Maithripala Senanayake of Anuradhapura, an electorally unbeaten political giant from the rural Sinhala heartland who had also studied Tamil and was married to a journalist who was an ethnic Tamil.

Had Maithripala Senanayake been given a fair chance, it could have reduced the extent of (but not entirely avoided) the swing to the UNP in 1977 and given JR a run for his money in October 1982.

After decades of marginalisation by the Ratwatte-Bandaranaikes, a bitterly disappointed Maithripala Senanayake finally defected to JR Jayewardene, rather like Philip Gunawardena did to Dudley Senanayake.

Squandered chances

It took almost two decades from the 1977 debacle for the SLFP to win under Chandrika Bandaranaike Kumaratunga.

No President since JR Jayewardene had the chances and options of CBK as president but she consistently ignored them in favour of unrealistic, irrational, irresponsible experimentation.

After the Tigers returned unilaterally to war in 1995 despite her offer of an overgenerous political package, she could have leveraged the goodwill and support she enjoyed from India, implemented the Indo-Sri Lanka Accord and the 13th Amendment, appointing an interim administration for the territory (as Douglas Devananda urged). Instead, she continued to chase in 1997, in wartime, the mirage of a political package with the LTTE which she now publicly divulges as federalism.

Despite the fact that an LTTE suicide bomber tried to kill her at an election rally in 1999, she pursued a Norwegian-facilitated peace effort. When ‘9/11’ provided the perfect opening for widespread global support to win the war and follow-up with devolution, she continued dogmatically with the one-sided Norwegian effort.

The rise of the extremist ultranationalist Sinhala new right ancestor of the BBS, led at the time by Champika Ranawake, was an outcome-as was the dramatic ascendancy of the JVP.

Whitewashing the JVP

The JVP was crushed and decapitated in November 1989, the very year after it assassinated Vijaya Kumaratunga by shooting him in the face on his doorstep. At the time the JVP didn’t disclaim the brutal killing despite the huge public opinion backlash. Instead, on the day of Vijaya’s funeral, the JVP’s front organisation-cum-military wing the DJV (precursor of today’s NPP or JJB) distributed an openly justificatory leaflet entitled ‘Vijaya Yavvey Aiy?’ which in translation meant ‘Why Was Vijaya Despatched?’ It called him a CIA agent, among other things.

The JVP’s catapulting to the Presidency and huge preponderance in Parliament in 2024 was mightily assisted by the laundering through a Presidential Commission appointed by President Chandrika Bandaranaike Kumaratunga of the stain of the delegitimising sin of Vijaya Kumaratunga’s cruel murder. She had viciously and irrationally accused President Premadasa (at the time, Prime Minister) and not Wijeweera’s JVP of murdering her husband and father of her two children. This despite the arrest and long, detailed confession by the gunman tasked and trained by the JVP for this and a series of other assassinations.

Chandrika’s accusation was unethical because Premadasa who had been blown up by a Tiger suicide bomber had no way to defend himself. It was irrational because if Vijaya ran for the Presidency as he had announced, it would have split more votes from Mrs. Bandaranaike and helped Premadasa far more than Vijaya’s successor Ossie Abeygoonesekara’s candidacy did in 1988.

Betrayal 2005

The worst damage to the SLFP came at the tail-end of her term when she went against the counsel of her brilliant Foreign Minister Lakshman Kadirgamar, and persisted in the project of a post-tsunami power-sharing mechanism (PTOMS) with the Tigers. That ‘Munich’-type betrayal was thwarted on two fronts:

The US Government, which emphasised that it was prevented by Congress from contributing funds to any structure involving a designated terrorist organisation. I was at the US Ambassador Jeff Lunstead’s when Asst Secretary of State Christina Roca told that upfront to Ambassador Jayantha Dhanapala, CBK’s chief negotiator with the LTTE over the PTOMS.

The Supreme Court of Sri Lanka which froze the vital middle tier of the mechanism located in the Wanni since it was inaccessible to the Sri Lankan State.

Fortunately for the SLFP, its founding father (CBK’s father) SWRD Bandaranaike had a firm partner from the South when he began his independent political journey: DA Rajapaksa, whose son was the popular Prime Minister Mahinda Rajapaksa, a populist rebel known to dissent from the ‘CBK line’.

Out of options, CBK grudgingly nominated Mahinda who won the 2005 Presidential election-but not before she had gouged a wound that has never healed in the SLFP.

I was a visiting Adjunct Professor at the School of Advanced International Studies (SAIS) of Johns Hopkins University in Washington DC in Fall 2005 when CBK came to town accompanied by Ambassador Dhanapala. The purpose of her visit was to lobby in support of his bid for the post of UN Secretary-General. Prof. Walter Anderson who headed the South Asia program at SAIS, called me into his office and told me that Sri Lanka’s President had hosted a dinner the previous night which he had attended, and rolled-out a view quite contrary to that which I had said on the record at Georgetown’s Centre for Strategic and International Studies (CSIS) on a panel with Ambassador Bernard Gunatilleke and Gajan Ponnambalam, Chaired by Ambassador Teresita Schaeffer. Neil de Votta and Asoka Bandarage participated, Ravinatha Aryasinha was present, TamilNet carried a report.

I predicted that:

Prabhakaran would boycott the Presidential Election because he discouraged ‘Eelam Tamil’ participation in a Sri Lankan election.

Mahinda Rajapaksa would win the Presidency.

The Tigers would launch the Final War.

Mahinda would defeat them.

The US and India should support the Sri Lankan State against the Tigers, and endeavour to shape the postwar outcome in the direction of implementing existing devolution.

Following my presentation, Steve Ghitelman who headed the South Asia desk of the US State Department’s prestigious research wing, the INR, came up and invited me to speak on the upcoming election and the peace process to an inter-agency audience convened by/at the State Dept, which I did.

Prof. Walter Anderson told me that President Kumaratunga had informed them at dinner that she would support Opposition candidate Ranil Wickremesinghe at the election, he would win, Mahinda would lose, and she and Ranil together would offer Prabhakaran a federal solution, ushering in peace.

Knowing CBK to be a lady of her word, I promptly pressed the ejector-button on my Washington gig, returned to Colombo and leaped into the election campaign, appearing on TV in support of Mahinda.

Mahinda Rajapaksa had to contest with a divided SLFP, his old friend Anura Bandaranaike (and even Sarath Amunugama) against him. After Mahinda won, Mangala Samaraweera tried to stall his assumption of SLFP leadership. MR plugged the gap with the support of his family ‘clan’, the ultranationalist Hela Urumaya, and the JVP. Mahinda had been until then, an opponent of an SLFP-JVP alliance which he prophesied would siphon-off SLFP votes to the JVP someday.

The UNP was wrecked by Ranil, the SLFP by Chandrika, the SLPP by Gotabaya. That’s how and why AKD and the JVP prevailed

Betrayal 2015

Chandrika Kumaratunga’s role in forming a coalition between a breakaway faction of the SLFP led by Maithripala Sirisena and the UNP against the MR Presidency would’ve been politically legitimate in the aftermath of Bharatha Lakshman Premachandra’s killing, except she forged a coalition which she knew from experience was unsustainable.

CBK’s experiment in political cohabitation with Ranil Wickremesinghe who was Prime Minister in 2001-2003, ended because she simply had to fire him, go for an election and defeat him. No cohabitation between SLFP and UNP was sustainable so long as Ranil, with his neoliberal and abjectly pro-Western views, was partner.

An SLFP-UNP bloc was sustainable only as a centrist coalition, feasible if the UNP was represented by a liberal-centrist whose views were compatible with the SLFP’s. Chandrika could have insisted on Karu Jayasuriya as the dissident SLFP’s partner. A Maithri-Karu convergence would have been sustainable.

Instead, CBK visited the UNP headquarters Siri Kotha and stitched together a Sirisena-Wickremesinghe equation. In 2015 she put into practice the plan she had divulged in Washington DC in Autumn 2005.

The SLFP’s base and (therefore) most of the SLFP parliamentary group couldn’t be won over to the Yahapalanaya agenda driven by Ranil’s UNP which didn’t shift to the centre but remained on the neoliberal right.

Two devastating outcomes issued from CBK’s 2015 move:

1. The SLFP shattered, with the overwhelming majority remaining loyal to Mahinda Rajapaksa and launching the SLPP.

2. The infant breakaway SLPP crushingly defeated the governing UNP of Prime Minister Ranil Wickremasinghe, reducing it to 20% of the vote at the Feb 2018 Local Government election.

Desperate to save the SLFP from terminal erosion by alignment with Ranil’s UNP, President Sirisena re-linked in late-2018 with Mahinda Rajapaksa who had retained the bulk of the SLFP’s vote-base. This ’52-day experiment’ was thwarted by the decision of the Supreme Court which predictably ruled-out a dissolution and snap election. In conversations from Moscow with Mahinda Rajapaksa and President Sirisena, I had cautioned that a snap election was highly improbable, and urged a non-binding Referendum instead.

The elated, delusional UNP thought that the next election was in the bag. The reality was that the UNP never emerged from the 20% trough of February 2018-nor did or has its derivative/successor, the SJB.

The SLPP swept the board in 2019, but that led to another disaster because it was not Mahinda Rajapaksa who was candidate. Mahinda had blundered in attempting a third term, with a colluding CJ dismissing as unnecessary a referendum to change the constitutional two-term limit-and lost the gamble (2015). The Yahapalanaya Government (2015-2019) then unfairly banned Mahinda from running for even a non-consecutive third term, which had it existed in Brazil would have prevented Lula being re-elected.

The far-right Gotabaya Rajapaksa candidacy and constituency issued from:

The necessity which arose with the gap left by the ban on MR’s candidacy.

The shift in the balance of the SLFP and its partners, strengthening the ultranationalist element when Chandrika divided it in 2005 in her attempt to sabotage Mahinda.

The catastrophic Gotabaya Presidency was overthrown by the Sri Lankan citizens led by the university students and youth.

Chandrika’s whitewashing of the JVP’s murder of her husband; appeasement of the LTTE; overlong dalliance with the hardly-neutral Norwegians; attempts to federalise the Sri Lankan State; indecisiveness in fighting the war; ignoring Lakshman Kadirgamar’s reluctance about the PTOMS; tilt to Ranil over Mahinda in 2005; midwifery of the Yahapalanaya bipartisan coalition with Ranil’s UNP; set off a chain reaction which exploded BOTH the SLFP and the UNP, the twin pillars of Sri Lankan democracy, at their bases-thereby creating the systemic void the JVP filled.

The SLFP created by SWRD Bandaranaike breaking away from the UNP, was realigned by Chandrika with the UNP under its most neoliberal leader, ending the two-party system as we knew it from 1951, making inevitable the rise of new forces to fill the space, play the role.

Post-2019

Instead of voting for their own Dullas Alahapperuma at the Parliamentary selection of the President in 2022 (which Mahinda Rajapaksa disclosed he did), the SLPP, conceived through opposing the 2015 coalition with Ranil’s UNP, supported Ranil Wickremesinghe instead, making him President. Thus, Ranil who was never elected President by the citizenry, was appointed to that post by Gotabaya Rajapaksa and endorsed by the SLPP-reloading Chandrika’s 2015 ‘hybrid’.

Ranil’s economic stabilisation/adjustment ‘shock therapy’ (2022-2024) further crunched the SLPP’s base after Gotabaya’s ‘fertiliser shock’ had shrunk it (2019-2022). SLPP voters shifted to the JVP-NPP.

When Namal Rajapaksa boldly broke away from the Ranil-led project and ran as SLPP candidate in 2024, elements of the SLPP and SLFP who had opposed the Yahapalanaya coalition, ironically stayed to support Ranil-mimicking Chandrika’s 2015 model.

Having co-founded the SLMP with Vijaya and outflanked her sibling Anura Bandaranaike from the left, critiquing his tilt towards JR’s UNP, CBK turned architect of an SLFP-UNP coalition, reversing, negating and betraying her great father’s 1951 and 1956 breakthroughs.

The UNP was wrecked by Ranil, the SLFP by Chandrika, the SLPP by Gotabaya. That’s how and why AKD and the JVP prevailed.

To recover, the SLFP and SLPP must recognise and re-converge around the peak point and highest achievement of the entire SLFP/centre-left tradition since its founding 75 years ago and the 1956 victory 70 years ago: Mahinda Rajapaksa’s history-making first term as President.

The Republican Party of US President Donald Trump fared far worse than many pollsters predicted in Tuesday’s midterm elections. The Democratic Party took control of both the House of Representatives and the Senate, a blow to Trump who has two more years in office and will now have to co-exist with the Democrats. The US Congress is a bicameral legislature which forms the legislative branch of the US federal government and now with the Democratic Party in control, Trump’s remaining two years in office will be an uneasy arrangement with them.

What happens in the US will be watched globally given that its policies impact the rest of the world as a whole. Trump’s tariff policies, hardening immigration policies as well attacks on Iran have caused much more than heartburn for many countries. The economic woes faced by the US public caused largely by the Iran war led to heavy losses for Trump’s party, according to media reports.

Sri Lanka is among many countries which have had to face the brunt of President Trump’s policies, many ad hoc and without consideration for the possible fall out. The Democratic Party being in power may not change US policies drastically but at least if this would lead to more negotiations to settle the conflict with Iran, it would be a great sigh of relief for the world.

The incoming result of the US midterm elections figured in the Sri Lanka parliament also yesterday with Opposition Leader Sajith Premadasa advising the Government to learn a lesson from the election results.

“The people of the USA have rejected the Trump administration because of the suffering they had to undergo. The people of Sri Lanka are also suffering. The Government should take note of this situation,” Premadasa said.

The Government is unlikely to take Premadasa’s advice seriously, but what he has stated is a harsh reality from which there is no escaping. People across the country are feeling the burden of the economic hardships that are piling up on them. Along with the regular fuel price hikes there are moves to increase electricity cost as well. These are on top of taxes that people have to pay all the while their incomes remain stagnant. The Government has announced a pay hike for the public sector in the Budget which will be presented late this month but there are millions who work in the private sector or engaged in informal sectors who continue to work on merger salaries with little prospects for salary hikes. This is why it is crucial that the cost of essential goods and services be reduced to give the people a breather.

The Central Bank of Sri Lanka Governor Dr. Nandalal Weerasinghe recently said that essential economic policies must be implemented regardless of whether they are popular with the public. Speaking at a lecture at the University of Kelaniya, he noted that the country may need to increase taxes depending on economic requirements, despite public opposition. Looking at it purely from a fiscal viewpoint; he is correct but how much longer will people be able to withstand economic hardships? This is the question that the Government needs to look at carefully because the political fallout if this situation continues is unpredictable.

Over the past weeks in Europe in particular, thousands of people have taken to the streets protesting against their governments due to the high cost of living and the lack of funding for education and other public centric sectors. Even the most stable of governments are shaken when the public direct their anger at those holding office.

“It is the economy, stupid” was a political catchphrase coined by one of former US President Bill Clinton’s managers during his election campaign in 1992. Four little words but it tells the whole story of eventually what swings voters. If people’s personal financial well-being is unsatisfactory, then all the mega projects and loud speeches will do little to appease them. A lesson which the Government should also heed.

Sri Lanka will set up a sovereign-backed fund of funds for startups, develop a regulatory framework for virtual assets and virtual asset service providers, and expand telecom coverage to over 99% of the population, Deputy Minister of Digital Economy Eng. Eranga Weeraratne said.

He made the remarks at the recent Sri Lanka FinTech Festival 2026 in Colombo, where he outlined a broader push to accelerate digital adoption and position the country as a regional fintech hub.

Weeraratne said Sri Lanka may be a few years behind other regional countries in digital payment and fintech adoption, but said the country has the necessary ingredients to move faster, including a strong IT talent pool, an established IT industry, a heavily banked population, high literacy and government commitment to digital transformation.

He said the Government’s ambition is to move Sri Lanka from a cash-heavy society towards a cash-light, digitally enabled economy, while also helping local IT and fintech companies export solutions to global markets.

‘We are setting up a fund of funds, a sovereign fund, for investing in our startups, and we are inviting other international and local funds to contribute,’ he said.

The fund is expected to provide matching capital for startups, while the Government works with local and international fund managers to create the policies and documentation needed to connect Sri Lankan entrepreneurs with global capital.

Weeraratne also said work is under way on regulations for virtual assets and virtual asset service providers, a move intended to give clarity to businesses and investors and allow local firms to innovate in the sector.

On digital payments, he said the Government will push QR-based payments through promotions, incentives and support for devices, aiming to shift both consumers and merchants away from cash.

He said banks should develop financial products linked to digital payment usage, as transaction records can help small merchants demonstrate business performance and creditworthiness.

‘Digital payment histories can become a new form of collateral for SMEs,’ he said.

The Deputy Minister also said telecom coverage, currently around 94-95% of the population, will be expanded beyond 99% within the next two to three years, with investment and support from partners including the Asian Development Bank.

To build trust in digital services, the Government plans to establish a cybersecurity regulatory authority under forthcoming legislation and invest in advanced security operations centres to protect public and private digital infrastructure.

Weeraratne said interoperability, open systems and low-code tools will be key to allowing new services to be built on national platforms and helping Sri Lankan fintech firms export solutions.

However, Central Bank Governor Dr. Nandalal Weerasinghe cautioned that virtual assets cannot be used for payments between residents under Sri Lanka’s current legal framework.

‘This position is important in preventing the substitution of the Sri Lankan rupee in domestic transactions and in safeguarding the country’s monetary sovereignty,’ he said.

Delivering the keynote on ‘The Future of FinTech,’ Weerasinghe said Sri Lanka’s post-crisis recovery has created the foundation for growth, but the next phase must focus on productivity, investment, employment and innovation.

‘Stability is not the destination; it is the foundation upon which sustainable growth must be built,’ he said.

He said fintech can help mobilise savings, channel capital to productive investment, reduce transaction costs and improve financial inclusion, particularly for small businesses and underserved communities.

Sri Lanka already has digital banking, mobile and internet banking, payment cards, digital payment applications and interoperable national payment infrastructure through LankaPay, he noted.

Looking ahead, the Governor identified open and interoperable financial services, digital identity, data-driven lending, cross-border payment connectivity and digital investment services as key growth areas.

He also warned that fintech brings risks, including cyberattacks, operational disruptions, fraud, data breaches, inadequate consumer disclosures, excessive leverage and concentration of critical services among technology providers.

‘We must strike the right balance: encouraging competition and innovation while ensuring effective supervision, sound risk management and strong consumer protection,’ Weerasinghe said.

He reiterated that the Central Bank remains open to innovation and pointed to its FinTech Regulatory Sandbox as a controlled environment for testing eligible financial solutions.

FinTech Forum Sri Lanka Chairman Channa de Silva said the theme of this year’s festival was much more than a tagline.

‘It highlights the opportunity in front of us, at an organisation and a national level. Bringing together innovators, financial institutions, policymakers and global partners, we showcased Sri Lanka’s fintech capabilities, opened doors to attract investment and talent, and created pathways for local solutions to scale internationally,’ he said.

‘Our ultimate ambition is to turn collaboration into lasting economic value for the country and position Sri Lanka as a fintech hub in the regional fintech landscape.’

The festival served as a showcase of Sri Lanka’s existing digital-payment infrastructure, connecting the local ecosystem with regional and international financial developments. Sessions highlighted how the country has already built essential digital rails and how these platforms can support cross-border transactions, investment, regional market access and Sri Lanka’s ambition to emerge as a digital economy hub in Asia.

The Sri Lanka FinTech Festival 2026, organised by FinTech Forum Sri Lanka in collaboration with the Digital Economy Ministry and powered by Visa, was held from 2 to 3 November at Shangri-La Colombo under the theme ‘Building Capacity, Creating Opportunities and Scaling Sri Lanka’s Digital Future.’

The festival brought together policymakers, regulators, banks, non-bank financial institutions, technology firms, investors, entrepreneurs, SMEs and tourism-sector stakeholders to discuss the future of digital finance and showcase Sri Lanka’s digital financial services capabilities.

The two-day event included the FinTech Expo conference, featuring exhibition floors, keynotes and panel discussions, and concluded with FinTech Night and the FinTech Awards 2026, which recognised contributors to Sri Lanka’s fintech ecosystem.

Gestetner of Ceylon PLC has appointed Sriyan de Silva Wijeyeratne to its Board as an Independent Non-Executive Director.

Wijeyeratne who has held several leading Corporate and other roles across his multifaceted career spanning over 30 years. He played transformative roles during his tenure as the MD/ CEO of Teejay Lanka PLC, which surged to become one of the S and P Top 20 Companies during his time and was recognised as a Winner of Forbes ‘Asia’s 200 Best under a Billion Dollar Company’, and he delivered similar transformation while being MD of the Hemas Consumer Business.

He served as Country Manager of Microsoft for nine years, establishing their footprint while building many initiatives of national significance and winning many awards along with his team. He was later entrusted with running the Microsoft business for Bangladesh and Nepal as well. Wijeyeratne was also a previous Chairman/CEO of the Employees Trust Fund Board, a Marketing Director in Telecommunication, a Group CEO in Consumer Electronics and managing FMCG Brands within Nestles. His current Independent Director roles include that of Allianz Insurance, where he also chairs the Audit Committee, and he is a past Chairman of Axion Solutions Ltd.

He is currently engaged with Startup operations, Conservation initiatives, and in providing Consulting support to limited businesses who are hungry for growth and transformation. His skill in growing people and delivering demonstrated breakthrough results repeatedly through existing teams, stem from the ability to combine best practices from different disciplines and industries with a bias for practical action, and by challenging norms which inhibit growth potential.

Wijeyeratne obtained the All-Island Number One ranking at the AL’s, possesses a First-Class Degree in Business Administration from the University of Sri Jayawardenapura and a Master’s Degree from the same university. He is also a recipient of the distinguished and prestigious Pradeepa Pranama Award by the University Alumni association. He is a Fellow member of CIMA, UK, and is also a CGMA. Wijeyeratne has several awards to his credit, had Executive education at many global institutions including INSEAD and CCL, and is a frequent speaker at leading forums locally and globally. He was previously named CIMA Business Manager of the Year and he was listed on the CIMA Top 50 Business Icons in 2021. He is involved in many chambers and local and global charities.

For many years, he was on the International Board of Youth Business International, which was one of King Charles’ Charities based out of UK, and he has served on several local Boards. He was President of the Wildlife and Nature Protection Society (WNPS) and played a key catalytical role in its renaissance. Currently Chairman of their PLANT initiative (www.plantsl.org), he conceptualised and gave leadership to the initiative to drive it to become the largest private sector driven ecosystem restoration effort in Sri Lanka. A former Editor of the Loris Magazine, he currently spends most of his time working on addressing broad Conservation issues within Sri Lanka through practical responses on ground. He is a published photographer and passionate about travelling, music, and Community work.

The continued upward trend in real estate prices, together with the banking sector’s increasing exposure to real estate activities, warrants continued monitoring, the Central Bank of Sri Lanka (CBSL) said, warning that a sharp correction in property prices could spill over to the financial system.

In its recent Financial Stability Review 2026, the CBSL said Asking Price Indices for land, houses and condominiums in the Colombo District, which track the prices sought by sellers against a 2019 base, continued to increase during most of the review period, with all three reaching their highest levels since 2019.

The upward movement reflected improving economic activity, elevated construction costs and sustained demand for real estate assets, supported by lower borrowing costs amid relatively accommodative monetary policy conditions, the CBSL said. However, the persistent increase in property valuations highlighted the need for continued attention given the risk of potential market imbalances.

That backdrop has since shifted. The CBSL raised the Overnight Policy Rate (OPR) by 100 basis points to 8.75% on 26 May 2026, its first policy rate increase since June 2023, which the report said contributed to further upward adjustments in market interest rates and Government securities yields.

Meanwhile, the banking sector’s exposure to real estate related activities remained elevated, with loans extended to the sector accounting for 13.7% of total loans and advances by end-June 2026. Data in the report show total exposure approaching Rs. 2 trillion by end-June 2026, growing at a double-digit pace year-on-year. This marks a strong rebound from 2024, when exposure contracted, before returning to growth in 2025.

This exposure covers loans for the purchase of land, the construction, development and renovation of residential and non-residential buildings, and real estate activities including condominium development. Growth in real estate lending was primarily driven by residential real estate activities, which account for more than 80% of the exposure, while lending to non-residential real estate activities contracted.

Asset quality in the segment improved, however. The Stage 3 loans ratio of real estate lending, which captures credit-impaired loans, declined to 10.4% by end-June 2026 from 14% a year earlier, indicating an improvement in asset quality amid credit expansion. Even so, it remained above the banking sector’s overall Stage 3 loans ratio of 9.1%.

Construction more broadly remains a pressure point. The report noted that construction, which accounts for more than 10% of total banking sector credit, was among the sectors contributing over 10% of credit expansion during the year to end 2Q 2026, and continued to record a relatively high Stage 3 loans ratio, although it declined from a year earlier. Construction-related small and medium enterprises continued to register a Stage 3 loans ratio above 20%, reflecting persistent repayment challenges.

The CBSL listed the continued rise in real estate prices among emerging domestic risks, alongside rising household indebtedness and volatility in collateral values amid increased exposure to collateral-backed lending.

‘Given the linkages between the real estate market and the banking sector, a sharp correction in property prices could adversely affect collateral values and borrower repayment capacity, creating negative spillover risks to financial stability,’ the CBSL said.

The official national poverty line rose marginally to Rs. 17,742 per person per month in September 2026, from Rs. 17,719 in August, according to the Department of Census and Statistics.

The latest figure represents a year-on-year increase of 8.1% from Rs. 16,413 recorded in September 2025, reflecting the higher minimum monthly expenditure required to meet basic needs.

At district level, Colombo recorded the highest poverty line at Rs. 19,136, followed by Gampaha at Rs. 19,037 and Kalutara at Rs. 18,624. Nuwara Eliya had the lowest figure at Rs. 16,558, followed by Monaragala at Rs. 16,965.

The Department said the poverty line is the minimum monthly expenditure required per person to meet basic needs. The September increase was due to a rise in the National Consumer Price Index (NCPI) compared with the previous month. The district estimates are adjusted for price differences using the NCPI, based on 2021.

The 2026 Commonwealth Heads of Government Meeting (CHOGM) opened in Antigua and Barbuda on Tuesday with a drive for bold partnerships between governments and businesses to unlock prosperity for the Commonwealth’s 2.7 billion people.

Charles III, Head of the Commonwealth, joined leaders from across the Commonwealth at the official Opening Ceremony on 3 November 2026 in St. John’s, where they were welcomed with a vibrant performance and dance, celebrating Antiguan and Barbudan culture and history.

The ceremony marked the start of leaders’ deliberations under the theme ‘Accelerating Partnerships and Investment for a Prosperous Commonwealth’.

This is the first CHOGM under the leadership of Commonwealth Secretary-General Hon Shirley Botchwey. It will also be the first time Heads of Government engage directly at CHOGM with business leaders, investors, heads of international financial institutions and philanthropists. Their focus will be on mobilising partnerships and investment in scalable projects that will tangibly respond to member country needs, including in areas of skills-building, climate finance and green energy.

‘Unparalleled opportunity’

In his remarks, the King said: ‘All around us, trust between nations is under critical strain, as international norms and systems are tested to their limits. Brutal conflict stalks our world, destroying lives and casting long shadows across the globe. Technology is transforming our societies and our economies at dizzying speed, with little certainty about where it might lead us.

‘As I have consistently tried to emphasise, climate change is no longer just a terrifying prospect, but a catastrophic reality which threatens our very way of life… And in each of our countries, for too many people, the opportunity to fulfil their own potential lies far beyond their reach.

‘Each of these is a challenge of the highest order. Together, they comprise the crisis of our time. The Commonwealth cannot provide all of the solutions. It does, however, offer an unparalleled opportunity to work together – across our societies and our economies, through our businesses, our institutions and our communities. It allows us to draw on the collective ingenuity of a third of humanity to address the challenges confronting us all.’

Echoing The King’s remarks, Secretary-General Botchwey said the world today is ‘sorely in need of the Commonwealth spirit of always finding a way’.

‘Together with our hosts, and our member countries, we have remade this CHOGM as a summit of action. Our goal is to build a new model of partnership and cooperation that is capable of responding to the scale of challenge we face; to avoid the mistakes of the past by making our collective interest the sum of our individual national interest. It is a success strategy that requires a mindset change, including discarding the old division of labour between states and business.’

She said that strategy is already taking shape through new initiatives to mobilise investment, boost intra-Commonwealth trade, upskill young people and expand renewable energy.

Addressing the Heads of Government, the Secretary-General said: ‘Our people will judge this meeting by what it delivers for them. Each of you brings the authority to act on behalf of your country. Together, you can deliver for a third of humanity. I urge you to seize this chance to build resilience and shared prosperity together.’

A consequential CHOGM

Prime Minister of Antigua and Barbuda Gaston Browne described the meeting as a ‘consequential CHOGM’, pointing to early results including US$200 million mobilised through the Nature Initiative and US$1.3 billion announced through the Global Eye Health Summit.

Prime Minister Browne, who takes over from Samoa as Commonwealth Chair-in-Office said: ‘We cannot, through the Commonwealth alone, eliminate the divisions that confront our world. But we can refuse to allow those divisions to determine the limits of our ambition or diminish the hopes of our people. Let history remember that, at this moment of global uncertainty, we chose cooperation over division, solidarity over indifference, and action over empty promises. Let ours be a Commonwealth that gives every member a voice, every young person a horizon of opportunity, and every nation a fair chance to prosper. A Commonwealth that stands as a force for good, a conscience in the international community and a stabilising influence in an unsettled world. That is the Commonwealth our people deserve.’

During this summit, Heads of Government and business leaders are meeting in two dedicated sessions to mobilise finance for an over $52 billion pipeline of investment-ready projects from 28 developing Commonwealth countries.

Leaders will also consider a new Commonwealth work programme to remove barriers to intra-Commonwealth trade; a common approach to sustainable debt and concessional finance that better reflects vulnerability; and a plan to carry the investment agenda forward in 2027.

With 60 per cent of Commonwealth citizens under the age of 30, leaders will discuss how to expand education, skills and entrepreneurship opportunities for young people. Discussions will also cover building democratic resilience, accelerating climate action and responding to the particular challenges facing small states.

Climate pressure

Deputy Prime Minister Mulipola Anarosa Ale-Molio’o of Samoa, speaking as outgoing Commonwealth Chair-in-Office, highlighted the growing pressure of climate change on small and vulnerable states.

‘The world is already pushing past the critical 1.5°C degree threshold. Many nations and communities are facing permanent losses, but overshoot must not become an excuse for delayed admission or inaction, the Commonwealth must hear the calls from the recent Pacific Pre-COP31 discussions in Fiji and Tuvalu.

‘Accessible and predictable climate finance is the bridge between ambition and action. No nation should have to borrow its way out of a crisis it did so little to create.’

The CHOGM executive sessions will culminate in the Leaders’ Retreat, which gives Heads of Government an opportunity to have frank discussions in an informal setting.

Alongside the summit, Youth, Women’s, People’s and Business Forums are being held to bring voices from across the Commonwealth into the meeting, with additional events focused on blue finance, eye health, governance and democracy, and sport for development.

By the close of CHOGM, leaders are expected to issue a communiqué setting out agreed priorities and commitments to build resilience and expand opportunities for people across the Commonwealth’s 56 member countries.

Skipper Kusal Mendis and opening batsman Lahiru Udara struck fifties apiece to help Sri Lanka declare at 223-7 on the opening day of their 3-day warm-up match against PCB Patron’s XI at Islamabad Cricket Club yesterday.

Sri Lanka, who elected to bat after winning the toss, recovered from a difficult start after losing three wickets for just 40. Mendis led a recovery with 66 providing the backbone of the innings. He struck 11 boundaries in his 72-ball knock, maintaining an aggressive approach despite the early setbacks.

Udara anchored the innings with 65 from 105 deliveries, including seven fours and three sixes. His contribution proved crucial after Pasindu Sooriyabandara fell for eight and Dinesh Chandimal departed without scoring, both to Saqib Khan.

Dhananjaya de Silva added 14 before becoming Mohammad Salman’s only victim, leaving Sri Lanka struggling at 40-3.

Udara subsequently combined with Mendis to rebuild the innings adding 90 for the fourth wicket before Ali Shabbir dismissed him for 65. Shabbir later removed Sonal Dinusha for ten to finish with two wickets.

Anjala Bandara hit an unbeaten 33 off 61 balls (5 fours) before Sri Lanka closed their innings.

Saqib was the standout bowler, returning figures of 2/28 from 12overs, while Mohammad Salman and Ali Shabbir also picked up two wickets apiece.

In the remaining 15 overs, Sri Lanka hit back through Dilshan Madushanka and Milan Rathnayake to capture two Patron’s XI wickets for 43 runs by the close.

The match provides Sri Lanka with valuable preparation ahead of their upcoming two-Test series against Pakistan, scheduled to begin in Rawalpindi on 9 November, with the second Test in Lahore from 17 November.

The Sri Lanka Export Development Board (EDB), in collaboration with the International Finance Corporation (IFC) and the European Union (EU), successfully conducted the final pitching event of batch III of ExpoScaleUp, designed to help Sri Lankan SMEs become more competitive and expand into global markets. Supported through the EU’s regional Accelerating Climate Smart and Inclusive Infrastructure in South Asia (ACSIIS) initiative under the EU Global Gateway Strategy, ExpoScaleUp is part of the Sri Lanka Export Excellence Initiative (SLEEI), a flagship program aimed at strengthening SME export readiness, market access and long-term competitiveness.

Through ExpoScaleUp III, 25 Sri Lankan SMEs developed export market plans to sharpen their strategies and position their businesses for international growth. The program concluded with a pitching event, where participants presented their business potential and pathways to new markets before a panel of experts.

In his opening address, EDB Chairman Mangala Wijesinghe, highlighted the importance of SMEs in strengthening Sri Lanka’s export sector and expanding the country’s presence in international markets. He also acknowledged the collaborative efforts of IFC and the European Union in supporting Sri Lankan enterprises through initiatives aimed at enhancing their capabilities and export competitiveness.

Speaking at the event, IFC South Asia Manager-Country Advisory and Economics Gregory Smith, emphasised that helping SMEs are central to Sri Lanka’s economy, and helping them compete globally is key to unlocking Sri Lanka’s growth, creating jobs and strengthening economic resilience.

He noted that IFC has long provided SMEs with finance and expertise to help SMEs strengthen their businesses and enter new markets. This partnership builds on that foundation, helping more Sri Lankan businesses develop the capabilities and connections they need to compete and grow globally.’

Delegation of the EU to Sri Lanka and the Maldives Head of Partnerships Virginie Lafleur-Tighe said, ‘The EU is proud to support the ExpoScaleUp program as part of our broader partnership with Sri Lanka under the ACSIIS regional program. This initiative reflects our shared commitment to strengthening the competitiveness of SMEs by helping them become more export-ready, more sustainable, and better equipped to meet evolving market standards. By linking private sector development with climate action, and by working closely with partners such as IFC and the EDB, we are contributing to a more resilient, inclusive, and future-ready export ecosystem in Sri Lanka.’

Participating SMEs represented a diverse range of sectors, including spices and concentrates, processed food and beverages, coconut-based products, gifts and handicrafts, ICT/BPO, and herbal cosmetics.

Ten SMEs were recognised for the best Export Market Plans, highlighting their efforts to develop structured market-entry strategies and identify opportunities for sustainable export growth. Selected SMEs will have the opportunity to advance to ExpoConnect, the program’s next stage, focused on market access, trade facilitation, and targeted matchmaking with international buyers.

Nearly 750 SMEs across Sri Lanka have benefited from the SLEEI program through regional awareness sessions and business clinics. The initiative highlights the commitment of the EDB, IFC and the European Union to helping Sri Lankan SMEs compete globally.