Sri Lanka, Brazil to sign agreement to implement sugarcane project

Tuesday September 1, 2026 2:45 pm ECONOMYNEXT — Sri Lanka’s Cabinet has approved a proposal to sign a complementary adjustment agreement with Brazil to implement a sugarcane project, minister Nalinda Jayatissa said. Sri Lanka originally entered into a basic Technical Cooperation…

Tuesday September 1, 2026 2:45 pm

ECONOMYNEXT — Sri Lanka’s Cabinet has approved a proposal to sign a complementary adjustment agreement with Brazil to implement a sugarcane project, minister Nalinda Jayatissa said. Sri Lanka originally entered into a basic Technical Cooperation Agreement with Brazil on September 16, 2008, aimed at promoting bilateral cooperation across mutually beneficial sectors. “According to the basic agreement on technical cooperation signed between Sri Lanka and Brazil, it is required that the programs and projects under it are implemented through complementary coordination agreements,” Jayatissa said. Under the framework of that initial agreement, specific programs and projects require execution through separate Complementary Adjustment Agreements. At a previous Cabinet meeting in May, approval was granted to sign a project collaboration agreement among the Brazilian Cooperation Agency, the Federal University of São Carlos, Sri Lanka’s Ministry of Industries and Entrepreneurship Development, and the Sugarcane Research Institute. (Colombo/September01/2026)

Tuesday September 1, 2026 2:14 pm

ECONOMYNEXT – Sri Lanka’s cabinet of ministers have approved a proposal to sign a Mutual Legal Assistance agreement in criminal matters with South Korea, minister Nalinda Jayatissa said. “The agreement allows mutual cooperation between the states to gather evidence, serve judicial documents, and exchange information to investigate or prosecute criminal offenses across borders,” he told reporters. The idea was first proposed in 2023 but the relevant agreement had not been signed. (Colombo/Sep1/2026)

Tuesday September 1, 2026 1:02 pm

ECONOMYNEXT – Sri Lanka has sold 5,000 million rupees of bonds offered on tap at average rates set at an auction last week, bringing the total of bonds sold in the week to 55 billion, data from the Public Debt Management Office showed. The issue offered 50 billion rupees. The debt office sold a 1 August 2030 maturity bond (LKB00530H016) at a weighted average yield rate of 10.54 percent. The debt office sold a 15 March 2035 maturity bond (LKB02035C155) at a weighted average yield rate of 11.70 percent. Total market subscription was 14,50 million rupees. Sri Lanka sells Rs50bn in 2030 and 2035 bonds Last Tuesday, 50 billion rupees in 2030 and 2035 bonds were sold. (Colombo/Sep1/2026)

Tuesday September 1, 2026 12:15 pm

ECONOMYNEXT – Sri Lanka’s current account recorded a deficit of 142 million dollars in July, remaining in the deficit for the fourth consecutive month, the central bank said. “The cumulative current account recorded a deficit of US$ 387 million during January-July 2026, compared to a surplus during the corresponding period of 2025.” The merchandise trade deficit widened on a year-on-year basis in July, amidst higher import spending and lower export earnings. The total trade deficit during January–July 2026 widened to 6.5 billion dollars, compared to 3.9 billion dollars in 2025. Fuel import costs increased by 68.0 percent year-on-year in July 2026. The January–July fuel import bill was around 3,622 million dollars, CBSL said, a 59.9 percent increase from the same period last year. Motor vehicle imports cost 241 million dollars in July, totaling 1,495 million dollars from January-July. As import prices increased faster than export prices, CBSL said, the terms of trade deteriorated on a year-on-year basis in the month, and during the January-July period, compared to 2025. The services account recorded a surplus of 244 million dollars in July, a year-on-year drop of 23.0 percent. “The surplus increased by 50.7% compared with the previous month, mainly driven by higher tourism earnings.” The total services account surplus for January-July 2026 fell 22.4 percent to 1.8 billion dollars. Tourist arrivals fell 1.7 percent year-on-year in July. Total arrivals during January-July 2026 were 1,343,418, compared to 1,368,288 arrivals in the same period last year. Tourism earnings in July fell 10.3 percent from a year earlier to 286 million dollars. Total tourism earnings for January-July 2026 fell 11.5 percent to 1.8 billion dollars, compared to the last year. Workers’ remittances rose 11.5 percent year-on-year to 778 million dollars in the month, with total remittances for the seven months of 2026 rising by 21.4 percent to 5.4 billion dollars. Foreign investment in government securities saw a net inflow of 159.4 million dollars in July. Foreign investment in the Colombo Stock Exchange saw a net outflow of 6.3 million dollars in the month. Gross official reserves were at 6.6 billion dollars end July, supported by forex buying by CBSL it said. Sri Lanka’s rupee had depreciated 5.5 percent against the US dollar on a year-to-date basis. (Colombo/Sep1/2026)

Tuesday September 1, 2026 10:53 am

ECONOMYNEXT – Sri Lanka’s Colombo Stock Exchange indices were trading up on Tuesday morning, CSE data showed, with the benchmark All Share Price Index moving up 0.23 percent. The ASPI was up 48.30 points at 21,386.99, while the more liquid S&P SL20 was up 0.07 percent, or 4.00 points, at 6,013.68. Positive contributors to the ASPI were Hatton National Bank (up 1.18 percent at 384.75 rupees), Dialog Axiata (up 1.08 percent at 46.90 rupees), Colombo Dockyard (up 2.49 percent at 123.50 rupees), and Richard Pieris and Company (up 3.08 percent at 26.80 rupees). John Keells Holdings (down 0.50 percent at 19.80 rupees), DFCC Bank (down 0.78 percent at 127.00 rupees), and Kelani Tyres (down 8.49 percent at 85.10 rupees) were top negative contributors. Market turnover was 77.3 million rupees. Capital goods led turnover with 34.75 million rupees. Renuka Holdings announced a first and final scrip dividend of 0.212 rupees per voting and non-voting share for the financial year ended March 31, 2026, subject to shareholder approval at its Annual General Meeting on September 24, 2026. Renuka Holdings shares were trading down 6.84 percent at 42.20 rupees. (Colombo/September01/2026)

Tuesday September 1, 2026 10:44 am

ECONOMYNEXT – Sri Lanka will obtain a 200 million US dollar concessional loan from the World Bank to develop its tourism sector, starting with 77 million dollars to turn Colombo into a high-value travel destination, an official said. Natasha Kapil, World Bank Lead Private Sector Specialist for South Asia, said the loan supports three successive island-wide operations. Preparatory work is backed by a 1 million US dollar grant under the World Bank’s Grant Facility for Project Preparation (GFPP). The initial 77 million dollar ‘Thrive Colombo’ project will be executed via a concessional facility to increase visitor spend and stay time in the capital, followed by two operations targeting nature-based tourism and marine tourism. Kapil noted Colombo retains only 5 percent to 10 percent of incoming visitors despite having the country’s highest concentration of 5-star hotel rooms. “If you look at the numbers of visitors that come to the island and those that actually stay in Colombo, the number is minuscule,” Kapil said, adding that most tourists stay just half a day. The strategy targets higher-spending regional travelers within a 5-hour flying radius for 48-to-72-hour getaways, shifting the focus from volume to value. The project is structured around three components. The first component modernizes national institutions under the Ministry of Tourism — including the Sri Lanka Tourism Development Authority (SLTDA), the Promotion Bureau, and the hotel school (SLITHM) — while assisting the new Tourism Act and upgrading digital data systems. The second component finances physical infrastructure — the “hardware of Colombo” — across two circuits: a Fort heritage loop and an urban wetlands loop. Hard infrastructure investments will fund pedestrianization, building facade improvements, and waterfront connectivity spanning Galle Face Green to the Pettah market. Several Fort heritage buildings have been identified for adaptive reuse under private management and operations. The wetlands loop will upgrade connections around sites like Beddagana and Diyasaru parks. The third component establishes a Tourism Entrepreneurship Fund to finance the city’s “software.” Managed by a private fund manager to ensure commercial viability, it will bring in private capital alongside institutions like the International Finance Corporation (IFC). The fund will direct capital to micro, small, and medium enterprises (MSMEs) — such as artisans, baristas, and walking or nature guides — as well as the “Colombo calendar” of events, including performing arts, Kala Pola, fashion weeks, and literature festivals. The GFPP-backed strategic consultancy is laying the groundwork through regulatory reviews, skills assessments, and targeted marketing campaigns. (Colombo/Sep01/2026)

Tuesday September 1, 2026 10:34 am

ECONOMYNEXT- Sri Lanka will host the South East Asia Rotaract Information Centre (SEARIC) Summit for the first time from September 11 to 13, at the Pegasus Reef Hotel. Hosted by Rotaract in Rotary International District 3220 (Sri Lanka & Maldives), the three-day flagship regional event is expected to bring together over 500 delegates from six countries. The summit will focus on the theme “The Role of Technology in the Future of Careers and Services,” exploring how emerging technologies impact leadership, careers, and community service. Delegates will engage in leadership sessions, professional discussions, and cultural experiences. Sri Lanka represents the eighth-largest Rotaract membership base globally, with over 4,500 members across more than 85 active clubs. The event also aims to showcase Sri Lanka’s hospitality and potential as a host destination for international conferences.(Colombo/August31/2026)

Sri Lanka, Brazil to sign agreement to implement sugarcane project

Sources