What happened, what mattered and what comes next
THE WEEK IN A MINUTE
The final week of October saw continued legal action involving prominent political figures, renewed scrutiny of police accountability and growing opposition to the Government’s proposed counterterrorism and organised-crime legislation.
The Supreme Court invalidated a presidential pardon granted by former President Ranil Wickremesinghe, reinforcing constitutional equality before the law. Meanwhile, proceedings involving Namal Rajapaksa, Basil Rajapaksa, Johnston Fernando and Pillayan continued.
Economically, September merchandise exports recorded strong growth, while the Central Bank reported progress in accumulating foreign reserves. However, rising fuel and bakery prices and an inflation outlook of 8% into early 2027 pointed to continuing household pressures. The Government also advanced plans for state-owned enterprise restructuring and private investment in plantations.
Human rights, institutional transparency and disaster recovery remained prominent concerns, particularly over proposed security legislation, the release of 323 containers, alleged corruption within the Department of Motor Traffic and delays in Cyclone Ditwah compensation.
Sri Lanka also strengthened maritime engagement with India and the United States and coordinated the evacuation of 40 Iranian seafarers requiring medical assistance.
In Depth
1. POLITICS, GOVERNANCE AND PARLIAMENT
The proposed counterterrorism and organised-crime legislation attracted criticism from Opposition Leader Sajith Premadasa, who raised concerns with diplomatic missions and international organisations in Colombo, arguing that national security measures must not undermine fundamental rights.
Human Rights Watch warned that the proposed legislation could reproduce abuses associated with the Prevention of Terrorism Act (PTA), including arbitrary detention, torture, surveillance and restrictions on fundamental freedoms.
The United Nations Human Rights Office has raised serious concerns over Sri Lanka’s proposed Protection of the State from Terrorism (PSTA) Bill and Prevention of Organised Crimes Bill, warning that several provisions could enable arbitrary detention, restrict freedom of expression and increase the risk of torture, among many other human rights violations.
The Ceylon Chamber of Commerce separately warned that the proposed laws could jeopardise Sri Lanka’s EU GSP+ trade concessions. It called for clear legal definitions, judicial oversight and adequate due-process safeguards.
President Anura Kumara Dissanayake appointed retired Supreme Court Justice Vijith Malalgoda Chairperson of the Human Rights Commission of Sri Lanka (HRCSL). The other members are S.Y.M. Gomes, A.L.A. Azeez, Dr. S.S.S.B.D.H. Jayawardena and Prof. T. Jayasingam.
The HRCSL has raised concerns over the failure of public institutions to implement its recommendations. Several reports submitted to the President concerning institutional non-compliance have yet to be discussed in Parliament, it noted.
Leader of the House Bimal Rathnayake said the Opposition’s no-confidence motion against Speaker Dr. Jagath Wickramaratne would not be debated until appropriately amended. Parliament is scheduled to meet from November 3-6.
The Election Commission has certified the 2026 electoral register, recording a total of 17,641,006 qualified voters – an increase of 90,835 compared to the previous year’s register. The increase in the electorate has prompted changes to the allocation of parliamentary seats in the Colombo and Gampaha districts with each gaining an additional parliamentary seat.
The President also appointed an advisory committee, co-chaired by the Acting Chief Prelate of Atamasthana and Presidential Chief of Staff Prabath Chandrakeerthi, to oversee development initiatives in the Anuradhapura Sacred City.
A 10-day satyagraha at Vihara Mahadevi Park seeking the release of Ven. Galaboda Aththe Gnanasara Thera was temporarily suspended following assurances from the Chief Prelates of the three Buddhist Chapters that they would pursue discussions with the Government.
Discussions also continued on enabling Sri Lankans living overseas to vote, with election officials examining registration procedures and possible arrangements for casting ballots from abroad.
2. LAW, JUDICIARY AND ANTI-CORRUPTION
The Bribery Commission informed the Colombo Magistrate’s Court that indictments had been filed against MP Namal Rajapaksa before the Colombo High Court Special Trial-at-Bar in connection with the Airbus deal bribery case. He is due to be produced before court on November 19. Rajapaksa’s bail application in regard to the Krish deal is to be delivered on November 3.
The Matara Magistrate’s Court issued an open arrest warrant for former Minister Basil Rajapaksa following an FCID report concerning the Brown’s Hill land case.
Former Minister Johnston Fernando pleaded guilty before the Colombo Fort Magistrate’s Court to possessing a luxury vehicle without paying the applicable import taxes. The court will deliver its decision on November 11.
Former State Minister Sivanesathurai Chandrakanthan, alias Pillayan, was further remanded until November 10 in connection with the murders of five people in the Eastern Province.
Former President Gotabaya Rajapaksa was issued notice to appear in court on November 4 regarding his application for permission to travel overseas for medical treatment.
The Bribery Commission filed a revision petition in the Colombo High Court seeking to overturn the decision to grant bail to three suspects, including Rakitha Rajapakshe, son of former Justice Minister Wijeyadasa Rajapakshe, and Charith Abeysinghe. The Commission has also taken steps to freeze several bank accounts and luxury vehicles belonging to Rakitha Rajapakshe.
In a significant constitutional ruling, the Supreme Court declared null and void a presidential pardon granted by former President Ranil Wickremesinghe to a man sentenced to 29 months in prison for failing to pay Rs.1.74 million in maintenance arrears. The Court held that the remission violated the constitutional guarantee of equality before the law.
The Permanent High Court Trial-at-Bar sentenced Moulavi Nowfer and another accused to 12 years’ rigorous imprisonment each after they pleaded guilty to collecting firearms and explosives at Lactoswatte, Wanathawilluwa, in 2018.
The Court of Appeal is expected to rule on November 27 on whether to grant leave to proceed and interim relief in former intelligence chief Suresh Sallay’s challenge to his arrest and detention.
Separately, police identified 112 individuals wanted under Interpol Red Notices who are believed to be residing in 13 countries. Arrangements are underway to bring them back by 2027 to face legal proceedings.
3. POLICE ACCOUNTABILITY, CRIME AND NATIONAL SECURITY
Two separate custodial deaths in quick succession have raised fresh concerns over police conduct.
The OIC of Crimes and the Headquarters Inspector of Homagama Police were interdicted and arrested following the death of a suspect in custody. Two other Sub-Inspectors were also interdicted over alleged administrative lapses connected with the incident.
In a separate case, two police sergeants and a constable attached to the Kobeigane Police were interdicted for alleged dereliction of duty following the death of a suspect at Nikaweratiya Hospital on October 27 while in police custody.
On the narcotics front, Customs seized cocaine, Kush and hashish concealed in nine overseas parcels sent through the Central Mail Exchange, valued at Rs.60.2 million. Separately, a suspect was arrested in Gandara in connection with the seizure of ICE and heroin worth approximately Rs.11.8 billion from a dinghy at Naotunna, Tallala.
The two suspects arrested over the shooting of the tusker Kavantissa were further remanded until November 11.
The Government is preparing a joint operation involving the Department of Wildlife Conservation and the three armed forces to strengthen elephant protection, prevent wildlife crimes and reduce human-elephant conflict.
4. ECONOMY, TRADE AND INVESTMENT
The overall rate of inflation, as measured by the Colombo Consumer Price Index (CCPI), rose to a three-year high of 8.3 percent in October 2026, up from the previous month’s 8.0 percent and breached the Central Bank’s upper inflation target rate of 7 percent for the fourth straight month.
September merchandise exports increased 21.66% year-on-year to US$1.38 billion, driven by electronic components and spices. Services exports grew 0.67% to US$306.17 million.
Sri Lanka signed an MoU with China’s Yunnan Province to increase bilateral trade and facilitate greater entry of Sri Lankan goods into the Chinese market.
Cabinet approved a US$60 million loan facility from the OPEC Fund for International Development for Phase II of the Mahaweli Water Security Investment Programme.
It also approved the long-term leasing of 15 state plantation properties to selected local investors and a new performance- and sustainability-based framework for collective agreements in SOEs, effective January 1, 2027.
Deputy Finance and Planning Minister Anil Jayantha said the Government was preparing a legal framework for divesting and restructuring state-owned enterprises to eliminate commercial distortions.
The Cabinet approved the setting up of an authority to oversee and expedite public, private partnerships (PPPs).
The Welfare Benefits Board removed 331,653 ineligible individuals from the Aswesuma registry while adding 153,511 newly eligible beneficiaries following what the government termed ‘a re-certification exercise.’
Central Bank Governor Nandalal Weerasinghe said foreign reserves were being accumulated without exerting pressure on the rupee. He warned that prolonged high international oil prices could push inflation higher.
The Colombo Stock Exchange announced plans to increase its active retail investor base to between 100,000 and 150,000 through district-level branches and an agent network.
5. COST OF LIVING AND INFLATION
Lanka IOC and Sinopec increased Petrol Octane 95 by Rs.20 per liter from October 26.
The All-Ceylon Bakery Owners’ Association announced a Rs.5 increase in the price of a standard 450-gram loaf of bread from October 30. Prices of other bakery products also increased by Rs.5.
The Central Bank Governor indicated that inflation could remain around 8% or slightly higher through the end of 2026 and the first quarter of 2027 before gradually easing towards the 5% target from the second quarter.
6. HUMAN RIGHTS, TRANSPARENCY AND PUBLIC INSTITUTIONS
The Right to Information Commission ruled that a private bank operating under a licence issued by the Central Bank falls within the definition of a public authority under the RTI Act No.12 of 2016.
Investigators reportedly began extracting the complete dataset from the Department of Motor Traffic’s computer systems as part of an investigation into alleged corruption and irregularities.
The Parliamentary Committee on Public Enterprises (COPE) issued an ultimatum to the Ministry of Defence and administrators of the General Sir John Kotelawala Defence University Hospital, demanding clarification on whether the institution operates as a free state healthcare provider or a commercial enterprise.
Parliament’s investigation into the controversial release of 323 containers has been granted additional time. The inquiry concerns the integrity of Customs procedures, protection of public revenue and confidence that the law applies equally to everyone.
Meanwhile, Cabinet approved compensation of up to Rs.5 million for prison officers killed or injured during the deadly Negombo Prison clashes in July, alongside measures to strengthen the Prison Tactical Force.
7. DISASTER MANAGEMENT, AGRICULTURE AND FISHERIES
Cyclonic storm Arnab, which developed in the west-central Bay of Bengal, indirectly affected Sri Lanka, bringing heavy rainfall and flooding across the island.
The Government continues to face questions over delays in compensating households affected by Cyclone Ditwah almost a year ago. Parliament was informed that more than 53,000 households whose homes were partially damaged were still awaiting the second compensation instalment, while thousands of other affected families had yet to receive payments for damaged or destroyed houses.
President Anura Kumara Dissanayake disclosed that approximately 40% of annual fish production is lost through post-harvest wastage and called for urgent improvements in efficiency.
8. FOREIGN RELATIONS AND INTERNATIONAL ENGAGEMENT
Sri Lanka coordinated a humanitarian operation through Galle to evacuate 40 Iranian seafarers who had sought assistance over medical conditions aboard stranded merchant vessels approximately 24 nautical miles offshore. Facilitated by the Iranian Embassy in Colombo, the operation enabled the crew members to receive treatment ashore before departing for Iran.
Three Indian naval and coast guard vessels arrived at Colombo Port on October 26 for a three-day goodwill visit focused on maritime cooperation and training.
The US Navy’s littoral combat ship USS Canberra also arrived on October 26 for a routine port call. It was the vessel’s second visit to Sri Lanka this year and the second visit by a US warship to Colombo during October, following the earlier arrival of USS Tulsa.
9. EDUCATION, SPORTS AND TOURISM
Professor H.M.J.C. Pitawala was appointed Vice-Chancellor of Uva Wellassa University by President Anura Kumara Dissanayake.
FIFA reportedly plans to provide US$25 million to help make football Sri Lanka’s most popular sport within four years, according to Football Sri Lanka.
Sri Lanka Tourism has set a target of generating US$10 billion in annual tourism revenue and attracting five million international visitors by 2030.
THE WEEK IN NUMBERS
September merchandise exports| US$1.38 billion
Merchandise export growth| 21.66%
September services exports| US$306.17 million
Services export growth| 0.67%
OPEC Fund loan approved| US$60 million
Petrol Octane 95 price increase| Rs.20/liter
Bread/bakery products price increase| Rs.5
Inflation outlook| 8% or higher
Aswesuma beneficiaries removed| 331,653
Newly eligible Aswesuma beneficiaries| 153,511
Iranian seafarers evacuated| 40
Central Mail Exchange narcotics seizure| Rs.60.2 million
Tallala ICE and heroin seizure| Rs.11.8 billion
Households awaiting Ditwah compensation| Over 53,000
Annual fish post-harvest wastage| Approximately 40%
Individuals identified under Interpol Red Notices| 112
Countries concerned| 13
Proposed FIFA funding| US$25 million
Tourism revenue target for 2030| US$10 billion
Annual tourist arrivals target for 2030| 5 million
WHAT COMES NEXT: The week ahead and beyond
November 3-6: Parliament meets, with the Opposition’s no-confidence motion against the Speaker and proposed counterterrorism legislation likely to remain important issues. Namal Rajapaksa’s bail application to be considered.
November 4: Former President Gotabaya Rajapaksa’s application for permission to travel overseas for medical treatment comes before the courts.
November 10-11: Further proceedings are expected in Pillayan’s case, the Kavantissa tusker shooting case and Johnston Fernando’s luxury vehicle case.
November 12: President Anura Kumara Dissanayake, in his capacity as Finance Minister, will present the Government’s 2027 Budget proposals to Parliament.
November 19: Namal Rajapaksa is due before the Colombo High Court Special Trial-at-Bar in the Airbus bribery case.
November 27: The Court of Appeal is expected to rule on former intelligence chief Suresh Sallay’s challenge to his arrest and detention.
Economic management: The Government will need to contain inflationary pressures while maintaining reserve accumulation and export growth. International oil prices will remain a key variable.
SOE restructuring: Proposed reforms, plantation leases and new collective agreement arrangements will test the Government’s ability to implement its state-sector reform agenda.
Human rights and GSP+: International scrutiny of the proposed security legislation is likely to intensify, placing pressure on the Government to address concerns over fundamental rights and judicial safeguards.
November 28: One year since Cyclone Ditwah hit the country.
Disaster recovery: The outstanding Cyclone Ditwah compensation payments remain an immediate test of the Government’s relief-delivery capacity.
Institutional accountability: Investigations into custodial deaths, the Department of Motor Traffic, the 323 containers controversy and KDU Hospital will require credible findings and corrective action.
Tourism: Progress towards the 2030 targets will depend on investment in infrastructure, connectivity, service quality and destination marketing.
WHAT MATTERED – The deeper story
Sri Lanka enters November with encouraging export performance and continued efforts to strengthen foreign reserves, but the economic recovery remains vulnerable to inflation and external price pressures.
Politically, the Government’s credibility will increasingly depend on demonstrating that its anti-corruption commitments apply consistently, that public institutions are accountable and that proposed security legislation respects constitutional and international obligations.
The week’s developments also highlight the gap between policy announcements and implementation, particularly in disaster compensation, state-sector reform and institutional accountability.
The central challenge remains translating economic stabilisation and governance reforms into tangible improvements in public confidence and living standards.
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