News
CB predicts rebounding of country’s economy in 2021
… growth magnitude tied to containing coronavirus
The Central Bank expects the country’s economic growth to rebound in 2021, and maintain the upward trajectory over the medium term, supported by pro-growth policies of the government.
“As projected under the medium-term macroeconomic framework of the CBSL, the economy is expected to grow by around 5.0 per cent in 2021,” the Central Bank said in its latest report on “Recent Economic Developments: Highlights of 2020 and Prospects for 2021?.
According to the monetary regulator, the economic growth is projected to contract by around 1.7 percent in 2020 compared to 2.3 percent growth recorded in 2019. It is predicted that the economy would recover during the second half of 2020 amidst the setback caused by the COVID-19 pandemic related disturbances.
The Industry related economic activities which were severely affected by the pandemic are expected to record a significantly high growth rate in 2021.
Major markets for Sri Lanka’s industrial exports are expected to normalize by early 2021 and contribute positively to the external demand for industrial exports thereby supporting the growth in manufacturing activities.
Services related economic activities are expected to continue its momentum during 2021. Investment activities are expected to grow significantly in 2021, supported by higher growth in private investments.
The outlook of the external sector, which is largely driven by the trade deficit, will depend on the global economic impact of the COVID-19 pandemic and the domestic policy responses.
Policies to boost domestic production are also expected to ease the pressure on the external sector of the economy on a sustained basis.
“Nevertheless, the success of containing COVID-19 locally and globally remains critical in determining the pace and the magnitude of domestic economic recovery and revival in the period ahead,” the Central Bank said in its report.
Inflation is expected to be maintained within the desired range of 4-6 percent over the medium term.
News
The use of local organic Agricultural products in the Bakery Industry will strengthen both local farmers and the tourism industry – PM
Prime Minister Dr. Harini Amarasuriya stated that the use of local organic agricultural products in bakery production would provide significant support to both local farmers and the growth of the tourism industry.
The Prime Minister made these remarks while addressing the Annual meeting of the All Ceylon Bakery Owners’ Association, held at the Shangri-La Hotel, Colombo, on Friday (12 June).
The Prime Minister stated,
“At a decisive moment when the country is moving towards a new phase of economic transformation, I believe that the bakery industry has the potential to become a key driver of the national economy, rather than remaining limited to flour-based products alone.
The food production must be mainly considered the quality and safety of food. Therefore, instead of focusing solely on taste, we should introduce nutritious and healthy products to the market that are free from artificial flavourings and colourings.
By using ingredients such as rice flour, finger millet, foxtail millet, green gram, and indigenous tubers to create value-added products, the bakery industry has the opportunity to capitalize on the growing global trend towards health-conscious diets.
The use of local organic agricultural products in food prepared for foreign tourists will provide substantial benefits to local farmers while also contributing to the growth of the tourism industry. At the same time, the government remains committed to strengthening local entrepreneurs by reducing challenges related to the importation of raw materials, providing concessionary loans for new technologies, and offering the technical assistance required to meet international standards.
The government has already launched programmes through the Ministry of Industries to provide the necessary training and market linkages to help small and medium-scale bakery owners develop and expand their businesses”.
The occasion was attended by the Deputy Minister of Industries Chathuranga Abeysinghe, President of the All Ceylon Bakery Owners’ Association N.K. Jayawardana, and a number of members of the Association were also present at the event.

Prime Minister’s Media Division
News
Prime Minister meets with UNICEF delegation
Prime Minister Dr. Harini Amarasuriya met with a delegation from the UNICEF on Friday (June 12) at Temple Trees to discuss ongoing efforts to support the recovery of the education sector following the impact of Cyclone Ditwah.
Discussions focused on the implementation of activities outlined in the report titled “Cyclone Ditwah Education Emergency Response Plan: Phase 1 Progress Updates (January–April 2026).” The meeting provided an opportunity to review the progress achieved during the initial phase of the response and to discuss future interventions aimed at supporting children and schools affected by the disaster.
The Prime Minister and the UNICEF delegation also exchanged views on strengthening collaboration to ensure the continuity of education and the well-being of affected children.
The UNICEF delegation included Emma Brigham, UNICEF Representative, Begona Arellano, Deputy Representative, and other UNICEF officials.

(Prime Minister’s Media Division)
News
Switzerland to vote on plan to cap population at 10 million
Can a country put a fixed limit on its population? That is the question Switzerland will be answering on Sunday when voters go the polls to decide on a proposal to cap their population at 10 million, a move that has exposed divisions about immigration in the Alpine nation.
The move is backed by the right-wing Swiss People’s Party, which describes it as a “sustainability initiative” aimed at easing pressure on housing, public services and the environment. However some voters see this as the party’s latest anti-immigration move.
Dubbing it a “chaos initiative”, the government, other political parties, business leaders and trade unions argue it will deprive hospitals and hotels of much needed staff, and damage hard-won relations with the European Union, leaving non-EU member Switzerland isolated in a very risky world.
Switzerland’s population has grown rapidly since 2002, when it stood at 7.3 million. Now it is 9.1 million, 27% of whom are Swiss residents who were born abroad.
Switzerland’s system of direct democracy means all major decisions are taken via the ballot box. Campaigners simply have to gather 100,000 signatures to ensure a nationwide vote.
Many voters are concerned by overcrowded trains, expensive apartments and rising health costs.
The latest opinion polls indicate this could be a very close vote.
They suggest voters are inching towards a no vote by a wafer thin margin, with 52% opposed – but polls remain divided, with 45% saying they are in favour of the proposal and a significant number of voters still undecided.
[BBC]
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