News
South Asia to remain fastest growing region: ADB
The Asian Development Bank (ADB) last week said South Asia was likely to hang on to its fast growth despite fresh outbreaks of COVID-19, with 9.5% overall economic expansion and Sri Lanka projected to grow by 4.1% this year.
South Asia will have developing Asia’s fastest growth this year after suffering the region’s sharpest contraction in 2020. Aggregate output is forecast to expand by 9.5% in 2021, with growth tapering to 6.6% in 2022, the ADB said in its flagship Outlook report.
South Asia’s largely reflects the performance of India, which will rebound from an 8% contraction in fiscal year 2020 and grow by 11% and 7% in this and the following fiscal year.
A stimulus-fuelled surge in the US – India’s largest export market – will support the revival, but a severe second COVID-19 wave is threatening the recovery.
Economic activity in Afghanistan, Nepal, and Pakistan will also rise as tight containment restrictions are lifted, with buoyant remittances stimulating growth in Nepal and Pakistan. Sri Lanka’s challenging macroeconomic situation will likely moderate growth in 2022 but is forecast to grow at 4.1% in 2021. However, this is lower than Government projections of 5.5%-6%.
Growth recovery is dependent on an expansive budget and stronger global demand with a marked rebound expected in the major advanced economies, as well as from a base effect following contraction in 2020.
“Growth is projected to slow somewhat to 3.6% in 2022. Building on growth momentum in Q3 and Q4 2020, the Purchasing Managers’ Index, a leading indicator of economic activity, moved strongly into expansionary territory above 50 in the three months to March 2021, with manufacturing above 60 and services in the high-50s,” the report said.
Growth will benefit in the near term from increased private consumption as pent-up demand is released, and consumption and investment will benefit from low interest rates and ample liquidity.
Progress on the Colombo Port City special economic zone is expected to foster Foreign Direct Investment, as does development in the Hambantota Industrial Zone. The Government’s reform priorities include deregulation to simplify governance structure, improvements to the Judiciary, Customs efficiency, financial sector regulation, and effective land use.
News
Malaysia declares emergency in Sarawak as haze from Indonesia worsens
Malaysia has declared a state of emergency in a district in Sarawak state after haze caused by wildfires in neighbouring Indonesia increased air pollution to “hazardous” levels.
King Sultan Ibrahim “has consented to the declaration of emergency throughout Serian Division, Sarawak, following haze conditions that have reached air pollution levels hazardous to public health and safety”, Prime Minister Anwar Ibrahim’s office said in a statement on Thursday.
The declaration followed a formal request from the Sarawak Disaster Management Committee after the region’s Air Pollutant Index reached levels warranting consideration of a local emergency.
Under the order, 647 schools in Serian will close from Monday until at least the end of next week, alongside government and private offices, plantations, construction sites and quarries, with only essential services continuing to operate.
The state’s disaster management authorities said a three-day cloud-seeding operation launched on Thursday would be extended to at least Monday, citing forecasts of “more conducive cloud formations” during that period.
Sarawak State Disaster Management Committee chairman Douglas Uggah Embas, speaking at a news conference in Kuching, stressed that the emergency applied only to Serian, not the entire state, but urged residents there to take the situation seriously.
“Please minimise outdoor activities and avoid strenuous activities outdoors,” he said.
Sarawak, in the northern part of Borneo island, has been heavily affected by haze for weeks, as have the neighbouring states of Sabah and Peninsular Malaysia.
(Aljazeera)
Latest News
Sun directly overhead Moratuwa, Kesbewa, Handapangoda, Idalgashinna, Yudhaganawa, Kotiyagala and Panama about 12.08 noon today (05)
The sun is going to be directly over the latitudes of Sri Lanka from 28th of August to 07th of September due to its apparent southward relative motion.
The nearest places of Sri Lanka over which the sun is
overhead today (05) are Moratuwa, Kesbewa, Handapangoda, Idalgashinna, Yudhaganawa, Kotiyagala and Panama about 12.08 noon
News
Namal remanded until Sept. 18 over Airbus deal investigation
Sri Lanka Podujana Peramuna (SLPP) National Organiser and Parliamentarian Namal Rajapaksa was yesterday remanded until September 18 by the Colombo Chief Magistrate’s Court following his arrest by the Commission to Investigate Allegations of Bribery or Corruption (CIABOC) in connection with an investigation into the controversial SriLankan Airlines Airbus aircraft transaction.
Rajapaksa appeared before the CIABOC at around 9.15 am yesterday to record a statement after being summoned over the transaction. He was taken into custody following several hours of questioning and subsequently produced before the Colombo Chief Magistrate.
The investigation centres on allegations surrounding the acquisition of six Airbus A330 and eight A350 aircraft by SriLankan Airlines in 2013, in connection with an alleged USD 2 million bribe.
Former SriLankan Airlines Chief Executive Officer Kapila Chandrasena and his wife, Priyanka Niyomali Wijenayake, had previously been named in connection with the alleged bribery.
Chandrasena was arrested on March 12 as part of an investigation launched by the CIABOC under the Anti-Corruption Act and was subsequently released on bail. He was later found dead on May 8 while on bail, with police suspecting that his death was a suicide.
Open warrants have been issued for the arrest of Wijenayake, who is named as the second suspect, and Shamindra Rajapaksa, named as the third suspect, in the case pending before the Fort Magistrate’s Court in connection with the Airbus transaction.
The investigation has also received assistance from Airbus, with a delegation from the company’s parent group in France visiting Sri Lanka during the first week of August. The delegation provided statements and other assistance to the CIABOC as part of the ongoing inquiry.
Rajapaksa’s arrest and remand yesterday mark a further development in the widening investigation into the controversial aircraft deal.
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