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Central Bank expects inflation to “gradually stabilize”
Sri Lanka’s inflation is anticipated to gradually stabilise around the targeted level of five per cent over the medium term, following a short-lived acceleration of inflation in the near term on account of the recent tax adjustments and supply-side disruptions, the Central Bank of Sri Lanka (CBSL) said in its monetary policy report for February.
In the report, the CBSL said that headline inflation is expected to peak in the third quarter of 2024, mainly on account of the unfavourable base effect stemming from sharp disinflation recorded in the third quarter of 2023.
However, the near-term surge in headline inflation is unlikely to persist due to subdued demand conditions, as the economy is projected to operate below its full capacity for an extended period, the Bank said.
The CBSL observed that the rebound of domestic economic activity witnessed in the third quarter of 2023 is expected to continue, assisting the economy to gradually reach its potential over the medium term with the help of appropriate policies.
It predicted that the gradual relaxation of monetary policy will impact the broader market interest rates, and the resultant normalisation of nominal interest rates, are anticipated to stimulate growth towards its potential level by fostering investments, enhancing consumer spending, and ultimately boosting aggregate demand, thereby alleviating the ongoing contractionary impact on output.
The Central Bank said that they expect a negative trade-weighted foreign output gap to last for around two years, thereby impacting the domestic economy through exports. Improving productivity and addressing growth impediments by minimising structural limitations, such as the weak doing-business environment, remain pivotal to achieving a sustainable growth path and elevating the economy’s potential, it added.
News
Athapaththu and Dilhari muscle Sri Lanka past Malaysia in mismatch
The quarter-finals of the Asian Games women’s competition, putting top-notch teams against teams without much experience of playing at the highest level, were expected to be mismatches. It took till the third game – Bangladesh vs China was washed out and Thailand gave Pakistan a fright for a proper one-side affair, though, as Sri Lanka bashed 160 after opting to bat, and their bowlers then stopped Malaysia 86 runs short.
Fresh off their appearance in the final of the Women’s T20 Asia Cup, Sri Lanka were always expected to dominate, but it didn’t quite start the way they wanted, with Imesha Dulani run out for another low score in the third over – she hasn’t topped 25 in eight innings since her century against Pakistan on July 31.
Chamari Athapaththu, however, stitched together an 80-run stand off just 53 balls with Hasini Perera for the second wicket, scoring 56 runs in 27 balls to Perera’s 23 in 26 in the collaboration. After the two batters fell, Kavisha Dilhari played a similar role to Athapaththu in the stand with Harshitha Samarawickrama, scoring 36 in 19 in a stand worth 62 in 37 balls.
Athapaththu top-scored with 63 in 37 balls, while Dilhari’s unbeaten 44 came off just 27 balls. For Malaysia, offspinner Nurin Imanina impressed with 3 for 29 from her four overs, picking up all the wickets to fall to bowlers.
In reply, Malaysia were three down inside the powerplay, with Dilhari picking up two of the wickets to fall on her way to returns of 2 for 4 from three overs. Athapaththu chipped in with two wickets of her own to finish with 2 for 3 from two overs, while Mithali Ayodhya got 2 for 15 from three.
It’s not like there was no resistance from Malaysia: Winifred Duraisingam scored 28, though it took her 47 balls to do it, while Mahirah Izzati Ismail scored 24, another slow effort, taking her 42 balls.
Scores:
Sri Lanka Women 160 for 4 in 20 overs (Athapaththu 63, HasinMithali Ayodhya 2-15i Perera 23, Kavisha Dilhari 44*, Harshitha Samarawickrema 25; Nurin Imanina 3-29) beat Malaysia Women 74 for 7 in 20 overs (Winifred Duraisingam 28, Mahirah Izzati Ismail 24; Mithali Ayodhya 2-15, Kavisha Dilhari 2-04, Chamari Athapaththu 2-03, ) by 86 runs
[Cricinfo]
News
Bid for Basil’s extradition nears final stage: Police
Govt. is finalising extradition proceedings against Basil to have him stand trial here in respect of several cases
By Norman Palihawadane
The process of having former Minister Basil Rajapaksa extradited from the US to Sri Lanka was being finalised, Police Headquarters sources disclosed yesterday.
The government has formally sought assistance from the United States government to extradite former Minister Basil Rajapaksa, as multiple courts have reissued arrest warrants over his failure to appear before them in connection with two separate criminal cases, a senior police officer told The Island.
The officer, speaking on condition of anonymity, said matters pertaining to obtaining US government authorities’ assistance to extradite Rajapaksa were now being finalised.
Police headquarters sources said law enforcement agencies were currently evaluating red notices, which request the location and provisional arrest of a person pending formal extradition.
The CID and Police Headquarters earlier initiated steps to seek INTERPOL assistance to secure Rajapaksa’s return to Sri Lanka to face court proceedings relating to the two cases in which arrest warrants have been issued against him.
Rajapaksa is believed to be residing in Los Angeles, United States.
The Matara Chief Magistrate’s Court on July 21, 2026, reissued an arrest warrant for Rajapaksa after he failed to appear before court for the second time in connection with a case involving the alleged purchase of a 1.5-acre coconut estate on Eliyakanda Road in the Brown’s Hill area of Matara.
The case relates to the purchase of the property for Rs. 60 million.
The case was filed by the Police Financial Crimes Investigation Division and names Basil Rajapaksa and several other accused, including Ayoma Galappaththi, identified in court reports as the sister of Rajapaksa’s wife, Tissa Galappaththi, and Muditha Jayakody.
However, officials acknowledged that seeking US assistance would only begin a formal international process and would not automatically result in Rajapaksa’s arrest or return to Sri Lanka. Sri Lankan authorities would need to submit court orders, details of the alleged offences, and other supporting documents through the appropriate diplomatic and judicial channels. Any request would then be considered by the relevant US authorities under American law and applicable legal arrangements.
Sources at the Foreign Ministry said sealed correspondence had been exchanged between Sri Lanka’s Ministry of Foreign Affairs and the Legal Department of the US State Department relating to corruption allegations against members of the Rajapaksa family residing in the United States.
The legal foundation for any extradition is the bilateral treaty between Sri Lanka and the United States signed in Washington on September 30, 1999. The treaty applies the principle of dual criminality, meaning authorities must show that the underlying conduct amounts to a crime in both countries. Rajapaksa’s status as a United States citizen would not, on its own, make him immune from a valid request under the treaty’s provisions.
News
High blood pressure, diabetes lead to about 80% of deaths in Sri Lanka
Non-communicable diseases (NCDs) account for 80% of all deaths in Sri Lanka, with high blood pressure and diabetes among the leading causes, Secretary to the Ministry of Health and Mass Media, Dr. Anil Jasinghe, said early this week.
Dr. Jasinghe pointed out that the two conditions were interrelated and could lead to a range of serious health complications, with heart attacks being among the most severe consequences.
Dr. Jasinghe made these remarks while attending the commencement of construction of a modern Cardiac Care Complex at the Anuradhapura Teaching Hospital on Wednesday (16).
The Health and Mass Media Ministry Secretary said:
“The main issue is that these two diseases are interconnected and cause a range of complications in a person’s health. Looking at the current situation in Sri Lanka, only around 50% of those suffering from high blood pressure are under effective control. Similarly, only around 25% of diabetic patients are under proper control. As a result, this has now become a major problem in society.
“The most serious complication associated with both these diseases is Myocardial Infarction (MI), or a heart attack. This has also become the
leading complication. So, how do we control this modern epidemic? This is the biggest challenge before us.
“While establishing modern facilities across the country, our health system must also recognize the changes that have taken place in the demographic structure of our population and disease patterns. Accordingly, our health system must be adapted to suit these changing circumstances.
“Under the policies of the government led by the President and the guidance of the Minister of Health, the Ministry of Health and Mass Media is currently implementing a major programme in this regard. Its three main components are Arogya, Cluster Systems and High-End Care Institutions, which need to be developed to suit the requirements of our health system.”
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