News
Growth in South Asia to slow down in 2023, WB
Sri Lanka is among three South Asian governments that increased borrowing from domestic banks to finance their record debt, and, as a result, sovereign-bank nexus increased, heightening the financial sector’s vulnerability, according to a World Bank report.
The other two countries are the Maldives and Pakistan, says a WB report, titled ‘A mixed bag for South Asian economies: Challenges and opportunities ahead.’
It said: “Banks in South Asia could also face liquidity problems if there are sudden deposit withdrawals, for example. Some countries, like Sri Lanka and Bangladesh, are especially vulnerable, given rising non-performing loan ratios—a key indicator of worsening asset quality—in the banking sector as well as non-bank financial institutions.
South Asia, battered by three years of upheaval from the Covid-19 pandemic, and spillovers from Russia’s invasion of Ukraine, faces a combination of good and bad news for its economies. On the positive side, global energy and fertiliser prices are down, both tourism and business services continue to recover strongly, and the reopening of China’s economy is relaxing supply bottlenecks.
However, rising interest rates, and risks in the banking sector, in the United States and Europe, have increased uncertainties in South Asia’s outlook, given their significant impact on balance of payments, exchange rates, and financial markets.
Therefore, growth in South Asia is expected to slow down in 2023, according to our latest South Asia Economic Focus (SAEF). In this blog, we discuss the challenges and opportunities the region faces, and highlight expert opinions from the bi-annual survey of the South Asia Economic Policy Network (SAEPN)—a group of policy makers, academics, and macroeconomists across the region.
The bi-annual survey of the SAEPN reveals a more bearish outlook for the region, compared to last fall, reflecting the slowdown in economic growth and shift in risks for the economy:Forty-eight percent of the respondents—as opposed to 56 percent in the fall of 2022—believe that economic activity has recovered to at least 85 percent of the pre-COVID-19 level.
Latest News
Cabinet approval for Implementation of a Project for the Joint Exchange of Genetic Resources between Sri Lanka and Vietnam and the Development of High-Yielding and Salinity-resilient Rice Varieties.
With the objective of improving the productivity of paddy cultivation, a Memorandum of Understanding on cooperation in the agricultural sector was entered into on 2025-05-05 between the Department of Agriculture of Sri Lanka and the Vietnam Academy of Agricultural Sciences.
Under the afore Memorandum of Understanding, both parties have agreed to implement a project titled “Joint Exchange of Genetic Resources and Development of High-Yielding and Salinity-resilient Rice Varieties through Hybridization between Sri Lanka and Vietnam.”
The activities proposed to be carried out under the said project include the exchange of germplasm materials of rice varieties between the two countries, the conduct of joint breeding and hybridization programmes, the evaluation and selection of advanced breeding lines under local conditions, the establishment of field trials, the training of research officers, and the exchange of knowledge.
Accordingly, the Cabinet of Ministers has approved the resolution furnished by the Minister of Agriculture, Livestock, Land and Irrigation for the implementation of the proposed project
Latest News
Landslide Early Warnings issued to the Districts of Kalutara, Kegalle, Nuwara Eliya and Ratnapura extended till1600 hrs on Wednesday [27]
The National Building Research Institute [NBRI] has extended the landslide early warnings issued to the districts of Kalutara, Kegalle, Nuwara Eliya and Ratnapura until 1600 hrs on Tuesday 27th May 2026.
Accordingly,
The LEVEL II [AMBER] landslide early warnings issued to the Divisional Secretaries Divisions and surrounding areas of Ayagama, Eheliyagoda, Ratnapura and Kuruwita in the Ranapura district and
The LEVEL I [YELLOW] landslide early warnings issued to the Divisional Secretaries Divisions and surrounding areas of Mathugama and Bulathsinghala in the Kalutara district, Deraniyagala, Yatiyanthota, Dehiowita, Ruwanwella and Bulathkohupitiya un the Kegalle district, Ambagamuwa in the Nuwara Eliya district and Elapatha, Nivithigala, Pelmadulla, Kiriella and Kalawana in the Ratnapura district have been extended.
A meeting between Upcountry Hindu Priests and the Secretary to the President, Dr. Nandika Sanath Kumanayake, was held this morning (26) at the Presidential Secretariat.
During the meeting, discussions focused on several common issues and challenges faced by Upcountry Hindu priests over several decades. The Secretary to the President stated that the necessary intervention would be made to provide systematic solutions to those issues.
It was also decided to hold discussions once every two or three months regarding these matters. Discussions were also held on the Government’s programme aimed at addressing the needs of the people in the upcountry areas and the Hindu religious leaders expressed their gratitude to the Government for providing them with an opportunity to voice their concerns.
Among those present at the meeting were Secretary General of the Sri Lanka Up-Country Hindu Priests’ Association, Dr. Shiva Sri Velu Suresh Sharma Kurukkal, together with several Hindu priests, Senior Additional Secretary to the President Roshan Gamage, Director of the Department of Hindu Religious and Cultural Affairs, Y. Aniruddhan and several others.
(PMD)
Cabinet approval for Implementation of a Project for the Joint Exchange of Genetic Resources between Sri Lanka and Vietnam and the Development of High-Yielding and Salinity-resilient Rice Varieties.
Landslide Early Warnings issued to the Districts of Kalutara, Kegalle, Nuwara Eliya and Ratnapura extended till1600 hrs on Wednesday [27]
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