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IMF: US reciprocal tariffs pose risk to global economic outlook amid sluggish growth

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The International Monetary Fund (IMF) is still assessing the macroeconomic implications of the tariff measures announced by the US Government, IMF Managing Director Kristalina Georgieva said on Friday.

Issuing a statement, Georgieva said the US Tariffs clearly represent a significant risk to the global outlook at a time of sluggish growth.

“It is important to avoid steps that could further harm the world economy. We appeal to the United States and its trading partners to work constructively to resolve trade tensions and reduce uncertainty,” the IMF Managing Director added.

Georgieva further said the IMF will share the results of its assessment in the World Economic Outlook, which will be published at the time of the IMF/World Bank Spring Meetings later this month.

The statement comes as the Donald Trump-led US Government recently imposed reciprocal tariffs on several countries, including Sri Lanka.

A 44% tariff was imposed on Sri Lankan goods by the United States under President Donald Trump’s revised trade policy.

The move, described by the U.S. as a reciprocal measure in response to what it claims are Sri Lanka’s 88% trade barriers on American goods, places Sri Lanka among the countries facing the highest tariff rates globally.

The United States has long been Sri Lanka’s most important export destination, accounting for 23% of total merchandise exports in 2024. Of nearly 3 billion in exports to the U.S. last year, the vast majority—over 70%—came from the apparel sector.



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Namal remanded until Sept. 18 over Airbus deal investigation

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Namal Rajapaksa being brought to the Colombo Chief Magistrate’s Court

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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Dengue cases surpass 96,000 this year

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The number of dengue cases reported in Sri Lanka this year has risen to 96,040, with 72 deaths recorded so far, according to the National Dengue Control Unit.

The Unit said 10,155 cases were reported in August alone, highlighting the continuing spread of the disease across several parts of the country.

The Western Province has recorded the highest number of cases at 50,760, followed by the Southern Province with 13,931, the Central Province with 8,788 and the Sabaragamuwa Province with 7,910.

At district level, Gampaha has reported the highest number of cases at 20,444, followed by Colombo with 19,008.

Kandy has recorded 7,043 cases, while Kalutara and Matara have reported 6,181 and 6,154 cases,a respectively.

The National Dengue Control Unit said 50 Medical Officer of Health (MOH) areas across the country have been identified as high-risk areas for dengue.

Health authorities have continued to urge the public to take measures to prevent mosquito breeding, particularly in areas where a high incidence of dengue has been reported.

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PM Harini, Bhutan King explore closer ties

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Prime Minister Dr. Amarasuriya meets King of Bhutan

Prime Minister Dr. Harini Amarasuriya met King Jigme Khesar Namgyel Wangchuck of Bhutan at the historic Tashichhodzong, in Thimphu, last Wednesday (02), with discussions focusing on Bhutan’s development priorities and ways to strengthen bilateral relations with Sri Lanka.

The meeting took place during Dr. Amarasuriya’s official visit to Bhutan.

The Bhutanese King expressed interest in drawing on Sri Lanka’s experience and expertise in areas relevant to the country’s long-term development plans, according to a statement issued, following the meeting.

The two sides also discussed opportunities to expand investment cooperation, including a proposal to establish an investment zone in Bhutan.

The discussions further covered demographic challenges facing Bhutan, particularly the increasing migration of young people and its potential impact on the country’s future workforce and population.

Both sides underscored the importance of sustainable development and creating greater opportunities for young people to contribute to national economic growth and development.

The meeting formed part of efforts to broaden cooperation between Sri Lanka and Bhutan beyond traditional areas of bilateral engagement, with investment, development expertise and demographic concerns emerging as areas of common interest.

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