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In 2020, SL faced deepest recession since 1948 – CBSL

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Prof. W D Lakshman, the Governor of the Central Bank of Sri Lanka, presenting the Annual Report 2020 to PM and Finance Minister Mahinda Rajapaksa

The Sri Lankan economy had contracted by 3.6 per cent in real terms in 2020, recording the deepest recession since Independence, the Central Bank said yesterday issuing a press release on the publication of its annual report. Mobility restrictions and other containment measures imposed locally and internationally, with a view to preventing the spread of COVID-19, hampered real economic activity across all sectors, CBSL said.

“Alongside the global economic downturn induced by the pandemic, the Sri Lankan economy contracted by 3.6 per cent in real terms in 2020, recording the deepest recession since independence.

“The sharp contraction observed in Industry activities during the year was driven by the significant slowdown in construction and manufacturing activities. Services activities also registered a notable contraction due to the pandemic driven deceleration in transportation, other personal services, and accommodation, food and beverage services. The Agriculture sector, too, registered a contraction during the year as the impact of the pandemic outweighed the positive effects of timely policy support and favourable weather conditions.”

However the drop in merchandise exports due to the mobility restrictions and lockdown measures was swiftly overcome, demonstrating the resilience of Sri Lankan exporters. Accordingly, export earnings rebounded within a relatively short span of time to reach pre-pandemic levels. Measures to curtail non-essential imports, together with the significantly low global petroleum prices, helped reduce the import expenditure in 2020, resulting in a notable improvement in the trade deficit.

“Tourism sector was severely affected by global travel restrictions. Foreign inflows, in terms of trade in services relating to the Information Technology and Business Process Outsourcing (IT/BPO) sector, recorded a significant improvement, supported by the surge in novel work arrangements amidst the pandemic. Workers’ remittances recorded a notable recovery during 2020, despite the decline witnessed at the onset of the pandemic. With these developments and policy induced adjustments, the external current account deficit improved to 1.3 per cent of GDP in 2020 from 2.2 per cent of GDP in 2019.”



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Ambassador of Switzerland to Sri Lanka pays courtesy call on PM

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The Ambassador of Switzerland to Sri Lanka Dr. Siri Walt paid a courtesy call on Prime Minister Dr. Harini Amarasuriya on the 17th of February at the Temple Trees.

Welcoming the Ambassador of Switzerland to Sri Lanka the Prime Minister briefed the Ambassador on her recent visit to Davos to participate in the World Economic Forum Annual Meeting noting that the series of high-level bilateral meetings held on the sidelines of the Forum, along with two important industry visits provided valuable insights for Sri Lanka’s economic engagement.

The discussion focused on Switzerland’s vocational education and training (VET) system, with particular interest in exploring possible cooperation and knowledge-sharing opportunities.

The Prime Minister also conveyed her appreciation for the assistance extended by the Government of Switzerland following Cyclone Ditwah. She emphasized Sri Lanka’s need for enhanced technical assistance during the ongoing rebuilding phase, especially in relation to the reconstruction of bridges and railway infrastructure.

Both sides reaffirmed their shared commitment to further strengthening bilateral relations between Sri Lanka and Switzerland, and to expanding cooperation in areas of mutual interest.

First Secretary (Political) of the Embassy of Switzerland in Colombo Ms. Justine Boillat, First Secretary (Migration) of the Embassy of Switzerland in Colombo Ms. Andrea Kienast and the Secretary to the Prime Minister, Pradeep Saputhanthri, Additional Secretary to the Prime Minister, Ms. Sagarika Bogahawatt and officials from the Ministry of Foreign Affairs , Foreign Employment, Tourism.attended the meeting.

[Prime Minister’s Media Division]

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Advisory for low pressure area in the Southwest Bay of Bengal to the south-east of Sri Lanka

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Location of the low-pressure area in the Bay of Bengal Sea area

Advisory for low pressure area in the Southwest Bay of Bengal to the south-east of Sri Lanka.
Issued by the Natural Hazards Early Warning Centre of the Department of Meteorology at 03.00 pm on 18 February 2026

Multiday boats fishermen and naval community are warned that the low-pressure area still persists over the Southwest Bay of Bengal to the south-east of Sri Lanka. Under the influence of this system, heavy showers or thundershowers, Strong winds about (50-60) kmph, and rough or very rough seas can be expected in these sea areas.

The Meteorological Department is constantly monitoring the behavior of the system.

The naval and fishing communities are requested to be attentive to the future forecasts and bulletins issued by the Department of Meteorology in this regard.

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Canada concerned about delay in holding PC polls

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Canadian High Commissioner Isabelle Martin shaking hands with Minister Abayaratne

Canada, said to be the home to the largest Tamil Diaspora community, has expressed concern over the delay in holding Provincial Council (PC) elections. Canadian High Commissioner Isabelle Martin, on Monday (16), took up the issue with Public Administration, Provincial Councils and Local Government Minister Professor Chandana Abayaratne.

Sources quoted Prof. Abayaratne as having told the Canadian HC that the delay was not deliberate on the part of the government. The Minister blamed, what the sources called, certain legal, technical and delimitation issues for the delay.

India compelled Sri Lanka to enact the 13th Amendment to the country’s Constitution to enable the setting up of the Provincial Council system, in line with the Indo-Lanka Peace Accord, which Sri Lanka signed under duress in July 1987.

Prof. Abayaratne has assured the Canadian HC that President Anura Kumara Dissanayake, too, recognised the importance of strengthening the Provincial Council system as a solution to ethnic issues and that urgent steps would be taken in that regard.

During the discussion, matters relating to strengthening political, economic and social relations between the two countries were discussed.

In May 2020, Canada declared that Sri Lanka had perpetrated genocide during the war against the LTTE. Canada also sanctioned former Presidents Mahinda Rajapaksa and Gotabaya Rajapaksa in January 2023 over alleged war crimes.

The Canadian HC also explained her country’s ‘Indo-Pacific’ strategy and how Sri Lanka could benefit from it.

In particular, Canada’s “Pathways to Peace” project will support reconciliation between nations, and to improve communication by encouraging the learning of mutual languages as a second language, and it was also agreed to provide more opportunities for Sri Lankan students to pursue higher studies in Canada.

The Canadian delegation also expressed its willingness to provide the necessary technical assistance to solve the drinking water problems in Puttalam, Mannar and the North-Eastern provinces under technical cooperation, and to implement the relevant projects after a preliminary study.

by Shamindra Ferdinando

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