News
In 2020, SL faced deepest recession since 1948 – CBSL
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.”
It has been reported that Attorney at Law Rakitha Rajapakshe, the son of former Minister of Justice Wijeyadasa Rajapakshe, has been arrested by the Commission to Investigate Allegations of Bribery or Corruption (CIABOC) over alleged links with the underworld.
… alleges NPP trying to implement UPFA, UNP plan
Front-line Socialist Party (FSP) yesterday (24) alleged that the NPP government’s move to amalgamate the Employees’ Trust Fund (ETF) and the Employees’ Provident Fund (EPF), under a unified, tripartite governance framework, would be detrimental to the private sector workers.
Addressing the media at Melder Place, Nugegoda, FSP spokesman Duminda Nagamuwa said that the Cabinet of Ministers approved this proposal on 15 June.
Nagamuwa claimed that the NPP was trying to implement what President Mahinda Rajapaksa had sought to do, in 2011, causing the police to open fire on a group of the Export Processing Zone workers, protesting against the move to create a private pension scheme. A worker, identified as Roshen Chanaka, was shot by police on May 30, 2011, and he succumbed to his injuries.
Pointing out that the EPF and the ETF had been established for the benefit of private sector workers but with different objectives, Nagamuwa warned that amalgamation of the two funds could cause unnecessary complications.
The FSP spokesman said that Ravi Karunanayake, in his capacity as the Finance Minister of the Yahapalana government, in late November 2015 had declared their intention to amalgamate the ETF with the EPF.
FSP’s Pubudu Jayagoda told The Island that they expected all political parties, other than the NPP, to disclose their stand on the vital issue. Jayagoda urged the Opposition to take a stand on the vital issue .
By Shamindra Ferdinando
The Opposition yesterday argued in Parliament that the National Environment Amendment Bill was unconstitutional. The Opposition said that it violated the 13th Amendment.
SJB and Opposition Leader Sajith Premadasa argued that the approval of the Provincial Councils was required for the Bill to go ahead, as it was a subject in the Concurrent List of powers as per the 13th Amendment to the Constitution.
The MP also said that the clause which enables the Central Government to file legal actions against Local Government bodies was unconditional as well, since local bodies are included in the Provincial Councils list.
“How can you go ahead at a time when the Provincial Councils do not function properly,” Premadasa questioned.
ITAK MP P. Sathyalingam also raised the issue, but Speaker Jagath Wickramaratne, who responded, said the MPs could raise the relevant matters during the debate.
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