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Inflation to stabilise between 4 and 6 percent

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By Rathindra Kuruwita

Sri Lanka’s inflation will fall further in August and then stabilize between 4 and 6 percent, the Director of the Central Bank’s Economic Research Department, Dr. P. K. G. Harischandra told journalists on Thursday (03).

Addressing journalists in Colombo, he said that inflation in July had dropped to 6.3 percent.

This will further drop due to policies that the government and Central Bank have taken, he said.Dr. Harischandra added that they expect the country’s GDP growth to be positive in the second, third, and fourth quarters of 2023.

However, given that the economy contracted significantly in the first quarter of 2023, it is unlikely that GDP growth will be positive this year, he said, adding that the GDP growth will be positive in 2024, he said.

Sri Lanka’s inflation has been dropping steadily since September 2022, when the Colombo Consumer Price Index (CCPI) recorded inflation at 69.8 percent. Dr. Harischandra said that the Central Bank will now issue monetary policy review reports twice a year, most likely in January and July.

Some countries produce these reports once every three months, however, at present, the Central Bank has decided that two will suffice.

“These reports create greater transparency and can also provide guidance to the market,” he said.

According to the recently passed Bill on the Central Bank, officials have to appear before Parliament where MPs can question them, Dr. Harischandra said.He added that, as per the new Bill, there should be 11 members on the monetary board, and he hopes that the appointments will be made within two months.

The Central Bank is also studying the possible impact of drought on agricultural production in the Yala season.

“However, fertiliser is available in the market, and the impact of drought outside paddy farming areas should be minimal. So far, the agricultural production has been good,” he said.



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Sajith accuses govt. of using data selectively in crucial report

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Sajith Premadasa

Opposition Leader Sajith Premadasa has said the government is attempting to paint a falsely beautiful picture of the country’s situation through the Socio-Economic Data report issued together with the Census and Statistics and the Central Bank. “They have selectively included certain information while intentionally omitting other vital facts,” Premadasa has said in a media statement. When presenting data, there must be chronological consistency and integrity. The Central Bank and the Department of Census and Statistics have no right to present outdated data to formulate a conclusion, thereby marginalising an entire segment of the population, Premadasa has argued, pointing out that their primary duty is to report accurate information to the public.

Premadasa says that up to page 18 of the report, recent data from 2023 to 2025 have been used. For main economic indicators, macroeconomic indicators, demographic data, and life expectancy, 2024 data have been used. Indicators such as external trade finance, consumer price indices, Real GDP, imports and exports, prosperity indices, and human development indices have also been compared with Asian and SAARC countries using recent data. However, for the section detailing socio-economic conditions from page 19 to page 34, the data used are exclusively from the outdated 2016–2019 period.

When discussing socio-economic conditions, the data used for household income and expenditure surveys, provincial-level conditions, housing facilities, energy consumption, cooking, and population distribution are entirely from 2016 to 2019, the Opposition Leader has said. Specifically, the data on poverty mentioned on page 33, and even the data on per capita daily food consumption capacity on page 34, belong to this old 2016–2019 timeframe. Formulating a report for the year 2026 using such outdated data is a deliberate attempt to mislead the country and its people.

Premadasa says that from page 35 onwards, fresh 2025 data have been used for sections on prosperity, demographics, the labour force, and employment. Recent data based on current market conditions have also been provided for Gross National Income (GNI) by industrial sources, food prices, imports and exports, tourism, government revenue, state debt, and interest rates.

“If the authorities can present recent data (for 2023, 2024, and 2025) for foreign debt, financial activities, financial sector trends, and money supply, why are they using 2016 and 2019 data for poverty to mislead the country?” the Opposition Leader has asked, pointing out that the main report and its summary prove that while the government uses updated data for macroeconomic aspects, it uses obsolete data regarding poverty, inequality, income distribution, and living standards. The Opposition Leader has called this a historic deception regarding the country’s poverty, asking whether the 12.11.2026 Budget will be on these false data?

Premadasa has said that the government claims that a person can survive for 30 days on Rs. 17,315, which is an absolute lie and a deception. “This Government lacks updated data or definitions for poverty. Since the country went bankrupt, a proper household income and expenditure survey has not been conducted, nor has the poverty line been accurately identified.” He questioned whether the upcoming budget, scheduled for 12.11.2026, will be based on these false and flawed data.

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75 new inmates sent to Bogambara re-establishing it as a correctional facility

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By S.K. Samaranayake

Following a gazette notification issued by Minister of Justice and National Integration Harshana Nanayakkara re-establishing the old Bogambara Prison as a correctional facility, 75 inmates were sent to the renovated prison recently. These inmates were transferred from the Colombo Remand Prison and the Magazine Prison. Meals for them are provided by the Dumbara-Pallekele Prison.

This prison was originally established in the year 1876. Under the Kandy Development Project, the Prisons Department took steps to establish the Dumbara-Pallekele Prison and transfer the Bogambara inmates there in 2014. Several plans have been drawn up to develop this site under the Ministry of Urban Development.

The government’s attention was drawn to re-converting the old Bogambara Prison into a prison facility once again, taking into consideration the space constraints encountered when transferring inmates to other prisons following the incident at the Negombo Prison. Currently, 94 rooms of this prison have been renovated, and its inmate capacity stands at is.

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Next Parliament can reverse 22A – GL

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Prof. G. L. Peiris

Convenor of the Joint Opposition Prof. G. L. Peiris yesterday (29) said that though the 22nd Amendment to the Constitution had been enacted, it wouldn’t be the end of that story.

Addressing the media at the Flower Road Office of former President Ranil Wickremesinghe, Prof. Pieris emphasised that a future Parliament could deal with the new amendment. The former Minister explained the pivotal importance of seeking approval at a referendum, depending on the amendments. Prof. Pieris said that the next Parliament would be elected in three years could take remedial measures in case it felt that the people were deprived of their right by the absence of referendum.

The ex-Minister said that it would be the responsibility of the next Parliament to give the public that right to decide on the 22nd Amendment, adopted under highly questionable circumstances.

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