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Sri Lanka GDP likely plunged on debt default, political turmoil
Sri Lanka’s economy likely shrank the most in two years amid a debt crisis that triggered a default and widespread protests that brought the nation to a standstill leading to the ouster of the President, Bloomberg reported yesterday.A Bloomberg survey of economists found that the gross domestic product probably fell 10% in the three months to June from a year ago. That’s the slowest reading since the corresponding quarter of 2020 and compares with a 1.6% contraction in January-March.
“Sri Lanka is likely trapped in a low-growth trajectory that will last decades,” according to Bloomberg Economics’ Ankur Shukla who said the island nation likely fell into a deep recession last quarter. “The debt crisis has tied the government’s hands, making any transformative public investment impossible for now.”
Sri Lanka’s $81 billion economy collapsed after fuel supplies ran dry because of the financial crisis, spurring inflation that has quickened to a fresh high of 64.3% in August and sending the policy rate more than doubling this year to 15.5% from 6% in end-2021.
Bloomberg said that the resignation by the Central Bank Governor in early April foreshadowed the island nation’s second quarter misery where it grappled with more credit rating downgrades and market rout as it declared a debt default. By late June, citizens were advised to stay home for two weeks as the government restricted fuel use, fanning deeper discontent.
The economic meltdown, the most dire in its independent history, spiraled into political chaos that led to a formation of a new government. President Ranil Wickremesinghe, who was elected by parliament after his predecessor Gotabaya Rajapaksa fled the country, is now trying to push through economic and constitutional reforms to help turn the tide.The currency has plunged more than 40% this year and stocks are down almost 20%, while the nation’s 7.55% 2030 dollar bond is indicated at about 30 cents on the dollar from nearly 50 cents at the start of the year.
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Russian Embassy, Russian House, unveil plaque at Public Library in honour of 80th anniversary of victory day
The Russian Embassy in Sri Lanka and the Russian House in Colombo unveiled a plaque at the public library Colombo today (29th April) in honour of the 80th anniversary of victory day.
Victory Day is celebrated on the 9th of May, the day Nazi Germany was defeated in World War II. It is an important date in the Russian calendar and an integral part of Russian culture.
The plaque was jointly unveiled by the Ambassador of the Russian Federation in Sri Lanka Lenav Dzhagaryan and Ms Maria Popova Counsellor of the Russian Embassy in Sri Lanka and Director of the Russian House in Colombo
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Ministerial committee appointed to review and further enhance ‘State Commercial Enterprises Management draft bill’
It has been recognized that the state enterprises should be re – structured and maintained with proper administration with the assistance of local or foreign investments without being a continuous burden to the General Treasury and the country’s economy. Therefore, it is the policy of the new government to introduce an efficient and accountable mechanism in the regard. An initial draft named “State Commercial Enterprises Management Draft Bill” has been already prepared to introduce a new legal framework required for maintaining after performing necessary restructuring and with proper management of government owned business companies. Thereon, it will be possible to totally free the state entrepreneurship establishments from political influences and appoint professionals with proficiency for its board of directors.
Accordingly, the Cabinet of Ministers approved the proposal furnished by the President in his capacity as the Minister of Finance, Plan Implementation and Economic Development to grant policy approval of the Cabinet of Ministers for the said initial draft and appoint a special committee with the following composition to submit appropriate proposals for further enhancing after reviewing the initial draft:
• Hon. (Dr.) Anil Jayantha Fernando, Minister of Labour and the Deputy Minister of Economic Development – (Chairman)
• Hon. Sunil Handunneththi Minister of Industries and Entrepreneurship
• Hon. Wasantha Samarasinghe Minister of Trade, Commerce, Food Security and Co – operative Development
• Hon. (Dr.) Harshana Sooriyapperuma Deputy Minister of Finance Plan Implementation
The Cabinet of Ministers granted approval to the proposal submitted by the Minister of Justice and National Integration to appoint Thilak Nandana Hettiarachchi, a special grade officer in Sri Lanka Administrative Service who served in the post of Additional Secretary of the Ministry of Buddha Shasana, Religious and Cultural Affairs, to the post of Commissioner General of Official Languages with immediate effect.
Russian Embassy, Russian House, unveil plaque at Public Library in honour of 80th anniversary of victory day
Ministerial committee appointed to review and further enhance ‘State Commercial Enterprises Management draft bill’
Thilak Nandana Hettiarachchi appointed Commissioner General of Official Languages
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