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Sri Lanka’s SDG progress outperforms global average amid economic challenges – IPS

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Despite the numerous setbacks suffered by Sri Lanka during the past few years, it was still making progress, compared to the world average, in achieving Sustainable Development Goals (SDGs), a report titled ‘Public Investment for Closing the SDG Financing Gap: Sri Lankan Perspective’ released by Institute of Policy Studies Of Sri Lanka (IPS) has said.

The report says Sri Lanka needs additional investment of around 1.4 trillion U.S dollars or 12 percentage points of GDP in 2030 to fulfil the SDGs.

The author of the publication Lakmini Fernando said that prior to the pandemic Sri Lanka recorded an above the world average rate for SDG progress on the SDG Index. The world average at that period was 0.69 points while Sri Lanka was progressing at 0.72 points yearly.

“The post-pandemic SDG progress is lower and progress on the SDG Index has stagnated. However, Sri Lanka has a comparatively higher progress rate of 0.16 points a year, while on average lower-middle and upper-middle income countries record a very low progress rate of 0.09 points a year,” the report said.

The SDG Index is an assessment of each country’s overall performance on the 17 SDGs, giving equal weight to each Goal. The score signifies a country’s position between the worst possible outcome (score of 0) and the target (score of 100).

The report states that Sri Lanka was keenly poised for growth at the time of independence in 1948 and again with the major policy shift in 1977 from an inward-oriented and import-substitution to being outward-oriented and export promotion-based economy.

“However, Sri Lanka’s high pre-pandemic growth declined to a historically low level of -3.6% (negative) in 2020 (Figure 5). The traditional agricultural economy has leapfrogged into a service-oriented economy without considerable developments in the industrial sector, a major hindrance to the productive capacity of the economy (Figure 6). Policy inconsistencies and delayed implementation of necessary structural reforms have further deteriorated the economy,” the report says.

Except for during 1992-2000, Sri Lanka continues to suffer balance of payment (BOP) crises, IPS said. The country had 16 arrangements with the IMF and although a certain degree of cushioning the economy is witnessed, the conditionalities on structural reforms have never been completed. After several discussion rounds, the 17th bailout package was granted in March 2023.

“Sri Lanka’s high public expenditure needs are characterised by an ageing demographic profile. Debt stabilisation through building a primary surplus, credible fiscal policy conduct and domestic revenue mobilisation is crucial in the consolidation process. This needs to be further supported with non-debt creating foreign currency inflows to ensure fiscal sustainability,” the report read.



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BASL calls for conscience vote on 22nd Amendment

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The Bar Association of Sri Lanka (BASL) yesterday called on all political parties, represented in Parliament, to allow their members to vote on the proposed 22nd Amendment to the Constitution according to their conscience, stressing that the responsibility for deciding whether the Bill should be enacted now rests with Parliament.

In a statement issued after the Supreme Court’s determination on the 22nd Amendment Bill, BASL President Rajeev Amarasuriya and General Secretary Nalin de Silva have said the SC’s determination should not be interpreted as an endorsement of the proposed constitutional amendment as a matter of policy.

The BASL has said the SC’s jurisdiction, under Articles 120, 121 and 123 of the Constitution, was to determine the constitutional requirements for the enactment of the Bill, including whether the Bill, or any of its provisions, required approval at a referendum under Article 83.

“The determination is therefore not a determination as to whether the proposed amendment is good or bad policy, desirable or undesirable, wise or unwise, or whether Parliament ought to enact it,” the BASL said.

Full text of the BASL statement: The Supreme Court has now delivered its Determination on the Twenty-Second Amendment to the Constitution Bill and determined that the Bill does not require the approval of the People at a Referendum.

In terms of Articles 120, 121 and 123 of the Constitution, the jurisdiction of the Supreme Court in relation to the Bill is to determine the constitutional requirements for its enactment, including importantly whether the Bill, or any provision thereof, requires the approval of the People at a Referendum by virtue of Article 83.

The Determination is therefore not a determination as to whether the proposed Amendment is good or bad policy, desirable or undesirable, wise or unwise, or whether Parliament ought to enact it.

This distinction is also evident from Sri Lanka’s previous constitutional amendments. During the 48 year history of the second republican Constitution there have been many amendments which passed constitutional muster but nevertheless had a negative effect on democracy, constitutionalism, the independence of the judiciary and the rule of law.

The question that now arises is whether Parliament ought to enact the proposed Amendment. That responsibility rests with Parliament and with each individual Member of Parliament when they vote on the Bill.

In making that decision, Members of Parliament should be mindful of the possible and probable consequences the 22nd Amendment will have on our nation. They should also consider the lack of transparency and a proper consultative process in the introduction of the 22nd Amendment. As representatives of the people they should also consider the concerns that have been expressed in relation to the proposed Amendment by a broad cross-section of society including the Maha Nayakes of the Three Nikayas, the Catholic Bishops’ Conference in Sri Lanka, the Church of Ceylon, the Bar Association of Sri Lanka, the Judicial Service Association, the Commonwealth Lawyers Association, LAWASIA, the International Association of Judges, the United Nations Special Rapporteur on the Independence of Judges and Lawyers, the French National Bar Council, and more than 40 Professional Associations and Unions, including the Government Medical Officers’ Association and other leading professional bodies.

Accordingly, the Bar Association of Sri Lanka calls upon all the political parties in Parliament to allow the Members of Parliament to speak and vote on the 22nd Amendment according to their conscience.

The responsibility now lies with Members of Parliament, when called upon to vote, to take a principled position according to their conscience giving due consideration to their constitutional responsibility, their representative capacity and most importantly their duty to the sovereign People of Sri Lanka.

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IMF: Sri Lanka on course for 2027 market return

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SL to regain access to international financial and capital markets next year in line with IMF projections

Sri Lanka is on course to regain access to international financial and capital markets around 2027, in line with the International Monetary Fund’s (IMF) current economic projections, IMF Mission Chief Evan Papageorgiou said yesterday.

Papageorgiou said the IMF’s core assumptions under Sri Lanka’s economic programme continued to envisage the country returning to international capital markets in 2027.

“Our previous assumption that Sri Lanka will go back to capital markets still stands. We still have a good trajectory to achieving this in 2027 or thereabouts, and that should be the goal,” he said.

Papageorgiou stressed that Sri Lanka could not rely solely on domestic sources of financing to build long-term economic resilience and would need a diversified funding strategy.

“Every country needs to have a good ability to access funds both in domestic markets, as it already has, as well as international markets for eurobonds and other modes,” he said.

He said a return to international capital markets would have significant implications for Sri Lanka’s external debt composition, while strengthening foreign exchange reserves would remain essential as the country prepares to meet future debt-servicing obligations.

The IMF’s assessment comes amid improving international investor sentiment towards Sri Lanka and positive developments in the country’s sovereign credit ratings.

Papageorgiou cited Fitch’s recent upgrade of Sri Lanka’s credit rating as a positive development, saying global investors were increasingly viewing the country from a more constructive perspective.

Sri Lanka remains under the IMF’s Extended Fund Facility (EFF) programme, which is scheduled to continue until March 20, 2027. Regaining access to international capital markets remains a key milestone under the country’s broader economic recovery.

The IMF has stressed the importance of rebuilding Sri Lanka’s foreign exchange buffers and maintaining stability in domestic financial markets as the country approaches substantial external debt repayments.

A sustained improvement in these areas would help strengthen the country’s capacity to return to international markets while safeguarding macroeconomic stability, the IMF has indicated.

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President appoints three new judges to High Court

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From Left: New HC judges Perumal Sivakumar, Anandi Kanagaratnam and Gnanesha Lalith Kannangara receiving their letters of appointment yesterday from the President

President Anura Kumara Dissanayake yesterday (23) handed over appointment letters to three Special Grade officers of the Judicial Service as High Court Judges, at a ceremony held at the Presidential Secretariat, according to the President’s Media Division (PMD).

The new appointees are Perumal Sivakumar, District Judge of Jaffna; Anandi Kanagaratnam, Senior Assistant Secretary of the Judicial Service Commission; and Gnanesha Lalith Kannangara, District Judge of Colombo.

The three senior Judicial Service officers will take up duties as High Court Judges following their appointments.

The appointments were made from among Special Grade officers of the Judicial Service, the PMD said.

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