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World Bank forecasts 2.2% growth for Lanka in 2024, driven by tourism and remittance recoveries
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The latest Global Economic Prospects report from the World Bank forecasts a 2.2 percent growth for Sri Lanka’s economy in 2024, marking a positive revision of 0.5 percentage points from January. This upward revision is attributed to gradual improvements in remittances and tourism.
The June edition of the World Bank’s Global Economic Prospects report highlights that tourism and remittances have rebounded following the economic contraction in 2023. However, both sectors remain below pre-pandemic levels.
The report states, “In Sri Lanka, the economy is expected to expand by 2.2 percent in 2024—a 0.5-percentage-point upward revision from January—supported by modest recoveries in remittances and tourism. Growth is projected to strengthen further in 2025-26, reaching 3 percent in 2026, assuming successful debt restructuring negotiations and the implementation of structural reforms, which would offset the adverse impact of planned fiscal consolidation on growth.
“After contracting in 2023, economic activity has strengthened in Sri Lanka, with tourism and remittances also recovering, although they have remained below pre-pandemic levels.
“The report also forecasts a slowdown in growth for the South Asia (SAR) region, from 6.6 percent in 2023 to 6.2 percent in 2024, mainly due to a moderation in India’s growth from recent highs. Regional growth is expected to remain steady at 6.2 percent in 2025-26, supported by stable growth in India. Among other economies in the region, Bangladesh is expected to maintain robust growth, albeit at a slower pace than in previous years, while growth is set to strengthen in Pakistan and Sri Lanka. However, the outlook is clouded by downside risks, including disruptions in commodity markets due to escalating conflicts, potential abrupt fiscal consolidations, financial instability from high bank exposure to sovereign borrowers, extreme weather events, and slower-than-expected growth in China and Europe. Conversely, upside risks include stronger-than-expected activity in the United States and faster global disinflation.
“Several factors have contributed to reductions in external imbalances, such as narrowed trade deficits, increased remittances, and tourism recoveries across multiple countries. Additionally, continued import restrictions, particularly in Bangladesh, have played a role. Foreign exchange reserves have risen in countries like Pakistan and Sri Lanka, reflecting eased currency pressures and increased official flows, although reserves remain low in some nations.
“In the SAR region, economic spillovers from outside are generally limited due to lower international trade openness compared to other global regions. However, weaker-than-projected growth in major trading partners could dampen growth in countries like Bangladesh, Pakistan, and Sri Lanka. For instance, a significant portion of intermediate goods imports in these countries comes from China, and any downturn in Chinese activity could lead to material shortages and reduced economic activity.
“Upside risks to regional growth include stronger-than-expected activity in the United States, which could stimulate growth in large exporting countries like Pakistan and Sri Lanka. Another potential upside is greater progress in global inflation reduction, potentially leading to faster-than-expected easing of monetary policy, lower borrowing costs, and improved growth prospects.”
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It is our collective responsibility to build a nation grounded in unity and strength – President
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President Anura Kumara Disanayake in his Maha Shiva rathri message said that it is our collective responsibility to build a nation grounded in unity and strength.
The full text of the message issued by the President’s media division:
Maha Shiva Rathri is a sacred and joyous occasion celebrated by Hindu devotees across the world in reverence of Lord Shiva. This divine night marks the celestial union of Lord Shiva and Goddess Parvati, as well as the powerful Tandava, Shiva’s cosmic dance of creation and destruction. It symbolises the triumph of wisdom over ignorance, dispelling the darkness of illusion and lighting the path to enlightenment.
On this auspicious night, Hindu devotees observe fasting and engage in spiritual practices, praying for the darkness of ignorance to be replaced by the radiance of wisdom. It is also a time to seek divine blessings for prosperity, peace and fulfilment in life.
The union of Shiva and Parvati is a profound representation of knowledge and power coming together. It reminds us that breaking free from the illusions of division allows us to embrace the truth with open eyes. Today, as we stand at the dawn of a new era, this message is more relevant than ever. Let us tear down the barriers that have kept us apart for generations and unite as one, casting aside discord and embracing togetherness. This is a moment to nurture interfaith harmony, celebrate our diversity and move forward with love and mutual respect, dedicating ourselves to the progress of our beloved motherland.
As we journey towards a brighter future, it is our collective responsibility to build a nation grounded in unity and strength. We are stepping into a time of transformation, embracing political, economic and social renewal, shaping a future that holds promise and hope for all.
On this sacred night, as the glowing lamps of Maha Shiva Rathri illuminate our surroundings, let them also illuminate our hearts, guiding us with unwavering faith along the path we have chosen. Let us walk forward together, hand in hand, in the spirit of peace, unity and shared prosperity.
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USD 900,000 paid monthly for three unused SriLankan aircraft– Dy. Finance Minister
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By Saman Indrajith
Finance and Planning Deputy Minister Dr. Harshana Suriyapperuma told Parliament yesterday (25) that SriLankan Airlines was in debt due to political interference under previous governments.
Answering a question raised by Anuradhapura District SJB MP Rohana Bandara, Dr. Suriyapperuma said that such interference had resulted in an ongoing case in international courts.
Dr. Suriyapperuma stated that SriLankan Airlines had earned notoriety for corruption not only here but also abroad.
“Currently, there is an ongoing case in an international court over claims that commissions were sought in respect of the purchase of aircraft. Aircraft have been leased at exorbitant rates, far beyond prevailing market rates,” he said, adding that the actions and decisions of past regimes over the last few decades regarding SriLankan Airlines must be taken into account when examining its debt.
Outlining the measures taken by the government to tackle the staggering debt, the Deputy Minister of Finance said that a five-year programme would be implemented from 2025 to 2030.
Dr. Suriyapperuma explained that despite the allocation of Rs. 20 billion from the 2025 Budget for SriLankan Airlines, the funds would not be utilised for the airline’s operational expenses. Instead, the management had been tasked with transforming it into a self-sustaining entity. Discussions had already begun with relevant stakeholders to restructure the debt, which includes loans obtained in US dollars.
Dr. Suriyapperuma revealed that SriLankan Airlines had been paying USD 900,000 per month in installments for three aircraft that had remained unused for several years. He added that the national carrier currently owned a total of 22 aircraft and employed 3,194 staff members in its main airline operations, along with 2,862 employees in its strategic business units.
Dr. Suriyapperuma also highlighted that the Ministry was currently evaluating those plans, with the expectation of achieving operational profitability and securing government support within the five-year period.
Suriyapperuma assured that measures would be taken to address SriLankan Airlines’ debt without burdening the public.
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NPP govt. continues ban on Tamil organisations
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… Easter Sunday carnage suspects among them
The government has issued a gazette extending the ban on several Tamil diaspora groups, alleging they supported “terrorism-related activities,” The Tamil Guardian has reported.
The gazette, signed by Defence Secretary Air Vice Marshal (retd.) Sampath Thuyyakontha, declared that these organisations have “repeatedly provided financial support for terrorism.” As a result, their financial and economic assets remain frozen, and Sri Lankans are prohibited from having any contact with them. Those that do risk being arrested.
The list also reaffirms the ban on 222 individuals allegedly linked to terrorism.
The organisations blacklisted by the Sri Lankan government include:
* Liberation Tigers of Tamil Eelam (LTTE)
* Tamil Rehabilitation Organisation (TRO)
* Tamil Coordinating Committee (TCC)
* World Tamil Movement (WTM)
* Transnational Government of Tamil Eelam (TGTE)
* World Tamil Relief Fund (WTRF)
* National Council of Canadian Tamils (NCCT)
* Tamil Youth Organisation (TYO)
Other organisations listed include several linked to Islamic groups, such as the National Towhead Jema’ah (NTJ) and the Sri Lanka Islamic Student Movement (SLISM).
The Tamil Guardian reported that successive Sri Lankan governments have used terrorism laws to ban Tamil organisations that continue to function openly and legally in the United States, United Kingdom, Canada, and throughout Europe. This ban, however, stifles links between these diaspora organisations and Tamils, making it a criminal offence for Sri Lankan citizens to maintain contact with them.
The reposition of the ban follows a pattern seen in previous years. In 2024, Sri Lanka renewed its prohibition of Tamil diaspora organisations, days after India extended its own ban on the LTTE. The move was widely condemned as politically motivated and an attempt to justify Sri Lanka’s military presence in the “Tamil homeland”.
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