Connect with us

News

World Bank forecasts 2.2% growth for Lanka in 2024, driven by tourism and remittance recoveries

Published

on

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.”



Latest News

Death toll in violent clashes at Negombo Prison rise to 25

Published

on

By

It has been reported quoting police sources that the death toll from the renewed unrest at the Negombo Prison which  this morning, has  risen from nineteen  to twenty five (25).

A clash initially broke out between two groups of inmates (a group of remand prisoners and a group of convicted inmates serving sentences) at the Negombo Prison at around 1.00 p.m. on Sunday (05).

Two inmates died in yesterday’s clash, while around 40 others sustained injuries and are  receiving treatment at hospital.

Continue Reading

News

The Government is committed to equipping children with new technology and knowledge – PM

Published

on

By

Prime Minister Dr. Harini Amarasuriya stated that the children of Sri Lanka are well capable of viewing the world with creativity and critical ways of thinking, and that the Government is committed to equipping them with the required knowledge and modern technologies necessary to realize their full potential.

The Prime Minister made these remarks while attending the opening of the ’Arumasiya’ Exhibition and the occasion of laying the foundation stone for a new three-storey building at Balangoda Vidyaloka Central College, on the 4th of July.

During the visit, the Prime Minister officially declared open the exhibition showcasing the students’ innovations and creative talents and commended them for their remarkable achievements. The Prime Minister also participated in the ceremony of laying the foundation stone for the construction of the College’s new three-storey building.

Addressing the occasion, Prime Minister Dr. Harini Amarasuriya stated:

“It is a pleasure to participate in this special event at Balangoda Vidyaloka Central College, the school where Sri Lanka’s first female Prime Minister received her education

I had the opportunity to visit the exhibition featuring the outstanding creations and innovations of the students. What I witnessed was a group of talented young people who have moved beyond textbook learning and are capable of viewing the world with creativity and critical thinking.

We are introducing a new education reform process that moves away from a rote-learning, examination-oriented system towards a practical and skills-based one. The Government is now systematically completing all the necessary preparations to implement the new education reforms scheduled to commence in 2027.

Our objective is to ensure that every child leaving school has access to vocational and technical education that matches their individual talents and meets the demands of the modern labour market. We are committed to transforming vocational education into a field that enjoys the same dignity and recognition as university education.

Finally, I commend the Principal and the academic staff of Balangoda Vidyaloka Central College for organizing this exhibition, and to the students and parents whose dedication made this event a success.”

The event was attended by Members of Parliament for Ratnapura District Wasantha Pushpa Kumara and Sunil Rajapaksha, the Mayor of Balangoda and members of the Municipal Council, the Zonal Director of Education, the Principal and academic staff of Balangoda Vidyaloka Central College, parents, and students.

Prime Minister’s Media Division

Continue Reading

News

Appointment of SPO to probe AG on hold until establishment of Ind. Public Prosecutor’s Office

Published

on

Ajith / Harshana

The appointment of a Special Parliamentary Ombudsman (SPO) to inquire into the complaints against the Attorney General, as promised in the NPP manifesto, is on hold, pending the establishment of an Independent Office of the Public Prosecutor and provincial Sub Officers.

Authoritative sources told The Island that the Justice and National Integration Ministry was awaiting the recommendations, regarding the new legislation for the establishment of such an Office, from a Committee of Technical Experts, chaired by Justice Yasantha Kodagoda, PC.

Responding to a query raised in Parliament by SJB lawmaker Ajith P. Perera about the delay in appointment of SPO, Justice and National Integration Minister Harshana Nanayakkara said the government couldn’t take a decision until the Kodagoda Committee made recommendations.

Nanayakkara said that the positioning of the SPO couldn’t be decided before they differentiate the powers of the Attorney General and the an Independent Office of the Public Prosecutor and provincial Sub Officers.

According to the NPP manifesto, provincial Sub Officers were to be established under a senior Additional Solicitor General.

Opposition sources pointed out that the relevant Cabinet decision was taken on 7 May 2025. According to the Cabinet Office, the government decided to establish an Independent Office of the Public Prosecutor and provincial Sub Officers in line with a proposal made by the United Nations High Commissioner for Human Rights, in her final report on Sri Lanka, submitted in September, 2024.

By Shamindra Ferdinando

Continue Reading

Trending