News
World Bank forecasts 2.2% growth for Lanka in 2024, driven by tourism and remittance recoveries
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.”
News
New Constitution to decide fate of executive presidency, PCs: NPP
By PRIYAN DE SILVA
The government’s position on the abolition of the Executive Presidency and the future of the Provincial Council system will be set out in a new Constitution, NPP General Secretary Dr. Nihal Abeysinghe has said.
Abeysinghe made the remarks when a delegation from the Campaign for Free and Fair Elections (CaFFE) met him at the NPP headquarters in Pelawatte on Friday evening. Former NPP General Secretary and MP Laxman Nipunarachchi also participated in the discussion.
Dr. Abeysinghe said the JVP, the main constituent of the NPP, had consistently advocated the abolition of the Executive Presidency and that it was also a key pledge in the NPP election manifesto.
Responding to calls for the Provincial Council elections to be held under the existing electoral system, Nipunarachchi said the system was being changed to introduce the new electoral system.
He stressed that conducting the elections under the old system was therefore not acceptable.
CaFFE Executive Director Manas Makeen suggested that the Election Commission should be vested with adequate financial authority to ensure that elections are held on time.
Dr. Abeysinghe also requested CaFFE and other stakeholders to submit any proposals for constitutional amendments for consideration.
The NPP made the abolition of Sri Lanka’s executive presidency and the adoption of a new Constitution a central constitutional pledge in its 2024 presidential election manifesto, A Thriving Nation, A Beautiful Life. It promised to draft and enact a new Constitution after public discussion and a referendum, abolish the executive presidency and replace it with a president without executive powers elected by Parliament, while introducing a new parliamentary electoral system.
However, in June 2026, Public Administration Minister Chandana Abayaratne was quoted by the media as having said that although this remained an electoral promise, the Government did not regard it as a priority at that point, saying other constitutional and electoral reforms were being considered first.
The Opposition has accused the goverment of trying to retain the executive presidency by delaying the constitution making project.
News
NBRI issues landslide warning for three districts
By Chaminda Silva
The National Building Research Institute (NBRI) has issued a Level 3 (Red) landslide early warning for several areas in the Kandy, Kegalle and Nuwara Eliya districts amidst continuing heavy rainfall.
The warning, issued at 2 p.m. yesterday (20), will remain in effect until 2 p.m. today (21).
In Kandy District, the red alert covers the Pasbage Korale Divisional Secretariat Division and surrounding areas.
In Kegalle District, red-level warnings have been issued for the Dehiowita, Aranayake, Deraniyagala, Mawanella and Yatiyanthota Divisional Secretariat divisions and surrounding areas.
In Nuwara Eliya District, the warning covers the Kothmale West, Kothmale East, Ambagamuwa and Norwood Divisional Secretariat divisions and surrounding areas.
Meanwhile, a Level 2 (Amber) landslide warning remains in effect for selected areas of Colombo, Galle, Kalutara, Kandy, Kegalle, Matara, Nuwara Eliya and Ratnapura districts.
The affected areas include Padukka; Nagoda, Thawalama and Neluwa; Bulathsinhala, Palindanuwara, Walallawita and Agalawatta; Ganga Ihala Korale; Bulathkohupitiya and Kegalle; Akuressa and Pitabeddara; Thalawakele; and several Divisional Secretariat divisions in Ratnapura District, including Pelmadulla, Ratnapura, Ayagama and Kuruwita.
Residents in the affected areas have been urged to remain vigilant for signs of landslides and follow instructions issued by local authorities, particularly during periods of heavy rainfall.
News
Mahaweli rises as heavy rain triggers flood, landslide fears
By SK Samaranayake
Heavy rainfall across the Central Highlands has triggered flood and landslide warnings, with the Mahaweli Ganga reaching spill level in Nawalapitiya and several roads and low-lying areas already affected.
The Kandy District Disaster Management Unit has urged residents living along the Mahaweli River in Nawalapitiya, Gampola, Gelioya and Peradeniya to remain on high alert as heavy rain continues on the western slopes of the Central Hills.
The Irrigation Department has warned that the Mahaweli Ganga, in the Nawalapitiya area, is nearing spill level. The river level at the Peradeniya Black Bridge, which is under repair, is also continuing to rise.
A senior official said the University of Peradeniya was taking precautionary measures in anticipation of a possible flood situation.
Meanwhile, five spill gates of the Polgolla Mahaweli Reservoir had also been opened yesterday (20) due to the heavy rainfall, Executive Engineer Thisara Bandara said.
Around 21,000 cubic feet of water per second is being released towards the Victoria Reservoir through the five gates.
Bandara warned that all spill gates may have to be opened if rainfall intensifies and urged communities downstream of the Polgolla Dam, on both sides of the river, to remain vigilant.
The threat has already translated into flooding and displacement in several areas.
Nearly 100 families have been displaced in the Pasbage Korale Divisional Secretariat area of Nawalapitiya after the Mahaweli River overflowed and inundated homes in low-lying areas, following heavy rainfall since yesterday (20), a Divisional Secretariat official said.
Kithulkote, Labuwelkotuwa and Jayasundara Ovita were among the areas affected.
The Irrigation Department has separately warned of a risk of major flooding in low-lying areas along the Mahaweli River in the Pasbage Korale area, urging residents and motorists to exercise extreme caution.
Meanwhile, roads have also been hit by the adverse weather.
The Road Development Authority (RDA) has closed the Poojapitiya–Medawela road until further notice after a section of the road at Madadeniya collapsed. The section had reportedly already been weakened during the Ditwah disaster and has now completely given way.
The RDA has closed the road from Poojapitiya town and advised motorists travelling towards Medawela to use alternative routes.
Traffic on the Hatton–Bogawantalawa–Maskeliya–Balangoda main road also came to a complete standstill yesterday after a landslide occurred near the Wanraraja Estate area in Dikoya at around 11 a.m.
Hatton Police officers and residents began clearing the earth from the road, while the local RDA office was informed to assist with the operation.
In another warning, the Disaster Management Centre (DMC) said a potentially dangerous situation had developed at Dabagolla Mountain in Yalagamuwa, Uvaparanagama.
Police said about 700 metres of the mountain had developed cracks measuring between 10 and 12 inches wide. In some locations, the ground had subsided to depths of seven to eight feet.
The DMC said the cracks had widened with the recent rainfall, while water flowing through them had begun loosening the soil and increasing the risk of a landslide.
Police said there were no houses or settlements around the affected mountain, which is located near a forest reserve. Several acres of pepper cultivation are, however, situated in the vicinity.
Meanwhile, heavy rain has also caused flooding in Bogawantalawa.
Several buildings in the low-lying section of Merys Estate National School have been inundated after the Keselgamu Oya, a major tributary feeding the Castlereigh Reservoir, overflowed.
A retaining wall above a house in the lower section of Kotiyagala Estate also collapsed amid the heavy rainfall, causing extensive damage to the house. Bogawantalawa Police said no one inside was injured.
Authorities have urged residents in flood-prone and landslide-prone areas to remain alert as further rainfall could worsen conditions, while motorists have been advised to avoid affected roads and use alternative routes where possible.
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