News
CB predicts rebounding of country’s economy in 2021
… growth magnitude tied to containing coronavirus
The Central Bank expects the country’s economic growth to rebound in 2021, and maintain the upward trajectory over the medium term, supported by pro-growth policies of the government.
“As projected under the medium-term macroeconomic framework of the CBSL, the economy is expected to grow by around 5.0 per cent in 2021,” the Central Bank said in its latest report on “Recent Economic Developments: Highlights of 2020 and Prospects for 2021?.
According to the monetary regulator, the economic growth is projected to contract by around 1.7 percent in 2020 compared to 2.3 percent growth recorded in 2019. It is predicted that the economy would recover during the second half of 2020 amidst the setback caused by the COVID-19 pandemic related disturbances.
The Industry related economic activities which were severely affected by the pandemic are expected to record a significantly high growth rate in 2021.
Major markets for Sri Lanka’s industrial exports are expected to normalize by early 2021 and contribute positively to the external demand for industrial exports thereby supporting the growth in manufacturing activities.
Services related economic activities are expected to continue its momentum during 2021. Investment activities are expected to grow significantly in 2021, supported by higher growth in private investments.
The outlook of the external sector, which is largely driven by the trade deficit, will depend on the global economic impact of the COVID-19 pandemic and the domestic policy responses.
Policies to boost domestic production are also expected to ease the pressure on the external sector of the economy on a sustained basis.
“Nevertheless, the success of containing COVID-19 locally and globally remains critical in determining the pace and the magnitude of domestic economic recovery and revival in the period ahead,” the Central Bank said in its report.
Inflation is expected to be maintained within the desired range of 4-6 percent over the medium term.
News
Cabinet approves construction of new 300 bed Base Hospital in Deniyaya
The Cabinet of Ministers approved the resolution forwarded by the Minister of Health and Mass Media to relocate the Deniyaya Base Hospital after constructing a new hospital with a capacity of 300 beds at an estimated cost of Rupees 6,000 million.
The Southern Provincial Department of Health has acquired a plot of land in Handford estate which is approximately 03 kilometres away from the town for this purpose.
News
Cabinet nod to legally empower methodology for implementing the ‘Praja Shakthi’ poverty alleviation national movement
The Cabinet of Ministers granted approval for the resolution furnished by the Minister of Rural Development, Social Security and Community Empowerment to instruct the Legal Draftsman to draft a bill to legally empower the implementation of ‘Praja Shakthi’ (Strength of the Community) poverty alleviation national movement
News
NPP not under Indian pressure to hold PC polls – JVP
…preliminary work started on new Constitution
JVP General Secretary Tilvin Silva yesterday (17) maintained that the NPP government was not under Indian pressure to hold the long delayed Provincial Council elections.
The top JVP official said so appearing on Sirasa Pathikada, anchored by Asoka Dias. Tilvin Silva said that neither the devolution nor terrorism issues had been discussed during his meeting with External Affairs Minister Dr. S. Jaishankar and Deputy National Security Advisor Pavan Kapoor, in New Delhi. This was Tilvin Silva’s first visit to India.
Declaring that politics hadn’t been on the agenda, the JVPer said that the Indian focus was entirely on economic development and technology.
The JVP General Secretary visited India under the Indian Council for Cultural Relations’ (ICCR) Distinguished Visitors Programme from 5-12 February 2026. General Secretary Silva was accompanied by Kitnan Selvaraj, MP, Ilankumaran Karunanathan, MP, JVP Central Committee Member Janaka Adhikari, JVP’s Media Unit Head Hemathilaka Gamage and Member of JVP’s International Relations Department Kalpana Madhubhashini. The delegation visited New Delhi, Ahmedabad and Thiruvananthapuram.
Responding to another query, Tilvin Silva said that Dr. S. Jaishankar had reiterated that India would always remain a true and trusted partner for Sri Lanka, in accordance with its ‘Neighbourhood First Policy’ and Vision ‘MAHASAGAR.’
Referring to the second JVP insurrection in the late 1980s, the JVPer claimed that they had not been against India but responded to the actions of the then Indian government.
Sri Lanka enacted the 13th Amendment to the Constitution in the wake of the Indo-Lanka peace accord of July 1987 to pave the way for Provincial Councils.
Tilvin Silva said that since they came to power, Indo-Sri Lanka relations had changed. “India has realised we could work together,” he said.
The JVP official said that preliminary work was underway, regarding the formulation of a new Constitution. The abolition of executive presidency and creation of an Office of President sans executive powers, too, would be addressed, he said, adding that the strengthening of the legislature was the other issue at hand.
Pointing out that the NPP had 2/3 majority in Parliament and could introduce a new Constitution on their own, Tilvin Silva said that they intended to obtain views of all and study the past processes in a bid to secure consensus. The JVP, as the party that campaigned against the introduction of executive presidency, way back in 1978, would lead the current effort to do away with the existing Constitution, he said.
Tilvin promised that they would implement what was in their manifesto.
The interviewer also raised the issue of abolishing the pensions for ex-Presidents. Tilvin Silva said that the Supreme Court, too, had approved the move to abolish pensions to ex-MPs. Therefore there was no issue with that, however, the ex-Presidents pensions couldn’t be done away with as they were made through the Constitution. That would be addressed when the government introduced a new Constitution in consultation with other stakeholders.
By Shamindra Ferdinando
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