News
Central Bank expects inflation to “gradually stabilize”
Sri Lanka’s inflation is anticipated to gradually stabilise around the targeted level of five per cent over the medium term, following a short-lived acceleration of inflation in the near term on account of the recent tax adjustments and supply-side disruptions, the Central Bank of Sri Lanka (CBSL) said in its monetary policy report for February.
In the report, the CBSL said that headline inflation is expected to peak in the third quarter of 2024, mainly on account of the unfavourable base effect stemming from sharp disinflation recorded in the third quarter of 2023.
However, the near-term surge in headline inflation is unlikely to persist due to subdued demand conditions, as the economy is projected to operate below its full capacity for an extended period, the Bank said.
The CBSL observed that the rebound of domestic economic activity witnessed in the third quarter of 2023 is expected to continue, assisting the economy to gradually reach its potential over the medium term with the help of appropriate policies.
It predicted that the gradual relaxation of monetary policy will impact the broader market interest rates, and the resultant normalisation of nominal interest rates, are anticipated to stimulate growth towards its potential level by fostering investments, enhancing consumer spending, and ultimately boosting aggregate demand, thereby alleviating the ongoing contractionary impact on output.
The Central Bank said that they expect a negative trade-weighted foreign output gap to last for around two years, thereby impacting the domestic economy through exports. Improving productivity and addressing growth impediments by minimising structural limitations, such as the weak doing-business environment, remain pivotal to achieving a sustainable growth path and elevating the economy’s potential, it added.
By Norman Palihawadane
Authorities have launched an investigation into the disappearance of over 70 assault rifles from an undisclosed Army camp.The police confirmed that two of the missing T-56 assault rifles had been recovered.
A 47-year-old Civil Defence Force (CDF) member has been arrested in connection with the incident. Acting on information from the suspect, police recovered a T-56 with 11 rounds of ammunition in Kotawila, Matara, on Friday. The arrest followed an earlier recovery of another T-56 rifle and a grenade in Ruhunuketha, Welikanda, which the suspect was allegedly attempting to sell.
Investigations have revealed that the suspect had sold one more T-56, with ammunition, for Rs. 200,000. The CDF member’s arrest came after a person, detained by the Wellampitiya Police with a pistol, confessed to purchasing the weapon from him, providing contact details that led to his arrest.
The Colombo Crimes Division (CCD) obtained a 90-day detention order for further questioning of the suspect.
Acting IGP Priyantha Weerasuriya confirmed to The Island that details of the Army camp and officers involved were being withheld for now.
Police Media Spokesman SSP Buddhika Manatunga said that the CCD and CID were conducting parallel investigations into the case.
Further updates on the missing firearms and their potential links to crimes are expected as the investigation progresses, SSP Manatunga told The Island.
More than 35 people were hospitalised following a head-on collision between two privately-owned buses in Matara yesterday morning.Six persons sustained serious injuries and are currently receiving treatment at the Matara Hospital, police added.
Police Spokesman SSP K.B. Manathunga said that there was a rising number of road accidents involving privately-owned buses in recent times. In response, police have intensified legal actions against passenger bus drivers who violate traffic regulations.
SSP Manathunga announced on Saturday that the government has approved the recruitment of an additional 10,000 police officers. This move aims to strengthen efforts in preventing road accidents, as well as supporting broader anti-crime and anti-drug operations.
Investigations into the cause of the collision are ongoing, SSP Manatunga said. (RK)
Text and Pic by Dinasena Rathugamage
A 25-year-old elephant that had been struggling in pain and hunger for 14 days due to suspected severe gunshot injuries died on Saturday near the Iranamadukulam tank in Kilinochchi.
Villagers who noticed the injured elephant informed Wildlife officers about its condition. Although a team of officials rushed to the location and attempted to treat the elephant, its condition was critical due to severe injuries and its extreme weakness, making recovery impossible.
Wildlife officers said that the elephant was about 25 years of age and they suspected that the elephant’s injuries had been caused by a gunshot. A post-mortem examination is scheduled to determine the exact cause of death. The Kilinochchi Police and Wildlife officials have launched an investigation into the death of the elephant.
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