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Central Bank expects inflation to “gradually stabilize”

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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.



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Navy intercept multi-day fishing trawler carrying 200kg of narcotics

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It has been reported that the Sri Lanka Navy has intercepted a multi-day fishing trawler carrying around 200kg of narcotics suspected to be heroin and crystal methamphetamine (‘Ice’) off the southern coast of the island.

The boat and crew  were to be brought to the Galle Harbour,

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Advisory for Severe Lightning issued to Western, Southern, Sabaragamuwa, Northern and North-western provinces and in Monaragala district today (12)

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Advisory for Severe Lightning issued by the natural hazards early warning center at 01.30 p.m. to 11.30 p.m. on 12 April 2024

Thundershowers accompanied by severe lightning are likely to occur at several places in Western, Southern, Sabaragamuwa, Northern and North-western provinces and in Monaragala district.

There may be temporary localized strong winds during thundershowers.

General public is kindly requested to take adequate precautions to minimize damages caused by lightning activity.

ACTION REQUIRED:

The Department of Meteorology advises that people should:
• Seek shelter, preferably indoors and never under trees.

• Avoid open areas such as paddy fields, tea plantations and open water bodies during thunderstorms.

• Avoid using wired telephones and connected electric appliances during thunderstorms.

• Avoid using open vehicles, such as bicycles, tractors and boats etc.

• Beware of fallen trees and power lines.

• For emergency assistance contact the local disaster management authorities.
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Rear Admiral Princely Liyanage (Retd) sets Serendib World Record climbing Adam’s Peak in record time

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Rear Admiral Princely Liyanage (Retd) of the Sri Lanka Navy achieved a remarkable feat, setting a Serendib World Record for climbing Adam’s Peak (Sri Pada) in an impressive time of 23 hours and 46 minutes, using four different routes  (Nallathanniya, Erathna, Palabaddala, and Malingboda.)  as well as becoming the first person to complete the most ascents of Adam’s Peak within 24 hours.

He began his quest to set this record on 08th April, starting from the Nallathanniya Sri Pada entrance at 3:00 a.m all the way to the peak. His journey continued with climbs up and down the Erathna, Palabaddala, and Malingboda routes, ultimately concluding with the challenging trek from Adam’s Peak to Nallathanniya.

The Serendib World Records Committee officially acknowledged Rear Admiral Princely Liyanage’s (Retd) achievement and awarded him the Serendib World Record certificate on 09th April.

(Navy Media)

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