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Growth in South Asia to slow down in 2023, WB

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Sri Lanka is among three South Asian governments that increased borrowing from domestic banks to finance their record debt, and, as a result, sovereign-bank nexus increased, heightening the financial sector’s vulnerability, according to a World Bank report.

The other two countries are the Maldives and Pakistan, says a WB report, titled ‘A mixed bag for South Asian economies: Challenges and opportunities ahead.’

It said: “Banks in South Asia could also face liquidity problems if there are sudden deposit withdrawals, for example. Some countries, like Sri Lanka and Bangladesh, are especially vulnerable, given rising non-performing loan ratios—a key indicator of worsening asset quality—in the banking sector as well as non-bank financial institutions.

South Asia, battered by three years of upheaval from the Covid-19 pandemic, and spillovers from Russia’s invasion of Ukraine, faces a combination of good and bad news for its economies.  On the positive side, global energy and fertiliser prices are down, both tourism and business services continue to recover strongly, and the reopening of China’s economy is relaxing supply bottlenecks.

However, rising interest rates, and risks in the banking sector, in the United States and Europe, have increased uncertainties in South Asia’s outlook, given their significant impact on balance of payments, exchange rates, and financial markets.

Therefore, growth in South Asia is expected to slow down in 2023, according to our latest South Asia Economic Focus (SAEF). In this blog, we discuss the challenges and opportunities the region faces, and highlight expert opinions from the bi-annual survey of the South Asia Economic Policy Network (SAEPN)—a group of policy makers, academics, and macroeconomists across the region.

The bi-annual survey of the SAEPN reveals a more bearish outlook for the region, compared to last fall, reflecting the slowdown in economic growth and shift in risks for the economy:Forty-eight percent of the respondents—as opposed to 56 percent in the fall of 2022—believe that economic activity has recovered to at least 85 percent of the pre-COVID-19 level.



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Heat index is likely to increase up to ‘Caution level’ at some places in Eastern and North-central provinces and Monaragala, Hambantota, Jaffna, Mullaittivu, Kilinochchi, Vavuniya and Kurunegala districts

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Warm Weather Advisory
Issued by the Natural Hazards Early Warning Centre of the Department of Meteorology at 3.30 p.m. 26 April 2025, valid for 27 April 2025.

The public are warned that the Heat index, the temperature felt on human body is likely to increase up to ‘Caution level’ at some places in Eastern and North-central provinces and Monaragala, Hambantota, Jaffna, Mullaittivu, Kilinochchi, Vavuniya and Kurunegala districts.

The Heat Index Forecast is calculated by using relative humidity and maximum temperature and this is the condition that is felt on your body. This is not the forecast of maximum temperature. It is generated by the Department of Meteorology for the next day period and prepared by using global numerical weather prediction model data.

Effect of the heat index on human body is mentioned in the above table and it is prepared on the advice of the Ministry of Health and Indigenous Medical Services.

ACTION REQUIRED

Job sites: Stay hydrated and takes breaks in the shade as often as possible.
Indoors: Check up on the elderly and the sick.
Vehicles: Never leave children unattended.
Outdoors: Limit strenuous outdoor activities, find shade and stay hydrated. Dress: Wear lightweight and white or light-colored clothing.

Note:
In addition, please refer to advisories issued by the Disaster Preparedness & Response Division, Ministry of Health in this regard as well. For further clarifications please contact 011-7446491.

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Minister of Foreign Affairs pays his last respects to Pope Francis

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Minister of Foreign Affairs, Foreign Employment and Tourism, Vijitha Herath represented Sri Lanka at the funeral of Pope Francis on Saturday [26]

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RW to visit CIABOC on Monday

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Former President Ranil Wickremesinghe will appear before the Commission to Investigate Allegations of Bribery and Corruption (CIABOC) tomorrow (28) over the statement he had made on MP Chamara Sampath Dassanayake, his lawyers have informed the Commission.

Accordingly, the former President will appear before the commission at 9.30am on Monday.

Wickremesinghe was initially summoned by the Commission to CIABOC on April 17 in relation to a statement he had made about the corruption case filed against NDF (gas cylinder) MP Dassanayake.

In response to the previous summons, Wickremesinghe had indicated that he is prepared to appear before the commission but requested a different date citing that his lawyers will not be available in Colombo during the New Year holiday period.

Accordingly, a new was provided and Wickremesinghe requested to appear before the commission at 09.30 a.m. on Thursday (April 25).On April 7, Wickremesinghe had said that MP Dassanayake withdrew the fixed deposits belonging to the Uva Provincial Council, over which he is now facing corruption charges, in accordance with a circular issued during Wickremesingher’s tenure as Prime Minister.

The former President questioned whether the MP’s arrest over the matter was in response to Dassanayake’s vocal criticism of the government in parliament.

The sitting MP is currently in remand custody for allegedly misappropriating a sum of Rs. 1 million of the Uva Provincial Council in 2016.

He was taken into custody on March 27, over three separate corruption-related cases.

The Colombo Magistrate’s Court previously granted bail in the cases filed against him but he remains in remand custody due to an order issued by the Badulla Magistrate’s Court.

According to the CIABOC, Dassanayake had solicited funds from three state banks, claiming they were intended to provide bags for preschool children in the province.

Two banks complied, granting him Rs. 1 million and Rs. 2.5 million, which were later transferred to his foundation account.

However, when a third bank refused to provide funds, Dassanayake reportedly retaliated by withdrawing the Uva Provincial Council’s fixed deposits from that institution.The CIABOC filed a case against the MP, citing the government incurred a financial loss of Rs. 17.3 million due to his actions.

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