News

Lanka past worst of its crisis but behind in growth -WB

Published

3 years ago

2023/10/12

Output growth of South Asian countries, except Sri Lanka, is projected to remain stronger than in other regions of the world in the coming years, as per the World Bank’s latest South Asia Development Update, ‘Toward Faster, Cleaner Growth’.

Growth in the region is stronger than elsewhere in the world, but it is nonetheless not strong enough for Sri Lanka to reach high-income status within a generation, the report says.

At just under 6 percent, output growth in South Asia is expected to remain stronger than in other regions in 2023-25, even with weak growth in the countries recovering from recent balance of payments crises.

While other economies in the region are growing fast Afghanistan, Pakistan and Sri Lanka are in acute crisis

Sri Lanka has continued to suffer from the aftermaths of recent balance-of-payments crises. It has recently begun to implement IMF-supported policy programmes to stem capital outflows and improve debt sustainability. Activity has continued to be hampered by input shortages related partly to higher import costs and supply disruptions associated with remaining import restrictions as fiscal deficits remain large, while current account deficits have improved amid sharp import compressions.

Sri Lanka’s economy has suffered the most severe contraction but appears to be past the worst of its crisis, with shortages of essential inputs easing and tourism recovering. The services PMI (Purchasing Managers Index) has been in expansionary territory since May 2023. Industrial production has been contracting since late 2021, but more slowly recently.

In Sri Lanka, inflation peaked around 70 percent year-on-year in September 2022 but has since slowed sharply as the effects of last year’s currency depreciation have faded. Unlike other central banks in the region, the Central Bank of Sri Lanka has been cutting its policy rates since June, in response to steep disinflation and economic contraction.

Among the south Asian nations, financial stresses were most severe in Pakistan and Sri Lanka. In Pakistan, the rupee depreciated sharply between early 2022 and early 2023, and has been broadly stable since. Last year’s attempts to limit capital outflows through import and capital controls diverted remittance inflows from formal channels, contributing to shortages of foreign currency. In Sri Lanka, the rupee has appreciated modestly since the beginning of the year, partially reversing last year’s depreciation of more than 40 percent against the U.S. dollar. Remittances have rebounded as the economy has stabilized, although they remain well below 2019 levels. There has also been a recovery in tourism earnings. In both Pakistan and Sri Lanka, foreign reserve coverage is low, asset quality is weak in both the bank and non-bank financial sectors, and buffers against future shocks are thin.

“In Sri Lanka, the economy appears to have bottomed out after its severe recession and is showing signs of recovery. Support from the IMF and other external lenders has helped stabilize the currency and ease import shortages. The economy is also being supported by the recovery of tourism. After contracting by 3.8 percent in 2023, the economy is expected to grow by 1.7 percent in 2024 and 2.4 percent in 2025. The country’s path to recovery is very narrow, however. Its limited fiscal and reserve buffers leave little room for error as it implements a broad set of reforms and restructures its external debt,” the report says.

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Business

A sustainable, inclusive and globally competitive tourism industry can be built through close partnerships and collaboration – PM

Published

32 mins ago

2026/05/17

Priyan

The 13th Edition of Sancharaka Udawa 2026, Sri Lanka’s foremost Travel & Tourism Fair held under the patronage of Prime Minister Dr. Harini Amarasuriya at the Sirimavo Bandaranaike Memorial Exhibition Centre – BMICH, Colombo on Friday [15th May].

Organized by the Sri Lanka Association of Inbound Tour Operators (SLAITO) in collaboration with the Sri Lanka Tourism Promotion Bureau (SLTPB), the exhibition was held on 15 and 16 th of May.

The exhibition brought together over 250 exhibitors and 300+ stalls with the participation of more than 100 international agents featuring in B2B meetings, panel discussions , and workshops designed to foster collaboration and knowledge-sharing.

This year’s exhibition welcomed foreign hosted buyers for the first time, creating unprecedented opportunities for local stakeholders to connect with international markets.

During the event, the Prime Minister officially opened the Exhibition Sancharaka Udawa 2026 for the public.

Addressing the occasion, the Prime Minister stated that the government’s vision is to build a sustainable, inclusive, and environmentally conscious tourism industry, while emphasizing the need for the sector to adapt to environmental, political, economic, and global challenges. The Prime Minister also highlighted the importance of positioning Sri Lanka competitively in the global tourism arena and strengthening the country’s international brand as a unique destination.

Highlighting the importance of developing human capital and capacity within the sector, the Prime Minister underscored the role of ongoing education reforms in preparing young people for future opportunities. The Prime Minister stated that reforms in education should enable young people to access multiple pathways and gain exposure to industries such as tourism. In this regard, closer collaboration between the tourism sector and educational institutions was identified as essential.

The Prime Minister also stressed the importance of strengthening domestic tourism and improving the overall tourism experience.

Emphasizing the future development of the sector, the Prime Minister noted that close partnership and collaboration between the government and the private sector are vital to achieving sustainable progress in the tourism industry.

The opening ceremony was attended by Prof. Ruwan Ranasinghe, Deputy Minister of Tourism, Prof. Anil Jayantha Fernando, Deputy Minister of Finance and Planning, Ms. Aruni Ranaraja, Secretary, Ministry of Foreign Affairs, Foreign Employment and Tourism, Nalin Jayasundera, President, SLAITO, Buddhika Hewawasam, Chairman, SLTPB/SLTDA and representatives of Diplomatic core, agents and exhibitors.

[Prime Minister’s Media Division]

News

Prof. Venerable Maha Oya Jinarathana Nayaka Thero conferred the title of Chief Sanghanayaka

Published

41 mins ago

2026/05/17

Priyan

The official ceremony to present Sannas Patra to Prof. Venerable Maha Oya Jinarathana Nayaka Thero, who was conferred the title of Chief Sanghanayaka of Wellassa, Bintenne and the Eastern Three Provinces, was held on Thursday [14 of May] at the historic Pothubandhana Rajamaha Viharaya in Bibile, with the participation of Prime Minister Dr. Harini Amarasuriya.

The ceremony was held under the patronage of the Anunayake of the Malwathu Chapter, Most Venerable Dimbulkumbure Vimaladhamma Nayaka Thero. During the ceremony Prime Minister Dr. Harini Amarasuriya presented the official Sannas Pathraya conferring the title of Chief Sanghanayaka of Wellassa, Bintenne and the Eastern Three Provinces to Prof. Venerable Maha Oya Jinarathana Nayaka Thero.

Addressing the gathering, the Prime Minister stated that the Nayaka Thero, who entered monastic life in 1982, has rendered exemplary service to Buddhism and society for over four decades, setting a model for the entire community. She noted that the contributions made by the Thero by continuing the Sri Saranankara and Sri Saddhatissa Dhamma Schools, as well as the service carried out as the Chief Prelate of the Deegavapi Pirivena, are highly commendable.

The Prime Minister further stated that the humanitarian assistance extended annually by providing educational equipment to hundreds of children is commendable and strengthens the government’s efforts towards realizing educational policies. The Prime Minister appreciated the efforts of the venerable Nayaka Thero toward the restoration of the historic Deegavapi Maha Seya and the development of other temples.

The Prime Minister also highlighted that initiatives such as the construction of a Bhikkhu ward at the Ampara Hospital demonstrate selfless dedication of the venerable Thero through actions. The Prime Minister further emphasized that religious leaders who work for the spiritual and social upliftment of the people in historically significant regions such as Wellassa and Bintenne are essential to the country, and that the conferring of this title by the Malwathu Chapter is an honour not only to the Thero but also to the people of those regions.

The occasion was graced by the presence of members of the Maha Sangha representing the three Nikayas, and attended by the Minister Samantha Viddyarathna, Deputy Minister R.M. Jayawardena, Opposition Leader Sajith Premadasa, the Governor of Uva Province, government officials, and a large gathering of devotees.

[Prime Minister’s Media Division]

News

Showers will occur at times in the Western, Sabaragamuwa, Central, North-western and Northern provinces and in Anuradhapura, Galle and Matara districts

Published

22 hours ago

2026/05/16

Priyan

WEATHER FORECAST FOR 16 MAY 2026
Issued at 05.30 a.m. on 16 May 2026 by the Department of Meteorology

According to the today’s latest weather analysis, the low-pressure area located northeast of Sri Lanka, still persists. The Department of Meteorology is continuously monitoring the behavior, development and path of the system.

Due to the influence of the above system, Showers or thundershowers will occur at times and cloudy skies are expected in the Western, Sabaragamuwa, Central, North-western and Northern provinces and in Anuradhapura, Galle and Matara districts. Fairly heavy showers about 75 mm are likely at some places in these areas. Showers or thundershowers may occur at a few places in the Uva and Eastern provinces after 1.00 pm.

The general public is kindly requested to take adequate precautions to minimize damage caused by temporary localized strong winds and lightning during thundershowers.