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

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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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Cop who accepted Rs 3000 bribe nabbed by CIABOC

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A police officer attached to the  Raddolugama police station who accepted a bribe of Rs 3000/- from a motorist has been nabbed by officers attached to the Commission to Investigate Allegations of Bribery or Corruption (CIABOC) on Monday (14) evening.

It is alleged that the police officer demanded Rs 3000/- from the motorist to return his driving licence without prosecuting him for a traffic offence.

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GMOA swings into action on Vithana’s disclosure of MPs’ salaries, etc.

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MP Vithana / Dr. Sugathadasa

The Government Medical Officers’ Association (GMOA) has sought an explanation from Parliament regarding how PAYE (Pay As You Earn) is applied to parliamentarians.

GMOA Secretary Dr. Prabath Sugathadasa has written to the Secretary General of Parliament, Kushani Rohanadeera, in terms of the Right to Information (RTI) Act.

Information was sought on 09 July, 2025, in the wake of Samagi Jana Balawegaya (SJB) Kalutara district parliamentarian Jagath Vithana posting his pay sheets from January to May this year on his Facebook.

In addition to information on PAYE, the GMOA has posed a number of other questions to the Secretary General regarding the parliamentarians’ salary as well as pensions.

Parliament passed the RTI Act on 24 June, 2016, and it came into effect on 03 February, 2017. This act, introduced through the 19th Amendment to the Constitution, in 2015, is meant to promote transparency and accountability in government.

New controversy has erupted in the wake of Nawa Janatha Peramuna lodging a complaint with the CIABOC seeking an investigation into Speaker Dr. Jagath Wickremaratne abusing public property, a claim denied by the Secretary General of Parliament.

According to Vithana’s May pay sheet, his monthly allowance is Rs. 54,285, entertainment allowance Rs 1,000, telephone allowance Rs 50,000, sitting allowance Rs 5,000, office allowance Rs 100,000, fuel allowance Rs 97,428.92 and transport allowance Rs. 15,000. His take home pay is Rs 317, 760.92 after the deduction of Rs 1,200 for catering, stamp duty Rs. 25 and Advance Personal Income Tax (APIT).

Asked whether he regretted the releasing of pay sheets, lawmaker Vithana told The Island that in the run-up to the last parliamentary elections, held in November 2024, he had promised the Kalutara electorate he wouldn’t draw his salary. The MP said that however, he later felt the salary should be accepted and used in support of public welfare projects undertaken by him. “Therefore, the money was used appropriately,” he said, adding that both the government and Opposition MPs reacted with resentment. “I feel sort of isolated in Parliament. Hardly anyone talks to me,” MP Vithana said.

Dr. Sugathadasa said that having perused the pay sheets posted online, the GMOA had felt the urgent need to seek a clarification from Parliament as the lawmakers appeared to have received special status. The top GMOA official emphasised they wanted to establish the truth and used the RTI law to obtain information regarding the MPs’ salaries, pensions and other related information. “The GMOA made the request on 09 July, 2025. We are confident the Parliament will answer our queries,” Dr. Sugathadasa said.

Parliament meets only eight days a month. Attendance is not compulsory and there is no fixed time for lawmakers to attend sittings. Over the years, sittings have been suspended for lack of quorum.

The Island asked the GMOA official whether they would seek the intervention of the RTI Commission in case the Parliament declined to reveal the information sought by them. Dr. Sugathadasa said that the Executive Committee of the GMOA would decide the course of action if Parliament withheld information.

A few years ago Chamara Sampath, of Wijeya Newspapers, successfully moved the Court of Appeal against the Parliament after the latter refused to disclose names of Members of Parliament (MPs) who had handed over their respective declarations of assets and liabilities in 2018 and list of names of MPs who have handed over their Declarations from 2010 to the time he made the request (21 June, 2018).

The Court on 28 February, 2023, reaffirmed the RTI Commission’s stand that Declarations of Assets and Liabilities Law of 1975 (DALL) didn’t prevail over the Right to Information Act no. 12 of 2016 (RTI Act).

According to the Parliament website, an MP is paid Rs. 54,285, entertainment allowance Rs 1,000, driver’s allowance Rs 3,500 (only if driver is not provided by government). Fuel allowances are paid based on the distance from Parliament to the electoral district which each MP was elected and the approved market price of one litre of diesel on the first day of every month, telephone allowance Rs 50,000, transport allowance for personal staff Rs 10,000, and stamps worth Rs 350,000 issued to each MP annually.

By Shamindra Ferdinando

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Udaya alleges Prez hasn’t given up efforts to bring in outsider as AG

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Sri Lanka Educator Service Lecturers’ Trade Union yesterday (14) protested outside the Education Ministry, demanding that the government address their grievances. (Pic by Nishan S. Priyantha)

Pivithuru Hela Urumaya (PHU) leader and former Minister Udaya Gammanpila says President Anura Kumara Dissanayake has delayed making a permanent appointment to the post of Auditor General in a bid to bring in an outsider early next year.

Addressing the media yesterday (14), Attorney-at-Law Gammanpila said that three civil society members of the Constitutional Council, who opposed the President’s move, would be completing their term in early January next year. Instead of appointing Dharmapala Gammanpila as the Auditor General, the President had given him only an extension in service so as to get rid of him at the first available opportunity and bring in his crony from the Kelaniya University.

The former lawmaker said that the success of the President’s plan depended on the appointment of pliant civil society members to the CC, ready to help advance the NPP’s agenda.

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