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Lanka’s growth to contract by 7.6% in 2022 – ADB

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The Asian Development Bank (ADB) says Sri Lanka’s growth is forecast to contract by 7.6% in 2022 and economic activity will remain subdued in 2023.In its latest Asian Development Outlook Supplement, the ADB said the island nation is beset with multifaceted and deepening challenges emanating from long-standing fiscal and current account deficits that have led to the sovereign debt and balance-of-payment crises.

According to the report, the scarcity of foreign exchange has triggered an acute energy crisis, affecting economic activity in all sectors of the economy, threatened food security, created shortages of other essentials, and hit consumer and investor confidence.The detrimental effects of a chemical fertilizer ban on agriculture compounded the effects of the balance-of-payments crisis and double-digit inflation is squeezing disposable income and discouraging investment, the ADB said further.

It added that the tight monetary policy to rein in inflation, revenue-based fiscal consolidation, and expenditure rationalization are also slowing the economy.

“Because of these factors, Sri Lanka’s growth is forecast to contract by 7.6% in 2022 and economic activity will remain subdued in 2023. Risks to the forecast are significant and stem from delays in securing external financing, rising commodity prices, a weaker global economy, and spillovers from the debt crisis on the banking industry.”

The ADB also mentioned that the economic conditions in Sri Lanka have deteriorated drastically since Asian Development Outlook 2022 (ADO 2022) published this April, on a sharp fall in usable reserves, causing the government to suspend external public debt servicing (excluding multilateral debt) on April 12 and default on its sovereign debt on May 18 – the country’s first sovereign debt default.

In Sri Lanka, inflationary pressures have been dramatic, the bank pointed out, adding that “CPI headline inflation averaged 28.6% in the first half of 2022 on multiple fuel price hikes, higher food prices because of poor harvests, supply chain disruptions, shortages caused by a foreign exchange squeeze, and a depreciating exchange rate. Core inflation increased from 9.9% in January to 39.9% in June, averaging 20.7% in the first half—an indication that underlying inflationary pressures are high. Because of this, the inflation forecast is revised up to 33.6% for 2022 and another year of double-digit inflation is expected in 2023.”

The ADB meanwhile lowered South Asia’s growth forecast from 7% to 6.5% for the year 2022, and from 7.4% to 7.1% for the year 2023 mainly due to the economic crisis in Sri Lanka and the high inflation and associated monetary tightening in India.The ADB said the economic fallout from Russia’s invasion of Ukraine on the most of developing Asia has increased, although the impact of Covid-19 has declined across the region.According to ADB’s report, war-induced supply disruptions and escalating sanctions imposed on the Russian Federation have led to global commodity prices spiking and remaining higher than 2021’s already elevated levels.

“As a result, inflationary pressures have increased in many regional economies. Headline inflation is at double-digit levels in most of the Caucasus and Central Asia, in Mongolia in East Asia, in Pakistan and Sri Lanka in South Asia, and in the Lao People’s Democratic Republic (Lao DPR) and Myanmar in Southeast Asia. Although inflation in India, at 7%, is above the 2% – 6% target range of the Reserve Bank of India (RBI), headline and core inflation in the rest of developing Asia’s large economies remain manageable. So, for the region as a whole, inflation remains moderate on average and much lower than elsewhere in the world.”



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LG polls free and fair;Voter turnout low: Election monitors

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The countrywide Local Government (LG) election concluded at 4 pm yesterday (06) without serious incidents.

Voting began at 7 am at 13,759 polling centres. Over 17.1 mn people were eligible to vote at the third election since the presidential poll held last September

At the closing of voting, PAFFREL said that during the day they received 78 confirmed cases of polls-related offences including 38 cases of carrying out illegal propaganda and 25 complaints regarding influencing voters.

There had been altogether 38 unconfirmed cases, mostly of carrying out illegal propaganda and influencing voters, PAFFREL said.

The previous LG poll was held in February 2018 during the Yahapalana administration.

Voter turnout passed 50% in most districts with Kalutara recording – 61%, Colombo – 52%, Galle – 63%, Vavuniya – 60%, Digamadulla – 63%, Trincomalee – 67%, Nuwara-Eliya – 60%, Mullaitivu – 60%, Mannar – 70%, Badulla – 60%, Anuradhapura – 60%, Polonnaruwa – 64%, Moneragala – 61%, Kegalle – 58%, Matara – 58%, Matale- 62%, Rathnapura – 60%, Batticaloa – 61%, Kilinochchi – 60%, Puttalam – 55%

Having exercised her franchise at the polling booth at Samurdhi Building, Mirihana, Premier Dr. Harini Amarasuriya responded to allegations that at the final meeting at Moratuwa she influenced NPP supporters to campaign during the 72 hour ‘silence period.’

Premier Amarasuriya said that if her comments were deemed to have violated election laws she would accept any action taken by the Election

Commission. The law must be applied equally – whether to a citizen or the Prime Minister,” Dr. Amarasuriya said.

At the onset of the campaign President Anura Kumara Dissanayake caused controversy when he declared that government funds would be made available only to local authorities won by the NPP. Commissioner General of Elections Saman Sri Rathnayake is on record as having said that the Election Commission wrote to President Dissanayake regarding his statement.

Polls monitors said that the LG election, like the presidential and parliamentary polls, was peaceful. Political parties and polls monitors said that contrary to earlier assertions, the mini polls attracted a significant number of voters. The northern vote is comparatively higher than the rest of the country, they said.

The ruling NPP, the main Opposition SJB, the SLPP and UNP were the main contestants.

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Local government polls 2025

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Having voted at Abeysinharamaya, Panchikawatte, President Anura Kumara Dissanayake declared that the NPP would comfortably win Tuesday’s local government polls. The President voted soon after returning from a two-day state visit to Vietnam. (Pic by Nishan S. Priyantha)

Premier Dr. Harini Aparasuriya, who is under fire for urging NPP supporters to campaign during the official moratorium on campaigning in the run-up to May 09 Local Government polls is leaving ‘Sanasa’ polling booth in Mirihana yesterday after casting her vote.

(Pic by Thushara Atapattu)

Former President and UNP leader Ranil Wickremesinghe casting his ballot at the College House polling booth in Cinnamon Gardens.

(Pic by Nishan S. Priyantha)

Women and Child Affairs MInister Saroja Savithri Paulraj arrives at Aththudava Maha Vidyalaya, Matara to cast her vote.

(Pic by Priyan de Silva)

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Saudi Ambassador urges graduates not to think graduation as the end of academic chapter, but beginning of lifelong journey of growth and innovation

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Saudi Ambassador Khalid Al Khatami (left) and Acting Register M. I. Nawfer (C) with Acting Vice Chancellor Dr. U. L. A. Majeed

Saudi Arabian Ambassador Khalid bin Hamoud Al Kahtani said that graduation is not just the conclusion of academic chapter but the beginning of great responsibility and a new sense of hope and a life long journey of growth and innovation.

Delivering convocation address at South Eastern University recently, he said:Today is a special day in our life when we come together to celebrate years of hard work, dedication and learning as well as to acknowledge and appreciate the successful students and wish them a future filled with success and joy. Graduation is not just conclusion of our academic chapter but the beginning of great responsibility and a new sense of hope and a life long journey of growth and innovation.

This shining moment is the resolve to feel the hard work, the support of family and the commitment of lecturers. Saudi Arabia’s national road map for future place a strong emphasis on education and development of human capital. We strongly believe that most valuable investment is in minds and human capitalism for the foundation of a new successful, sustainable future. Today you are honoured with the crown of knowledge, so rise to meet the responsibility it preaches, uphold the value of integrity, loyalty and responsibility. You are an ambassador of knowledge – great in your field, and a source of pride to your family and community. The road is on your way of innovation and your country looks forward to your contribution.

I would like to take this opportunity to extend my heartfelt thanks and appreciation to the administration of South Eastern University, its team and lecturers for their academic guidance and moral support to their students as well as for their outstanding role in advancing education. I would also like to express my heartfelt congratulations to the parents here to have supported their children towards this remarkable achievement. They are true parents! We look forward to greater educational cooperation between Saudi Arabia and Sri Lanka in the future.”

dereliction of duty on the part of the relevant institution, and these authorities must be held accountable for the same.

The BASL is deeply concerned on the inadequate implementation of the provisions of the `Prohibition of Ragging and Other Forms of Violence in Educational Institutions Act No. 20 of 1998’, by Law Enforcement Authorities, against perpetrators of ragging and violence in these Institutions. The BASL is also mindful of the applicability of the provisions of the ‘Convention against Torture and Other Cruel, Inhuman or Degrading Treatment or Punishment Act No. 22 of 1994’ and the relevant provisions of the Penal Code.

The BASL urges all responsible authorities in Universities and other High Educational Institutions to take necessary preemptive action and incorporate a zero-tolerance policy on unlawful ragging.

The BASL will closely monitor the case filed by the Samanalawewa Police in the Magistrate’s Court of Balangoda and urges the authorities to take all necessary legal measures to ensure the rule of law and the due enforcement of the law. The BASL is also considering seeking intervention of the Courts of Law to ensure better implementation and enforcement of the applicable Law.”

Meanwhile Sabaragamuwa VC M. Sunil Shantha has appointed a committee consisting of Senior Prof. A.A.Y. Amarasinghe (Chairman) Prof. Kapila Rathnayaka and Attorney-at-Law Y.S. Chandrasekara to investigate the incident.

From M.A. Kaleel, Kalmunai Corr.

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