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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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Final rites of veteran actress Malani Fonseka to be held with state honours on Monday, 26th May at Independence Square

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The final rites of veteran actress and iconic queen of Sri Lankan cinema,  Malani Fonseka, will be held with state honours on Monday, 26th May 2025, at the Independence Square.

A discussion regarding the arrangements for the state funeral was held this afternoon (24) at the Presidential Secretariat, under the leadership of Minister of Buddhasasana, Religious and Cultural Affairs, Dr. H. M. Sunil Senevi and Secretary to the President Dr. Nandika Sanath Kumanayake.

The remains of Mrs. Malani Fonseka will be placed at the Tharangani Hall of the National Film Corporation on Sunday (25) and the funeral will take place on Monday evening (26) at Independence Square, with full state honours.

Extensive discussions were held regarding the necessary arrangements to provide appropriate facilities for the public arriving from across the country to pay their final respects.

The meeting was  attended by Senior Additional Secretary to the President Roshan Gamage, Secretary to the Ministry of Public Administration  S. Aloka Bandara, Secretary to the Ministry of Buddhasasana, Religious and Cultural Affairs  Prince Senadheera, along with members of Mrs. Malani Fonseka’s family, fellow artistes and other dignitaries.

[PMD]

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Government is taking necessary action to enhance the facilities and professional standard within the healthcare sector – PM

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Prime Minister Dr. Harini Amarasuriya stated that the government is taking necessary action to enhance the facilities and professional standard within the healthcare sector, and that expecting a compassionate discharge of duties from the nurses and midwives.

Prime Minister made these remarks while addressing a ceremony held today (24) at Temple Trees to deliver letters of appointment to 3,147 nurses in the health sector.

Addressing the event, the Prime Minister stated:

“I extend my best wishes to all those who embark on a new journey in life joining the public service as nurses today. Among the many professions in the world, you are entering one of the most significant and most respected.

Nursing is more than a job; it is a humanitarian service essential to the public. In times of vulnerability, people look to you for safety and care.

Beyond medicine, you hold a powerful impact on healing people with your smile, way of speaking, compassion, and the manner in which you care.

You provide your service with great dedication, involving both physical and mental commitment. Often, you do not have the chance to sit or even sleep adequately. These sacrifices affect your personal life including the family affairs, relationships with relatives and friends. We understand that these sacrifices affect not only you but your loved ones as well.

I take this opportunity to thank you for your service, which you continue to offer with such commitment.

Following the policy of our government, ’A Prosperous Country, a Beautiful Life’, our primary goal is to bring this vision to all citizens. A beautiful life begins with healthy citizens, not only physically but mentally as well. To ensure this, the government is committed to strengthening the healthcare sector and providing the necessary facilities and training to professionals.

There is a high demand for nurses both locally and internationally. We are working to provide appropriate salaries, necessary promotions, and training opportunities to support your professional growth. It is also essential to create a safe and positive working environment, for both physical and mental well-being of the employees. I am confident that the respective Minister and the Ministry will continue to intervene to ensure that these needs are met.

The nursing profession is mostly comprised of women. In our society, a woman is often expected to carry many responsibilities in form of a wife, a mother, and being a nurse does not exempt you from these duties. As a government, we are sensitive to such areas of the profession, and it is also our responsibility to create an environment where you can live a fulfilling personal life.

The event was attended by Minister of Health and Mass Media, Dr. Nalinda Jayatissa, Secretary to the Ministry of Health, Specialist Dr. Anil Jasinghe, along with Additional Secretaries, officials, and staff of the Ministry of Health.

[Prime Minister’s Media Division]

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Prime Minister meets with U.S. Ambassador and USAID delegation to discuss future of development cooperation

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Prime Minister Dr. Harini Amarasuriya, met  Ms. Julie J. Chung, U.S. Ambassador to Sri Lanka, and Ms. Maureen Hsia, Acting Mission Director and Programme Office Director for USAID Sri Lanka and Maldives at the Parliament recently. The meeting focused on the evolving framework of U.S. foreign assistance to Sri Lanka and potential avenues for sustained cooperation.

The US delegation briefed the Prime Minister on the recent three-month moratorium imposed on all foreign assistance by the United States, pending a comprehensive review by the U.S. Department of the Treasury. Discussions centered on the implications of this decision, particularly its potential impact on key development initiatives such as the women’s shelter project, and broader humanitarian concerns if current support mechanisms are disrupted.

Both parties acknowledged the critical role of the United States as a global leader in development and emphasized the importance of continuing bilateral collaboration. The Prime Minister welcomed the United States’ commitment to identifying alternative modalities to ensure uninterrupted support for Sri Lanka’s development priorities. In addition, the meeting addressed tariff negotiations, recognizing their relevance in bolstering economic resilience and supporting the country’s long-term growth trajectory.

Also in attendance were Ms. Angelina Hermon, Acting Director of the Office of Governance and Vulnerable Populations, and Ms. Nirmi Vitharana, Project Management Specialist from the Office of Economic Growth. Representing the Government of Sri Lanka were Pradeep Saputhanthri, Secretary to the Prime Minister; Ms. Sagarika Bogahawatta, Additional Secretary to the Prime Minister; and Ms. Pramuditha Munasinghe, Director of the North America Division at the Ministry of Foreign Affairs.

[Prime Minister’s Media Division]

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