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Lanka’s growth to contract by 7.6% in 2022 – ADB
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.”
The National Building Research Organisation (NBRO) has issued landslide early warnings to the districts of Gampaha, Kalutara and Ratnapura valid untill 0300 hrs on 23rd May 2026.
Accordingly,
Level II landslide early warnings have been issued to the Divisional Secretaries Divisions and surrounding areas of Attanagalla in the Gampaha district and Ratnapura and Kuruvita in the Ratnapura district.
Level I landslide early warnings have been issued to the Divisional Secretaries Divisions and surrounding areas of Bulathsinghala in the Kalutara district and Eheliyagoda in the Ratnapura district.
The President’s Fund has expressed its attention towards providing a monthly scholarship allowance for school-going children of low-income lottery sellers, as a means of supporting their educational needs.
This was revealed during a discussion held om Wednesday (20) at the Presidential Secretariat between the Secretary to the President’s Fund and Senior Additional Secretary to the President, Roshan Gamage and officials of the National Lotteries Board and the Development Lotteries Board.
The President’s Fund currently provides financial assistance across a wide range of sectors to support low-income groups, while also implementing various scholarship schemes for schoolchildren. As an additional step, approval has reportedly been granted by the governing board of the President’s Fund to extend scholarships to children of low-income lottery sellers.
It was noted that the National Lotteries Board and Development Lotteries Board make a significant contribution to the President’s Fund. However, discussions also highlighted the fact that the living conditions of lottery sellers, who play a key role in generating revenue for these institutions, have remained largely unchanged. Accordingly, attention has been directed towards recognising their contribution and providing relief to ease their financial burden.
The proposal to introduce scholarships for school-going children of low-income lottery sellers through the President’s Fund was discussed in detail. Officials of both the National Lotteries Board and the Development Lotteries Board expressed their willingness to support the initiative. It was also decided that the programme would be implemented expeditiously through Divisional Secretariats.
Among those present were Chairman of the National Lotteries Board M. D. C. Anton Perera, General Manager of the National Lotteries Board A. M. Arif, and General Manager of the Development Lotteries Board W. K. A. A. Jayarathne, along with other officials.
(PMD)
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Showers above 200 mm are likely at some places in the Western, Sabaragamuwa and North-western provinces and showers above 100 mm are likely at some places in Galle, Matara, Kandy and Nuwara-Eliya districts.
WEATHER FORECAST FOR 22 MAY 2026
Issued at 05.30 a.m. on 22 May 2026 by the Department of Meteorology
The South-West monsoon is gradually getting established over the island and the current rainy conditions over the south-western parts of the island are expected to continue further for the next few hours.
Showers or thundershowers will occur at times in the Western, Sabaragamuwa and North-western provinces and in Galle, Matara, Kandy and Nuwara-Eliya districts. Very heavy showers above 200 mm are likely at some places in the Western, Sabaragamuwa and North-western provinces. Heavy showers above 100 mm are likely at some places in Galle, Matara, Kandy and Nuwara-Eliya districts. Several spells of showers will occur in the Northern province and in Anuradhapura district while showers or thundershowers may occur at a few places in the Uva province and in Ampara and Batticaloa districts after 2.00 pm.
Fairly strong winds about (35-45) kmph can be expected at times over the Western slopes of the central hills, the Northern, North-central, North-western and Southern provinces and in Trincomalee district.
The general public is kindly requested to take adequate precautions to minimize damage caused by temporary localized strong winds and lightning during thundershowers
Landslide early warnings issued to the Districts of Gampaha, Kalutara and Ratnapura
President’s Fund to consider scholarships for children of low-income lottery sellers
Showers above 200 mm are likely at some places in the Western, Sabaragamuwa and North-western provinces and showers above 100 mm are likely at some places in Galle, Matara, Kandy and Nuwara-Eliya districts.
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