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South Asia to remain fastest growing region: ADB

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The Asian Development Bank (ADB) last week said South Asia was likely to hang on to its fast growth despite fresh outbreaks of COVID-19, with 9.5% overall economic expansion and Sri Lanka projected to grow by 4.1% this year. 

South Asia will have developing Asia’s fastest growth this year after suffering the region’s sharpest contraction in 2020. Aggregate output is forecast to expand by 9.5% in 2021, with growth tapering to 6.6% in 2022, the ADB said in its flagship Outlook report. 

South Asia’s largely reflects the performance of India, which will rebound from an 8% contraction in fiscal year 2020 and grow by 11% and 7% in this and the following fiscal year.

 A stimulus-fuelled surge in the US – India’s largest export market – will support the revival, but a severe second COVID-19 wave is threatening the recovery. 

Economic activity in Afghanistan, Nepal, and Pakistan will also rise as tight containment restrictions are lifted, with buoyant remittances stimulating growth in Nepal and Pakistan. Sri Lanka’s challenging macroeconomic situation will likely moderate growth in 2022 but is forecast to grow at 4.1% in 2021. However, this is lower than Government projections of 5.5%-6%. 

Growth recovery is dependent on an expansive budget and stronger global demand with a marked rebound expected in the major advanced economies, as well as from a base effect following contraction in 2020. 

“Growth is projected to slow somewhat to 3.6% in 2022. Building on growth momentum in Q3 and Q4 2020, the Purchasing Managers’ Index, a leading indicator of economic activity, moved strongly into expansionary territory above 50 in the three months to March 2021, with manufacturing above 60 and services in the high-50s,” the report said. 

Growth will benefit in the near term from increased private consumption as pent-up demand is released, and consumption and investment will benefit from low interest rates and ample liquidity. 

Progress on the Colombo Port City special economic zone is expected to foster Foreign Direct Investment, as does development in the Hambantota Industrial Zone. The Government’s reform priorities include deregulation to simplify governance structure, improvements to the Judiciary, Customs efficiency, financial sector regulation, and effective land use.



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Dengue outbreak gallops ahead: Infections surpasses 73,455, leaving 50 dead

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The countrywide dengue outbreak has intensified, with the death toll rising to 50, by July 16, as the number of reported infections surpassed 73,000, according to the National Dengue Control Unit (NDCU).

The country has recorded 73,455 dengue cases so far this year, with the case fatality rate standing at 0.07 percent, highlighting the severity of the ongoing outbreak.

The Western Province continues to remain the worst affected region, accounting for more than half of the total cases, with 38,700 infections. The Gampaha District has recorded the highest number of cases in the province with 15,341, followed closely by Colombo with 14,625.

The Southern Province has reported 11,382 cases, while the Sabaragamuwa and Central provinces have each recorded more than 6,000 infections.

Dengue cases have shown a sharp increase in recent months, with June recording the highest monthly total of 21,538 cases, while July has already reported 18,076 infections. In comparison, 8,590 cases were reported in May, and 5,651 in April.

Health authorities have identified 175 Medical Officer of Health (MOH) areas as high-risk locations during the 27th epidemiological week. An average of 2,677 new dengue cases are being reported daily, prompting authorities to intensify prevention and mosquito control measures.

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Evidence recorded in money laundering case against Yoshitha Rajapaksa

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Yoshitha

The Colombo High Court yesterday (17) resumed hearing the money laundering case filed against Yoshitha Rajapaksa, son of former President Mahinda Rajapaksa, under the Prevention of Money Laundering Act.

The proceedings were held before High Court Judge Udesh Ranatunga, where evidence was recorded from prosecution witnesses, under the direction of Deputy Solicitor General Janaka Bandara.

President’s Counsel Sampath Mendis, appearing for Yoshitha Rajapaksa, cross-examined the witnesses during the hearing.

After recording evidence, the court ordered that further examination of evidence be postponed until July 24.

The Attorney General has filed indictments, alleging that Yoshitha Rajapaksa committed an offence, under the Prevention of Money Laundering Act, by purchasing five plots of land in Dehiwala and Ratmalana, valued at more than Rs. 73 million.

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Former IGP C.D. Wickramaratne dies in suspected suicide

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Wickramaratne

Former IGP Chandana Deepal Wickramaratne died after sustaining a gunshot injury at his residence, in Thalangama, yesterday (17), with police saying preliminary investigations indicate that the incident was a suspected suicide.

Kaduwela Magistrate Aruna Indrajith Buddhadasa, on Friday, ordered the Officer-in-Charge of the Malabe Police Station, Police Inspector Pradeep Ranasinghe, to conduct a formal investigation into the death and submit a report to court on its progress.

The order was issued after the Malabe Police Station presented facts before court regarding the incident.

According to police, the Malabe Police Station received information from the Police Unit of the Colombo East Base Hospital, in Mulleriyawa, that Wickramaratne, who resided in the Thalahena area, within the Malabe Police division, had died after being admitted to hospital, with gunshot injuries.

Police Spokesman ASP F.U. Wootler said Wickramaratne had allegedly used the firearm of his personal security officer and shot himself at his residence.

Police said the shooting had taken place at his residence on Parakum Road, Thalangama, on Thursday morning, before he was due to leave for his regular exercise routine. He was rushed to the Colombo East Base Hospital, in Mulleriyawa, with serious injuries but was pronounced dead upon admission, police said.

The deceased’s remains were placed at the Colombo East Base Hospital, where a post-mortem examination was scheduled to be conducted.

ASP Wootler said three police teams have been appointed to investigate the incident. Further investigations are being conducted by the Crime Division of the Western Province South Range and the Malabe Police Station.

Wickramaratne, 63, served as the 35th Inspector General of Police of Sri Lanka from November 27, 2020, to November 23, 2023.

He joined the Sri Lanka Police in 1986 as a Probationary Assistant Superintendent of Police and later served in several senior positions.

A graduate of the University of Colombo and the General Sir John Kotelawala Defence University, he also served as Acting IGP for more than a year, from April 28, 2019, before being appointed IGP, in November 2020.

He retired from the post of Inspector General of Police, in November 2023.

by Norman Palihawadane ✍️

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