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South Asian economies recover amidst uncertainties

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The South Asian economies recover but the recovery remains fragile and uneven, and most countries are far from pre-pandemic trend levels, says the World Bank in its twice-yearly regional update.

The latest South Asia Economic Focus titled Shifting Gears: Digitization and Services-Led Development projects the region to grow by 7.1 percent in 2021 and 2022. While the year-on-year growth remains strong in the region, albeit from a very low base in 2020, the recovery has been uneven across countries and sectors. South Asia’s average annual growth is forecast to be 3.4 percent over 2020-23, which is 3 percentage points less than it was in the four years preceding the pandemic.

India’s economy, South Asia’s largest, is expected to grow by 8.3 percent in the fiscal year 2021-22, aided by an increase in public investment and incentives to boost manufacturing. In Bangladesh, continued recovery in exports and consumption will help growth rates pick up to 6.4 percent in fiscal year 2021-22. In Maldives, GDP is projected to grow by 22.3 percent in 2021, as tourism numbers recover.

“The pandemic has had profound impacts on South Asia’s economy. Going forward, much will depend on the speed of vaccination, the possible emergence of new COVID variants, as well as any major slowdown in the momentum of global growth,” said Hartwig Schafer, World Bank Vice President for the South Asia Region. “While short-term recovery is important, policymakers should also seize the opportunity to address deep-rooted challenges and pursue a development path that is green, resilient and inclusive.”

COVID-19 has left long-term scars on the region’s economy, the impacts of which can last well into the recovery. Many countries experienced lower investment flows, disruptions in supply chains, and setbacks to human capital accumulation, as well as substantial increases in debt levels. The pandemic is estimated to have caused 48 to 59 million people to become or remain poor in 2021 in South Asia.

As countries build back, they have a chance to rethink their long-term development models.

The role of services in the region’s economy has been increasing amid rapid technological change and the accelerated structural transformation of global economic activity in response to the pandemic. The adoption of digital technologies makes services more tradable, enables services to increase productivity of other sectors—including manufacturing—and creates new markets. Some South Asian countries are increasingly providing business and professional services that add value to manufacturing and play a key role in global value chains.

“Countries in South Asia have a strong comparative advantage in exporting services, particularly business processes and tourism, whereas they have struggled to break into manufacturing export markets,” said Hans Timmer, World Bank Chief Economist for the South Asia Region. “To realize the potential of the services-led development, the region needs to rethink regulations and establish new institutions to support innovation and competitiveness.”



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Booster shots: Poor public response makes GMOA contemplate legal remedy

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By Rathindra Kuruwita

Lack of enthusiasm among the public to receive the booster dose was disconcerting, given that Sri Lanka had a long-established and highly functional immunisation programme, the Government Medical Officers Association (GMOA) said yesterday.

By 20 January 2022, 64.56% of Sri Lankans had been fully vaccinated, but only 22.47% had received the booster dose, the GMOA said.

“At the early stages of vaccination against Covid-19 the public response was favourable. However, the current waning of interest might be driven by the myths and rumours regarding the vaccines. It is important to take measures to counter such misinformation by raising public awareness of the ongoing vaccination programme.”

“Legal action against those responsible for the spread of communicable diseases can be taken under the Penal Code”, GMOA Secretary Dr. Senal Fernando said. “Provisions of the Quarantine Ordinance can be used against persons who do not comply with directions given by the proper authorities under the Quarantine Ordinance,” he said.

The GMOA said that several countries had made it mandatory to have proof of vaccination for entry into public places. The same thing could be done in Sri Lanka to ensure that more people got vaccinated.

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Govt., SJB haggle over procedure to rescue country

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By Saman Indrajith

The SJB on Sunday said that it was wrong for the President and the government to seek the assistance of the Opposition to steer the country out of the present crises without creating a proper forum to obtain such assistance.

Addressing the media at the Opposition Leader’s Office in Colombo, Chief Opposition Whip and Kandy District MP Lakshman Kiriella said President Gotabaya Rajapaksa delivering the latter’s third Policy Speech in Parliament last week had sought the assistance of the Opposition. “His speech is full of excuses. He sought our assistance but there is no forum to offer our assistance. The government too has asked for the same several times. If the government needs the Opposition’s assistance, what it should do is to declare a state of national disaster situation so that the Opposition could make use of Parliament as the forum for our contributions. That has not been done so far. The President and the government could make use of the provisions of the Disaster Management Act No 53 of 2005 to form a disaster management committee comprising the government and opposition MPs.

The President is the ex-officio Chairman of the committee, the Prime minister and the Opposition leader are there with 24 government ministers and five opposition MPs. In addition to that there are provisions to the involvement of the Chief Ministers of Provinces in the committee. If the government genuinely needs our support it should have started forming that committee. There are laws enabling the formulation of mechanisms to help people the government does not make use of them. We have been repeatedly asking the government to appoint that committee.

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Lord Ahamad plants kumbuk tree sapling during visit to Bellanwila – Attidiya Bird Sanctuary

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By Ifham Nizam

Lord Tariq Ahmad of Wimbledon, Minister for South Asia, the United Nations and the Commonwealth at the Foreign, Commonwealth and Development Office of the UK, planted a Kumbuk (Terminalia arjuna) sapling at the Bellanwila – Attidiya Bird Sanctuary last week.

The Department of Wildlife said Lord Ahmad had been joined by the British High Commissioner in Colombo Sarah Hulton, Hasanthi Urugodwatte Dissanayake, Acting Additional Secretary of Ocean Affairs, Environment and Climate Change at the Foreign Ministry, Saman Liyanagama, Wildlife Ranger of the Colombo Wildlife Range, Department of Wildlife Conservation and Professor Sevvandi Jayakoddy, Senior Lecturer of the Wayamba University.

The planting activity was followed by a brief visit to the wetland and Prof. Jayakoddy, and Liyanagama explained the importance of wetland ecosystems as well as challenges in conservation and maintenance, while Dissanayake briefed him on the Sri Lanka’s pioneering work related to mangrove restoration and conservation, both at policy level as well as at the ground level.

Hasini Sarathchandra, Publicity Officer, Department of Wildlife Conservation said British High Commission in Colombo with the International Water Management Institute Headquartered in Sri Lanka, had already launched a project under the Darwin Initiative at the Baddegana Wetlands.  Similar collaborations are envisaged involving the Bellanwila – Attidiya Bird Sanctuary.

Wetlands play an important role in our natural environment. They mitigate the impacts of floods, absorb pollutants and improve water quality. They provide habitat for animals and plants and many contain a wide diversity of life, supporting plants and animals that are found nowhere else. Colombo is a city built on and around wetlands. Despite progressive loss and degradation, wetlands still cover some 200 km2 of the Colombo metropolitan area and suburbs.

The wetlands are fundamental to the well-being of the people of Colombo and its suburbs. The wetlands can reduce extreme air temperatures and make the city more live able due to evaporative cooling. The wetlands provide a critical land-mass which helps to maintain the richness of Colombo’s biodiversity.

The Bellanwila-Attidiya wetlands was declared as a bird sanctuary on 25 July 1990, due to biodiversity of the area and its contribution to controlling floods. The wetlands, which span over 930 acres, host endemic species and is a paradise for migratory birds. 44 species of fish including 06 which are endemic to the country have been identified in the Bolgoda River which flows through the wetlands. The wetlands are also home to 21 reptilian species, 17 species of mammals and 10 butterfly species. Bellanwia-Attidiya sanctuary falls within the upper catchment of the Bolgoda river basin. The Department of Wildlife Conservation manages the Bellanwila-Attidiya Sanctuary.

Selection of the location was also due to the close collaboration that Sri Lanka has with the Government of the UK on conservation of mangroves and wetlands.

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