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Sri Lanka back to its high poverty levels

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From L to R: Yvette Fernando (Former Senior Deputy Governor at CBSL), Dr. Ganeshana Wignaraja (Convener of the Independent Growth Study Group), Dr. Sirimal Abeyratne (Executive Director CEPA), Dr. Dirk Willem te Velde (Director, ODI Global International Economic Development Group)

Sri Lanka’s estimated poverty (share of the population living on less than $3.65 a day) remains stubbornly high, affecting as much as a quarter of the population in 2024, and twice as high as in 2021. The reversal in poverty reduction gains during the crisis has taken Sri Lanka back to its high poverty levels of the early 2000s, finds a new study by the Centre for Poverty Analysis(CEPA).

The report, launched on Tuesday in Colombo, says: The economy has stabilised remarkably well since weathering its worst economic crisis since Independence, but there are substantial risks of a relapse. The country now needs to continue with macroeconomic stabilisation and implement a range of growth policies, with a new focus on state capacity.

The report, titled ‘Sustaining Transformative Growth in Sri Lanka 2025–2030’, offers a bold roadmap for Sri Lanka to achieve sustainable and inclusive economic growth over the coming five years. Authored by an Independent Growth Study Group, under the auspices of ODI Global and the CEPA, the report provides critical policy recommendations for navigating the country’s complex economic landscape as it emerges from its worst economic crisis since independence.

Developed by a team of nine leading experts, with extensive experience across public, private, and international sectors, the report highlights the significant progress made in stabilising the Sri Lankan economy, including renewed growth and reduced inflation. However, it stresses that the persistent challenge of high poverty levels requires a focus on economic transformation with structural reforms and targeted sectoral policies to mitigate future risks and unlock the nation’s vast potential.

Dr Ganeshan Wignaraja, Visiting Senior Fellow at ODI Global and Convenor of the Independent Growth Study Group, said: “Sri Lanka has shown remarkable resilience in overcoming recent economic hardship, but the journey towards prosperity requires more than resilience – it demands bold action. This report provides a crucial framework, not just for consolidating the hard-won gains of stabilisation, but for igniting truly transformative growth that uplifts all Sri Lankans. The opportunity is here, and we must act decisively to create a more inclusive and resilient economy.”

The study identifies six key policy areas as crucial for achieving sustainable growth: maintaining macroeconomic stability, integrating into global supply chains, improving factor markets, implementing targeted sectoral policies, reducing poverty and building political consensus. It also highlights key sectors poised for growth, including tourism, the digital economy, niche manufacturing and agriculture, driving the economic transformation of Sri Lanka in the future.

Prof. Sirimal Abeyratne, Executive Director of CEPA and a co-author of the report, emphasised the critical role of trade in this transformation: “Sri Lanka’s historical under-performance in exports is directly linked to a persistent anti-export bias and cumbersome business regulations. Our findings underscore that strategically opening up to global trade and rigorously streamlining business procedures are not just options, but essential accelerators to boost exports, stimulate investment and unleash the full potential of Sri Lankan businesses on the international stage.”

Prof. Dirk Willem te Velde, Director of the International Economic Development Group at ODI Global, said: “In today’s volatile global economy, Sri Lanka’s experience serves as a powerful lesson for recovery from deep economic crisis, setting an example for other emerging economies facing similar challenges. Our study argues how targeted policies for trade and production, innovation and digital economy, and governance can transform the country’s economic landscape and avoid further macro-economic crises. This report is a call to action for all stakeholders – government, business, civil society and citizens alike – to work together towards a shared vision of a prosperous and transformed Sri Lanka.”

The report urges a concerted effort to leverage Sri Lanka’s strategic location and build on existing production capabilities to drive growth and reduce poverty. It emphasises the importance of strategic engagement with global and regional supply chains and the digital economy to boost exports and attract foreign investment.



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Former Minister Mahinda Wijesekara passes away aged 83

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Former Matara District Member of Parliament and Cabinet Minister Mahinda Wijesekara has passed away this morning (02) at the age of 83 family sources have announced.

Mahinda Wijesekara served as a Member of Parliament for the Matara district  for over two decades (1989 to 2010), representing the People’s Alliance, the United National Party and the United People’s Freedom Alliance.

He held several ministerial portfolios, including Minister of Postal and Telecommunication Services in 2008, Minister of Forestry and Envioronment  1999-2001,  Minister of Fisheries and Ocean Resources from 2001 to 2004 and Minister of Special Projects 2007-2008

He was in poor health  following injuries sustained in the 2009  bomb attack by the LTTE terrorists in Godapitiya, Matara.

He was the father of former Minister Kanchana Wijesekara.

 

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Navy seize 323kg of heroin from fishing vessel in southwestern seas

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In a decisive strike against the drug menace, the Sri Lanka Navy intercepted a local multiday fishing trawler carrying a staggering haul of suspected narcotics in the seas southwest of the island.

This operation, carried out under the national mission “A Nation United”, resulted in the apprehension of six suspects (06) and the seizure of the trawler used to smuggle the illicit substance.

Following the mid-sea interception, the trawler was escorted to the Dikkowita Fisheries Harbour on the morning of 01 Apr 2026. A meticulous inspection conducted by the Police Narcotic Bureau (PNB) subsequently confirmed that the sacks (19) aboard contained more than 323kg of heroin.

The Commander of the Navy, Vice Admiral Kanchana Banagoda, accompanied by the Commander Western Naval Area and the Director General Operations, visited the Dikowita harbour to personally  inspect the drug haul.

Addressing the media, the Navy Commander emphasized that these intensified surveillance efforts are carried out under the direct guidance of the Ministry of Defence. He highlighted that the Navy and the Sri Lanka Coast Guard have strategically coordinated operations across the island’s maritime zones to disrupt trafficking routes and ensure national security.

The Commander of the Navy stated that through surveillance operations conducted this year, the Navy has intercepted local multi-day fishing trawlers attempting to bring illegal substances. This has enabled the seizure of a large quantity of narcotics intended to be smuggled into Sri Lanka.

Furthermore, based on foreign intelligence received by the Sri Lanka Navy, continuous surveillance operations carried out off the Beruwala sea area over the past few days led to the recent (01 April) successful operation, he opined.

The Naval Chief stated that so far this year, 07 local multi-day fishing trawlers have been apprehended by the Navy. The street value of the narcotics seized from these boats is estimated to be approximately Rs. 40 billion.

The 06 suspects, the fishing trawler, and the seized heroin were handed over to the Police Narcotic Bureau for comprehensive investigation and onward legal proceedings.

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PM opens ‘Silver Age Center,’ an Elder Care, Training and Research Centre built with modern facilities in Kataragama

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Prime Minister Dr. Harini Amarasuriya stated that a society must be built where all senior citizens can lead lives of safety, freedom, happiness, health, mobility, and spiritual well-being, with their rights safeguarded. She further emphasized that this is a responsibility shared by both the government and society.

The Prime Minister made these remarks on Tuesday (31st of March) while virtually participating in the opening of the ’Silver Age Center,’ an Elder Care, Training and Research Centre constructed with modern facilities in Kataragama. The event was held at the Ministry of Rural Development, Social Security and Community Empowerment, located in the new Sethsiripaya building.

During the event, the Prime Minister was presented with a draft of regulations and guidelines related to the regulation of institutions that provide residential care for senior citizens, by representatives of the National Council for Senior Citizens.

Expressing her views further, the Prime Minister  stated:

“This project, which commenced in 2022, had been halted due to various reasons. However, we have now resumed the project and are pleased to hand it over to the public today.

One of the key commitments of our policy is to create a society that ensures safety and protects the rights of all. Everyone, from the young to the elderly, deserves to enjoy these rights, freedom, and happiness.

A significant portion of our population is rapidly transitioning into senior age. However, the age of 60 still represents an active stage of life where individuals can contribute meaningfully to society and the economy. Senior citizens have needs, as well as abilities and valuable experience. We must recognize that they can continue to engage with society and remain active contributors.

Institutions that provide services for senior citizens play a vital role, and maintaining them is a social responsibility. It is essential to ensure the rights and provision of necessary services for all senior citizens, whether they live within families, independently, or in institutional settings.

We must ensure access to healthcare, transportation, lifelong learning, freedom, happiness, and spiritual well-being for senior citizens, while safeguarding their rights.

We should move beyond the traditional concept of ’elders homes’ and instead develop institutions that cater to the diverse needs of senior citizens, enabling them to spend their later years with dignity and respect.”

The opening of the ’Silver Age Center,’ Elder Care, Training and Research Centre, was carried out by Deputy Minister of Trade, Commerce, Food Security and Cooperative Development, R. M. Jayawardhana, along with regional public representatives and government officials. The occasion was attended virtually by the Minister of Rural Development, Social Security and Community Empowerment, Dr. Upali Pannilage; Secretary to the Ministry, Sampath Manthrinayake; and other ministry officials.

(Prime Minister’s Media Division)

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