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WB forecasts shrinking of Lanka’s economy this year by 4.2 percent
Sri Lanka’s economic output will contract again this year, by 4.2 percent, the World Bank said in its Global Economic Prospects report, issued on Tuesday.
It said that the reduced forecast for growth, in 2023, owes to ongoing foreign currency shortages, the effects of higher inflation, and policy measures designed to restore macroeconomic stability.
The World Bank said in 2022, Sri Lanka’s economic output fell by 9.2 percent as the government ran out of the foreign exchange needed to cover food and fuel imports, and to service external debt.
“While the authorities are now implementing a stabilization programme, the country faces continuing shortages of food, energy, and medical supplies,” the Bank said.
It said that tourist arrivals, an important source of foreign exchange, continue to be depressed, with international arrivals last October about one-third of their 2019 level.
The crisis, and its repercussions, have increased poverty and reversed much of the country’s income gains over the past decade, the World Bank said.
The World Bank said that food prices have risen rapidly in Sri Lanka, increasing the incidence of food insecurity. In Sri Lanka more than one-third of the population are food insecure, up from less than one-tenth in 2019.
“Although global food price inflation appears to have subsided, risks of increased deprivation and inadequate nutrition remain elevated. High fertiliser and petroleum prices are likely to affect upcoming planting seasons, increasing the persistence of high food prices and threatening households’ ability to cope by depleting savings,” the Bank said.
Latest News
Concessionary priced food packages for new ‘Aswesuma’ applicants from 01st to 13th April
In keeping with the proposal by the President in his 2025 budget, for the provision of a package essential goods at a concessionary price during the Sinhala and Tamil New Year Festival season, it has been planned to provide a food package containing essential food items valued at Rs. 5000/- for only Rs. 2,500/-.
It is expected to select appropriate beneficiaries from among the 812,753 candidates who have submitted new applications for Aswesuma benefits.
Accordingly, the Cabinet of Ministers approved the proposal furnished by the Minister of Trade, Commerce, Food Security and Cooperative Development jointly with the Minister of Agriculture, Livestock, Lands and Irrigation to take necessary steps to provide the food package to the beneficiaries through the Lanka Sathosa outlet network and COOPFED outlets from 01.04.2025 to 13.04.2025
The Cabinet of Ministers have decided as follows considering the resolutions submitted by the President in his capacity as the Minister of Finance, Plan Implementation and Economic Development along with the Minister of Public Administration, Provincial Councils and Local Governments on payment of salaries according to the revised salary scales with effect from 01.04.2025 based on the resolution furnished by the President for revising the salaries of government service by the budget 2025;
• To empower the Secretary to the Ministry of Public Administration, Provincial Councils and Local Governments to issue circular instructions to the the secretaries of all the Ministries, Local Government Secretaries and Heads of Departments in regard to salary revisions of the government service.
• To empower the Secretary to the Ministry of Finance, Plan Implementation and Economic Development to issue circular instructions for state corporations, statutory boards and fully government owned companies and other institutions.
Approval of the Cabinet of Ministers has been granted to amend the Companies Act No. 07 of 2007 for remedying the shortcomings related to the transparency according to the international standards for prevention of money laundering, financing terrorism and other illegal activities.
Accordingly, the draft bill prepared by the Legal Draftsman has been revised as per instructions provided by the Attorney General subject to the special decision of the Supreme Court No. SC/SD/92/2024 and clearance of the Attorney General has been granted for the final draft bill prepared by the Legal Draftsman.
The Cabinet of Ministers granted approval to the resolution furnished by the Minister of Trade, Commerce, Food Safety and Cooperative Development to publish the aforementioned draft bill in the government gazette notification and subsequently submit to the Parliament for its concurrence.
Concessionary priced food packages for new ‘Aswesuma’ applicants from 01st to 13th April
Salary revision of the Government Service – 2025
Amendment of the Companies Act No. 07 of 2007 to be Gazetted
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