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WB forecasts slowed economic growth in Sri Lanka for two years

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The World Bank has asserted that Sri Lanka’s economic growth would be slowed down in 2026 and 2027.The World Bank in its latest Global Economic Prospects – January 2026 report stated that Sri Lanka’s GDP is expected to grow by 3.5 percent in 2026 and 3.1 percent in 2027.

According to the latest WB projection, Sri Lanka’s estimated growth is 4.6 percent in 2025.

The report attributed the expected slowdown to continuing structural weaknesses in markets, lingering effects of the economic crisis, and weaker external demand driven by global uncertainty.The report projected a slowdown in growth in Sri Lanka primarily reflected inefficiencies in factor and product markets, as well as the effects of the economic crisis.



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IMF MD commends government’s efforts in stabilizing the country’s economy

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Prime Minister Dr. Harini Amarasuriya met with the Managing Director of the International Monetary Fund (IMF), Dr. Kristalina Georgieva, at Temple Tress on the 17th of February

Dr. Georgieva, commended the Government’s efforts in stabilizing the country’s economy and in managing recent economic and natural shocks. She noted that Cyclone Ditwah had caused severe impacts, especially on economically vulnerable communities, underscoring the importance of targeted support and resilience-building measures.

The Prime Minister expressed appreciation for the IMF’s continued support to Sri Lanka, particularly in the aftermath of Cyclone Ditwah. The PM further emphasized that real economic recovery and development must directly benefit the economically vulnerable groups and ensure inclusive growth, highlighting the need for Sri Lanka to attract quality and sustainable investments, particularly in the tourism sector.

The importance of reforming the education system to focus not only on knowledge acquisition but also on skills development and employability was also discussed

The meeting was attended by the Chief of Staff of the IMF Managing Director Andreas Bauer, Director, Asia and Pacific Department, Dr. Krishna Srinivasan Division Chief (Strategic Communications), Communications Department,  Pierre Mejlak Resident Representative for Sri Lanka Dr. Martha Woldemichael, Governor of the Central Bank of Sri Lanka Dr. P. Nandalal Weerasinghe, and Deputy Governor Dr. C. Amarasekara, Secretary to the Prime Minister  Pradeep Saputhanthri and  Additional Secretary to the Prime Minister Ms. Sagarika Bogahawatta.

[Prime Minister’s Media Division]

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Cabinet approves construction of new 300 bed Base Hospital in Deniyaya

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The Cabinet of Ministers approved the resolution forwarded by the Minister of Health and Mass Media to relocate the Deniyaya Base Hospital after constructing a new hospital with a capacity of 300 beds at an estimated cost of Rupees 6,000 million.

The Southern Provincial Department of Health has acquired a plot of land in Handford estate which is approximately 03 kilometres away from the town for this purpose.

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Cabinet nod to legally empower methodology for implementing the ‘Praja Shakthi’ poverty alleviation national movement

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The Cabinet of Ministers granted approval for the resolution furnished by the Minister of Rural Development, Social Security and Community Empowerment to instruct the Legal Draftsman to draft a bill to legally empower the implementation of ‘Praja Shakthi’ (Strength of the Community) poverty alleviation national movement

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