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World Bank: Debt restructuring and implementation of deep reforms critical for Lanka’s economic stabilization

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Sri Lanka’s economic crisis is deepening with unsustainable debt and a severe balance of payment crisis on top of lingering scars of the COVID-19 pandemic, the World Bank said on Thursday.Debt restructuring and the implementation of a deep reform program are critical for Sri Lanka’s economic stabilization, says the World Bank in its twice-a-year update, underscoring the need for Sri Lanka to build resilience.

Released today, the latest South Asia Economic Focus, Coping with Shocks: Migration and the Road to Resilience, projects regional growth to average 5.8 percent this year – a downward revision of 1 percentage point from the forecast made in June. This follows growth of 7.8 percent in 2021, when most countries were rebounding from the pandemic slump.

While economic distress is weighing down all South Asian countries, some are coping better than others.Exports and the services sector in India, the region’s largest economy, have recovered more strongly than the world average while its ample foreign reserves served as a buffer to external shocks.

The return of tourism is helping to drive growth in Maldives, and to a lesser extent in Nepal—both of which have dynamic services sectors.The combined effects of COVID-19 and the record-high commodity prices due to the war in Ukraine took a heavier toll on Sri Lanka, exacerbating its debt woes and depleting foreign reserves.Plunged into its worst-ever economic crisis, Sri Lanka’s real GDP is expected to fall by 9.2 percent this year and a further 4.2 percent in 2023.

High commodity prices also worsened Pakistan’s external imbalances, bringing down its reserves. After devastating climate-change-fueled floods submerged one-third of the country this year, its outlook remains subject to significant uncertainty.Also released today as a companion piece is the latest Sri Lanka Development Update, which highlights the poverty and welfare impacts of the crisis and the role of social protection in protecting the vulnerable populations.

“Protecting the vulnerable is critical as Sri Lanka fast tracks deep reforms to navigate the deepening economic crisis. The crisis calls for immediate action to protect the poorest and most in need while also focusing on strengthening the social protection system,” said Faris H. Hadad-Zervos, World Bank Country Director for Maldives, Nepal and Sri Lanka.

“In the face of the economic crisis, poverty estimates doubled to 25.6 percent between 2021 and 2022, increasing the number of people living in poverty by 2.7 million. Sri Lanka will need to expand employment in industry and services and recover real value of incomes to mitigate the impacts of the crisis, and build long-term resilience of its people. ” added Hadad-Zervos underscoring the need for a coordinated approach to support the poor and vulnerable.The South Asia Economic Focus also put a spotlight on Sri Lanka’s economic crisis, drawing lessons from the Asian Financial Crisis of 1997.

“As Sri Lanka goes through the historically largest contraction in its economy, looking at global experiences such as the crisis in Latin America in the 1980s and the Asian Financial Crisis of 1997 can help chart solutions,” said Hans Timmer, World Bank Chief Economist for South Asia. “The East and Southeast Asian countries regained momentum by implementing sound reforms, which provide lessons for Sri Lanka to build back better.”

To this end, the spotlight highlights two key experiences of the Asian financial crisis as lessons for Sri Lanka. Firstly, the short-term measures needed to address structural weaknesses, buffers to mitigate external shocks and build resilience to future shocks. Secondly, critical policies to promote future growth.



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Report on child protection delivered to President

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The Committee appointed to Study and Make Recommendations for the Protection of Children handed over their comprehensive report to President Ranil Wickremesinghe on Tuesday (03) evening.

This committee was established on April 19, 2023, to study and provide recommendations for the protection, care and overall welfare of children who have been subjected to various forms of violence within Sri Lanka.

Over the course of nearly five months, the committee conducted 21 meetings to gain an in-depth understanding of the existing issues and to formulate practical recommendations. The committee comprised a diverse group of members, including representatives from institutions such as Children Homes, Remand Homes, Certified Homes, Child Development Centres, Bar Association of Sri Lanka (BASL), Chambers of Commerce, Trade Unions & Associations, Principals of Schools, Civil Society Organizations, Telecommunication and Digital Service Providers, Telecommunication Regulators, Digital Crime Security Experts, Lions Club, Rotaract Club, representatives from the U.S. Embassy, Colleges of Medicine, Solicitors General from the Attorney General’s Department, National Child Protection Authority, National Dangerous Drugs Control Board, National Authority on Tobacco and Alcohol, Family Health Bureau, Foreign Employment Bureau, Sri Lanka Women’s’ Bureau and officials from the Ministries in charge of Women & Children and Education.

The report, which was completed and submitted to the President yesterday, addresses a wide range of issues concerning child protection, including issues related to institutionalized environments, lack of parental care, family separation, digital media exposure, child labour and more. The committee also evaluated the adequacy of existing institutional, administrative and legal safeguards for child protection, aiming to meet the demands of modern society.

Furthermore, the report explores strategies to enhance the physical and mental health of children who have experienced various forms of violence, abuse and neglect. It also delves into the concerning trend of children engaging in violent acts and seeks innovative approaches for community participation in child care initiatives

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Landslide Early Warnings Issued to Colombo, Galle, Hambantota, Kalutara, Kandy, Kegalle, Matara and Ratnapura Districts extended

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Automated Landslide Early Warning Map issued by the Landslide Early Warning Center of the NBRO

The landslide early warnings issued by the landslide early warning center of the National Building Research Organisation to the districts of Colombo, Galle, Hambantota, Kalutara, Kandy, Kegalle, Matara and Ratnapura Districts have been extended untill 1630 hrs today.

Level II landslid early warnings have been issued to the Divisional Secretaries Divisions and surrounding areas of  Neluwa in the Galle district, Ingiriya in the Kalutara district, Pasbage Korale in the Kandy district, Kotapola and Pitabeddara in the Matara district, Ayagama, Kuruwita, Pelmadulla, Nivithigala, Kiriella, Ratnapura, Elapatha, Eheliyagoda and Kalawana in the Ratnapura district.

Level I landslide early warnings have been issued to the Divisional Secretaries Divisions and surrounding areas of Seethawaka in the Colombo district, Elpitiya in the Galle district, Walasmulla in the Hambanthota district, Mathugama, Buathsinhala, Aggalawaththa and Walallawita in the Kalutara district, Yatiyanthota, Kegalle and Dehiowita in the Kegalle district, Athureliya and Mulatiyana in the Matara district and Imbulpe and Kolonna in the Ratnapura district

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Opposition: Judge’s resignation has tarnished Lanka’s image

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He should have taken action against those who threatened him – govt.


By Saman Indrajith

Opposition and SJB leader Sajith Premadasa told Parliament yesterday that there were serious questions and concerns about the independence of the judiciary following the resignation of Mullaitivu District Judge T. Saravanarajah, citing threats and harassment.

“This is a serious issue and the government should conduct an independent inquiry into this matter immediately,” Premadasa said.

Chief Opposition Whip Lakshman Kiriella said the judge’s resignation, citing threats and harassment following his ruling on the Kurundimalai temple, had led to concerns about the independence of the judiciary. He said that the Mullaitivu Magistrate had been pressured to change his judgment.

Justice Minister,Wijeyadasa Rajapakshe said Sri Lankan judges had power to issue summons and take appropriate action against individuals who attempted to exert influence over them. He asked why the judge concerned had not used his powers.

Minister Rajapakshe said that the Opposition could file a contempt of court case if anyone had pressured the Mullaitivu Magistrate to reverse his judgment as claimed, without levelling allegations against the government.

The Minister said the government had no powers to investigate the matter involving the Magistrate and that the JSC was the relevant body to handle the matter and requested if anyone had any issue, they could complain to the Judicial Service Commission.

TNA MP Sumanthiran said that the whole world knew that there was pressure on the Judge. “The Minister cannot claim that there was no pressure on the judge.”

Minister Rajapakshe said that if there was anyone in the House who had exerted pressure on the judiciary it was MP Sumanthiran. He said MP Sumanthiran had on 20 October, 2022 told Parliament that the judges of the Supreme Court should be sent home. “You said in this House that people had no faith in the Supreme Court.”

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