News
World Bank predicts shrinking of local economy by 4.3 per cent this year
Sri Lankan economy is projected to contract by 4.3 percent in 2023 as demand continues to be subdued, job and income losses intensify, and supply-side constraints adversely affect production, the World Bank announced on Tuesday.
Sri Lanka’s heightened fiscal, external, and financial imbalances and its fluid political situation pose significant uncertainty for the country’s economic outlook, said the World Bank in its twice-a-year update, underscoring the need to address the root causes of the country’s economic crisis and build a strong and resilient economy to prevent future crises.
“The economic crisis in Sri Lanka has had deep impacts with over half a million jobs lost and 2.7 million additional people falling into poverty between 2021 and 2022,” said Faris H. Hadad-Zervos, World Bank country director for Maldives, Nepal, and Sri Lanka.
“The prolonged recovery from the scarring effects of this crisis in addition to a slow debt restructuring process, limited external financing support, and an uncertain global environment pose significant risks to the country’s economic growth,” the country director said.
The economy will continue to face significant challenges in 2023 and beyond, and a lower-level external trade equilibrium could have contagion effects on domestic trade, economic activity, jobs and incomes, according to the World Bank.
Strong and effective implementation of the government’s reform program, supported by financing from international partners, could boost confidence and attract fresh capital inflows that are key to improving job prospects and restoring livelihoods, said the World Bank.
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Cabinet approves implementation of National Strategic Action tion Plan to Combat and Prevent Trafficking in Human Beings – 2026- 2030
Sri Lanka has signed and ratified the United Nations Convention against Organized Crime (UNTOC) and the Palermo Protocol to Prevent, Suppress, and Combat Trafficking in Persons, especially against Women and Children, which is a treaty for the enforcement of its provisions.
Accordingly, the National Task Force on Trafficking in Persons was established in 2010 for the coordination of institutions that are interested and actively involved in the prevention of
trafficking in persons. The aforementioned task force has been operating in terms of the action plan prepared for a definite period, and the period of the final national strategic action plan for the period 2021-2025 has ended on 31-12-2025.
Therefore, having reviewed the progress of the aforementioned action plan. The national strategic action plan for the period 2026-2030 has been prepared with the consensus and knowledge of all relevant parties, consisting of four approaches:
protection, litigation (complaints), and partnership.
Accordingly, the Cabinet of Ministers has approved the proposal presented by the President, in his capacity as the Minister
of Defense, to implement the aforementioned national strategic action plan.
The situation report issued by the Disaster Management 1000hrs today [06th January 2026] confirms that 21,514 persons belonging to 6,592 family units who were displaced due to the floods and landslides are still at 225 safety centers.
Z total of 6,037 houses were destroyed while 108,476 houses were partially damaged due to floods and landslides.
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Landslide Early Warnings issued to the districts of Badulla, Kandy, Matale, Monaragala and Nuwara Eliya
The landslide early warning center of the National Building Research Organisation [NBRO] has issued landslide early warnings to the districts of Badulla, Kandy, Matale, Monaragala and Nuwara Eliya in force from 1200hrs on 06th January to 1200hrs on 07th January 2026.
Accordingly,
Level III RED landslide early warnings have been issued to the Divisional Secretaries Divisions and surrounding areas of Udadumbara in the Kandy district, and Nildandahinna and Walapane in the Nuwara Eliya district.
Level II AMBER landslide early warnings have been issued to the Divisional Secretaries Divisions and surrounding areas of Kandaketiya in the Badulla district, Wilgamuwa in the Matale district, and Hanguranketha and Mathurata in the Nuwara Eliya district.
Level I YELLOW landslide early warnings have been issued to the Divisional Secretaries Divisions and surrounding areas of Hali_Ela, Badulla, Passara, Lunugala, Welimada and * Meegahakiwula in the Badulla district, Doluwa in the Kandy district, Ambanganga Korale in the Matale district, and Bibila in the Monaragala district.
Cabinet approves implementation of National Strategic Action tion Plan to Combat and Prevent Trafficking in Human Beings – 2026- 2030
21,514 persons remain at 225 safety centers as at 10AM today [06]
Landslide Early Warnings issued to the districts of Badulla, Kandy, Matale, Monaragala and Nuwara Eliya
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