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Sri Lanka’s economy stabilized – World Bank

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Sri Lanka’s economy has stabilized, with growth expected to reach 4.4 percent in 2024, surpassing earlier forecasts, the World Bank said in its bi-annual Sri Lanka Development Update report, titled Opening Up to the Future, released.

This positive outlook follows four consecutive quarters of growth driven by the industrial and tourism sectors and supported by critical structural and policy reforms, says the World Bank.

However, the report cautions that the recovery remains fragile and hinges on maintaining macroeconomic stability, successfully restructuring debt, and continuing structural reforms to increase medium-term growth and reduce poverty.

Key reforms aimed at boosting exports, attracting foreign investment, enhancing female labor force participation, improving productivity, and addressing challenges such as poverty, food insecurity, and vulnerabilities in the financial sector are crucial for achieving more inclusive and sustainable growth.

The report underscores the country’s potential for achieving higher and sustainable growth through trade. Sri Lanka has an untapped export potential estimated at $10 billion annually, which could create approximately 142,500 new jobs. There is significant opportunity for diversifying and expanding exports in manufacturing, services and agriculture, provided the necessary reforms are implemented.

“Sri Lanka’s recent economic stabilization, marked by four quarters of growth and a current account surplus in 2023, is a significant milestone,” said David Sislen, World Bank Regional Country Director for Maldives, Nepal, and Sri Lanka. “At this moment, Sri Lanka has a real opportunity to realize its export potential, which we estimate at $10 billion annually. There is an opening for Sri Lanka to deepen its participation in global value chains and take advantage of its geography and an evolving global landscape to generate jobs and sustain growth. The continued implementation of important economic and governance-related reforms will allow Sri Lanka to fully benefit from this moment.”

Looking ahead, the report projects a modest growth of 3.5 percent in 2025. Growth is then expected to follow a modest path over the medium term due to the scarring effects of the economic crisis. Poverty is expected to gradually decline but remain above 20 percent until 2026. Inflation is likely to stay below the central bank’s target of 5 percent in 2024, gradually increasing as demand picks up. The current account is projected to remain in surplus in 2024, driven by tourism and remittances.

The Sri Lanka Development Update is a companion piece to the South Asia Development Update, a twice-a-year World Bank report that examines economic developments and prospects in the South Asia region and analyzes policy challenges faced by countries in this region. The October 2024 edition, Women, Jobs, and Growth, projects growth of 6.4 percent in South Asia this year, making it the fastest-growing EMDE region in the world. Increasing women’s participation in the labor force and opening further to global trade and investment could help the region grow even faster and achieve its development goals, says the World Bank’s regional outlook.

(dailynews.lk)

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This week’s Cabinet decisions

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A number of decisions have been taken at the Cabinet meeting held yesterday (May 07).

The decisions taken by the Cabinet of Ministers are as follows :

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New Commissioner General appointed to Examinations Dept.

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Subhashini Indika Kumari Liyanage has been appointed as the new Commissioner General of Examinations, effective immediately.

She succeeds H.J.M.C.A. Jayasundara, whose term ended on May 06, 2025.

Liyanage, a Special Grade Officer of the Sri Lanka Education Administrative Service, previously served as an Examinations Commissioner in the Department of Examinations.

Her appointment was approved by the Cabinet of Ministers.

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Speaker announces MPs nominated to serve on 06 SoCs

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Speaker Dr. Jagath Wickramaratne announced to Parliament today (May 08) the members nominated by the Committee of Selection to serve on 06 Sectoral Oversight Committees.

Accordingly, the members appointed to the 06 Sectoral Oversight Committees are as follows.

Sectoral Oversight Committee on Economic Development and International Relations

  • Lakshman Nipuna Arachchi
  • Mrs.Sagarika Athauda, Attorney at Law
  • Mrs.Nilanthi Kottahachchi, Attorney at Law
  • Kanthasamy Prabu
  • Wijesiri Basnayake
  • Thilina Samarakoon
  • Ms. Lakmali Hemachandra, Attorney at Law

Sectoral Oversight Committee on Infrastructure and Strategic Development

  • Manjula Suraweera Arachchi
  • K. Ilankumaran
  • Ravindra Bandara
  • Danushka Ranganath
  • Asitha Niroshana Egoda Vithana
  • Shantha Pathma Kumara Subasingha
  • Mrs. Geetha Herath, Attorney at Law

Sectoral Oversight Committee on Education, Manpower and Human Capital

  • Aboobucker Athambawa
  • Ms. Krishnan Kalaichelvi
  • Mrs. Nilusha Lakmali Gamage
  • Sugath Wasantha de Silva
  • Sujeewa Dissanayake
  • Sanjeewa Ranasingha
  • Sunil Rajapaksha

Sectoral Oversight Committee on Health, Media and Women’s Empowerment

  • Muneer Mulaffer
  • Dr. Nihal Abeysinghe
  • Mrs. Samanmali Gunasingha
  • Prof. Sena Nanayakkara
  • Dr. S. Sri Bavanandarajah
  • Jagath Manuwarna
  • Ruwan Mapalagama

Sectoral Oversight Committee on Environment, Agriculture and Resource Sustainability

  • Roshan Akmeemana
  • Upul Kithsiri
  • Mrs.M.A.C.S. Chathuri Gangani
  • Susantha Kumara Nawarathna
  • Sudath Balagalla
  • Kitnan Selvaraj
  • Bhagya Sri Herath, Attorney at Law

Sectoral Oversight Committee on Science, Technology and Digital Transformation

  • Chathuranga Abeysinghe
  • Arkam Ilyas
  • Lasith Bhashana Gamage
  • Thanura Dissanayake
  • Mrs. Hasara Liyanage, Attorney at Law
  • Dr. Janaka Senarathna
  • Chandima Hettiaratchi

The Speaker also announced that the Committee of Selection had also nominated Members of Parliament Wasantha Samarasinghe, Sundaralingam Pradeep, Aboobucker Athambawa to serve on the Committee on Parliamentary Business.

In addition, the Speaker further announced to Parliament that the Committee of Selection had also nominated Members of Parliament Aboobucker Athambawa, Arkam Ilyas, Mayilvaganam Jegatheeswaran to serve on the Committee on Public Enterprises (COPE) and Member of Parliament Sunil Rathnasiri to serve on the Committee on Public Accounts. (COPA).

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