Sri Lanka has been granted a billion-dollar loan to boost its agriculture, tourism and energy sectors, the World Bank said on Wednesday, as the country emerges from an unprecedented economic crisis.
Sri Lanka’s economy collapsed in 2022 when it ran out of foreign exchange to finance even the most essential imports such as food, fuel, and medicines.
The loan aims to strengthen local industries and attract private capital for growth, the World Bank said in a statement after its President Ajay Banga met with Sri Lankan President Anura Kumara Dissanayake in Colombo.
“With progress underway to stabilise the economy and restart growth, core elements for job creation are in place,” Banga said in the statement.
The loan will be spread over three years, it added.
The economic crisis led to months of street protests that forced then-president Gotabaya Rajapaksa to step down. His successor, Ranil Wickremesinghe, negotiated a $2.9 billion bailout package from the International Monetary Fund.
The four-year bailout loan from the IMF helped shore up the country’s revenues and cleared the way for the government to reschedule foreign debt after a sovereign default on $46 billion of external borrowings in April 2022.
“Now is the time to accelerate reforms and create the conditions for private enterprise to thrive – particularly in sectors that can create jobs at scale,” Banga said.
The World Bank warned last month that Sri Lanka’s population was living in poverty despite the economy making a “remarkable recovery” from its worst financial crisis.
The South Asian nation’s growth surpassed the Bank’s forecast of 4.4 percent, recording 5.0 percent in 2024 – the first economic expansion since the 2022 crisis.
The IMF warned earlier this month that Sri Lanka’s recovery could be undermined if punishing US tariffs were reinstated.
The United States is Sri Lanka’s largest single market, accounting for almost a quarter of its $12 billion in merchandise exports. The trade balance is heavily in favour of the small South Asian nation.
Washington imposed a 44 percent “reciprocal tariff” on the island nation before putting it on hold for 90 days.
Sri Lanka has not retaliated but has instead appealed for negotiations with Washington.
The Ceylon Electricity Board (CEB) says power outages have been reported in several areas including Colombo, due to strong winds that affected the region last night (May 29).
CEB media spokesperson Dhammika Wimalaratne stated that teams have been deployed to promptly restore power in the affected areas.
The CEB has requested the public to report any power outages via the 1987 hotline or the CEB Assist mobile app.
The Colombo Chief Magistrate’s court yesterday (May 29) ordered to remand an inebriated air passenger who had sexually assaulted a flight attendant onboard.
The passenger, a 49-year-old ship captain named Kanagasabhapathi Kushanthan, was accused of sexually assaulting a South African flight attendant while being intoxicated on the flight.
Colombo Chief Magistrate Thanuja Lakmali ordered the suspect, a resident of Vatukotai, Jaffna, to be remanded until June 05.
Katunayake Airport Police OIC – CI Elmo Malcolm Pate, informed the court that the suspect was intoxicated when he sexually assaulted a 39-year-old South African flight attendant on Emirates flight EK 650 from Dubai.
Police informed the court that the flight attendant reported the incident to the pilot, and the suspect was arrested upon landing at Katunayake Airport.
Police stated that the suspect was examined by the Negombo Judicial Medical Officer, who confirmed he was intoxicated, before being presented to the Colombo Chief Magistrate’s Court.
Several areas in and around Colombo sustained significant damage last night (May 29) as strong winds swept through the city, toppling trees and disrupting traffic movement.
Large trees were reported to have fallen along the Colombo–Galle Road, especially between Kollupitiya and Wellawatte, with similar incidents also occurring in other parts of the city, including Grandpass.
In one of the most severe incidents, a massive tree collapsed on St. Joseph’s Road in Grandpass, causing damage to at least six nearby houses.
