Page 4 - Sri Lanka

Sri Lanka's recovery remains incomplete, urgent reforms needed: World Bank

Sri Lanka's recent economic performance has been strong, but the recovery remains incomplete, the World Bank said on Tuesday. "With growth still below pre-crisis levels and poverty significantly elevated, strengthening the recovery will require continued macroeconomic stability, urgent structural reforms, and more efficient, better-targeted public spending, it said. Sri Lanka's economy crashed in 2022 due to a forex crisis stemming from the COVID-19 pandemic and other flawed political and economic management reasons since 2019. The current turnaround was aided by the four-year IMF bailout of nearly 3 billion USD pinned to a stringent reform regime. While Sri Lanka's recent economic progress is encouraging, the recovery is uneven and incomplete, said David Sislen, World Bank Division Director for Maldives, Nepal, and Sri Lanka. The World Bank projects Sri Lanka's economy to grow by 4.6 per cent in 2025 supported by a modest rebound in industry and steady growth in services before

Sri Lanka to seek legal advice on $1 bn unpaid marine disaster claim

The Sri Lankan government on Tuesday said it will consult the Attorney General on the next course of action after the owning company of a vessel failed to honour a court order directing it to pay USD 1 billion in compensation for a mishap, considered to be the worst marine disaster in the Indian Ocean. Singapore-flagged container vessel MV X-Press Pearl caught fire in May 2021 off Colombo port and burned for nearly two weeks while carrying 81 containers of hazardous chemicals, including 25 tonnes of nitric acid. The incident caused widespread marine pollution, with billions of plastic nurdles and toxic substances spilling into Sri Lankan waters, killing marine life and devastating coastal communities. Dead turtles, dolphins and whales were seen washed up onto beaches for weeks following the disaster. On July 24, Sri Lanka's Supreme Court directed the ship's owning and operating companies to pay USD 1 billion in compensation, with an initial tranche of USD 250 million due by Septem

Navy Chief Admiral Tripathi begins four-day official visit to Sri Lanka

He would also participate in the 12th edition of the Galle Dialogue 2025 - International Maritime Conference in Colombo, on the theme 'Maritime Outlook of the Indian Ocean under Changing Dynamics'

South Asia lived with inequality. Then 'nepo babies' fuelled public outrage

South Asia stayed calm as the upper-middle class aspired to a globalised life, but slowing growth, tech shifts, and travel limits, amplified by TikTok and Instagram, are stoking frustration

Adani-led Sri Lanka container terminal to double capacity ahead of deadline

Once the final phase is complete, the terminal will have the capacity to handle 3.2 million containers annually

Regimes collapse because of weak institutions, not leaders or ideologies

To be truly functional and durable, even eternal, a state doesn't just need a leader, a party, or an ideology. It needs functional and robust institutions

Gen-Z protesters across Asia challenge old guard, demand lasting reform

These demonstrations also highlight how collective youth action can force governments into retreat

Sri Lanka Parliament set to strip privileges of former presidents

Sri Lanka's Supreme Court has ruled that the bill to withdraw presidential privileges extended to former presidents and their widows can be approved in Parliament by a simple majority. The court's ruling was read out in Parliament on Tuesday by Speaker Jagath Wickremaratna. The Supreme Court has determined that no provision of the bill is inconsistent with any provision of the Constitution and can be enacted by Parliament with a simple majority, he said. Following the apex court's ruling, the parliamentary business committee decided to debate the bill on Wednesday. If passed, the bill will end special benefits such as an official residence, monthly allowances, secretarial support, official transport, and other perks currently provided to former presidents and their widows. Sri Lanka currently has five living former presidents and one widow entitled to these privileges. In late July, the government gazetted a new bill aimed at revoking all privileges granted to former presidents o

At least 15 killed, many injured as bus plunges over 1000ft in Sri Lanka

At least 15 people were killed and another 15 injured in a road mishap in the Badulla District of Uva Province, southern Sri Lanka, police said on Friday. A group of over 30 people were on a pleasure trip from the southern town of Tangalle when their bus went down a precipice over 1000 feet around in the Ella town around 9 pm local time on Thursday. The bus had collided with an oncoming jeep before hitting the road railing and going down. The dead include nine women. They all were employees of the Tangalle Urban Council. The rescue efforts were undertaken by the military, police, disaster management teams, and residents, the Newsfirst web portal reported. Officials said the injured have been admitted to the Badulla Teaching Hospital, with several said to be in critical condition, Adaderana reported.

INS Rana, INS Jyoti arrive in Colombo for SLINEX-25 naval exercise

The previous edition of SLINEX was conducted at Visakhapatnam, India, from December 17 to 20, 2024

Reliance Consumer Products takes Campa beverages to Sri Lanka market

RCPL partners with Ceylon Cold Stores to launch Campa beverages in Sri Lanka, expanding the heritage Indian brand's reach to more overseas markets

Sri Lanka's apparel industry alarmed by US tariff of 30%, hopes for cut

The US takes about 40 per cent of apparel exports, helping to pull in $1.9 billion last year and make the industry Sri Lanka's third largest earner of foreign exchange, employing 300,000 people

No intention of ceding Katchatheevu island, says Lankan foreign minister

Sri Lanka has no intention to cede the Katchatheevu island, Foreign Minister Vijitha Herath said, calling the "rumblings" in India an issue between the political parties there. We have our diplomatic channels open to resolve the issue, but what is certain is Sri Lanka will never agree to let go of a part of Sri Lanka which is Katchatheevu and established so by international law," Herath on Thursday told Sirasa TV in response to a question on frequent arrests of Indian fishermen in Sri Lankan waters. Fishermen from both India and Sri Lanka are arrested frequently for inadvertently trespassing into each other's waters. India's External Affairs Minister S Jaishankar on June 27 said the issue of Sri Lanka arresting Indian fishermen stems from an agreement during the Emergency, imposed in 1975, under which their rights for fishing in some specific areas were given up. Herath, however, brushed off the issue, saying that "rumblings" over the Katchatheevu issue are "political sparring ...

IMF to provide Sri Lanka $350 million after fourth review of bailout

The IMF has completed the fourth review of Sri Lanka's USD 2.9 billion bailout programme, allowing the country to draw a USD 350 million tranche from the four-year facility. Amid the island's unprecedented economic crisis, the International Monetary Fund (IMF) in March 2023 approved a nearly USD 3 billion facility to assist Sri Lanka's efforts to durably restore macroeconomic stability by restoring fiscal and debt sustainability. The facility helped Sri Lanka revive its bankrupt economy by building its reserves and successfully negotiating debt restructuring with external creditors. The Executive Board of the International Monetary Fund (IMF) completed the Fourth review under the 48-month Extended Fund Facility (EFF) Arrangement, allowing the authorities to draw SDR254 million (about USD 350 million)," the global lender said in a statement. This brings the total IMF financial support disbursed so far to SDR1.27 billion (about USD 1.74 billion). The reforms that were imposed on the

Sri Lankan Navy arrests 7 Indian fishermen for alleged illegal fishing

The Sri Lankan Navy on Tuesday said it arrested seven Indian fishermen and seized their trawler for allegedly poaching in the island nation's waters in the second such incident within a week. The arrests were made on Monday night in the territorial waters of the Talaimannar region, the Navy spokesman said. The arrested fishermen and their trawler would be handed over to the fisheries inspectorate in Mannar, the Navy said. The Navy on Sunday arrested 8 Indian fishermen. Fishermen from both India and Sri Lanka are arrested frequently for inadvertently trespassing into each other's waters. The fishermen issue is a contentious one in the ties between India and Sri Lanka, with Lankan Navy personnel even firing at Indian fishermen in the Palk Strait and seizing their boats in several alleged incidents of illegally entering the island nation's territorial waters. The Palk Strait, a narrow strip of water separating Tamil Nadu from Sri Lanka, is a rich fishing ground for fishermen from bo

World Bank grants $50 million to improve Sri Lanka's education system

The World Bank has approved a new USD 50 million additional financing package for Sri Lanka through its ongoing General Education Modernisation Project, which would benefit an estimated 5,00,000 students and 1,50,000 teachers. In a press release on Friday, the World Bank said the additional funding will help keep vital education reforms on track, improve teaching quality, upgrade school facilities, and enhance student well-being. The World Bank said the additional funding will focus on underserved schools, including those in the plantation communities and those supporting children with special needs. Schools across all nine provinces, regardless of grade level, are expected to benefit from this support, the press release said. This support is about making sure every child in Sri Lanka has the chance to learn in a safe, inclusive environment and that every teacher has the tools they need to help their students thrive, said David Sislen, World Bank Divisional Director for the Maldive

PSU Mazagon Shipbuilders to acquire controlling stake in Colombo Dockyard

The Mazagon Dock Shipbuilders Limited (MDL), India's Public Sector Shipyard, has announced a "proposed acquisition" of a controlling stake in Sri Lanka's largest and most established shipyard, Colombo Dockyard PLC (CDPLC) valued at up to USD 52.96 million, a statement said on Friday. This marks MDL's first international venture and is a major milestone in the company's transformation from a purely domestic shipbuilder into a regional maritime player with global aspirations, the statement said. Strategically located within the Port of Colombo, CDPLC offers MDL a strong operational foothold in the Indian Ocean Regionone of the busiest and most geopolitically significant maritime corridors in the world. Mazagon Dock Shipbuilders Limited, headquartered in Mumbai, is India's leading defence PSU, builder of frontline warships and submarines and has played a pivotal role in the country's naval modernisation. Colombo Dockyard PLC, listed on the Colombo Stock Exchange, is the flagship of Sr

Jaishankar blames Emergency-era deal for fishermen's arrests by Sri Lanka

At BJP Yuva Morcha event, S Jaishankar said that Indian fishermen continue to suffer due to a 1970s Emergency-era pact with Sri Lanka that was passed without parliamentary debate or consensus

CEAT to raise ₹500 cr via NCDs, infuse ₹400 cr into Sri Lanka unit

CEAT will raise Rs 500 crore through NCDs for capex and debt repayment and invest Rs 400 crore in its Sri Lankan unit to fund the Camso brand acquisition

Iran-Israel conflict: India to evacuate Nepalese, Lankans under Op Sindhu

Amid escalating Iran-Israel tensions, India will now help evacuate Nepalese and Sri Lankan citizens from Iran under its ongoing Operation Sindhu mission