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Tuesday February 27th, 2024

Sri Lanka 2021 GDP growth target lowered to below 5.0-pct: CB

ECONOMYNEXT – Sri Lanka is expecting gross domestic product to grow a little under 5.0 percent in 2021, down from an earlier 6.0 percent, Central Bank Governor W D Lakshman said after the country went into a three week lockdown from the last week of May.

The government had to balance between keeping growth going and saving lives and it was necessary to strike a balance he said.

But Sri Lanka’s businesses had got used to operating under a lockdown and the May-June lockdown was not as tight as the first one in 2020, Governor Lakshman said.

Growth in 2021 is expected to be below 5 percent, but it will be positive, he said.

Sri Lanka forecasted a 6.0 percent growth for 2021 at the beginning of the year.

Sri Lanka’s economy contracted in 2020.

Inflation will also be within target in 2021, Director of Economic Research Chandranath Amarasekara said.

Though there were supply constraints, no major gain in aggregate demand was expected.

The 5.0 percent growth was also coming from a low base as the economy contracted in 2020, he said. (Colombo/June11/2021)

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Sri Lanka establishes Children of Gaza Fund

ECONOMYNEXT – Sri Lanka’s Cabinet of Ministers has approved the proposal by President Ranil Wickremesinghe to create a “Children of Gaza Fund” in aid of the victims of the violence inflicted on Gaza.

“All Ministries and Government Institutions directed to forego Ifthar celebrations and contribute to this fund,” a statement by the president’s media division said.

“The Government’s donation of US $1 million will be distributed through official UN agencies to aid affected children with citizen contributions encouraged.” (Colombo/Feb27/2024)

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Top US official calls for inclusive reforms, deeper defence ties with Sri Lanka

ECONOMYNEXT — United States Deputy Secretary of State for Management and Resources Richard Verma in discussions with Sri Lanka officials had called for inclusive reforms and stronger human rights and also discussed deeper defence and maritime cooperation.

The United States remains committed to the economic growth and prosperity of Sri Lanka, statement from the US Embassy in Colombo quoted the official as telling government, civil society and economic leaders during his February 23-24 visit to Sri Lanka.

“Verma met with President Ranil Wickremesinghe and Foreign Minister Ali Sabry to discuss progress on Sri Lanka’s IMF program, including inclusive economic and governance reforms aimed at keeping Sri Lanka on the path to sustainable economic growth.  Deputy Secretary Verma stressed the vital need to protect human rights and fundamental freedoms, including freedom of expression. They also explored opportunities to deepen defence and maritime cooperation between the United States and Sri Lanka, including strengthening the Sri Lanka Navy’s capabilities to safeguard national security and promote a more stable Indo-Pacific region,” the statement said.

 On February 23, aboard the SLNS Vijayabahu, one of three former U.S. Coast Guard cutters transferred by the United States to Sri Lanka, Deputy Secretary Verma said: “I am pleased to announce that the Department of State has notified Congress of our intent to transfer a fourth medium endurance cutter to Sri Lanka.  The Department obligated $9 million in Foreign Military Financing to support this effort.  We look forward to offering the cutter, pending the completion of Congress’ notification period.  If completed, this transfer would further strengthen defense cooperation between the United States and Sri Lanka.  The ship would increase Sri Lanka’s ability to patrol its Exclusive Economic Zone, monitor its search and rescue area, and provide additional security for ships from all nations that transit the busy sea lanes of the Indian Ocean.” 

 Participating in the announcement at Colombo Port were Sri Lanka State Minister of Defense Premitha Bandara Tennakoon, Commander of the Sri Lanka Navy Vice Admiral Priyantha Perera, and U.S. Ambassador to Sri Lanka Julie Chung, who remarked, according to the statement: “The United States has previously transferred three cutters to the Sri Lankan Navy, which deploys these ships for maritime operations and law enforcement missions, countering human trafficking and drug trafficking, while supporting humanitarian assistance and disaster response efforts. The eventual transfer of a fourth vessel would be just one more point in a long history of cooperation between Sri Lanka and the United States in preserving a free and open Indo-Pacific region.” 

Verma also visited the site of the West Container Terminal (WCT), a deepwater shipping container terminal in the Port of Colombo. The WCT, currently being constructed by Colombo West International Terminal (CWIT) Private Limited with 553 million US dollars in financing from the U.S. International Development Finance Corporation, will provide critical infrastructure for the South Asian region, the embassy said.

“Operating near capacity since 2021, the Port of Colombo’s new addition will be the port’s deepest terminal and aims to boost Colombo’s shipping capacity, expanding its role as a premiere logistics hub connecting major routes and markets, boosting prosperity for Sri Lanka without adding to its sovereign debt,” it said. (Colombo/Feb27/2024)

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Sri Lanka police chief appointment against constitution: Opposition Leader

Samagi Jana Balavegaya leader Sajith Premadasa addresses the rally

ECONOMYNEXT – The appointment of Sri Lanka’s new police chief Deshbandu Tennakoon is against the constitution as the decision lacked required votes at the Constitutional Council, Opposition Leader Sajith Premadasa said.

President Ranil Wickremesinghe on Monday (26) appointed Deshbandu Tennakoon as the 36th Inspector General of Police (IGP) of the country after the Constitutional Council (CC) cleared the official who along with three other police officers were asked by the Supreme Court to compensate 2 million rupees in a fundamental rights case last year.

“CC didn’t approve IGP’s appointment. Votes: 4 for; 2 against; 2 abstentions. At least 5 votes are required for a decision,” Premadasa said in his X (Twitter) platform.

“Speaker has a casting vote only in case of a tie. 4/2 is not a tie! Constitution is being blatantly violated for the second time. Shame on you speaker!”

Speaker Mahinda Yapa Abeywardena was not reachable for a comment on the Opposition Leader’s claim.

The President Media Division (PMD) said the President appointed Tennakoon “as the IGP in accordance with the provisions of the Constitution”.

The island nation’s Supreme Court on December 14 ordered Tennakoon when he was the Acting IGP and three other officials to pay a compensation of 500,000 rupees each for the violation of the fundamental rights of an individual.

The Supreme Court also instructed the Police Commission to take disciplinary action against the said Police officers including Tennakoon after it considered the petition filed by W. Ranjith Sumangala who had accused the Police officers of violating his fundamental rights during his detention at Mirihana Police Station in 2011.

The Supreme Court held that the four police officers violated the fundamental rights of the petitioner by his illegal arrest, detention and subjection to torture at the Mirihana Police Station, which was under the supervision of Tennakoon at the time of the arrest. (Colombo/Feb 27/2024)

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