The World Bank Group (WBG) and the Government of Sri Lanka today unveiled a new five-year Country Partnership Framework (CPF) aimed at supporting the country’s ongoing economic recovery, achieving a medium-term growth target of 7%, and generating employment opportunities.

Under the partnership, the World Bank Group is expected to mobilise over US$2 billion in support. This includes more than US$1 billion in direct and mobilised investments by the International Finance Corporation (IFC) over five years, alongside up to US$1 billion in low-interest financing from the World Bank over the next three years. The initiative will leverage the full suite of WBG tools, including financing, guarantees, advisory services, and private capital mobilisation.

President Anura Kumara Dissanayake emphasised the government’s commitment to sustaining economic reforms and achieving inclusive growth. “We are committed to building on continued macroeconomic stability, strengthened governance, and revenue-based fiscal consolidation. Our goal is to steer the economy towards strong, sustainable, and inclusive growth, targeting over 7% in the medium term,” he said. He also noted the longstanding relationship with the World Bank Group, which spans more than 70 years.

A key focus of the CPF is private sector-led job creation, particularly as nearly one million young Sri Lankans are expected to enter the workforce over the next decade. Without accelerated growth and increased private investment, only around 300,000 formal jobs are projected to be created, leaving a significant gap in quality employment opportunities.

World Bank Vice President for South Asia Johannes Zutt highlighted the importance of inclusive recovery. “Sri Lanka’s recovery over the past three years has been hard-won. This framework is designed to ensure its benefits reach all segments of society by combining public resources with private sector innovation,” he said.

Echoing this, IFC Vice President for Asia and the Pacific Sarvesh Suri stressed the role of the private sector in driving future growth. “Sri Lanka’s next phase of development will depend on a competitive and innovative private sector capable of creating jobs. With its strategic location and skilled workforce, the country is well-positioned to expand its regional presence, and we remain committed to supporting this transformation,” he said.

The Sri Lanka Transport Board (SLTB) Hatton depot is set to introduce a safari bus service aimed at promoting tourism in the region.

The bus has been refurbished from an older vehicle sourced from the Ratmalana depot and redesigned specifically for tourist use at a cost of Rs. 4 million.

Equipped with 42 seats, the bus includes modern सुविधities such as air conditioning, a sound system, and a television. It has also been modified with open-roof and window access, allowing passengers to enjoy sightseeing more comfortably.

The new service is expected to operate across key tourist destinations, including Sri Pada (Adam’s Peak) and several areas within the Nuwara Eliya district.

Prime Minister Dr. Harini Amarasuriya chaired a Cabinet-appointed committee meeting, focusing on ensuring the uninterrupted delivery of public services while managing fuel and energy use amid challenges linked to the Middle East conflict.

The virtual meeting reviewed progress in fuel and energy management, with officials noting that school-level awareness programmes on energy conservation are scheduled for April 7 and 9.

The Ministry of Public Administration confirmed that key examinations, including the Grama Niladhari entrance exam, were conducted as planned.

It was also noted that guidelines issued by the Office of the Commissioner General of Essential Services are being implemented across ministries, with progress monitored at the ministerial level.

The Ministry of Health and Mass Media reported a 42% reduction in diesel consumption as of March 31, alongside ongoing electricity and water management initiatives.

Meanwhile, several ministries, including Transport, Digital Economy, and Justice, continue to maintain services by deploying essential staff and using online systems, while universities are operating online where feasible.

The committee also reviewed mechanisms to monitor fuel and energy usage across public institutions.

At least eight people were killed and one child injured after a house collapsed in Kabul on Friday following an earthquake, Afghanistan’s National Disaster Management Authority said.

The quake, measuring 5.9 in magnitude, struck the Hindu Kush region at a depth of 177 km, according to the German Research Centre for Geosciences (GFZ).

Tremors were felt across the region, including in Kabul, Islamabad, and New Delhi, witnesses said.

Afghanistan is highly vulnerable to natural disasters, particularly earthquakes, which cause significant casualties each year due to the country’s mountainous terrain and fragile infrastructure.

The incident follows a 6.3-magnitude earthquake in November that killed at least 27 people and destroyed hundreds of homes.

Showers or thundershowers will occur at several places in most parts of the island after 1.00 p.m. 

Fairly heavy falls above75 mm are likely at some places in Central, Sabaragamuwa, Uva, North-central and Eastern provinces. 

Misty conditions can be expected at some places in Western, Central, Sabaragamuwa, Uva and North-central provinces and in Kurunegala and Vavuniya districts during the early hours of the morning.

The general public is kindly requested to take adequate precautions to minimize damages caused by temporary localized strong winds and lightning during thundershowers.

Sri Lanka’s efforts to revive its small business sector are encountering serious obstacles, as delays in loan disbursement threaten to undermine a key pillar of economic recovery.

The government has positioned concessional financing as a central tool to support micro, small, and medium enterprises (MSMEs). These businesses, which contribute significantly to employment and economic activity, have struggled to regain stability following recent crises. Yet, despite the availability of funds, access remains a persistent challenge.

A large-scale financing initiative has been rolled out, consolidating multiple loan schemes into a unified framework delivered through both public and private banks. The program includes interest subsidies and credit guarantees designed to make borrowing more accessible. However, utilization rates suggest that the system is not functioning as intended.

Figures released by Deputy Minister Chathuranga Abeysinghe reveal that only a fraction of allocated funds has been disbursed. Out of nearly Rs. 96 billion earmarked for SME support, just over Rs. 17 billion had reached businesses by March 2026. This slow pace raises concerns about whether the program can deliver timely relief.

Bank-level data show significant variation in performance. Some private banks have efficiently deployed their allocations, meeting or exceeding targets. In contrast, state banks have lagged behind, with relatively low utilization rates. This uneven distribution highlights structural differences in lending practices and possibly risk appetite.

Despite these constraints, the banking sector is not facing liquidity shortages. Data from the Central Bank of Sri Lanka indicate that banks maintain strong liquidity positions and have the capacity to expand lending. The issue, therefore, appears to be less about resources and more about willingness or operational bottlenecks.

For SMEs, the implications are significant. Difficulty in securing affordable credit forces many businesses to either delay expansion, cut costs, or seek more expensive financing options. In a high-cost environment, this can erode profitability and increase vulnerability to external shocks.

The Deputy Minister has urged affected businesses to seek assistance through local administrative channels, noting that once applications are formally submitted, approvals are processed relatively quickly. Still, this does little to address the initial barriers that prevent many applicants from reaching that stage.

The broader concern is that delays in credit delivery could weaken the overall recovery trajectory. SMEs play a critical role in driving employment and economic resilience. If they remain constrained by limited access to finance, the ripple effects could extend across the economy.

Ultimately, the success of Sri Lanka’s SME support strategy will depend on aligning banking sector behavior with national policy goals ensuring that financial institutions act not only as intermediaries, but as active partners in economic recovery.

Sri Lanka’s monetary authorities are signaling a continued easing of interest rates even as private sector borrowing expands rapidly, raising questions about the sustainability of recovery in a still-fragile economy.

At the latest monetary policy briefing, Central Bank Economic Research Director Dr. Lasitha Pathberiya indicated that market lending rates are likely to trend downward in the coming months. This follows a broadly declining pattern in rates throughout late 2025, interrupted only briefly toward the year’s end. The Overnight Policy Rate remains unchanged at 7.75%, where it has stood since a modest reduction in May 2025.

The expectation of further rate cuts comes alongside strong credit expansion. Private sector credit grew by 26.3% year-on-year in January, with total outstanding loans reaching approximately Rs. 10.3 trillion. Over the course of 2025, credit expansion surged to nearly Rs. 2 trillion—more than double the increase recorded the previous year.

However, beneath these headline figures lies a more complex reality. New borrowing has slowed sharply in recent months. From a peak of Rs. 263 billion in November 2025, fresh lending dropped to Rs. 108 billion by January 2026. This marks one of the weakest monthly performances in the past year, suggesting a cooling in credit demand following external disruptions, including severe weather events.

The divergence between rising total debt and declining new credit raises concerns about whether growth is being driven by genuine economic activity or by accumulated borrowing. Analysts warn that while lower interest rates can stimulate investment, they may also encourage excessive leverage if not matched by real sector expansion.

Central Bank surveys suggest banks are willing to lend more, supported by improved liquidity and expectations of economic stability. Yet these projections were made before escalating geopolitical tensions in the Middle East, which have already triggered higher fuel costs and added uncertainty to global markets.

Governor. Nandalal Weerasinghe has downplayed immediate risks, noting stable loan performance among small and medium enterprises despite rising input costs. Inflation is expected to remain subdued at around 2% in the near term, though upward pressure from energy prices and planned electricity tariff hikes could test this outlook.

As Sri Lanka cautiously navigates recovery, the balance between easing monetary policy and maintaining financial stability will be critical. The coming months will reveal whether lower rates can genuinely support growth or simply mask deeper vulnerabilities.

A major corporate restructuring by Liberty Lands and Developments (LLD) has culminated in the full acquisition of Scope Cinemas, a move that reflects both strategic ambition and a reconfiguration of leadership at one of Sri Lanka’s leading entertainment providers.

The buyout, which involved acquiring the remaining shares of Scope Cinemas, gives LLD complete ownership and control over the cinema chain. This development is widely seen as a step toward greater integration within the group’s operations, enabling more unified decision-making and long-term planning.

At the heart of this transition is a significant leadership change. Thushan Rangana Meemanage has exited his roles as CEO and Director of Scope Cinemas, as well as his positions across affiliated entities. His departure marks the end of a leadership chapter and signals a shift in strategic direction as LLD moves to align its management structure with its evolving corporate goals.

Taking over in an interim capacity is Naveed Cader, who will continue to serve as Executive Chairman while assuming the responsibilities of CEO. This dual leadership role is expected to provide stability and continuity as the company navigates its transformation.

The acquisition is part of a broader effort by LLD to strengthen its footprint across multiple sectors, including entertainment, hospitality, and real estate. Its holdings include subsidiaries such as Scope Cinemas and Food Studio, along with investments in Alhambra Hotels and Cine Digital. By consolidating ownership of Scope Cinemas, LLD aims to unlock synergies across these businesses, particularly in delivering integrated consumer experiences.

From a market perspective, the move highlights growing confidence in Sri Lanka’s entertainment industry, even amid broader economic challenges. Cinemas have increasingly evolved beyond traditional film exhibition, offering premium experiences that cater to changing consumer preferences. Full ownership allows LLD to invest more decisively in innovation, technology, and customer engagement.

Cader, commenting on the transition, described it as part of a wider restructuring initiative aimed at positioning Scope Cinemas for sustained growth. He reiterated the company’s focus on building a future-ready organisation while maintaining high standards in cinema experiences.

However, the success of this strategy will depend on execution. Integrating operations, managing leadership transitions, and sustaining audience interest in a competitive entertainment landscape will be key challenges. Additionally, economic pressures could influence consumer spending on leisure activities, adding another layer of complexity.

Nevertheless, the acquisition represents a bold step in redefining LLD’s corporate structure and ambitions. By fully absorbing Scope Cinemas into its portfolio, the group is betting on the long-term value of experiential entertainment.

As Sri Lanka’s cinema industry continues to evolve, LLD’s latest move could set a precedent for consolidation and innovation, shaping how audiences engage with entertainment in the years ahead.

Sri Lanka’s pursuit of energy stability has led it toward a renewed partnership with Russia, but the path forward is far from straightforward. While Russian officials have pledged comprehensive support to meet the island nation’s fuel and gas requirements, the shadow of international sanctions—particularly those associated with the United States raises critical questions about feasibility.

According to the Ceylon Petroleum Corporation, agreements to import both crude and refined fuel from Russia are already in motion. Managing Director Mayura Neththikumarage confirmed that shipments for April and May have largely been secured, with additional deliveries expected in early April. Despite minor delays due to port congestion, officials remain confident that supply levels will be sufficient through the coming months.

The assurances from Russian Deputy Energy Minister Roman Marshavin go beyond short-term relief. Russia has expressed readiness to supply not only fuel, but also coal and gas, and to support broader development initiatives in Sri Lanka. These commitments were reinforced during diplomatic engagements involving Minister Bimal Rathnayake, highlighting a deepening bilateral relationship.

However, the central challenge lies in execution. While Sri Lanka is not directly prohibited from purchasing Russian energy, the global sanctions regime creates indirect barriers. International banking restrictions can complicate payments, while shipping insurers many of whom operate under Western regulations may hesitate to cover vessels carrying Russian oil. These factors can delay or even derail shipments, regardless of agreements between the two countries.

Sri Lanka has previously navigated similar challenges by exploring alternative payment mechanisms, including currency swaps and non-dollar transactions. Yet such arrangements often come with added costs and risks, potentially offsetting the benefits of discounted Russian fuel. Moreover, reliance on a single supplier could expose the country to further vulnerabilities if geopolitical conditions shift.

Another layer of complexity is Sri Lanka’s ongoing engagement with international financial institutions. Maintaining compliance with global financial norms is crucial for securing external funding and sustaining economic recovery. Any perception of circumventing sanctions could strain these relationships, placing policymakers in a delicate balancing act.

Despite these concerns, the potential advantages of Russian assistance are significant. Access to steady fuel supplies at competitive rates could ease domestic pressure, stabilize prices, and support economic activity. In the context of volatile global energy markets exacerbated by conflict in the Middle East such reliability is particularly valuable.

For now, Sri Lanka appears to be cautiously advancing its energy partnership with Russia while monitoring the broader geopolitical landscape. The success of this strategy will depend on its ability to navigate sanctions-related risks without compromising its economic recovery.

In essence, Russian support offers both opportunity and uncertainty. Whether Sri Lanka can transform these assurances into a sustainable energy solution will hinge on diplomacy, adaptability, and the evolving dynamics of global power politic

The third meeting of the Cabinet-appointed committee on ensuring the continuous functioning of the public service was held under the patronage of Prime Minister Dr. Harini Amarasuriya via a virtual platform.

Discussions focused on the progress of measures introduced to maintain uninterrupted public services while managing fuel and energy challenges arising from the ongoing Middle East conflict.

Particular attention was given to the implementation of guidelines issued by the Office of the Commissioner General of Essential Services across ministries.

Officials reported notable progress, including a 42% reduction in diesel consumption by the Ministry of Health and Mass Media as of March 31. Programmes on electricity and water management are also being implemented successfully.

It was further noted that energy awareness programmes in schools are scheduled for April 7 and 9, while universities continue to operate online where possible.

The Ministry of Public Administration confirmed that key examinations, including the Grama Niladhari entrance exam, were conducted as planned. Meanwhile, several ministries, including Transport, Digital Economy, and Justice, are maintaining services through essential staff deployment and digital systems.

The committee also reviewed ongoing efforts to monitor fuel and energy usage across public institutions.