If the catchment areas meet a continuous rainfall, the Ceylon Electricity Board (CEB) will be able to minimise the power cuts in the country, said Power and Energy Minister Kanchana Wijesekara.

In a tweet yesterday (14) the Minister noted that the CEB will reduce power cuts during the weekend due to the increase in hydro-generation and low energy demand, adding that despite the hope of rain being continuous to the catchment areas of the country, the CEB will manage the water resources available for future power generation.

MIAP

Red notices of early warning of landslides have been issued to several district of the country from 04 pm yesterday (14) to 04 pm today (15), announced the National Building Research Organisation.

Accordingly, red notices have been issued with evacuation alerts to Bulathsinhala, Palindanuwara, Ingiriya and Walallawita of the Kalutara District, Ambagamuwa of the Nuwara Eliya District and Kalawana and Eheliyagoda of the Ratnapura District.

Meanwhile, level-two notices of early warning of landslides have been issued to several districts, i.e. Agalawatta, Matugama, Millaniya, Bandaragama, Horana and Dodangoda of the Kalutara District, Ruwanwella, Warakapola and Dehiowita of the Kegalle District, and Kuruwita, Pelmadulla, Ayagama, Kiriella, Nivithigala, Elapatha and Ratnapura of the Ratnapura District.

People living in Padukka and Seetawaka of the Colombo District, Baddegama of the Galle District, Madurawala, Panadura, Beruwala and Kalutara of the Kalutara District, and Yatiyanthota, Deraniyagala, Mawanella and Bulathkohupitiya of the Kegalle District have also been warned to stay vigilant about the occurrences of landslides.

MIAP

The Government is grappling to save the country’s economy from a possible US$10 billion contraction amidst an impending recessionary period, according to econometric models and provisional data of the Finance Ministry.

Due to rising inflation and lower growth, the Sri Lankan economy is approaching stagflation. Growth expectations for the country have nosedived after the sovereign default with the economy projected to decline by -7.8 per cent in 2022 and -3.7 per cent in 2023.

The International Monetary Fund (IMF) this week forecasted a lower contraction of the Sri Lankan economy than the World Bank.

In its World Economic Outlook (WEO) released this week IMF estimated Lankan economy to contract by 8.7% this year and by 3% next year. However, the World Bank in its forecast released last week estimated a contraction of 9.2% this year and 4.2% in 2023.

The rising prices have compelled the Central Bank to increase the interest rates to face the country’s impending recession with 85 per cent probability, official sources revealed.

The World Bank estimated that over 500,000 people in Sri Lanka had fallen below the poverty line. The country was experiencing food, medicine and fuel shortages as well as daily blackouts and an economy in freefall, a senior Finance Ministry official divulged.

The Government’s move to increase taxes would intensify the rate of economic shrinking and places the whole economic system and other connected financial institutions including banks at a great risk, Head of the Department of Business Studies at the University of Sri Jayewardenepura Prof. Janak Kumarasinghe warned.

The shock caused by the increasing of interest rates up to over 25 per cent and taxes would exert an impact on business enterprises big or small as well as MSMES depriving them of obtaining loans from banks and financial institutions to tackle their liquidity issues, he pointed out.

While a fiscal stimulus package is not possible at present, the government has to meet the needs of the most vulnerable groups in providing emergency subsidies, as rising inflation and job losses have led to lower standards of living, State Minister of Finance Ranjith Siyambalapitiya disclosed.

Due to financial constraints, Sri Lanka will have to look for further bilateral and multilateral aid in securing funding for short-term, targeted “in-kind” transfers such as food stamps for the poorest of the poor.

It is also important to look at bridge financing arrangements to import essential commodities like fuel so that supply shortages reduce. This should help in keeping productivity intact and inflationary pressure in check, he added.

As of August 31, 2022, the total income of the country was recorded as Rs. 1.23 trillion, while the total expenditure of the country was Rs. 3.54 trillion, the minister said, adding that government revenue this year should reach Rs.2.47 trillion.

He also stressed that the relevant austerity procedures should not cause any additional pressure on the low-income families of the country.

According to the draft Appropriation Bill, the estimated total expenditure is Rs.7.92 trillion in the budget 2023 to be presented in Parliament under the theme of ‘making a transformative change via minimum inputs’ in line with the 2023-2025 medium-term fiscal policy framework

The water supply will be cut off for 12 hours in a number of places in Colombo, announced the National Water Supply and Drainage Board (NWSDB).

Accordingly, the water supply will be cut in Colombo 02 – 10 areas for 12 hours starting from 10 pm tonight (15).

The move is due to a repair at the General Colombo Water and Wastewater Management System, according to the NWSDB.

MIAP

The low-level atmospheric disturbance still persists in the vicinity of the island and therefore, the cloudy sky is expected in most parts of the island, the Department of Meteorology said in a statement

Showers or thundershowers will occur at times in Western, Sabaragamuwa, Central and North-Western provinces and in Galle and Matara districts.

Heavy showers above 100 mm can be expected at some places in Western, Sabaragamuwa, and Centralprovinces and in Galle and Matara districts.

Showers or thundershowers will occur elsewhere over the Island during the afternoon or night. Fairly heavy showers above 75 mm can be expected at some places.

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

Marine Weather

1. IMF states Sri Lanka will record the lowest growth rate among 30 Asian ‘Emerging Markets and Developing Economies’ in 2022: forecasts contraction by 8.7% in 2022: contraction of 3% in 2023: no forecast from 2024 to 2026: forecasts growth of 3.1% in 2027.
   
2. IMF Chief Kristalina Georgieva says the IMF wants equal treatment to all creditors: says the Agency is also pressing for an effective debt resolution mechanism: seeks ways to expand donor coordination to middle-income countries like Sri Lanka.
   
3. “Paris Club” reaches out to China and India to coordinate Sri Lanka’s debt talks: but, say they have still not received a reply from either country.
   
4. UNP Chairman & MP Vajira Abeywardene says elections will be held only after national policy framework to stabilize the nation is formulated: rules out an election soon: also says it is essential to reduce number of local government members to 4000 from 8000, and abolish the preferential voting system.
   
5. President’s Chief-of-Staff Sagala Ratnayake says discussions with regards the insurance claim for MV X-Press Pearl disaster amounting to millions of dollars have been successful.
   
6. Specialist doctor complains to CID that Thilini Priyamali, who has allegedly misappropriated large sums of money, had “taken” Rs.750 mn from him: another multi millionaire woman also complains that Priyamali “took” Rs.45 mn from her.
   
7. Central Bank T-Bond borrowings interest rates rise further to astronomical heights: 3-year Bonds @ 31.93% : 7 year Bonds @ 30.85% : analysts say this week’s auction alone cost the government an additional Rs.22.5 bn, when compared with rates prevailing at end-March 22.
   
8. Bangladesh Bank Governor Abdur Rouf Talukder meets CB Governor Nandalal Weerasinghe in Washington: says Bangladesh is hoping Sri Lanka will repay USD 200 mn owed to Bangladesh by March 2023.
   
9. Department for Registration of Persons increases fees for issuing National Identity Cards: first time NIC Rs. 200: duplicate copies Rs.1,000.
   
10. State Finance Minister Ranjith Siyambalapitiya warns legal action against people who come from abroad wearing gold jewellery exceeding limits: says country loses about USD 30 mn monthly due to smuggling of gold.