November 20, Colombo (LNW):Sri Lanka’s new government aims to achieve a ‘B’ credit rating by 2027-28 to enable affordable market borrowings and meet its debt obligations, including those to the IMF, as emphasized by Gregory Smith, Lead Economist for the World Bank in Sri Lanka. 

Speaking at a webinar hosted by the Overseas Development Institute (ODI), Smith stressed that attaining this credit rating would ease market borrowings for debt repayment, potentially reducing the need for future IMF support.

 He highlighted that continuing reforms is crucial for breaking the cycle of reliance on IMF assistance and achieving economic stability.

Currently, Sri Lanka is classified as a ‘partial reformer,’ having launched various legislative changes but still needing progress to raise its revenue-to-GDP ratio. 

The target is to increase this ratio from the current 8% to between 15% and 20%, similar to the levels of the 1990s. This improvement is essential for fostering socio-economic growth and decreasing public debt, which now stands at 100% of GDP, to more sustainable levels.

During recent discussions with the new government, the World Bank outlined key economic priorities, including tourism, agro-business exports, and the digital economy. 

Smith emphasized the potential of the digital economy, not only for creating IT jobs but also for enhancing government efficiency through e-governance and streamlined tax collection processes.

Smith projected an economic rebound of 4-4.5%, though he warned that structural challenges could limit growth to around 3% next year. 

He noted that the government faces a delicate balance between promoting economic growth and achieving primary budget surpluses through taxation. 

A failure to generate sufficient economic growth could result in an unsustainable debt burden in the future, while growth would make debt management more feasible.

Addressing foreign and local investors at the CT CLSA South Asia Forum, Smith reiterated the need for Sri Lanka to continue with its reforms. Around 40 new key legislative measures have already been passed, and 60 more are pending. 

These efforts lay the groundwork for boosting the country’s economic health. He emphasized that increasing revenue through taxation is essential for long-term stability, even though it presents significant challenges.

The World Bank’s discussions with the Sri Lankan government also emphasized the importance of specific economic sectors. 

Tourism remains a priority due to its potential for immediate economic impact. The agro-business sector is seen as a crucial area for export-driven growth, while the digital economy is anticipated to be a game-changer, particularly for job creation and enhancing administrative efficiency.

The path to recovery for Sri Lanka involves not only achieving economic growth but also carefully balancing it with fiscal responsibility. 

Without growth, the country risks facing an overwhelming debt burden in the coming years. However, with sustained growth, the debt could become more manageable, allowing the nation to achieve a degree of financial independence and stability without the need for recurring IMF interventions.

November 20, Colombo (LNW):Former Minister Harin Fernando was arrested today by Badulla Police on charges of violating election laws during the 2024 Parliamentary Election.

The arrest stems from an incident during a campaign event in Badulla Town, where Fernando reportedly engaged in a heated argument with police and controversially removed his t-shirt. Police claim he was apprehended to record a statement regarding the altercation.

The incident dates back to November 11, when tensions arose after police and Election Commission officials intervened to halt political activities by Fernando’s supporters. The supporters were reportedly wearing t-shirts resembling the jersey of footballer Lionel Messi, bearing the number ’10,’ which authorities deemed an indirect method of election campaigning.

Despite Fernando and his supporters asserting that the t-shirts were unrelated to electioneering, officials argued that they symbolically referenced his candidacy, constituting deceptive campaign tactics. The altercation occurred during the mandatory silent period preceding the election held on November 14.

Police confirmed that the investigation is ongoing, with further statements being recorded from those involved.

November 20, Colombo (LNW):The process of gathering information to assess students’ eligibility for receiving school equipment has commenced, with officials instructed to submit all required data by tomorrow.

Authorities have been directed to prioritize information on low-income families to ensure that children from these households receive the necessary concessions. This initiative aims to support students from economically disadvantaged backgrounds and promote equitable access to educational resources.

President Anura Kumara Dissanayake announced that, starting next year, the government will provide an allowance to school children as part of broader measures to enhance educational support for families in need. This initiative underscores the government’s commitment to ensuring equal opportunities for all students, regardless of their socioeconomic status.

November 20, Colombo (LNW):The Asian Development Bank (ADB) has approved a $200 million policy-based loan to support Sri Lanka’s efforts in reinforcing its financial sector. This marks the second subprogram under the ADB’s Financial Sector Stability and Reforms Program, building on stabilization measures introduced in 2023.

“Sri Lanka has made commendable progress in stabilizing macroeconomic conditions and enhancing its fiscal situation. ADB’s support focuses on instituting structural reforms in the financial sector to ensure sustainable recovery and resilience,” said Takafumi Kadono, ADB Country Director for Sri Lanka.

The subprogram aims to strengthen the governance of the banking sector and promote financial inclusion as part of Sri Lanka’s broader economic recovery plan. Key measures include enhancing the Central Bank of Sri Lanka’s (CBSL) regulatory supervision, introducing improved early warning systems, and implementing a new stress testing model to address solvency and liquidity challenges.

Additional reforms target the banking sector’s asset quality, providing guidance on managing credit concentration risks. Incentives will be offered to banks to support micro, small, and medium-sized enterprises (MSMEs), including women-led businesses, through guarantees and reduced collateral requirements.

The Ministry of Finance will expand financial inclusion for vulnerable groups by digitizing personal information to facilitate electronic transactions. A new policy framework will also improve access to finance for women-led MSMEs, with CBSL supporting financial institutions in identifying eligible entrepreneurs.

This loan underscores ADB’s commitment to fostering inclusive and resilient growth in Sri Lanka, with a focus on long-term stability and poverty alleviation. Established in 1966, the ADB continues to play a pivotal role in supporting sustainable development across Asia and the Pacific.

1. President Anura Kumara Dissanayake emphasised that the immense power granted to the Ministers must be wielded with responsibility. He acknowledged that while the victory is monumental, the weight of the responsibility that comes with it is equally important, and that collective effort is needed to carry it forward. President Dissanayake further elaborated on the critical importance of responsibility in leadership.
2. The appointment of the new Secretary to the Prime Minister, the Cabinet Secretary and Secretaries for 16 Ministries was held at the Presidential Secretariat in Colombo. The ceremony was officiated by the Secretary to the President, Dr. Nandika Sanath Kumanayake, the President’s Media Division (PMD) said.
3. Former Canadian High Commissioner to Sri Lanka David Mckinnon has called out the lack of coverage on Sri Lanka’s November 14 parliamentary elections by Canadian Press. In a statement on social media, Mckinnon said that given other political events in recent days, it is no surprise that the extraordinary results of SriLanka’s November 14 parliamentary elections did not dominate headlines in Canada, but they should get some attention, as Sri Lanka has at other times, especially when trauma is involved.
4. The Secretary General of Sri Lanka’s Parliament, Kushani Rohanadeera has announced plans to introduce special arrangements to meet vision-impaired MP Sugath Wasantha de Silva’s requirements. MP Sugath Wasantha de Silva has been appointed a Member of Parliament through the National Peoples’ Power’s (NPP) National List. He is also Sri Lanka’s first-ever vision-impaired Member of Parliament.
5. The Election Commission of Sri Lanka has issued a Gazette notification declaring that the General Secretary of the Samagi Jana Balawegaya (SJB), Ranjith Madduma Bandara, has been elected as a Member of Parliament through the National List of the SJB.
6. Minister of Transport, Highways, Ports and Civil Aviation Bimal Rathnayake has been appointed as the Leader of the House. This appointment was made during the inaugural Cabinet meeting chaired by the President
7. A low pressure area is likely to form over southeast Bay of Bengal around 23rd November. Thereafter, it is likely to intensify into a depression over southwest Bay of Bengal during subsequent 2 days. The system may intensify further and move near the Eastern coast of Sri Lanka.
8. The delay in crediting the fertilizer subsidy funds to farmers’ bank accounts is due to a technical issue with the computer system, claims the Ministry of Agriculture. Accordingly, the Ministry has confirmed that a team of officials was deployed yesterday to investigate the matter and that a report pertaining to the matter is expected to be submitted to the Secretary of the Ministry
9. Minister of Health and Media Dr. Nalinda Jayatissa has been appointed as the Chief Government Whip of the new government, during the inaugural Cabinet meeting. Earlier, Dr. Jayatissa was also appointed the Cabinet Spokesman.
10. The newly appointed Sports and Youth Affairs Minister, Sunil Kumara Gamage, emphasized his vision to elevate sports in the country to a competitive international level by fostering talented and professional players of high caliber. After assuming duties at the Sports Ministry, he highlighted the significant responsibility of the ministry in developing sports and guiding the youth towards sustainable practices to secure a prosperous future.

November 20, Colombo (LNW): Showers or thundershowers will occur at times in the Northern and Eastern provinces.

Showers or thundershowers will occur at several places elsewhere of the island during the evening or night.

Fairly heavy showers above 75 mm are likely at some places in Western and Sabaragamuwa provinces and in Galle and Matara districts.

Misty conditions can be expected at some places in Western, Sabaragamuwa, Central, Uva and Southern provinces during the morning.

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