SRI LANKA NEWS
(JULY 2023)
Compiled by Victor Melder.
Sri Lanka›s tourism industry continues to thrive as arrivals have exceeded 600,000, showcasing the resilience and appeal of the country as a travel destination. Despite being the off-peak season, the daily average of tourist arrivals has shown remarkable improvement, exceeding 3,200 visitors. This upward trend in tourist footfall further underscores the growing interest in Sri Lanka as a preferred destination among global travelers. During the first 26 days of the month, 84,003 visitors have arrived in the country, with only 3,518 arrivals required to achieve the monthly target of 87,521.
“The surpassing of the 600,000 tourist arrival milestone signifies the resilience of Sri Lanka›s tourism sector and its ability to bounce back from the challenges faced in recent years. It is a testament to the concerted efforts made to revitalize the industry, showcasing Sri Lanka›s immense potential as a top travel destination,” Tourism Minister Harin Fernando told the Daily FT. India takes the lead with 22,388 tourist arrivals or 28% of total visitors so far, followed by Russia with 7,179 tourists (9%), the UK with 6,597 tourists (8%), Australia with 5,444 guests (6%), Germany with 4,341 tourists (5%) and China with 4,240 (5%). According to the recently released provincial data by the Sri Lanka Tourism Development Authority (SLTDA), tourists were from other countries like Canada, the Maldives, the United States, and France. He said the sustained growth in tourist arrivals reflects the successful efforts made by Sri Lanka Tourism in attracting visitors from around the world. The collaborative initiatives between tourism authorities, hoteliers, and other stakeholders have played a crucial role in promoting the country›s unique attractions and ensuring a memorable experience for travelers. “This diverse mix of international visitors highlights the global appeal of Sri Lanka›s rich cultural heritage, scenic beauty, and warm hospitality,” Fernando added. With the positive momentum in tourist arrivals, Sri Lanka Tourism earlier this week expressed confidence in the industry’s potential to welcome two million arrivals and generate $ 3.7 billion in income this year, whilst setting its sights on increasing arrivals to 5 million and earning an impressive $ 21.6 billion by 2030. (Daily Financial Review, 30.6.2023)
The Netherlands is set to return 478 cultural objects to Sri Lanka and Indonesia, State Secretary for Culture Gunay Uslu announced on Thursday. These objects, often referred to as “looted art,” were unjustly acquired by the Dutch during their colonial rule. While the illicit nature of acquisition is clear for some of these looted artifacts, the exact historical circumstances surrounding all the item. The pieces set to be returned include notable items such as the Lombok treasure – a vast collection of jewels, precious stones, and gold and silver jewelry from Indonesia, as well as a looted cannon from Sri Lanka displayed at the Rijksmuseum in Amsterdam. The cannon belonged to the King of Kandy and was seized in 1765 by the soldiers of the Dutch East India Company. In returning these items, the Cabinet is not only responding to a request from Sri Lanka and Indonesia but is also acting on the advice of a committee that has investigated the matter. The transfer of ownership to Indonesia will take place next week at the Museum Volkenkunde in Leiden. The transfer to Sri Lanka will follow later. State Secretary Uslu spoke of a “historic moment,” as the Netherlands is “returning objects that should never have been in the Netherlands. She also highlighted that it should herald a period of closer cooperation with the two countries. “We are not just returning objects, we are starting a period in which we will cooperate more intensively with Indonesia and Sri Lanka,” she added. The Rijksmuseum in Amsterdam has six objects in its collection that will be returned. “We appreciate the state secretary’s decision and see this restitution as a good step in our cooperation with Sri Lanka,” said the director of the Rijksmuseum Taco Dibbits. (Daily Mirror, 6.7.2023)
A situation has been created in the country where at least one elephant death is reported a day, Environmentalist Nayanaka Ranwella said. He told the media that due to the digging of trenches in forest areas during the previous government with the aim of receiving the tender for trench digging, selling the soil and looting antiquities under the guise of trench digging, a large number of wild animals, including elephants, are falling into them and are suffering in pain. These trenches are at least 10 feet deep and at least five feet wide. They have been dug along the borders of forest lands most of these trenches were dug during the period of Gotabaya Rajapaksa and our association were against those activities while pointing out their disadvantages, the environmentalist claimed. (Daily Mirror, 7.7.2023)
Eleven persons were killed when a passenger bus travelling from Polonnaruwa to Kattankudy, Kalmunai went off the road near the Kotaleeya bridge at Manampitiya and toppled into the river. Police said in addition, more than 35 passengers were injured and hospitalized. The accident had happened around 8 p.m. yesterday and the private passenger transport bus was plying from Kaduruwela, Polonnaruwa to Kattankudy and Kalmunai. There were ten males and one female among the dead and according to Police over 35 injured people are receiving treatment at Manampitiya and Polonnaruwa hospitals when the paper when to print last night. Hospital sources said several patients were in a serious condition. The Manampitiya police are investigating under the direction of the Polonnaruwa SSP.Sources said that Police arrested the driver last night and Navy sailors are schedulled to arrive at the scene today morning. Meanwhile, Police are investigating whether tyre puncture of the bus had occured on the bridge or the bus had driven fast. (Daily News, 10.7.2023)
Sri Lankan workers had remitted USD 476 million in June 2023, Minister of Labour and Foreign Employment, Manusha Nanayakkara, said on Saturday. He added that they had remitted only 274.3 million dollars in June 2022. Minister Nanayakkara said that total remittances up to June 2023, amounted to USD 2.82 billion. “We are still below 2021 levels, but we will get there hopefully,” he said. In 2021, Sri Lankan expatriate workers sent USD 5.49 billion dollars, which dropped to 3.8 billion dollars in 2022. (Daily Island, 10.7.2023)
Sri Lanka’s tourism industry has showcased an impressive rebound in the first half of 2023, with earnings reaching nearly $ 1 billion, along with steady growth in arrivals. Tourism earnings for the first six months amounted to $ 986.2 million, reflecting a substantial 45.1% increase compared to the same period last year, whilst June earnings stood at $ 158.4 million, the latest data released by the Central Bank showed.
The month of June witnessed a significant milestone for Sri Lanka as tourist arrivals surpassed the 100,000 mark, a feat not achieved in the past four years. At the end of last month, the country welcomed a total of 100,388 tourists, surpassing the initial target of 87,521 and registering an impressive year-on-year growth of 206%. This remarkable performance has injected new hope into an industry that had been severely impacted by multiple crises in recent years. “A significant part of the economic recovery has come from the tourism industry, which has rebounded magnificently. The increase in visitors not only gave the tourism industry a much-needed boost, but it also had a weighty impact on the nation’s overall economic recovery,” Tourism Minister Harin Fernando told the Daily FT. Arrivals in the first six months amounted to 624,874 (as against 32,856 or recording a 206% YoY increase in crisis-hit 2022) – a welcome development for the triple-hit tourism industry, but performance is still down by 46% compared to the same period in the benchmark year 2018. The revival of Sri Lanka’s tourism industry has instilled renewed confidence in the sector’s potential for growth. With ongoing efforts to enhance infrastructure, promote sustainable tourism, and ensure the safety and satisfaction of visitors, the country is determined to regain its status as a preferred destination for travellers worldwide. As the industry continues its journey towards recovery, stakeholders and authorities remain committed to implementing effective strategies that will propel Sri Lanka’s tourism sector to new heights and create a positive impact on the overall economy. (Daily Financial Times, 10.7.2023)
Nearly 16 lives were lost and 98 injured within 24 hours due to fatal accidents, Police Spokesman SSP Nihal Thalduwa said while adding that it is indeed a tragic loss of life when road accidents result in deaths. He stressed the importance of responsible driving and insisted that it is the driver’s responsibility to ensure safety on the roads. This responsibility becomes even more crucial for drivers in the public transport sector, as they are entrusted with the lives of many passengers,” he added. SSP Thalduwa said reckless driving should never be excused, as it poses a significant risk to the driver, passengers, and other road users. “By disregarding traffic rules and driving without due care, reckless drivers not only jeopardize their own lives but also put innocent lives at stake. These preventable accidents can lead to premature deaths, causing immense grief and loss for the victims’ families and loved prioritize the safety of themselves and others. These individuals play a vital role in fostering a culture of safe driving and reducing accidents. Their efforts contribute to creating a safer environment on the roads, and they deserve recognition for their responsible behaviour. To avoid premature deaths on roads, it is crucial for all drivers to prioritize safety, adhere to traffic regulations, and remain vigilant while driving. By doing so, we can work towards minimizing accidents, saving lives, and creating a safer transportation system for everyone,” he added. (Ceylon Today, 11.7.2023)
At least 900 children are diagnosed with cancer and 100 with diabetes each year, and now it has become common among children, Consultant Paediatrician at the Lady Ridgeway Hospital for Children. Dr. Deepal Perera said. He said this kind of situation had not been reported ten or fifteen years ago. Due to multi-factorial causes, this kind of cancer and diabetes situation can occur among children. Dr. Perera requested that the parents should refrain from giving their children instant and fast foods and limit foods with higher amounts of sugar and fat for their meals. He requested that the parents increase the children’s activities other than wasting time on digital screens and eating snacks. Most of the children do not go outside, but are addicted to using mobile phones to pass their time, he added. “It is important to follow a healthy diet, avoid fast foods and increase physical activities to protect our children,” he said. Therefore, parents should keep in mind to provide natural foods instead of fast foods and make them engage in activities. “By continuing this practice, we will be able to protect children from diabetes and cancer,” he said. (Daily Mirror, 12.7.2023)
The total tax revenue collected by the Inland Revenue Department (IRD) for the first half of 2023 was 696,946 million rupees (2,233 million U.S. dollars), the IRD said in a press release on Wednesday night.The corresponding revenue in the first six months of 2022 was 361, 832 million rupees (1,159 million U.S. dollars), the IRD said.It represents a 93 percent increase in tax revenue this year, the IRD said. The reasons for this increase are decisive changes in the tax policy, the gradual recovery of the economic situation of the country and the efficiency of the efforts of the IRD, Commissioner General Inland Revenue D.R.S. Hapuarachchi said. Meanwhile, an IMF spokesman has told the media that revenue mobilization is a key pillar of the IMF program with Sri Lanka.“As part of the upcoming first review of the EFF program currently scheduled in September, the IMF plans to discuss with the authorities how best to mobilize additional revenues. This could include considering the benefits and challenges with introducing a digital service tax,” the unnamed spokesman said. However, the IMF has not discussed any plans for a digital services tax with the Sri Lankan authorities in the current program, nor has it provided any recommendation on whether or not Sri Lanka should sign on to the OECD/G20 inclusive framework agreement for international corporate taxation, he said. Sri Lanka has increased the personal income tax rates and lowered tax thresholds from January 2023 in a bid to raise income following the financial crisis of 2022. (Daily Island, 14.7.2023)
The death rate in the human-elephant conflict has been increasing in a large proportion every year. Senior officials of the Wildlife Conservation Department told the media in Anuradhapura that 146 villagers had been killed by wild elephants last year. At least 375 wild elephants had been killed in 2021 and 439 in 2022. They said wild elephants were being killed by laying electric traps, ‘Hakka Patas’ explosive device, and spiked planks and by poisoning. The officials said several wild elephants had been run over by trains and drowned in unprotected wells. They pointed out that the expenditure on paying compensation for the victims and damages caused to property had increased in a large proportion and that the allocations had increased after 2016. Meanwhile, constructing and maintaining electric fences, carrying out raids to drive away wild elephants, and supplying elephant crackers cost the government more than Rs. 200 million a year. (Daily Mirror, 15.7.2023)
July 15, Colombo: Sri Lanka’s first artificial beach built within the Colombo Port City has been declared open for the general public today. Accordingly, from today, the locals as well as foreign tourists will have the opportunity to visit the 3.5km beach free of charge. Earlier, the walkway built in the Port City complex was opened to the public. This artificial beach, which was opened today, will also add a new experience to the people of this country. In addition, a food court with local and foreign food has also been opened nearby to the public to engage in activities and they will also have access to the nearby restaurants. Everyone, big and small, has the opportunity to swim and enjoy water sports on the artificial beach. It is believed that this will help to bring foreign investments to Sri Lanka. (Colkombo Page, 16.7.20-23)
The Government will permit the import of all goods, excluding vehicles, which were previously prohibited from being imported to Sri Lanka. Th new policy will come into effect in the first week of September, allowing a broader range of goods to enter the country. The Government arr ived at this decision during a discussion last week. Chief of Staff Sagala Ratnayake, officials from the Ministry of Finance, and representatives from the International Monetary Fund (IMF) participated in the meeting. Import restrictions have been lifted on 286 goods, allowing their importation into the country. However, the import ban on another 930 goods, including vehicles, will remain in effect, maintaining the previous restrictions on these items. However, certain categories of vehicles such as tractors are permitted to be imported depending on the farmers’ requirements.Among the prohibited import category – there were around 500 items, including essential food items. As part of the decision-making process in the discussion, steps have been taken to lift the import ban on 250 of these items. It has also been decided to gradually lift import restrictions on goods that are currently subject to such limitations. The process will be conducted in two stages and is due to be completed by the first week of September. (Sunday Observer, 16.7.2023)
The Government is seeking parliamentary approval to increase the borrowing limit by as much as Rs 9,000 billion to finance public expenses through an amendment to the Appropriation Act. The latest debt ceiling increase will enable the Government to cover debt service payments, recurring expenses, and welfare expenses through domestic borrowings since it lost access to the international market to raise funds. A bill was ordered to be published by President Ranil Wickremesinghe on Wednesday in his capacity as Minister of Finance, Economic Stabilisation and National Policies to increase the debt ceiling from the current Rs 4,979 billion to Rs 13,979 billion. Since Parliament is vested with powers regarding public finance, its approval is sought to increase service expenditure and capital expenditure of the Treasury operations by amending the Appropriation Act No. 43 of 2022. The latest move to increase public expenditure came days after the Government had carried out a Domestic Debt Optimisation (DDO) initiative under an International Monetary Fund (IMF) programme to meet debt sustainability targets agreed upon with the global lender. Last June, a resolution was passed in the House without a debate to increase the previous debt ceiling of Rs. 3000 billion by another Rs 1,000 billion under the Local Treasury Bills Ordinance. Then Prime Minister Wickremesinghe was given powers as Minister in charge of Finance to raise funds through the issuance of Treasury Bills guaranteed by the Government. In 2021, the upper limit approved by Parliament for the issuance of Treasury bills was Rs 3,000 billion and the total value of Treasury bills due by the end of April 2022 was in the region of Rs. 2,860 billion. (Sunday Times, 16.7.2023)
A total of 29,578 people have applied online to obtain passports since the launch of the service at 51 Divisional Secretariats across the country last month, Public Security Minister Tiran Alles said. He said out of those, 5,294 people have submitted applications for one-day service and 24,285 for the normal service. Online applications for passports commenced with 51 Divisional Secretariats around the country on June 15 this year to enable applicants to obtain passports from their hometowns without having to visit Colombo. The Minister said the Immigration and Emigration Department has received 29,579 applications within 30 days since the launch of the service. He pointed out that it is necessary to visit any of the 51 designated Divisional Secretariat offices for the registration and that the relevant payments can be made online or by visiting a branch of the Bank of Ceylon. He said the long queues in front of the Battaramulla Immigration and Emigration Department office have also ended after the launch of this system. (Daily Mirror, 17.7.2023)
Sri Lanka has lost about 947,370 hectares of forest between 1960 and 2010, Sajeewa Chamikara of the Movement for Land and Agricultural Reform (MONLAR) says. The last survey on forests was carried out in 2010 by the Forest Conservation Department. By 2010 the forest cover had shrunk to 29.7 percent or 1, 951, 472 hectares. Between 1992 and 2010, Sri Lanka lost 16, 922 hectares of forests in the wet-zone. Since then, the forests in the wet-zone had further dwindled due to the expansion of tea cultivation, Chamikara said yesterday.
“Tea plantations that lead to the destruction of rainforests can be considered green deserts. Biodiversity on these plantations is low. Tea planters use a lot of toxic agrochemicals. There are no plant layers. Thus, these lands lose most of their biodiversity and become deserts for all practical purposes, despite being green,” he said. Chamikara said the British had cleared up vast extents of forest lands on mountains and rid those areas of elephants. By 1860, Sri Lanka was among the top producers of coffee. By 1870, coffee plantations covered 275,000 acres. However, soon afterwards, coffee plantations were devastated by a fungal disease, Hemileia vastatrix, also known as coffee leaf rust. Chamikara said that while tea used to be a major foreign exchange earner, the situation had changed. The yield of most large-scale tea estates was dwindling rapidly due to soil degradation and unsustainable cultivation practices. “We have several institutions that have been established to develop tea. However, they believe we are still living in the late 19th century, when we had plenty of virgin land, cheap labour and there was no stiff competition,” Chamikara said. Meanwhile, Ramesh Pathirana, Minister of Plantation Industries and Minister of Industries, said that there had been reports of illegal expansion of tea plantations into forests. However, it was not the policy of his Ministry to encourage such practices and the Forest Department must take immediate action against those who carried out such illegal activities. Minister Pathirana added that the industry also needed to be more sustainable and tea smallholders were already interested in multi-cropping and that the Ministry had spoken to all stakeholders about improving sustainability. “Now, we can’t push businesses to shift to agroforestry or multi-cropping. But environmentalists and environmental-minded planters can work together, create better systems and then everyone will follow,” he said. (Daily Island, 17.7.2023)
Tax revenue collection in the first half of this year has nearly doubled to Rs. 697 billion boosted by higher VAT. Inland Revenue Department Commissioner General D.R.S. Hapuarachchi revealed that collection during January to June 2023 was Rs. 696.94 billion, as against Rs. 361.8 billion a year ago reflecting a hefty increase of 92.5% or Rs. 335 billion. He said that factors such as decisive changes to the tax policy, the gradual recovery of the economic situation and the efficiency of the efforts of the IRD were the reasons for this positive growth. The biggest increase was in the Value Added Tax (VAT) from Rs. 121.5 billion in 1H of last year to Rs. 230.6 billion. Corporate and non-corporate income tax amounted to Rs. 243.8 billion up from Rs. 213.4 billion. The new Social Security Contribution had racked in Rs. 80 billion whilst Advanced Personal Income Tax collection was Rs. 70 billion as against Rs. 12 billion a year ago. Withholding Tax brought in Rs. 68 billion as opposed to Rs. 8.6 billion in 1H of 2022. Despite the impressive tax collection, Sri Lanka had missed the June revenue target set by the IMF according to the Central Bank Governor Dr. Nandala Weerasinghe. According to analysts this may explain why the Government resorted to a drastic 20% hike in taxes on cigarettes and liquor recently which drew flak from producers. Analysts also opined efforts to lift restrictions on the majority of imports were also to shore up revenue from inward trade. Cumulative import expenditure during January to May 2023 declined by 22.8% to $6.8 billion from a year ago. (Ceylon Today, 18.7.2023)
Sri Lanka’s tea exports in the first half of 2023 have declined by 10%, whilst earnings jumped 28% from a year earlier. As per Customs data analysed by Siyaka Research 112 million kilos of teas were shipped during January – June this year compared with 125 million kilos in the corresponding period of 2022, reflecting a 13 million kilo drop YoY. Sri Lanka shipped 20.5 million kilos in May which is the highest quantity in any month this year; marginally higher than last year’s May quantity. A closer examination of the monthly export pattern reveals that in five out of the six months, tea quantities were lower compared to the corresponding months in the previous year. This decline raises concerns for the tea industry, which plays a vital role in Sri Lanka’s economy. Despite the decrease in export volumes, there has been a notable increase in rupee earnings. The earnings from exports rose significantly from Rs. 164 billion to Rs. 209 billion YoY. This surge can be attributed to the depreciation of the Sri Lankan rupee against the US dollar, which began in March 2022. The weakened rupee has boosted export earnings, reaching a peak exchange rate of Rs. 363 to the dollar in October. This converts to approximate $ 637 million in the first half of 2023, reflecting a 10.4% increase compared to the previous year’s figure of $ 577 million. This translates to an approximate Free on Board (FOB) value of $ 5.68 per kilogram, marking the highest dollar FOB figure in over 25 years. However, it is worth noting that the total dollar earnings of $637 million in 2023 fall short of the $650 million earned in the first half of 2021, despite the higher FOB value. This discrepancy can be attributed to a lower export quantity of 112 million kilos, compared to 136 million kilos in the same period in 2021. Value-added exports, which account for 57% of the total, remained unchanged, whilst tea bag shipments remained steady, but the packet tea segment experienced a significant decline. Iraq continues to lead as the number one destination for Sri Lanka’s tea exports though quantities sharply dropped by 37% YoY to 14.7 million kilos against 23.51 million kilos the year before. On the other hand, exports to and through Turkey saw a noteworthy increase of 89%, rising from 7 million kilos to 13 million kilos. After a period of decline, exports to Russia also saw growth, reaching 12.3 million kilos compared to 10.1 million kilos a year ago. The UAE stood at 7.4 million kilos, experiencing a decrease compared to the previous year, while China maintained a steady demand at 5.7 million kilos. (Daily Financial Times, 18.7.2023)
Sri Lanka has printed Rs. 35,042.8 billion (Rs 35 trillion) in 21 months between January 2021 and September 2022, with a monthly average of Rs. 1,669 billion resulting in the high inflation the country experienced, State Minister of Finance Ranjith Siyambalapitiya said. Speaking in Parliament yesterday, the State Minister said that the lack of fiscal discipline by the Central Bank and the Government resulted in money being printed without any limitation as per the request of the Treasury. He said the lack of fiscal discipline during the former Government allowed the Finance Ministry to send a letter to the Central Bank every Friday asking for money through the issuance of Treasury Bills. Siyambalapitya said that according to the proposed Central Bank Bill, the Central Bank would be required to come to an agreement with the Finance Minister about inflation targets and added that failure to meet the targets would hold the Central Bank accountable to provide reasons for not being able to do so to the Parliament through the Finance Minister. Sri Lanka’s inflation went into double digits in December 2021 after recording inflation of 12.1% and reached peak inflation of 69.8% in September 2022.The disinflation path, which started in October 2022, after recording an inflation of 66% was at 12% by the end of June 2023, with the Central Bank expecting the inflation to reach 7% in July. The State Minister also said that providing temporary advances by the Central Bank to the Treasury is also limited, where the Central Bank can provide direct temporary advances to the Treasury in the first month of the new financial year, while the advance cannot exceed 10% of the revenue of the first four months of the previous financial year. However, he said that the Government can request money from the Central Bank in an emergency period. (The Morning, 21.7.2023)
Sri Lanka’s nationwide inflation in June 2023 determined under the National Consumer Price Index (NCPI) decreased to 10.8 percent from 22.1 percent recorded in May 2023 on a year-on-year basis, the Department of Census and Statistics reported Friday. The NCPI for all items for the month of June 2023 marginally increased to 203.3 from 203.1. The month-on-month change was contributed by increases in food items of 0.44 percent and decreases in non-food items of 0.37 percent. Year-on-Year inflation of the food group decreased to 2.5 percent in June 2023 from 15.8 percent in May and the Year-on-Year inflation of the non-food group decreased to 18.0 percent in June from 27.6 percent in May 2023. Contributions to the inflation rate of June 2023 from food group and non-food group are 1.2 percent and 9.6 percent respectively. (Colombo Page, 22.7.2023
The Centre for Environmental and Nature Studies of Sri Lanka says the highest number of elephant deaths in a year in the last 10 years was recorded last year. The Center for Environmental and Nature Studies has confirmed that 463 elephants have died in Sri Lanka in 2022. The National Coordinator of the Center, Dr. Ravindra Kariyawasam said this is the height number of casualties in a year in the past decade. He further mentioned that most of those wild elephant deaths are due to human activities. Dr. Ravindra Kariyawasam pointed out that if the authorities do not immediately take appropriate measures to protect the wild elephants, not only will the tourism industry be suffered, there will not even be a single wild elephant left in the country. (Colombo Page, 24.7.2023)
The poverty level in Sri Lanka doubled from 13.1 percent to 25 percent between 2021 and 2022 and 2.5 million more people are expected to join the ranks of the poor this year, World Bank Country Director for the Maldives, Nepal and Sri Lanka Faris Hadad-Zervos said. “The crisis that has had a devastating impact on people’s standards of living, is exacting a heavy toll on the poor and vulnerable and is jeopardizing Sri Lanka’s past development gains, Faris Hadad- Zervos told a panel discussion held recently at the Colombo Hilton organized by the Sri Lanka Press Institute. Hadad-Zervos added: ‘Many more people are just one shock away from poverty. The World Bank estimates that 5.7 percent of the population lives less than 10 percent above the poverty line and a further 5.6 percent between 10 and 20 percent above the poverty line. ‘This dramatic increase in poverty and vulnerability has wiped out decades-long human capital gains. The case in points is that only 14 percent of Grade 3 students acquired minimum competency in literacy and only 15 percent in numeracy. These harrowing circumstances for the country and its people demand deep reforms to stabilize the economy and bold action to protect the poor and vulnerable. The government has now committed to an ambitious reform agenda and implemented some difficult and necessary reforms, including tax reforms, cost reflective utility pricing, a strong social safety net and debt restructuring to stabilize the economy. The government securing the IMF Extended Fund Facility, parliamentary approval for the Domestic Debt Restructuring Process and the securing of international financial support from the World Bank and ADB provide some breathing space for Sri Lanka. The next two years would be critical for Sri Lanka’s recovery. There are further significant headwinds that need to be closely monitored. (Daily Island, 28.7.2023)
