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Sri Lanka and Pakistan Discuss Enhancing Air Connectivity

Sri Lanka and Pakistan Discuss Enhancing Air Connectivity

Sri Lanka and Pakistan are exploring ways to boost air connectivity. Both nations are key members of SAARC. Improved aviation cooperation could significantly boost economic growth and bilateral ties.

The SAARC region has 1.936 billion people, 24.1% of the global population. Its combined GDP is $4.491 trillion. These factors make air connectivity crucial for the region’s development.

The seventh Round of Bilateral Political Consultations took place in Islamabad. It highlighted the need for stronger air travel agreements. Both countries see potential benefits in increased connectivity.

Sri Lanka and Pakistan Discuss Enhancing Air Connectivity to Boost Tourism

Sri Lanka’s tourism industry peaked in 2018 with 2.5 million visitors. These tourists spent US$5.6 billion. The country aims to attract more foreign investment in tourism.

Sri Lanka faced challenges from the COVID-19 pandemic and past civil war. Yet, it remains committed to developing its tourism sector. Enhancing air connectivity with Pakistan is part of this strategy.

Pakistan has been a top source of tourists for Sri Lanka. In 2018, 9,774 Pakistani tourists visited. The numbers rose to 10,744 in 2019. Even in 2020, 6,260 Pakistani tourists came to Sri Lanka.

Better aviation links could encourage more travel between the two nations. This would benefit both economies. It would also strengthen bilateral relations between Sri Lanka and Pakistan.

High-Level Pakistani Delegation Meets Sri Lankan Prime Minister

A top Pakistani business team met with Prime Minister Harini Amarasuriya this week. They discussed ways to boost economic ties between their countries. The focus was on improving air travel, tourism, and trade.

Prime Minister Amarasuriya praised the strong partnership between Sri Lanka and Pakistan. She noted the benefits of better air links. These could boost tourism and create new economic opportunities.

Exploring Possibilities of Strengthening Aviation Links

The Pakistani team stressed the need for better air connections. More flights and new routes could help business and personal travel. This fits with Sri Lanka’s recent agreements to boost tourism with other countries.

Potential Benefits for Sri Lanka’s Tourism Industry

Better air links could greatly help Sri Lanka’s tourism. Pakistan is a key source of visitors to Sri Lanka. Improved flights could bring more tourists to the country.

This comes at a crucial time for Sri Lanka’s tourism sector. The industry has faced recent challenges and is looking to recover.

The meeting set the stage for more teamwork in tourism and trade. Both countries aim to strengthen their relationship. Improved connections and trade are expected to help both nations grow.

Sri Lanka and Pakistan Discuss Enhancing Air Connectivity to Boost Tourism

Sri Lanka and Pakistan held their seventh Bilateral Political Consultations in Islamabad. Foreign Secretaries Aruni Wijewardane and Muhammad Syrus Sajjad Qazi co-chaired the meeting. They reviewed relations in economy, trade, defense, security, education, culture, and more.

Seventh Round of Bilateral Political Consultations in Islamabad

Both sides stressed the importance of high-level political exchanges. They agreed to tackle transnational organized crime, including drug trafficking. The talks highlighted potential for better air links between Colombo and Islamabad.

Pakistan is Sri Lanka’s second-largest SAARC trading partner after India. Improved air connectivity could boost trade under the 2005 free trade agreement.

Increasing Connectivity and Bilateral Trade for Economic Growth

Tourism is vital to Sri Lanka’s economy. Better air links could attract more Pakistani tourists to Sri Lanka’s diverse landscapes. It may also lead to more business exchanges and stronger economic ties.

Sri Lankan exports already have a significant share in Pakistan. Direct flights could further increase bilateral trade. This focus on air connectivity shows a vision for stronger economic cooperation.

Enhancing Tourism and People-to-People Contacts through Cultural, Religious, and Sports Links

The talks emphasized air connectivity’s role in boosting tourism and cultural exchanges. At the meeting’s end, Sri Lanka donated five eye corneas to Pakistan. This gesture shows the strong ties between the two nations.

Improved air links could further strengthen these connections. It would make travel easier for tourism, cultural events, and sports exchanges.

UNESCO Recognizes Sri Lanka’s Traditional “Kolam” Dance as Intangible Cultural Heritage

UNESCO Recognizes Sri Lanka’s Traditional “Kolam” Dance as Intangible Cultural Heritage

UNESCO has officially recognized Sri Lanka’s traditional Kolam dance as an Intangible Cultural Heritage. This honor highlights the importance of preserving Sri Lanka’s rich cultural heritage. Kolam is a unique art form that showcases the country’s vibrant traditions.

Kolam is a masked dance drama that represents Sri Lanka’s diverse cultural tapestry. This recognition underscores Kolam’s significance in representing Sri Lankan identity globally.

UNESCO Recognizes Sri Lanka's Traditional "Kolam"

UNESCO encourages countries to nominate elements of their intangible cultural heritage for inscription. This effort aims to safeguard and promote cultural diversity worldwide. The inclusion of Kolam celebrates its artistic value and ensures its preservation for future generations.

The Significance of UNESCO’s Recognition of Kolam Dance

UNESCO’s recognition of Sri Lanka’s kolam dance as intangible cultural heritage is a major milestone. Kolam blends intricate rice flour patterns with graceful dance moves. This Tamil tradition is now protected for future generations.

The UNESCO nod safeguards this ancient art form. It also promotes cultural diversity and human creativity globally. Kolam’s unique artistic elements and traditional significance are now showcased worldwide.

Preserving Sri Lanka’s Rich Cultural Heritage

UNESCO’s recognition highlights the importance of preserving Sri Lanka’s vibrant culture. The 2024 International Conference on “Art and Culture of Tamils” drew over 500 delegates. Eleven countries participated, showing growing interest in Tamil art.

The conference proceedings were compiled into a 188-page volume. It features 82 papers, serving as a valuable resource for researchers and policymakers.

Promoting Cultural Diversity and Human Creativity

UNESCO’s acknowledgment celebrates the diversity of human creativity. It spotlights Sri Lanka’s cultural richness and encourages appreciation of traditional art forms. This recognition fosters cultural exchange and inspires exploration of decorative folk art.

Ensuring the Continuity of Traditional Art Forms

UNESCO’s listing helps ensure kolam dance’s continuity for future generations. It encourages the transmission of knowledge and skills associated with the art form. Young artists can now learn from experienced practitioners.

UNESCO provides a platform for showcasing and celebrating kolam dance. This contributes to its preservation and maintains the vibrancy of Tamil tradition.

The History and Evolution of Kolam Dance

Kolam dance is a captivating Sri Lankan art form. It has evolved over centuries, blending history, beliefs, and artistic expressions. This unique performance art showcases the ingenuity of Sri Lankan artists.

Sri Lanka’s cultural heritage features diverse art and crafts. Traditional dances like Kolam have been shaped by Buddhism and Hinduism. The intricate masks in Kolam performances are stunning and believed to have curative powers.

Origins and Traditional Significance of Kolam

Kolam dance has ancient roots in Sri Lankan rituals and ceremonies. It has been practiced for centuries during religious festivals and social gatherings. The dance serves as storytelling, entertainment, and spiritual expression.

Kolam masks hold great significance in Sri Lankan culture. They represent human, supernatural, and demonic characters. Dancers wearing these masks are believed to channel spiritual energy during performances.

Unique Features and Artistic Elements of Kolam Dance

Kolam dance blends intricate masks, vibrant costumes, and symbolic movements. Skilled artisans craft masks from wood, clay, or paper mache. Each mask represents a specific character or emotion.

Kolam costumes feature colorful fabrics, embroidery, and ornate jewelry. Dancers’ movements convey complex narratives through gestures and rhythmic patterns. Traditional instruments like the Geta-bera drum accompany the performances.

Kolam dance is part of Sri Lanka’s art and crafts heritage. It showcases the country’s rich cultural tapestry alongside handicrafts, architecture, and sculptures. These artistic expressions contribute to Sri Lanka’s diverse cultural landscape.

UNESCO Recognizes Sri Lanka’s Traditional “Kolam” Dance

UNESCO has recognized Sri Lanka’s Kolam dance as Intangible Cultural Heritage. This milestone helps safeguard cultural heritage worldwide. The UNESCO Convention protects traditional art forms and promotes cultural diversity.

Sri Lanka proposed Kolam dance for the UNESCO Intangible Cultural Heritage list. The country has worked hard to preserve this art form. They’ve documented it and taught it to new generations.

UNESCO’s efforts align with Sri Lanka’s initiatives to protect its cultural heritage. These include inventorying practices and ensuring access to related materials and places.

The Process of UNESCO’s Intangible Cultural Heritage Listing

UNESCO encourages countries to submit elements together. They prioritize submissions from more than 10 countries. The listing process evaluates an element’s significance, authenticity, and preservation measures.

Currently, 364 elements are on the ICH Representative and Urgent Safeguarding Lists. There are 12 elements on the Best Practices List. Sri Lanka’s success shows its rich cultural tapestry.

Sri Lanka’s Efforts in Safeguarding Kolam Dance

Kolam dances are famous in Sri Lanka’s coastal areas, especially the southwest. They feature masked dancers and puppetry depicting folklore and historical stories. Sri Lanka has taken steps to protect this art form.

The country has documented Kolam dance and taught it to younger generations. They’ve also worked to raise public awareness about its importance. The partnership between FAO, USAID, and Sri Lanka’s Ministry shows how culture and development are linked.

Global Appreciation for Sri Lankan Traditional Arts

UNESCO’s recognition has brought global attention to Sri Lankan arts. It highlights the country’s diverse artistic expressions, from wood carvings to handloom weaving. This recognition celebrates Sri Lanka’s unique culture.

It also shows the importance of protecting intangible cultural heritage worldwide. Sri Lanka continues to promote its arts on international platforms like the Colombo Art Biennale.

Sri Lanka Names Hans Wijayasuriya as Digital Economy Lead

Sri Lanka Names Hans Wijayasuriya as Digital Economy Lead

OMP Sri Lanka has announced a significant step in the country’s digital journey. Dr. Hans Wijayasuriya has been chosen as the Chief Advisor on Digital Economy by the president. This key appointment by President Anura Kumara Dissanayake highlights the country’s dedication to leading in technology. It also shows its efforts to transform its digital space.

Sri Lanka Appoints Axiata GED Hans Wijayasuriya as Chief Digital Economy Advisor

Dr. Wijayasuriya brings a wealth of experience from his time as Axiata Group’s General Executive Director. His global recognition, including the top GSMA Chairman’s Award in 2024, will greatly benefit his new position. With this role, Sri Lanka is starting a new chapter in its digital journey. The aim is to boost growth and improve public services with new technology.

Work on economic recovery is moving forward, and Dr. Wijayasuriya’s vision is expected to be key for empowering Sri Lankans digitally. By taking on this important advisory role, he will wrap up his successful time with Axiata by January 2025. This move marks a major shift from his corporate achievements to serving the nation in the technology field.

Sri Lanka Appoints Axiata GED Hans Wijayasuriya as Chief Digital Economy Advisor

Sri Lanka has made a key move by naming Hans Wijayasuriya the Chief Digital Economy Advisor. This important step is set to boost the country’s role in the digital world and enhance its global standing. It shows Sri Lanka’s eagerness to lead in tech among developing countries.

Appointment Marks a Transformational Shift for Sri Lanka’s Digital Landscape

Dr. Wijayasuriya starts his role on November 1, 2024. He brings vast knowledge, especially from the financial world. This matches well with Sri Lanka’s goals of promoting tech and innovation in telecom. On his first day, the local currency strengthened, showing more investor confidence, particularly in finance.

Empowering a National Vision: Toward a Digitally Advanced Sri Lanka

With Dr. Wijayasuriya’s leadership, Sri Lanka aims to launch major digital updates. These plans are to upgrade infrastructure and make tech widely available, improving living standards and job chances for everyone. His experience in emerging markets and digital fields will likely lead to significant progress.

Public-Private Synergy: Wijayasuriya’s Role in Digital Policy and Advisory

Advancing digitally needs teamwork between the government and private companies. Dr. Wijayasuriya will head the ICTA of Sri Lanka, focusing on starting strong and creating solid policies. His role aims to synchronize Sri Lanka with global digital developments, promoting growth and tech empowerment.

Sri Lanka has also gained major global support, for example, a $1 billion World Bank loan. This shows the world’s trust in Sri Lanka’s recovery and growth plans. It’s a step towards building a vibrant digital economy.

Having Hans Wijayasuriya as the Chief Digital Economy Advisor is crucial for Sri Lanka. His insight and strategy are key to bringing in a digital age of success. He’s expected to blend economic strength with tech innovation seamlessly.

Hans Wijayasuriya’s Legacy in Telecommunications and Digital Solutions

Dr. Hans Wijayasuriya has led for over 30 years in the Axiata Group. He has made a big impact on global mobile communication. This is shown by his GSMA Chairman’s Award in 2024. He now focuses on Sri Lanka’s digital economy growth. By being the Chief Advisor to the President on Digital Economy, his telecommunications expertise will help the country. Sri Lanka faces challenges like the need for skilled software experts which it currently lacks. Dr. Wijayasuriya is key in meeting the IT industry’s growing demands.

To improve the IT workforce, there is a focus on digital innovation. This aims to boost the economy and stop the brain drain by offering good jobs to the young and encouraging them to start businesses. Dr. Wijayasuriya’s work is seen in Dialog Axiata and Axiata Digital Labs. These efforts show his lasting effect on Sri Lanka’s telco and digital areas. He advises the nation to use innovation to enhance international trade. This will help with currency issues and reduce the banking sector’s reliance on the falling rupee.

Sri Lanka is changing its laws, with the 21st Amendment passed. This shows its commitment to fair laws and chances for everyone. The nation is trying to improve in areas like banking and IT. Groups like the Commonwealth Union Ltd. and AppĂ© Lanka help poor communities in Sri Lanka. The President’s Media Division says Dr. Wijayasuriya’s role is very important. As Sri Lanka plans to dissolve its Parliament for elections, it looks forward to new laws and policy changes.

Sri Lanka: Inflation Drops to Single Digits by Mid-2024

Sri Lanka: Inflation Drops to Single Digits by Mid-2024

Sri Lanka’s economy is bouncing back after the 2022 economic crisis. Inflation has dropped from 69.8% in September 2022 to single digits by mid-2023. This shows a positive change in the country’s finances.

Smart money policies and reforms have helped stabilize the exchange rate. The IMF program has also supported the economic recovery. As a result, the economy grew in the last two quarters of 2023.

Inflation Drops to Single Digits by Mid-2024 After Peaking in 2022

Official reserves increased to US$3.0 billion by the end of 2023. This is a big jump from US$500 million at the end of 2022. The Sri Lankan rupee also gained 10.8% in value during 2023.

The economy is stabilizing faster than expected. This has improved the short-term growth outlook. Experts now predict 4.4% growth in 2024.

These trends show the Sri Lankan economy’s strength. They also prove that government and central bank measures are working well.

Sri Lanka’s Economic Crisis and Inflation Peak in 2022

Sri Lanka faced a severe economic crisis in 2022. The country defaulted on its debt due to unsustainable levels and depleted reserves. Multiple factors caused this crisis, including poor economic management and structural weaknesses.

The economy shrank by 7.8% in 2022 and 7.9% in early 2023. Tourism, a key industry, collapsed during the crisis. This led to widespread job losses and shortages of essential goods.

The country experienced power cuts lasting up to 15 hours daily. This further strained the already struggling economy and affected daily life.

Factors Contributing to the Economic Crisis

Several factors contributed to Sri Lanka’s economic crisis, including:

  • Macroeconomic mismanagement
  • Long-standing structural weaknesses
  • Exogenous shocks
  • Unsustainable debt levels
  • Depleted reserves

Sri Lanka economic crisis

The Ceylon Electricity Board and Petroleum Corporation faced huge losses. They needed government help and loans from state banks to survive. The government had to support state banks with increased tax revenue.

Inflation Reaching Record Highs in 2022

Inflation in Sri Lanka peaked at 69.8% in September 2022. This caused the rupee to lose 81.2% of its value against the US dollar. Household budgets suffered due to tax hikes, price increases, and income losses.

Real wages fell by 16.9% in the private sector between 2021 and 2024. In the public sector, they dropped by 22% during the same period.

Year Inflation Rate Currency Depreciation
2022 69.8% 81.2%
2023 (August) 4% 11% appreciation

Rising fuel and electricity prices hurt households. Higher taxes affected individuals and businesses, increasing production costs. The government suspended imports to stabilize the economy. However, key sectors still lacked cost-reflective pricing.

Government Reforms and Policy Adjustments

Sri Lanka’s government has taken action to stabilize the economy amid a severe crisis. They’ve implemented reforms focusing on fiscal consolidation, revenue measures, and expenditure control. These efforts aim to set the stage for economic recovery.

Key measures include prudent monetary policy, domestic debt restructuring, and structural reforms. The government has also prioritized revenue measures to address the country’s fiscal challenges.

Fiscal Consolidation Measures

The budget deficit grew from Rs. 1,244 billion to Rs. 1,614 billion from January to September. To address this, the government introduced cost-reflective utility pricing and new revenue measures.

These efforts have shown positive results. Total revenue increased from Rs. 1,448 billion to Rs. 2,110 billion in the same period.

Monetary Policy Stance and Interest Rates

The Central Bank of Sri Lanka has adopted a prudent monetary policy. The Standing Deposit Facility Rate decreased from 14.50% to 10.00% by October’s end.

These adjustments have helped moderate inflation. The Consumer Price Index dropped from 66.0% in 2022 to 1.5% in 2023.

The commercial bank average weighted new lending rate was 12.67% at April’s end. This indicates a gradual transmission of monetary policy changes.

Structural Reforms in Key Sectors

The government has started reforms to boost long-term growth and resilience. These focus on improving the business environment and strengthening the financial sector.

Infrastructure development is also a key area of investment. The IMF’s $2.9 billion bailout package has been crucial in supporting these reforms.

Indicator 2022 2023
Inflation (Point to Point) – Consumer Price Index (2013=100) 66.0% 1.5%
Unemployment Rate 4.6% (Q2) 5.2% (Q2)
Budget Deficit (Jan-Sep) Rs. 1,244 billion Rs. 1,614 billion
Total Revenue (Jan-Sep) Rs. 1,448 billion Rs. 2,110 billion

Inflation Drops to Single Digits by Mid-2024 After Peaking in 2022

Sri Lanka’s inflation rate has steadily declined since its record highs in 2022. By mid-2024, it dropped to single digits. This decrease is due to government reforms, monetary policy changes, and improved supply conditions.

The World Bank projects Sri Lanka’s economy to grow by 4.4% in 2024. This growth is expected to be driven by industrial and tourism sectors.

Gradual Decline in Inflation Rates

Headline inflation in Sri Lanka stayed low throughout 2024. This was helped by price adjustments and currency appreciation. Overall PCE inflation was 2.3% year-over-year in August 2024.

Core PCE inflation stood at 2.7%. CPI inflation data showed 2.6% growth in August 2024. This was a big drop from the 8.9% peak in 2022.

Factors Contributing to the Moderation of Inflation

Several factors have helped moderate inflation in Sri Lanka. Improved supply conditions have greatly impacted inflation outcomes. Weak private consumption has also kept inflation in check.

Currency appreciation has played a role in reducing inflationary pressures. Household disposable incomes remained low, contributing to subdued demand.

Inflation Measure August 2024 Peak (Year)
Overall PCE 2.3% 6.5% (2022)
Core PCE 2.7% 3.7% (2023)
CPI 2.6% 8.9% (Peak)
Housing 5.4%
Core (ex-housing) 2.1%

Impact on Cost of Living and Consumer Spending

The drop in inflation rates has positively affected Sri Lanka’s cost of living. As prices stabilize, households should see improved purchasing power. However, private consumption recovery is likely to be slow.

Disposable incomes are still affected by the economic crisis. The government’s ongoing reforms and efforts to attract foreign investment should support growth.

These measures are expected to improve living standards in the coming years. Economic growth and stability remain key goals for Sri Lanka’s future.

Conclusion

Sri Lanka’s economic recovery depends on implementing crucial policies. Recent progress is encouraging, but the country’s stability remains fragile. Limited buffers leave Sri Lanka vulnerable to risks like insufficient debt restructuring and policy uncertainty.

The government can boost the economy by implementing comprehensive structural reforms. These should focus on fiscal management, financial sector, and social assistance. Reforms in state-owned enterprises and trade can also help attract investment.

Policymakers must balance short-term measures with long-term changes. Building resilience through robust buffers is crucial. This can help Sri Lanka withstand future shocks and create a more stable economy.

By addressing these issues, Sri Lanka can increase investor confidence. This can lead to fresh capital inflows and sustainable growth. Ultimately, these efforts can help reduce poverty in the medium term.

Sri Lanka Pays USD 503 Million for Debt Service in 2024

Sri Lanka Pays USD 503 Million for Debt Service in 2024

Sri Lanka’s external debt hit USD 37.5 billion by June 2024. The government is working hard to manage its debt and ensure timely repayments. This comes amid a tough economic situation for the country.

Sri Lanka Pays USD 503 Million for Debt Service During First Half of 2024

From January to June 2024, Sri Lanka paid USD 503 million in debt service. This included USD 275.1 million for principal repayments and USD 227.9 million for interest payments. These payments were part of the government’s interim debt standstill policy.

The policy aims to manage the nation’s debt while working towards economic recovery. Sri Lanka is committed to honoring its debt repayments. The country is also working with international creditors to ensure sustainable external debt.

Timely debt servicing remains a top priority for the government. The finance ministry is looking for ways to increase revenue and attract foreign investment. They also aim to promote sustainable economic growth to support debt management efforts.

Sri Lanka’s Growing External Debt Burden

Sri Lanka’s external debt has hit USD 37.5 billion as of June 2024. This comes from the Mid-Year Fiscal Position Report. The debt standstill policy, started in April 2022, led to suspended repayments and interest.

By 2019, Sri Lanka’s gross public debt reached 94 percent of GDP. This was high for emerging markets. External shocks worsened the situation from 2016 to 2019.

Total External Debt Reaches USD 37.5 Billion by June 2024

Sri Lanka’s rising external debt shows its tough road to recovery. The country is working to restructure its finances. In 2021, the current account deficit grew to 3.8 percent of GDP.

Challenges in Sustainable Debt Management and Economic Recovery

Sri Lanka faces major hurdles in managing debt and boosting its economy. In 2020, inflation hit 14.2 percent, above the Central Bank’s target. Gross international reserves fell sharply from 2019 to 2022.

Support came from Bangladesh, China, and India during the pandemic. Yet, Sri Lanka still struggles with debt restructuring and unpaid debt service. The country must find ways to grow while managing its external debt.

Breakdown of Debt Service Payments in First Half of 2024

Sri Lanka set aside $503 million for debt service payments in early 2024. This shows their dedication to managing international obligations during economic recovery. The payments were split between principal repayments and interest payments.

USD 275.1 Million Allocated for Principal Repayments

$275.1 million went towards principal repayments. These payments help reduce the overall debt burden. They also maintain Sri Lanka’s credibility with lenders and financial institutions.

USD 227.9 Million Covering Interest Payments

$227.9 million covered interest on bond payments and other financial tools. Interest payments reward creditors for lending funds. They also help Sri Lanka keep access to global money markets.

By meeting these obligations, Sri Lanka shows its commitment to financial promises. This helps maintain a stable economic environment for the country.

Impact of Debt Standstill Policy on Debt Accumulation

Sri Lanka’s interim debt standstill policy has led to significant unpaid debt accumulation. By June 2024, the policy resulted in USD 8.19 billion of unpaid debt service. This includes USD 5.67 billion in principal and USD 2.52 billion in interest.

The policy aimed to ease immediate financial pressures. However, the growing debt highlights the need for a comprehensive restructuring plan. Sri Lanka must work with the IMF and creditors to find a sustainable solution.

The IMF reports that 60% of low-income countries, including Sri Lanka, face high insolvency risk. These nations require debt relief to avoid economic collapse. Sri Lanka needs to explore innovative debt restructuring approaches.

One option is linking debt reduction to environmental conservation or sustainable development goals. By collaborating with the IMF and creditors, Sri Lanka can build a foundation for fiscal sustainability. This cooperation is key to long-term economic recovery.

The debt standstill’s impact underscores the need for effective global debt crisis tools. Policymakers must prioritize sustainable debt restructuring solutions. These should balance debtor and creditor interests while protecting critical sectors like health and education.

By addressing these challenges proactively, Sri Lanka can work towards a more stable future. Collaborative solutions are essential for the country’s prosperity and economic stability.