Economy

World Bank praises Sri Lanka’s debt restructuring and 2025 Budget Plan

Published

11 months ago

February 23, 2025

The World Bank’s South Asia Regional Director, Prosperity Practice Group, Mr. Mathew Verghis has met with the Secretary to the Prime Minister, Mr. Pradeep Saputhanthri, at the Prime Minister’s Office.

Discussions focused on Sri Lanka’s current economic outlook, ongoing reforms, and potential areas for enhanced collaboration between the World Bank and the Government of Sri Lanka, according to the PM’s Media Division.

During the discussions, the World Bank delegation expressed appreciation for the progress made in Sri Lanka’s debt restructuring process and commended the government’s recent Budget Speech – 2025 as a positive step towards economic recovery.

They underscored the importance of effective policy implementation and highlighted the Prime Minister’s Office’s crucial role in ensuring seamless interagency coordination.

Mr. Saputhanthri provided an overview of the government’s key priorities, emphasizing that the proposed budget of 2025; focuses on economic stability, good governance, and sustainable development, the statement said.

He outlined the government’s commitment to promoting investment, facilitating trade, and driving digital transformation. He Further highlighted that addressing the socio-economic challenges faced by vulnerable populations and maintaining a firm stance against corruption are among the government’s top priorities.

The Secretary also emphasized the importance of strengthening logistics for Small and Medium-sized Enterprises (SMEs) and the agricultural sector, with particular attention to the development of health, education, and tourism sectors.

The discussion also covered the government’s focus on legal reforms to support these initiatives, it added.

The meeting was attended by senior government officials, including Sagarika Bogahawatta, Additional Secretary to the Prime Minister, and Mr. T.A.D.D. Premarathna, Additional Director General of the External Resources Department, in addition to the representatives of the World Bank’s Sri Lanka office.

Economy

Sri Lanka Postal Service achieves record revenue

Published

5 days ago

January 12, 2026

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Sri Lanka’s postal service has recorded a remarkable turnaround in 2025, surpassing revenue targets set by the Treasury and signalling a major revival after years of stagnation.

Postmaster General Ruwan Sathkumara said the Department of Posts generated Rs. 13.1 billion last year, exceeding the revenue target assigned for 2025.

He highlighted that the past year also saw wide-ranging reforms, including large-scale recruitments, confirmations of long-serving staff, infrastructure upgrades, and investments in technology and transport to improve efficiency and service delivery.

According to Sathkumara, 378 Sub-Postmasters received permanent appointments in June 2025—the first confirmations for the category since 2020. In September, the appointments of 1,000 Postal Assistants were regularised, marking the first such confirmations since 2022.

The Postmaster General added that recruitment is underway to hire 600 Postal Service Officers through open competition, with appointments expected in February 2026.

Economy

Sri Lanka ranked most affordable place to live or retire in 2026

Published

6 days ago

January 11, 2026

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International Living magazine has identified the five most affordable places to live or retire in 2026, which scored the highest in the cost-of-living category of its 2026 Global Retirement Index.

It evaluated retirement destinations across climate, healthcare, visa and lifestyle, along with cost.

Sri Lanka ranked top of the list due to affordable local transportation and easy-to-obtain retirement visas. A couple can live extravagantly on $2,200 (£1,637) a month, or on $1,000 (£744) with some budgeting.

In second place is Vietnam, with the average cost of living in Hanoi sitting at under $1,800 (£1,339) per month. Rent is low and healthcare is affordable.

Thailand was ranked third, because a couple can live comfortably for around $2,000 (£1,488) a month in cities such as Chiang Mai or coastal towns such as Hua Hin. These both have affordable housing, and accessible services and transportation.

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Economy

Sri Lanka Secures €188M Debt Relief from Germany

Published

1 week ago

January 10, 2026

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Sri Lanka has signed a bilateral agreement with the Federal Republic of Germany as part of its ongoing external debt restructuring process, marking a significant milestone in the country’s efforts to restore debt sustainability and revive its economy.

The agreement, concluded after bilateral discussions following the Memorandum of Understanding (MoU) with the Official Creditor Committee (OCC), provides for rescheduling outstanding debts, offering critical relief to Sri Lanka during its economic recovery phase.

The signing ceremony took place at the Ministry of Finance, where Dr. Harshana Suriyapperuma, Secretary of the Ministry of Finance, Planning and Economic Development, signed on behalf of the Government of Sri Lanka, while Ms. Sarah Hasselbarth, Chargé d’Affaires a.i., represented the Federal Republic of Germany.

The estimated rescheduled debt under this agreement amounts to €188 million.