Economy

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

Published

1 year 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’s export earnings surpass USD 7.3 bln in first five months of 2026

Published

1 day ago

June 24, 2026

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Sri Lanka’s export sector has recorded significant growth during the first five months of 2026, with total export earnings exceeding the USD 7.3 billion mark.

According to provisional data released by Sri Lanka Customs, together with estimated figures for gems and jewellery and petroleum product exports, total earnings from merchandise and service exports between January and May 2026 amounted to an estimated USD 7,393.39 million. This represents a 7.56% increase compared to the corresponding period in 2025.

During the same period, merchandise export earnings increased to USD 5,758.44 million, recording a growth of 7.63% year-on-year.

The service exports sector also showed positive performance, generating USD 1,634.95 million in revenue, reflecting a 7.31% increase compared to the previous year.

Meanwhile, in May 2026 alone, merchandise exports recorded a growth of 18.25%, while service exports increased by 18.67% compared to the same month in the previous year.

Economy

Cabinet approves electrification of key railway corridors in Sri Lanka

Published

2 days ago

June 24, 2026

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The Cabinet of Ministers has approved a proposal to electrify key railway corridors in Sri Lanka as part of a long‑term transport modernization strategy.

Corridors with high commuter density have been prioritized for electrification, with support expected from international development institutions.

Currently, most railway operations rely on diesel power, and officials have highlighted the need to upgrade tracks, signaling systems, and related infrastructure to improve efficiency and reliability.

The government’s new programme focuses on constructing additional lines, building double tracks, modernizing signals, and introducing electrification to create a modern rail transport system.

According to the government, the initiative aims to expand passenger capacity, reduce travel times, and contribute to an environmentally friendly and sustainable public transport service.

The Cabinet approved the proposal presented by the Minister of Transport to begin electrification in the following routes:

Main Line — Maradana to Ragama, including station upgrades at Gampaha, Veyangoda, Mirigama, and Polgahawela.

Kelani Valley Line — Maradana to Makumbura.

Coastal Line — Maradana to Panadura

Economy

Sri Lanka Exports Rise 6% Despite Global Challenges

Published

4 days ago

June 21, 2026

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Export Development Board (EDB) says that despite the global economic difficulties arising from the military conflicts in the Middle East, the country’s exports have shown a six percent growth during the first four months of this year compared to 2025.

The Chairman of the Export Development Board Mangala Wijesinghe said that, given this trend, there is a strong possibility of exceeding last year’s revenue targets, which already represented the highest export revenue in the country’s history.