Economy

World Bank Urges Sri Lanka to Spend Smarter, Not More

Published

8 months ago

September 20, 2025

A new World Bank review of Sri Lanka’s public finances says the country is now well-positioned to focus on making public finances work better for all Sri Lankans.

It adds that Sri Lanka has made remarkable strides in stabilizing its economy, undertaking one of the largest fiscal adjustments in its history—equal to nearly 8 percent of GDP over three years.

The adjustment was also sharper and faster by international standards – when compared with more than 330 similar efforts in 123 countries worldwide since 1980.

The World Bank’s Sri Lanka Public Finance Review: Towards a Balanced Fiscal Adjustment finds that while fiscal measures helped restore stability, they also put pressure on households through higher indirect taxes and reduced real public-sector wages, and slowed growth due to lower public investment.

The next phase of fiscal calibration should prioritize raising revenues in ways that support growth and fairness, and improve the quality of government spending.

The review highlights that Sri Lanka could increase revenue by up to 2 percent of GDP by 2029 without undermining growth or equity. It also points out that better targeting and management of public spending can deliver improved outcomes within current budget limits.

Economy

Sri Lanka’s official reserves fall below US$ 7 billion

Published

3 hours ago

May 10, 2026

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Sri Lanka’s official reserve assets fell below the US$ 7 billion mark again in April 2026, according to the latest data released by the Central Bank of Sri Lanka.

The country’s total official reserve assets declined from US$ 7.026 billion recorded at the end of March 2026 to US$ 6.759 billion by the end of April.

Data also showed that foreign exchange reserves — the main component of official reserves — dropped from US$ 6.8 billion to US$ 6.505 billion during the month.

Meanwhile, Sri Lanka’s gold reserves declined slightly from US$ 222 million to US$ 219 million.

Economy

PayPal to launch in Sri Lanka from May 15

Published

2 days ago

May 8, 2026

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PayPal is set to launch in Sri Lanka on 15 May, in a move expected to expand formal digital payment channels, initially starting with business-to-business (B2B) payments to exporters.

According to sources, the initial rollout will focus on enabling inward payments to exporters, with several local banks already appointed as agents for the service.

While an official announcement is yet to be made, sources said the launch is currently scheduled for 15 May, with the Presidential Secretariat likely to host the event.

Banking sector officials have already participated in familiarisation sessions relating to PayPal’s entry into Sri Lanka, while PayPal representatives are understood to have visited the country last month for discussions with local stakeholders and financial institutions regarding the rollout framework.

The move follows months of engagement between the Government, the Central Bank of Sri Lanka (CBSL), and the private sector, aimed at enabling regulated inward remittance functionality through the global online payments platform.

In February, Digital Economy Ministry Secretary Waruna Sri Dhanapala said Sri Lanka had entered the final stage of enabling inward remittances through PayPal, describing it as a key milestone in modernising the country’s digital payments ecosystem.

Economy

Sri Lanka tests online ticket booking platform or intercity bus travel

Published

5 days ago

May 5, 2026

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Sri Lanka has launched a pilot programme to enable online seat reservations for long-distance bus travel, Transport and Highways Minister Bimal Rathnayake announced today.

Speaking at a media briefing, the Minister said buses remain the most widely used mode of daily transport in the country, even surpassing trains in popularity.

However, he noted that passengers currently face inconvenience as they must physically visit bus terminals to reserve seats, making travel planning difficult.

“This new system will allow passengers to reserve seats in advance and plan their journeys more efficiently. Our aim is to make daily life easier,” he said.

The initiative will initially be implemented through private bus operators, with plans to expand the service to the Sri Lanka Transport Board (SLTB) at a later stage.

Sri Lanka Telecom Chairman Mothilal De Silva stated that the platform was introduced ahead of the New Year holiday period in collaboration with several private sector partners.