Sri Lanka’s economy to grow 4.5pc this year
Sri Lanka’s economy will grow by 4.5 percent this year, according to a monetary policy report released by the central bank on Friday.
The growth projection comes despite potential risks to the island nation’s economic recovery from U.S. tariffs.
The central bank noted that while growth is expected, there are challenges on the horizon.
“However, external demand conditions and evolving global economic landscape increase the level of uncertainty associated with growth prospects over the near to medium term,” the report stated.
The forecast provides insight into Sri Lanka’s economic trajectory as the country continues its recovery efforts.
China signals bolder policies to boost spending
Chinese Premier Li Qiang has called for more action to boost consumption and investment, as the world’s second-largest economy strives to meet its annual growth targets despite facing growing headwinds in the second half of the year.
“[We] should recognise the hard-won achievements and the strong resilience as well as dynamism of China’s economy, reinforcing confidence, while also acknowledging the risks and challenges in the economy and the complex external environment,” he told a meeting of the State Council, China’s cabinet, on Monday.
Li stressed the need for measures to drive up consumption and investment, specifically mentioning the need to further stabilise the property market.
The cabinet called for solid measures to consolidate the stabilising trend and unleash demand for property through urban renewal projects, including the renovation of run-down housing and “urban villages”.
The premier also called for more efforts to unleash potential consumption by removing restrictions on spending and accelerating the development of new growth drivers such as service industries and other new forms of consumption.
India: economy growth rate & statistics
India’s economy shows robust expansion, with real GDP for FY25 estimated at Rs. 1,87,97,000 crore (US$ 2.20 trillion), from Rs. 1,76,51,000 crore (US$ 2.06 trillion) in FY24 with a growth rate of 6.5 percent. This growth is driven by rising employment and stronger private consumption, supported by improving consumer sentiment, which is expected to keep the momentum going in the near future.
Trade remains a critical pillar of India’s growth story with exports reaching Rs. 37,31,000 crore (US$ 436.6 billion) in FY25, led by Engineering Goods (26.88 percent), Petroleum Products (13.86 percent) and Electronic Goods (8.89 percent). These exports helped the economy stay resilient during the pandemic when other sectors slowed. Union Minister of Commerce and Industry, Mr. Piyush Goyal projects exports to reach Rs. 85,44,000 crore (US$ 1 trillion) by 2030.
India’s ability to attract Foreign Direct Investment (FDI) has also strengthened. The country received record FDI inflows amounting to Rs. 4,21,929 crore (US$ 49.3 billion) in FY25 a 15 percent increase over FY24, supported
by a stable policy environment, a large domestic market and steady economic growth positioning the country as a key destination for global capital. This capital inflow also complements government plans for increased investment in infrastructure and asset-building projects to further boost economic growth.
India’s external economic position is improving. The current account deficit narrowed to Rs. 1,98,726 crore (US$ 23.30 billion), or 0.6 percent of GDP, in FY25 from Rs. 2,21,754 crore (US$ 26.00 billion), or 0.7 percent of GDP, in FY24. This improvement was due to higher net receipts from services and secondary income, according to the Reserve Bank of India (RBI).
Latest avenues open for Pakistan-Bangladesh economic cooperation
Bangladesh has expressed keen interest in knowledge sharing and industrial collaboration with Pakistan, identifying leather, shipbuilding, sugar, agro-processing, and SMEs as key areas for potential cooperation.
The development came during Commerce Minister Jam Kamal Khan’s four-day official visit to Dhaka.
The visit is aimed at boosting bilateral trade and enhancing economic cooperation between the two countries.
Minister Jam Kamal Khan held discussions with Bangladesh’s Adviser for Industries, Adilur Rahman Khan, where both sides explored opportunities to strengthen industrial ties. Pakistan’s High Commissioner to Bangladesh, Imran Haider, also attended the meeting.
The talks focused on leveraging the economic and industrial strengths of both nations to address challenges related to food security, promote value addition in the food industry, and align industrial technologies.
Both sides agreed to enhance cooperation through joint ventures, mutual investment, and the exchange of delegations and expertise.
The Minister emphasized Pakistan’s strong interest in becoming a part of Bangladesh’s evolving industrial landscape by fostering a facilitative economic ecosystem for growth.
He highlighted the importance of value-added industries for revenue generation and socio-economic uplift, while appreciating Bangladesh’s progress in pharmaceuticals, textiles, and information technology.
Adviser Adilur emphasized Bangladesh’s industrial development and acknowledged the country’s growing needs for collaboration. He welcomed Pakistan’s interest in contributing expertise and investment, while identifying sectors with significant potential for partnership.
Report: Indonesia offers model for Nigeria’s $1trln economy ambition
Nigeria’s quest to transform its economy into a $1 trillion powerhouse by 2030 could draw valuable lessons from Indonesia’s development playbook, according to a new report by Norrenberger Advisory Partners Limited (NAPL).
The report identifies Indonesia as a compelling model, having successfully navigated similar challenges to emerge as a $1 trillion economy. It highlights six high-potential sectors Nigeria could leverage for accelerated growth: agriculture, trade, oil refining, telecommunications, entertainment, and banking and finance.
Over the past 25 years, Indonesia transitioned from a volatile emerging market into a stable trillion-dollar economy, averaging nearly 9 percent annual growth. Its success was underpinned by deliberate reforms such as effective exchange rate management, massive investments in infrastructure, export diversification, robust industrial policy, human capital development, and a strong anti-corruption drive.
“Achieving Nigeria’s trillion-dollar ambition will require more than optimistic projections; it demands coordinated and transformative action between the public and private sectors. In this regard, Indonesia provides a practical and proven template,” the report noted.
As of 2024, Nigeria’s nominal GDP stands at approximately $237.5 billion, down sharply from $589.6 billion in 2022 and $341.2 billion in 2023. The contraction, despite moderate growth in naira terms, is largely due to the steep depreciation of the local currency.
Japan reports hotter-than-expected core inflation for July
Japan’s core inflation rate cooled to 3.1 percent in July, coming down from 3.3 percent the month before as rice inflation continued to ease.
The figure — which strips out costs for fresh food — was higher than the 3 percent expected by economists polled by Reuters.
Headline inflation in the country also dropped to 3.1 percent, coming down from 3.3 percent in June and marking its lowest since November 2024.
The so-called “core-core” inflation rate, which strips out prices of both fresh food and energy and is closely monitored by the Bank of Japan, held steady at 3.4 percent.
Rice inflation eased to 90.7 percent in July, down from 100.2 percent in June, and after two months during which prices had more than doubled.
Rice prices have shown signs of easing after a rice shortage and skyrocketing rice prices dominated headlines in the country earlier this year, with data from Japan’s agricultural ministry showing that the average bag of five-kilogram rice in supermarkets was being sold for 3,737 Japanese yen ($25.34) for the week of Aug. 4.
At its highest, rice was retailing at an average of 4,285 yen per five-kilogram bag, while premium rice brands reached 4,469 yen.
Hirofumi Suzuki, Chief FX Strategist at Sumitomo Mitsui Banking Corporation, told CNBC that food inflation is showing signs of easing, particularly with rice prices expected to decelerate more noticeably from August to September.
“As a result, overall inflation is seen heading towards moderation going forward,” he adds, saying that this could be a factor to support a rate hike by the BOJ in September or October.
Japan’s central bank had upgraded its inflation forecasts in its economic outlook report released on July 31, saying that core inflation would come in at 2.7 percent for its 2025 fiscal year — ending March 2026 — up from its previous forecast of 2.2 percent.
“Core-core” inflation expectations were raised to 2.8 percent from 2.3 percent.
Malaysia: comprehensive economic growth
Malaysia has intensified efforts to attract investments to special economic zone development areas to bridge the gap between regions throughout the 13th Malaysia Plan (13MP) period, Bernama reported.
Minister of Finance II Datuk Seri Amir Hamzah Azizan said at the Dewan Rakyat (lower house) on August 21 that through collaboration with various parties and special incentive packages, Malaysia aims to attract investments in the electrical and electronics industries, natural resources, trade and cargo, and downstream rubber-based industries.
The location of Kedah and Perlis bordering Thailand will enhance the role of the states in the North of the peninsula as regional connectivity hubs and with the Perlis Inland Port, as well as easier movement of cargo and resources, Malaysia has the advantage of being a catalyst for development at the sub-regional level.
The operation of the East Coast Rail Line, which is expected to begin in the early period of the 13MP, opens up great opportunities for residents along this line to create new economic activities, especially based on agriculture, food production and the halal industry.
India enlarges UPI to Maldives boosting digital ties
In a major step towards deepening digital and financial cooperation, India and the Maldives have signed a landmark Network-to-Network agreement between India’s NPCI International Payments Limited (NIPL) and the Maldives Monetary Authority (MMA), paving the way for the implementation of Unified Payments Interface (UPI) in the island nation. This move highlights the growing global recognition of India’s fintech leadership, with the UPI now processing over 100 billion transactions annually.
A Memorandum of Understanding (MoU) has been signed between India’s Ministry of Electronics and Information Technology (Meity) and the Maldives’ Ministry of Homeland Security and Technology to promote exchange of successful, scalable digital solutions. The goal is to accelerate digital transformation in the Maldives by leveraging India’s experience in implementing digital public infrastructure at scale.
The agreements come amid a broader strategic reset in India-Maldives relations, marked by Indian Prime Minister Narendra Modi’s announcement of a ₹4,850 crore (about $550 million) line of credit and a renewed framework for cooperation across critical areas—trade, defence, infrastructure, and digital connectivity. These initiatives underscore an urgent and forward-looking commitment to regional stability, economic integration, and technological advancement.