Business
A significant amount of reserves in foreign exchange is the way to go: CB Governor
By Sanath Nanayakkare
Sri Lanka needs to build its foreign reserves to an optimal level to prevent itself from seeking an IMF bailout for the 18th time, Central Bank Governor Dr. Nandalal Weerasinghe said at a forum held at the Central Bank recently.
The Governor said so responding to a query as to what Sri Lanka should do prevent the country from being compelled to go to the IMF for the 18th time seeking a bailout.
“I think that the 17th time (the current programme) needs to be the last time Sri Lanka is seeking an IMF EFF programme because seeking an IMF bailout next time would mean that we are facing an even more serious situation. We must act responsibly for such a situation to not arise mainly out of a debt crisis. This time we had to go to the IMF with debt unsustainability and we are still trying to achieve some semblance of debt repayment capacity with great difficulty.
We need to follow the current programme not only to achieve debt sustainability but also to achieve economic credibility and maintain predictability on a consistent basis until we come to a higher point of recovery. We need to increase our foreign reserve buffers and bring government revenue to an optimal level. Once that is achieved and our budget deficit and the current account deficit decline to the envisaged level, we will be resilient enough to face a possible external shock,” he said.
“What happened in 2022 was when we lost all of our foreign reserve buffers, there was no place else to go other than a crisis. If we had commenced the process of debt restructuring when we had foreign reserves of about USD 5-6 billion, we could have got the debt restructuring programme going without putting economic pressure on the general public. Thus we could have risen above it without plunging into an economic crisis. In the 16 previous IMF programmes where the country managed to get the better of the precarious situations, the people didn’t feel it.
We used our foreign reserves to make the necessary payments on the balance of payments front and topped it up as we went along without going into a crisis. But when we had used up all our reserves, there was no option other than to fall into a crisis. Foreign reserves are helpful for countries to face external shocks. Even when Covid-09 pandemic engulfed the world economy in an unprecedented way the countries with enough reserves dealt with it successfully and only a few countries like Argentina, Lebanon and Sri Lanka had to suffer the stresses caused by it.
Those countries that used their reserves during the crisis are in the process of rebuilding it again to face any possible external shock in the future. Sri Lanka should also follow this good fiscal practice and build its foreign reserves to avoid another crisis and remain stable in the face of any external shocks,” the Governor said.
The economic and political crisis in Sri Lanka, which began in April 2022, played out on TV screens around the world. Protests swept the country, forcing the President to step down.
The country defaulted on its debt payments in May 2022 and currently owes creditors about $51 billion. Inflation was running at almost 70% in 2022, caused by inability to pay for fuel, food and medicine imports. Foreign currency reserves were estimated to have dwindled to around $20 million from $7.6bn in 2019.
The Delegation of German Industry and Commerce in Sri Lanka (AHK Sri Lanka) proudly facilitated the first-ever Sri Lankan delegation’s participation at Drupa 2024, the world’s largest trade fair for the printing industry and technology. Held after an eight-year hiatus, Drupa 2024 was a landmark event, marking significant advancements and opportunities in the global printing industry.
AHK Sri Lanka played a pivotal role in organising and supporting the delegation, which comprised 17 members from the Sri Lanka Association for Printers (SLAP), representing eight companies from the commercial, newspaper, stationery printing, and packaging industries. This pioneering effort by AHK Sri Lanka not only showcased the diverse capabilities of Sri Lanka’s printing sector but also facilitated vital bilateral discussions with key stakeholders from the German printing industry.
Business
Unveiling Ayugiri: Browns Hotels & Resorts sets the stage for a new era in luxury Ayurveda Wellness
In a captivating reimagining of luxury wellness tourism, Browns Hotels & Resorts proudly unveiled the exquisite Ayugiri Ayurveda Wellness Resort Sigiriya. This momentous occasion, celebrated amidst a vibrant and serene grand opening on the 6th of June, heralds a new chapter in the Ayurveda wellness tourism landscape in Sri Lanka. Nestled amidst 54 acres of unspoiled natural splendour, Ayugiri features 22 exclusive suites and stands out as the only luxury Ayurveda wellness resort in the country offering plunge pools in every room, rendering it truly one-of-a-kind.
The grand opening of Ayugiri Ayurveda Wellness Resort was an enchanting event, where guests were captivated by the melodies of flutists and violinists resonating through Sigiriya’s lush landscapes. As traditional drummers and dancers infused the air with vibrant energy, Browns Hotels & Resorts’ CEO, Eksath Wijeratne, Kotaro Katsuki, Acting Ambassador for the Embassy of Japan and General Manager, Buwaneka Bandara, unveiled the resort’s new logo, marking a significant moment witnessed by distinguished guests from the French Embassy, Ayurveda and wellness enthusiasts along with officials from the Sigiriya area, LOLC Holdings and Browns Group.
“Our strategic expansion into wellness tourism with Ayugiri Ayurveda Wellness Resort Sigiriya symbolises a significant milestone for Browns Hotels & Resorts. Wellness tourism has consistently outperformed the overall tourism industry for over a decade, reflecting a growing global interest in travel that goes beyond leisure to offer rejuvenation and holistic well-being. By integrating the timeless wisdom of Ayurveda with modern luxury, we aim to set a new standard in luxury wellness tourism in Sri Lanka. Whether your goal is prevention, healing, or a deeper connection to inner harmony, Ayugiri offers a sanctuary for holistic well-being” stated Eksath Wijeratne.
Ayugiri encapsulates the essence of life, inspired by the lotus flower held by the graceful queens of the infamous Sigiriya frescoes. Just as the lotus emerges from the murky depths, untainted and serene,
Ayugiri invites guests on a journey of purity and rejuvenation, harmonised with a balance of mind, body and spirit, the essence of nature, echoes of culture and the wisdom of ancient Ayurvedic healing.
HNB General Insurance, one of Sri Lanka’s leading general insurance providers, has been honored as the Best General Bancassurance Provider in Sri Lanka 2024 by the prestigious Global Banking and Finance Review – UK.
The esteemed accolade underscores HNB General Insurance’s unwavering commitment to excellence and its outstanding performance in the field of bancassurance. Through dedication and hard work, the HNB General Insurance team has continuously endeavored to deliver innovative insurance solutions, cultivate strong relationships with banking partners, and provide unparalleled service to customers nationwide. This recognition is a testament to the team’s dedication and relentless pursuit of excellence in the bancassurance business.
“We are honored to receive this prestigious award, which reflects our team’s tireless efforts and dedication to delivering value-added insurance solutions and exceptional service through our bancassurance partnerships,” said Sithumina Jayasundara, CEO of HNB General Insurance. “This recognition reaffirms our position as a trusted insurance provider in Sri Lanka and motivates us to continue striving for excellence in serving our customers and communities.”
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