Business
Govt urged to take pragmatic view on debt management
by Sanath Nanayakkare
If Sri Lanka has the right policy mix to effectively carry on with its debt rollover and to maintain a surplus in its current account, the country can demonstrate that it has entered a path of debt sustainability boosting confidence of the financial markets, Nishan de Mel, Economist- Verite Research said recently.
De Mel, an economist with extensive academic, policy, and private sector experience said so while speaking at a webinar organised by the Veemansa Initiative.
The webinar revolved round the topic ‘External debt situation in Sri Lanka: Are we heading for a resolution or crisis?, where Governor of the Central Bank Professor W. D Lakshman delivered the keynote speech at the virtual forum.
Speaking further de Mel said: ‘I beg to differ with the Governor that Sri Lanka doesn’t need assistance in this regard and can do this alone- if I heard that right. I understand the concerns that an IMF programme will involve conditions impeding our growth drivers. But we need to get our policy mix right and then we can show that we are effectively managing the debt rollover risk backed with a surplus in the current account. That will boost the financial markets’ confidence in our reserves. I think this is something we shouldn’t reject on ideological terms. We need to look pragmatically at how we can attract bridge-financing as well as reducing the cost of our debt. There may be an alternative approach, but we really need to look at the feasibility of managing our foreign debt stock in a way that it could move on a downward trajectory going forward”.
“We should not deplete our foreign reserves too quickly in the process of switching to domestic borrowings from foreign borrowings. We shouldn’t run the risk of markets losing confidence in the Sri Lanka rupee and its exchange rate in a scenario of depreciation affecting our ability to manage our debt stock. Low interest rates are important for Sri Lanka’s debt dynamics. The Central Bank has seized the opportunity arising from the pandemic to introduce a low interest regime. With low interest rates and a positive growth rate the government’s local debt stock could be well managed. Private credit growth is going to be the main driver in pushing interest rates upwards, so it has to be watched. If we keep our inflation and depreciation rates matched, we won’t have a very high level of risk perception. Then on the foreign debt side also Sri Lanka has a path of sustaining its debt,” he said.
Meanwhile, a First Capital research report issued on February 26, 2021 showed: Foreign reserves dipped by US$ 0.8 bn during the month of January 2021 to US$ 4.8 bn from US$
5.6bn in December 2020. Private credit increased by Rs. 25 bn in Jan 2021. Foreign activity showed net outflow of Rs. 3.1 bn in government securities over the past 2 months.
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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