Business
Sri Lanka had been ‘hiding its bankruptcy’ before it was officially announced: CBSL Governor
By Sanath Nanayakkare
The Governor of the Central Bank, Dr. Nandalal Weerasinghe said on Tuesday that Sri Lanka had been hiding its bankruptcy which had actually occurred months before it was officially announced.
He said so during a multi-TV channel programme where several key political and public officials responsible for the country’s economy were quizzed by journalists.
“At present, we are taking necessary measures to resurrect such an economy plagued by bankruptcy,” he recalled in response to a query about the economic crisis.
“The first quarter of Sri Lanka had had a negative contraction. One of the short-term measures we had to take was to obtain foreign fund assistance to finance the budget deficit while at the same time increasing our foreign earnings to reduce our dependency on foreign loans. That was the only solution we could take in the short-term,” he said.
When asked whether there wasn’t any other source to increase state revenue other than imposing higher taxes on the people, the Governor said, “Definitely there is one. The loss-making state owned enterprises (SOEs) gobble a huge share of the government’s tax revenue. Although we have identified them as national resources, in real terms, they are not.
‘These SOEs which are widely believed as national assets have become liabilities that burn up government’s tax revenue. SriLankan Airlines carries with it a debt of about USD one billion and that’s why no investors are coming to partner with SriLankan Airlines. Some people identify it as trying to sell the national career. But truly speaking, it is a liability rather than an asset. The government has a lot of assets which should be used productively. Take Sri Lanka Telecom for an example. It had been a fully government-owned entity. It was opened to other investors and today SLT is of great importance to various stakeholders and the entire country. If it was not opened for diversified investments, you wouldn’t have an effective telecommunication service in the country today. It provides its offering competitively in the market in line with international standards. If it didn’t have such a diversified investor profile, SLT would not have been productive and the devices you use and the bills you get today from service providers would be 10 times as high. It provides value to the country and SLT’s asset value has increased. The government of Sri Lanka is still the primary shareholder of SLT and it is not a liability. Likewise if we open our electricity supply, SriLankan Airlnes, Ceylon Petroleum Corporation etc, we could reap its benefits. Another example is the Sri Lanka Ports Authority which does not receive financial allocations from the government but operates on its own revenue and resources. If we could open the loss-making entities to such an investment and operational model, there will be no need to collect and waste tax payers’ money on them.”
“For investors to come to Sri Lanka, there needs to be political stability, macro-economic stability and ease of doing business. Vietnam has all these attractions for investors and even some Chinese businesses are relocating in Vietnam due to these reasons. Sri Lanka also has that opportunity. We have to make necessary reforms for that. We will have to move forward through a competitive, open economy to conquer the world. Being a small country, we can’t progress only with internal competition and internal trade. Only when we are globally competitive in price and quality can we capture a share of the internal market. For that we need to open the country for investment,” he said.
According to the Department of Census and Statistics, the year on year GDP growth rate for the first quarter of 2022 had been estimated as negative 1.6 percent which indicated a considerable contraction of the economy compared to the first quarter of 2021. Within the first quarter of 2022, the economic growth rate had slowed down compared to the first quarter of 2021 due to adverse effects of factors including inflation, foreign exchange devaluation and US dollar deficit in the country.
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.”
US sports envoys to Lanka to champion youth development
Rahuman questions sudden cancellation of leave of CEB employees
