Business
CB Governor urges the public to grasp macro matters that shape the economy
By Sanath Nanayakkare
It is important that the general public acquires an understanding on the independent monetary policy of the Central Bank and the fiscal policy of the Government which have achieved economic stability at present, and how the current semblance of stability should be maintained going forward in order to sustain sustainability, Central Bank Governor Dr. Nandalal Weerasinghe said addressing the press at the Central bank.
Referring to Financial Statements and Operations of the Central Bank in 2023 and 2024 he said,” The main message we wish to convey to the general public of the country is that economic stability is now well encapsulated into the macroeconomic picture as a result of the policies that have been implemented by the Government and the Central Bank of Sri Lanka over the past few years. So, what we ought to tell the masses is; it is important to maintain this semblance of stability in the medium to long term for the economy to function well by taking it in the same direction. Such firmness in policy action in the future will further help to contain inflation, make the financial system more robust, increase people’s incomes and reduce poverty.”
“The second most important point is how the Central Bank will be fulfilling its duties in conducting the monetary policy towards transformational growth in line with the macroeconomic targets. There is correlation between fiscal policy and the monetary policy, and therefore, fiscal policy tends to have an impact on monetary policy. Sometimes I see that various incorrect opinions are expressed in parliament and at societal level about these two policies which reflect a gap in understanding the two elements. No other institution but the Central Bank is accountable for conducting the monetary policy of the country which includes interest rates, exchange rate, foreign currency reserves and financial sector stability.”
“The fiscal policy actually comes under the purview of the Executive, the Cabinet, the Parliament, Ministries, Departments etc. The Central Bank has to regulate the financial sector in addition to making monetary policy. The government and the Central Bank are two different institutions. The Central Bank is not literally a government institution but it is a State institution carved out with independent responsibilities, and therefore, is accountable to the parliament. That is why we have captured the details of both policies in our latest economic review report and presented it to the government and the people.”
“Our duty is to control the inflation appropriately and properly manage the banking and non-banking institutions ensuring financial stability. Sometimes it is said that the Central Bank is incurring losses and attempts are made to reflect it as an unsuccessful institution. The Central Bank wasn’t founded in the first place with the objective of making profits. When the Central Bank is conducting its monetary policy it could make a profit or incur a loss. But what actually matters is whether its monetary policy was favorable to the country or not. So, any attempt at measuring the success of the Central Bank on its profit-loss figures is misleading and incorrect. In many years the Central bank has made profits while in some years, it has incurred losses.
“In 2022, the loss of Rs. 374 billion was mainly because of steep depletion of our reserves and our short-term swaps and also huge increase in our loan stock in rupee terms with the phenomenal depreciation of the rupee to the dollar from Rs. 202 to Rs. 370.”
“In 2023, the Central Bank made a loss of about Rs. 700 billion due to domestic debt optimization amounting to Rs. 2.5 trillion. So, I urge the people to be more aware of why the Central Bank makes such losses while it is carrying out its core functions. The public also needs to understand the government’s fiscal policy, the relation between the government and the Central Bank and the responsibilities between the two entities,” the Governor said.
He urged the public to grasp the macro matters in their true essence and understand the need to stay the current course to sustain the sustainability for their lives to be less burdensome in the future.
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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