Business
‘Former govt.’s currency printing spree, chief among reasons for economic debacle’
By Hiran H.Senewiratne
The ousted regime’s prioritization of political expediency over the national interest coupled with their currency printing spree exercise aimed at keeping interest rates at a low level, resulted in the country’s economic woes, Central Bank Governor Dr Nandalal Weerasinghe said.
“Today the SME sector is badly hit due to high interest rates. The reasons for it is traceable to the ousted regime keeping interest rates at a low level together with heavy money printing. This resulted in the current high inflation rate in the country, Dr Weerasinghe told the media at the monthly monetary policy review meeting held at the Central Bank auditorium last week.
Dr. Weerasinghe added: ‘Steeply rising prices are a bigger threat to businesses than high interest rates which will have to be maintained for a time until inflation starts to ease.
‘Sri Lanka is now experiencing the result of past money printing and if rates are cut now, runaway inflation could be the result.
“Higher interest rates are a cost to any business, but inflation drives up all costs. Interest rates are raised by a Central Bank as an independent decision taking into account economic conditions and inflation.
“It is said that the rupee fell from Rs 200 to Rs. 360 to the US dollar in 2022 after two years of money printing to suppress rates and inflation had hit close to 70 per cent by September.
“Interest rates were kept down for a time. In the recent past enough money was printed. We are seeing the result of that.”
Meanwhile, a top economist who preferred anonymity told The Island Financial Review that ex-President Gotabhaya Rajapakse totally messed up the economy, independent of the Covid crisis. Towards the end of 2019, and in early 2020, the government enacted deep tax cuts in fulfilment of an election promise, presumably to help its election backers and stooges. This led to the loss of approximately one million taxpayers between 2020 and 2022. Therefore, the country lost more than Rs 500 billion in tax money per year, due to tax cuts.
The economist said that this year the economy is expected to contract by around 8 per cent of gross domestic product as investment and consumption falls as efforts are made to stabilize the economy, compounded by lack of capital inflows due to weak confidence and banks also repaying foreign credits.
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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