Business
Positive outlook on post COVID-19 economic recovery
Top economists and business leaders discussed the outlook for the global and local economy during the first session of the Sri Lanka Economic Summit 2020 organised by The Ceylon Chamber of Commerce (CCC). Eric Robertsen – Global Head, Research and Chief Strategist, Standard Chartered Bank and Deshamanya Prof W D Lakshman – Governor, Central Bank of Sri Lanka (CBSL) were the two speakers at the session while Deshamanya Mahesh Amalean – chairman, MAS Holdings and Krishan Balendra – chairman, John Keells Holdings PLC joined the panel discussion moderated by Shiran Fernando – Chief Economist, CCC.
Despite the impact of the pandemic, Eric highlighted in his speech several positive global developments to take note of. He stated that export levels of emerging markets in Asia had rebounded to pre COVID levels. The recovery in global trade was recorded in two quarters compared to 6-7 quarters in the period post the global financial crisis. Further, he highlighted that a combination of monetary policy support, low level of interest rates and inflation would create a platform for a better economic narrative in 2021.The continuation of a weaker dollar would also be favourable for emerging market assets. Eric stated that according to their research they believe that the recovery of 2021 will look almost like the post war economic recovery with similar economic destruction as a result of the health crisis due to COVID-19.
Central Bank Governor Prof W D Lakshman highlighted that with National Budget 2021 and the policy measures put in place by CBSL and the government, Sri Lanka possesses the potential to emerge as a stronger and more resilient economy in 2021. The focus was in developing the real sector in reviving industries and expanding business opportunities through encouraging home-grown industries, large as well as Small and Medium Enterprises (SMEs).
Addressing the fiscal and debt concerns the Governor highlighted that high levels of debt could be sustainable when domestic debt was the predominant component in the debt portfolio. He went on to state that the ratio of government’s foreign non-concessional debt to GDP was around 23 per cent, and the remainder was either domestic debt that can be rolled over or long-term concessional financing. The annual foreign debt service payments as a percentage of export earnings and remittances stood around 12 per cent in ‘business-as-usual’ years such as 2018. The Governor highlight that public debt will be managed in such a way the domestic to foreign component of the debt will adjust from 55:45 in 2020 to 60:40 in 2021. This and the stated policy of not pursuing foreign debt-creating public investments will make government debt more manageable.
In the panel discussion, Mahesh highlighted that exports should be the key element in the roadmap for economic recovery of Sri Lanka. In terms of the apparel sector, he highlighted two trends which Sri Lankan businesses must focus on which were that customers were increasingly looking vertically in their sourcing and the rapid growth of digitalisation in the value chain. Krishan highlighted the setback due to COVID-19 for the domestic economy but was optimistic in a rebound during 2021. Citing one example in tourism, he highlighted that their resorts in Maldives has seen higher forward bookings for March-April 2021 compared to previous year’s.
Responding to questions by the participants on the potential for low global interest rates driving capital inflow into markets like Sri Lanka, Eric noted that initially investments would flow to the largest and most liquid markets but could later expand to other diversified investment portfolios with higher risks and returns. In closing Mahesh highlighted three areas for businesses to focus on: operate close to the customer and understand the expectations, understand the capabilities required by companies to operate in this challenging environment and strive for operational excellence in terms of manufacturing competitively and agile. (CCC)
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
