Business
President confident China will help Sri Lanka in its debt restructuring process
By Sanath Nanayakkare
Sri Lanka behaving maturely and professionally during the period of its debt crisis has talks ongoing with China – its largest bilateral creditor – and President Ranil Wickremasinghe is confident that China will help the sovereign’s debt workout and support it in concluding a restructuring.
This was revealed during the President’s address at the Business Today Top 40 Awards Ceremony at the Presidential Secretariat in Colombo on April 21.
“Recently, I had a Zoom meeting with the Japanese Minister of Finance, India’s Minister of Finance, and the Head of the Paris Club in France, who represented all the creditors. They encouraged us to move forward, and we are also in talks with China, our other main partner, to join us in resolving this issue,” he said.
“We will move forward together and individually, and the progress we have made so far has impressed many. In a short period, we turned the situation around through common sense and tough decision-making. This was probably the most challenging phase of my life, surpassing even my time in the Ministry of Education. We had to make decisions that adversely affected a segment of the population, but in the long run, it was necessary for the betterment of the country. In the medium term, we can expect to see positive results,” he said.
The following are some excerpts from the President’s speech.
“There are two main challenges we face; the first is revenue. We must find ways to increase revenue. The second challenge is debt restructuring, and there is no need to fear it. As we move forward, we must address the issue of salaries for the government’s 1.7 million employees, some of whom will retire while others will find new jobs. The government’s expenditure on the armed forces is also a concern, but we have calculated that until 2028, this issue will be under control. However, the larger concern is the amount of money we will need to pay salaries and pensions for those who will retire in the coming years. According to Treasury estimates, we may run into trouble from about 2030 onwards. Therefore, this is a crucial issue that we must address. We can restructure debt and increase revenue, but we must also focus on the budget and retirement benefits for current employees. Amid these challenges, we will need to obtain loans from time to time as we move forward.”
“Our balance of payment is not currently in our favour, so the next step we are taking is to implement reforms and restructuring to create opportunities for growth. Our immediate action this month has been to present the IMF arrangement to Parliament and request its support. By the end of next month, we aim to have our growth agenda ready, with the Economic Stabilization Committee having already prepared their report and other drafts being reviewed and amended by the President’s Office and other stakeholders. Our objective is to reach the RCEP standards and eventually join the Comprehensive and Progressive Agreement for Trans-Pacific. To achieve this, we must modernize traditional industries such as agriculture and fisheries, develop a new approach to tourism and logistics, focus on green and renewable energy, and prioritize artificial intelligence for which we have set aside a billion rupees next year for this purpose. But I am not sure whether we could utilize the full amount for the purpose.”
Meanwhile, US Treasury Secretary Janet Yellen speaking at Johns Hopkins University’s School of Advanced International Studies recently welcomed China’s recent provision of credible financing assurances for Sri Lanka. “China’s participation is essential to meaningful debt relief’, Yellen said at the forum.
According to a Reuters news report on April 21, IMF chief Kristalina Georgieva said that the new Global Sovereign Debt Roundtable had made “tangible progress” on debt restructuring issues. She said that China and other participants had reached a common understanding that multilateral development banks could provide positive net flows to countries in need, instead of accepting outright reductions in debt levels.China has long been unwilling to accept losses on loans unless private-sector creditors and multilateral development banks shoulder their share of the burden, Reuters report said.
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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