Business
Relative stability was the outcome of a united effort from the outset: CB Governor
By Sanath Nanayakkare
The relative stability the country has managed to achieve having put the worst behind it was the result of collaborative effort of the policymakers, the parliament and the Central Bank of Sri Lanka, Central Bank Governor Dr. Nandalal Weerasinghe said addressing a forum at the Central Bank recently.
The Governor said so responding to a comment from a participant at the forum to the effect: “Governor, there are a number of individuals claiming to be the ‘owners’ of the relative stability the country has achieved, but we know who the ‘real owner’ of this remarkable shift is.”
Responding to the above comment the Governor said,” First of all I must say it is wrong to say that there is an owner for this. We have been able to achieve some success as a team; the CBSL and the government. In fact, difficult decisions were made by the parliament such as increasing taxes, implementing cost reflective pricing on utilities which were made possible with stability in the political realm. Firm decisions had to be taken by the government. So it was a collaborative effort in one direction. Both the monetary policy and the fiscal policy were appropriately coordinated to take the stability effort in one direction. And that coordinated effort brought the volatile situation to some semblance,” he said.
“Now the Central Bank has independence that insulates monetary policy from political interference and thus the institution has been strengthened. The other side of the coin is the government’s fiscal policy. People elect their representatives to make fiscal policy to direct the economy besides other legislations. That’s the right of the people and that lever is in the hands of the people. If people think that the current path is correct, then they have to tell their representatives to stick to that direction. If their representatives say that they are going to take another path, then the people have to question them and make sure that the alternate path will have no pitfalls. I am not saying which way the people need to choose. It is their right.”
The Governor went on to say that the country needs to have an institutionalized framework to strengthen government fiscal policy.
“There was a Fiscal Management (Responsibility) Act in 2001- 2003, but the budget deficit targets and central government debt targets set by it were changed by the elected representatives themselves from time to time. That contributed to what has happened today. A new Public Financial Management Bill will be brought to parliament next year. I think currently the Ministry of Finance is drafting it. Once it is approved, elected members can’t increase budget deficit, government debt or expenditure as they wish. If they deviate from it under any circumstances, it is mandatory for them to restore the desired situation as per the law.”
“An Independent Budget Office (IBO) has been established to ensure checks and balances. If the parliament brings any tax proposals/expenditure proposals, the IBO will independently analyze and assess and ask where do you get the money for this- by borrowing or raising taxes, and then that independent assessment will be communicated to the parliament. The elected representatives may not always be fiscal policy experts. That is why this has happened today. The technical assistance the elected representatives need will be provided by the IBO. If we have checks and balances through such institutions and the Executive branch, the legislature branch and the Judiciary branch’s checks and balances – then decisions can’t be made because there is majority power in parliament. Ways and means of handling the economy in a sustainable way need to be justified to the people. The 4-year IMF reform programme is very important down this path. The independence of the CBSL has been assured already. It is done already. Once the Public Finance Management Act is in place, it will ensure predictability of the government’s budget deficit as well as debt stock beyond the predictability of interest rate levels. The parliament needs to enact that and establish these practices. Further, the Governance Diagnostic Report will be vital in this context as an assessment of the Anti-Corruption Landscape of Sri Lanka,” he 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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