Business
SL seen as having made ‘commendable strides towards fiscal discipline’
By Ifham Nizam
Sri Lanka has made commendable strides towards fiscal discipline, particularly in the area of controlling government spending and managing inflation, Rockefeller International chairman and founder and CIO, Breakout Capital Ruchir Sharma said.
Sharma was speaking at a special public lecture in Colombo recently, organized by the Central Bank of Sri Lanka. At the outset he said that Sri Lanka is a country to which he could connect emotionally. `I love coming here whenever I can. If I have to come for a vacation it has to be Sri Lanka, he said.
Sharma added: ‘Sri Lanka’s mounting government debt and its low Tax-to-Gross Domestic Product (GDP) ratio is causing concern. These are significant fiscal challenges that the country must address.
‘Sri Lanka’s effective monetary policy has helped tame inflation. However, there should be sustained vigilance to prevent inflationary pressures from resurfacing.
‘In my book, “The 10 Rules of Successful Nations”, I have defined 10 rules and areas of growth. They are; Population, Politics, State, Debt, Currency, Investment, Inflation, Geography, Inequality and Sentiment.
‘There are some 200 countries and of these countries only 40 countries or so are classified as developed countries. All the other countries are classified as emerging markets and most of them have been emerging forever.
‘The only country to move up from developing to developed country status was South Korea in the 1980s and since then no other country has followed suit.
‘Sri Lanka too has been ranked as a developing country for many years but has not moved up. This is despite Sri Lanka having notched many a positive landmark, such as in education and health.
‘Sri Lanka has to do much to improve overall development and accelerate the engine of growth.
‘Sri Lanka’s working age population growth, for example, remains 0.1%, which is an obstacle to economic growth.
‘Furthermore, Sri Lanka scores low in the area of State because the tax contribution to the state remains minimal. Due to the current politically volatile state of the country, Sri Lanka also ranks low in terms of Politics, where results of an election would determine its development.
‘Currency being cheap is good if it is stable, but the key is avoiding unreliable measures. Sri Lanka ranks well in the area of Currency because it is cheap.
‘In terms of Geography, despite the many opportunities and potential, Sri Lanka has not been able to fully exploit and capitalize on its geography. Intraregional trade is vital for the development of countries, yet South Asia has low intraregional trade and therefore misses many opportunities for growth.
‘The problem of internal geography is of such proportions that much of the wealth is concentrated in the Colombo area and there is not enough in the other areas.
“Generally, I would say, Sri Lanka ranks relatively well at this point from an investment perspective and issues of liquidity, among other things. But this is a big improvement over the last couple of years. Once the political situation becomes stable, the key for Sri Lanka is, what is going to be your growth engine?
‘The classic growth engine is manufacturing exports. For countries with Sri Lanka’s per capita income, the latter is necessary to grow rapidly. But with that growth engine looking difficult to bring about, what could be the growth engine for Sri Lanka to grow even at 5%, because 6-7% seems very difficult given the demographics of the country.
‘The country should determine a suitable growth engine for it as even raising the economic growth rate by 5% is crucial. Sri Lanka should catch up considering the time lost during its economic crisis.’
Meanwhile, on the question of introducing a wealth tax, Sharma said, among other things, that it is very difficult to correct inequalities by initiating such a tax.
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
