Business
SLID webinar – Sri Lanka’s economy: The next 6 months
The Women Directors Forum of The Sri Lanka Institute of Directors together with the Women Corporate Directors (WCD) Sri Lanka Chapter recently organized a webinar on Sri Lanka’s Economy: The Next 6 Months to understand what the next 6 months will hold for Sri Lanka under different political and debt scenarios. Anshari Perera – Head of Sector Research & Lead Macro Economic Analyst and Chayu Damsinghe – Product Head Macroeconomic & Thematic Research of Frontier Research (Pvt) Ltd were the resource persons for the session.
In her presentation, Anshari Perera said that the near-term economic outlook is very ambiguous as it is tied to the political nuances in the country and that there can be a significant amount of volatility over the next few months depending on how the situation unfolds. She added that political situation and the negotiations with the IMF are two key factors that will have a significant impact on how Sri Lanka’s economy will perform in the near-term as well as from a longer-term perspective.
“The IMF is important in bringing back confidence and improving the sentiment – particularly the foreign investor sentiment – towards Sri Lanka. From a political perspective, if we have a stable government that can continue throughout this period, it will immensely help with the IMF negotiations and the debt restructuring process. Anshari went ahead to comment that Sri Lanka is not unique in the situation it is in. Many other economies have undergone similar experiences in the past 10-15 years. IMF’s importance at this juncture can be understood by studying the experience other countries have had in similar currency and debt crises and how they have manoeuvred their economies back to health with the backing of the IMF. She mentioned that countries which have continued with the IMF programme for at least two years have seen spiralling inflation fall back to below 15% and cut back on money printing with tight monetary and fiscal policy reforms such as interest rate increases and restructuring of taxes. An IMF programme will also support an inflation rate slow-down and stabilization of exchange rates” she said adding that while Sri Lanka can recover from this crisis and come out stronger like some of the other countries, the recovery will not be a “V” shaped fast recovery.
Chayu Damsinghe commented that the crisis that Sri Lanka is going through is not necessarily rare or uncommon. He mentioned that the recovery witnessed by other countries gives optimism even though the trajectory of recovery may be mid to long term. While some countries like Venezuela and Zimbabwe underwent a hyper-inflationary period, most countries recovered, some quite strongly, having undergone varying levels of pain.”
“In 1991 India experienced its Gross Fiscal Deficit rising which was financed through increased borrowings. India saw its reserves falling from USD 3.11 billion at the end of August 1990 to USD 891 million by mid-January 1991 causing massive problems across India. The economic crisis fuelled a political upheaval too with India appointing four prime ministers from 1989 to 1991. It was PM Narsimha Rao’s Government that was credited for having implemented the necessary reforms for India to come out of the crisis.”
“Across this period, the currency depreciated quite heavily across a series of devaluations. Interest rates were also high although not as high as in Sri Lanka” he added.”
He also highlighted that India was facing the same issues that Sri Lanka is currently facing such as foreign lenders becoming reluctant to lend money, non-availability of forex to import essentials such as fuel and fertiliser, an adjustment of the exchange rate which was put in place to discourage the import of non-essential items while encouraging non-residents to send more money to their local bank accounts. The reforms package promulgated by the then PM of India to make them self-reliant with the ability to pay for their imports with their own exports, liberalising government regulation and controls which hindered economic activity and employment opportunities, reducing rural urban disparities, ensuring social justice and the misuse of government concessions with those other than the poor and needy enjoying the benefits does resonate with the discussions that are now taking place in Sri Lanka.
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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