Business
SOEs seen as failing SL’s ordinary citizens
By Ifham Nizam
State-Owned Enterprises (SOEs) in Sri Lanka have long served the interests of its employees and politicians, neglecting the welfare of ordinary citizens, Research Consultant at the Advocata Institute Rehana Thowfeek said.
Speaking at a recent media briefing titled, “Burden and The Urgency of State-Owned Enterprise Reform” held at the BMICH, Thowfeek emphasized the urgent need for reform, stating that despite Sri Lanka defaulting on its loan repayments for nearly two years, meaningful progress has been lacking in the country.
Thowfeek highlighted the detrimental impact state intervention in markets has on consumer welfare, attributing inefficiencies to the enrichment of politicians at the expense of taxpayers. She outlined recent reform efforts, including the passing of the SOE Reforms Act and a new Banking Act, alongside the establishment of the State-Owned Enterprise Restructuring Unit (SOERU) and the Holding Company.
However, she cautioned that the delay in addressing SOE issues poses a significant risk to Sri Lanka’s economic sustainability, noting that SOEs have become hotbeds of corruption.
CEO, Advocata Institute, Dhananath Fernando echoed these concerns, stressing the necessity for SOE reform, regardless of the upcoming election cycle. Highlighting the staggering losses incurred by key SOEs in 2022, he underscored the burden placed on taxpayers, estimating a cost of Rs. 1.7 million per registered taxpayer due to SOE mismanagement. Fernando emphasized the urgent need for restructuring, warning of worsening conditions for Sri Lankan citizens and taxpayers if action is not taken promptly.
Fernando added: ‘Despite ongoing reforms, progress has been sluggish, with reforms barely keeping pace to avert immediate crises rather than fostering long-term competitiveness. The International Monetary Fund’s recommendations, including the importance of the Holding Company and the need for skilled advisory board members, underscore the gravity of the situation.
‘Additionally, the cyclical nature of SOE debt, exemplified by Sri Lankan Airlines, poses a continuous threat to the government’s fiscal stability. Transparent divestment processes are essential to prevent further taxpayer exploitation, as politicization only exacerbates the issue.’
Financial journalist Shihar Aneez highlighted the costs of delays in reform, particularly evident in cases like Sri Lankan Airlines, where missed deadlines only escalate taxpayer burdens.
Aneez cautioned against misplaced trust in politicians’ promises, citing past failures to deliver on reform commitments. He further denounced the misuse of SOEs for political gain, noting that taxpayers foot the bill for SOE losses, which are exploited for electoral purposes.
In essence, he added that the urgent need for comprehensive SOE reform in Sri Lanka cannot be overstated, as continued inaction threatens the economic well-being of the nation’s citizens.
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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