Sri Lanka’s foremost economic challenges

By Lynn Ockersz

From a macroeconomic perspective, an accelerated economic revival post-COVID-19 through an inclusive national development strategy, debt refinancing and strengthening public finance, are among the foremost economic challenges facing Sri Lanka at present. Going forward, there will be a strong focus on agriculture in ensuring food security, along with more attention being given to local manufacturing and industries, CEO, Ceylon Chamber of Commerce Manjula de Silva said.

Answering a series of questions posed to him by ‘The Island Financial Review’ CEO Manjula de Silva said, among other things, that energizing the local SME sector was one of the CCC’s core areas of concern.

The questions and answers were as follows:

* What are the main challenges facing Sri Lanka at present?

Main challenges from a macroeconomic point of view will be accelerating economic revival post-Covid-19 through an inclusive national development strategy, debt refinancing and strengthening public finance.

There are structural reforms required to ensure growth in several key focus areas such as digitization, health, education, food security, energy sufficiency and public enterprises.

* In what principal directions do you see the local economy evolving?

There would be a greater focus on agriculture in driving food security. We will also see more attention given to local manufacturing and industries. We hope the focus would drive competitiveness in the industry so these sectors not only cater to the domestic demand but also reach foreign markets.

* How best could Sri Lanka’s export sector be revived?

The continuation of the National Export Strategy by the government is welcome as it was a joint public and private sector strategy to drive exports. It can now be enhanced to look at the Post-COVID-19 opportunities as well.

We also need to resolve some of the domestic barriers to export that limit competitiveness. Key initiatives like the establishment of a National Single Window and a new Customs Ordinance, which have both been in the pipeline should be prioritized. This will support both domestic and international trade.

* What are your proposals for energising the local SME sector in the short and medium terms?

This is a key area for the Chamber and in our Sri Lanka Economic Acceleration Framework launched last year, we had several specific proposals. Some of these proposals include streamlining the state institutions catering towards SMEs, improving access to Finance and Markets and scaling up SMEs.

The Ceylon Chamber of Commerce recently established the Centre for SMEs creating a focal point for delivery of existing services the Chamber was providing to SMEs. The Chamber will continue to assist and guide SMEs through Capacity Building Initiatives, Business Advisory services and facilitating market and business linkages. We will continue to also work to resolve existing regulatory and compliance barriers faced by SMEs in both domestic and international markets.

* Any suggestions for further developing local entrepreneurship?

The Ceylon Chamber believes that promoting local entrepreneurship is key to accelerating economic development in a sustainable and inclusive manner. Hence, the Chamber will establish a Start Up Council soon under its umbrella to encourage and foster start-ups that have potential to turn into successful business ventures that will contribute to generation of both employment opportunities and export revenue.