Business
Sri Lanka’s low and middle income households hit harder by stubborn non-food inflation
by Sanath Nanayakkare
As per the basket of goods and services tracked by the Statistics Department of the Central Bank of Sri Lanka, a downturn in the prices of food has helped inflation to drop over the past few months. But stubborn price increases in the non-food category are still marking an upward trend and it has hit harder on Sri Lanka’s working-class households.In such circumstances and with no growth of nominal wages, the purchasing capacity of the squeezed working-class has eroded.
According to Weekly Economic Indicators of the Central Bank, The food inflation recorded at 42.3 per cent, while the non-food inflation recorded at 54.9 per cent in March 2023. Monthly change of the NCPI recorded at 0.36 per cent in March 2023 mainly due to price increases observed in items of the non-food category, which amounted to 1.30 per cent.
“Consumer confidence in Sri Lanka saw significant improvement last month despite pessimistic sentiment overall, suggesting the agreement with the International Monetary Fund (IMF) had lifted perceptions. However, the current decline in business activity seems to be mainly driven by increases in non-food category and companies suspending salary or wage increases due to financial constraints,” a business analyst told The Island Financial Review on condition of anonymity.
“On the one hand, the government must avoid any additional costs on business as it will jeopardise retailers’ ability to keep prices affordable throughout this cost-of-living crisis. On the other hand, companies mustn’t exploit Inflation to pad their bottom line. More often than not, it looks as if many companies are raising prices more by choice than necessity,” he said.
When asked what the improved Purchasing Managers’ Indices released by the Central Bank for Manufacturing and Services activities In March 2023 and the appreciation of Sri Lanka rupee against the US dollar by 13.1 per cent during the year up to 21st April 2023 would mean for ordinary consumer’s purchasing power, he said,” Those are positive macroeconomic indicators, but they have little impact on working class consumer power. Consumer prices reflect changes in producer prices, taxes, high interest rates etc. When all that combines with a wage freeze for an unforeseeable period of time, it kills the purchasing power of the working-class. Non-food items cannot be classified as non-essential commodities or services. How could one say clothing, footwear, telecom, medicine, healthcare, household items, tuition etc. are non-essential? That doesn’t make sense,” 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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