Business
Stopping subsidies, refraining from funding SOEs seen as essential for economic recovery
By Hiran H. Senewiratne
The main elements of any market-based financial system are to restore confidence in it by correcting current imbalances, reducing the vulnerabilities of the financial system to further shocks and implementing finance and economic reforms. However, it is most crucial that the government stops providing subsidies and refrains from funding state-owned enterprises, former Acting Governor of the Reserve Bank of New Zealand Prof. Grant Spencer said.
“Apart from that other key elements would be to remove short-term emergency restrictions and improve the long- term economic performance of Sri Lanka, Prof. Spencer said during a special lecture titled, “Key Elements of a Market-based Financial System”, conducted on November 1, at the Central Bank of Sri Lanka auditorium.
Prof. Spencer added: ‘At this juncture a simplified and uniform tax system is important by targeting the most needy segments in the country, which system is now being slowly and steadily implemented by the Sri Lankan government as a recommendation of the IMF.
‘It is necessary to put public sector finances on a sustainable footing, while restructuring the external debt. An independent Central Bank is a prerequisite. This is needed for improving the resilience of the banking system. Because the Central Bank must earn trust and confidence from the government and financial markets.
‘To put public sector finances on a sustainable footing, it is required to reform the tax base, particularly for direct income taxes, thereby simplifying the tax rules by removing exemptions.
‘Moreover, it is important to stop subsidies and cheap loans to favoured sectors, restrict growth in government spending with targeted assistance to the most needy and set clear and achievable fiscal objectives.
‘International creditors must agree to a haircut and lengthened debt maturities, whilst clearing the way for the IMF programme with money going to current uses rather than repayment of existing loans.
‘There is a need to commit to an independent accountable Central Bank. To this end, it is essential to pass the new Central Bank Act which will help to ensure price and financial stability over the long- term.
‘An Independent CBSL with government agency functions removed, will help to ensure that public finances remain in balance.
‘It is essential for vulnerable banks to bolster their balance sheets potentially through mergers and the Central Bank needs to prepare contingency plans for potential banking sector stress.
‘Correcting the fiscal imbalance, stabilizing the external debt, creating an independent CBSL and ensuring resilience of the banking system will help to restore international and domestic confidence in Sri Lanka’s future.
‘It is important to reduce the risk premium in Sri Lanka’s interest rates and exchange rate, encourage a recovery of remittances and return of capital into the country and encourage the re-opening of capital markets.’
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
