Sustainable policies needed; IMF assistance only a temporary solution – COYLE

IMF assistance should be considered a temporary solution and must be supplemented with the implementation of sound and sustainable policies. Moreover, all political parties need to take a moderate and sensible approach that will ensure a long term recovery, the Chamber of Young Lankan Entrepreneurs (COYLE) said in a press release.

The release: ‘The Chamber of Young Lankan Entrepreneurs (COYLE) would like to take this opportunity to wish all Sri Lankans here and afar a Happy and Prosperous Sinhala and Tamil New Year. Our current stance on the economy of Sri Lanka is one of optimism but tempered with caution. As the nation begins to emerge from the turmoil of its recent political strife, the Sri Lankan economy is starting to show the first signs of recovery. However, while COYLE recognizes the improving financial health of Sri Lanka, they urge the government and all political parties to take a moderate and sensible approach that will ensure a long-term recovery.

‘The most recent International Monetary Fund (IMF) bailout package marks an important milestone in Sri Lanka’s economic recovery. Through this agreement as well as the finalization of Sri Lanka’s debt restructuring program through its creditors, Sri Lanka can expect to secure a substantial amount of financial and technical assistance in the form of loans, grants, and investments. As Sri Lankans we must be mindful to stay the course and deliver on our obligations as the package is conditional.

‘The Chamber of Young Lankan Entrepreneurs believes that this assistance should be used for both short-term and long-term economic and development strategies. As such, IMF assistance should only be taken as a temporary solution and must be supplemented with the implementation of sound and sustainable fiscal policies.

‘Furthermore, the Chamber of Young Lankan Entrepreneurs warns that currency depreciation could be expected if import restrictions are eased too soon. It is therefore recommended that these limitations are lifted only by yielding satisfactory values of our economic indicators, when further stabilization of the economy is achieved.

‘The Sri Lankan government is also advised to take steps to create an enabling environment for entrepreneurship, including simplifying bureaucratic processes and reducing redundant Policies, Acts and Gazettes in addition to restructuring its taxation regime. This would be the right time to course correct for the future.

‘In order for the Sri Lanka’s economy to grow, both the current government and all political parties must work together to find lasting solutions rather than looking at partisan political opportunities. The Chamber of Young Lankan Entrepreneurs believe that this can only be achieved by approaching the economic recovery process in an honest, transparent, and practical manner that takes into consideration the needs of the people and businesses of Sri Lanka.

‘It is clear that while Sri Lanka has begun to make strides toward economic recovery, there is still a lot of work to be done. We hope that the coming years will bear witness to the growth of the Sri Lankan economy and the continued well-being of our people.’