Economy
From The Report: Sri Lanka 2019
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Sri Lanka’s economy has been making progress in recent years, which should stand it in good stead during the potentially difficult times ahead. Major efforts have been made to instil greater fiscal discipline, and modernise monetary and exchange rate policy, while steps have also been taken in the management of government expenditure and the maximising of public sector revenue. Meanwhile, trade and foreign direct investment have continued to rise, and infrastructure development is gradually moving Sri Lanka towards realising its long-term goal of becoming an essential transportation and trans-shipment centre for the Indian Ocean and South Asia. There has also been positive progress in establishing the island as a tourism destination and in mobilising the population to help cultivate a more entrepreneurial, gender-balanced and inclusive economy.

This chapter contains interviews with Rajendra Theagarajah, Chairman, Ceylon Chamber of Commerce; and Krishan Balendra, Chairman, John Keells Holdings.

Articles from this Chapter

Overview

Moving ahead: Following political challenges, efforts have been made to achieve economic recovery through trade and policy reforms
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As the country moves forward with an ambitious development programme, while also navigating a series of internal political challenges, 2019 is set to be an important year for Sri Lanka. The economy has been making progress in recent years, which should place it in good standing during the potentially difficult time ahead. Major efforts have been made to instil greater fiscal discipline, and modernise monetary and exchange rate policy, while steps have also been taken in the management of…

Analysis

Opening up: A series of reforms, along with the possibility of further support from the IMF, are contributing to the economy’s positive outlook
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By the time Sri Lanka reaches the end date of Vision 2025, its current mid-term development plan, it will have been nearly half a century since the country first embraced the ideas of market liberalisation in 1977. Sri Lanka is therefore now in a position to take the long view on liberalisation, having been one of the first post-colonial Asian countries to embark in this direction. However, the road to freeing the market has not always been easy, with advocates of a more protectionist, state-orientated…

Interview

Holding the line: Rajendra Theagarajah, Chairman, Ceylon Chamber of Commerce (CCC), on maintaining growth and stability
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Interview:Rajendra Theagarajah How can the CCC and other private sector players rebuild market confidence in Sri Lanka? RAJENDRA THEAGARAJAH: The political uncertainty and resulting economic impact were significant concerns in 2018. Despite this, businesses supported the economy. We provided leadership in the form of a joint chamber forum, which allowed stakeholders to voice their concerns. Such a forum provides confidence to the private sector that their views are being heard and addressed.…

Interview

Planning ahead: Krishan Balendra, Chairman, John Keells Holdings, on spurring inclusive growth and attracting investment
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Interview:Krishan Balendra What actions should be prioritised to attract more foreign direct investment (FDI) to Sri Lanka? KRISHAN BALENDRA: We should prioritise creating a policy document that identifies three to four areas where we think Sri Lanka has a competitive advantage and then direct FDI to those industries. The document should make a case for why investing in Sri Lanka, rather than the rest of the region, makes sense. From there, we can strategise ways to market the industries…

Analysis

Free, small and enterprising: Government schemes are supporting new businesses, local communities, youth and women
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Companies categorised as small and medium-sized enterprises (SMEs) constitute around 75% of all businesses in Sri Lanka, making them a crucial component of the economy. Boosting this vital area, both in term of raw size and contribution to value added, is thus a vital part of policy, with recent times seeing major initiatives launched with this goal in mind. June 2018 saw the launch of Enterprise Sri Lanka (ESL), an ambitious countrywide scheme designed to increase entrepreneurship in areas…

Analysis

Bounce back: Political stabilisation and advances in the export and tourism sectors are expected to drive growth
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On October 26, 2018 President Maithripala Sirisena rescinded the mandate of Prime Minister Ranil Wickremesinghe to lead the government. Although the Prime Minister Wickremesinghe was reinstated on December 16, the constitutional crisis weakened business sentiment and impacted already slowing growth. The economy grew by 3.3% year-on-year (y-o-y) for the first nine months of 2018, with the rate of expansion easing in the latter part of the year. GDP increased by 2.9% y-o-y in the third quarter,…

Overview

Talent map: Changing global migration patterns as a result of growing anti-migration sentiment
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As the world’s nations and businesses become increasingly interconnected, so too does the flow of global migration. According to the OECD’s “International Migration Outlook 2018”, in 2017 some 258m people resided in a country other than the one they were born in and more than 5m foreign-born persons settled in OECD countries. The flow of migration is believed to not only improve the lives of the migrants themselves, but also to contribute significantly to the economic opportunities of individual businesses and countries. Despite this, public opinion across the globe is turning against migration, much to the frustration of business…

Overview

Talent map: Changing global migration patterns as a result of growing anti-migration sentiment
OBG
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As the world’s nations and businesses become increasingly interconnected, so too does the flow of global migration. According to the OECD’s “International Migration Outlook 2018”, in 2017 some 258m people resided in a country other than the one they were born in and more than 5m foreign-born persons settled in OECD countries. The flow of migration is believed to not only improve the lives of the migrants themselves, but also to contribute significantly to the economic opportunities of individual businesses and countries. Despite this, public opinion across the globe is turning against migration, much to the frustration of business…