‘Proper guidance vital to channel investment into right areas’ | Daily News


‘Proper guidance vital to channel investment into right areas’

Sri Lanka needs to set the proper trajectory to bring necessary reforms to foster sustained economic growth, Maninda Wickaramasinghe , CEO and Country Head of Fitch Ratings Lanka said.

The country also needs to manage its own macro fundamentals and improve the economy, he said noting that,” it is more of an action plan which is required and also it is essential for the country to make strong decisions to achieve set economic targets.”

“Sri Lanka needs to demonstrate that we’re capable of meeting revenue gaps. This is where the main problem lies. If you have a strong economy and macro environment there is no reason why you cannot attract FDI,” Wickramasinghe told an event organized by the Ceylon Chamber of Commerce, held to launch its annual Outlook Report for 2020, at the Economy + Sector Review and Outlook 2020.

It’s clear that our private sector is looking for opportunities to invest. But if they don’t have any proper guidance as to where they want to invest, then there will be indiscrimination particularly with regard to investments going into particular sectors, Wickramasinghe added.

“We see a lot of investment going into the tourism and high end apartment sector in Sri Lanka. To me, these can lead to oversupply. We can see a little bit of that. It may not be a bubble, but these are clearly diverting probably good capital into various areas,” Wickramasinghe stressed.

He said further that private capital needs to go into productive areas where Sri Lanka can create more employment opportunities and bring technology and innovation to the country.

In this strategy, he emphasized the need to accelerate SOE reforms and added that this is the area where the government can possibly allocate resources to better garner future growth targets.

“The question is does the government need to own assets or can they put their assets in better productive use,” he queried.

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