The Sri Lankan Private sector cannot be happy with an economy growing under 3% and they need it to expand at least by 4 to 5% annually to create new jobs and innovate.
This was opined by President Ceylon Chamber of Commerce, Duminda Hulangamuwa at the opening of the Sri Lanka Economic Summit 2023 in Colombo yesterday.
“We could term 2023 as a year of stabilization with decline in inflation, interest rates, appreciation of the rupee and progress in the fiscal and monetary reforms. However, stabilization has often been the easy part for Sri Lanka. We have repeatedly failed to see the other complementary reforms that would sustain the stabilization of the economy. Hence 2024 is a pivotal year.”
“We just saw the presentation of the National Budget which aims to balance the fiscal targets and the need for developments and welfare for the public. These targets should be carefully implemented alongside the reform measures.”
What has failed to implement the reforms needed is a lack of consensus among political parties, civil society, unions, private sector and the public on the reform measures.
“For example, measures in the past such as SOE reform have been met with stiff opposition, and we have not taken the required changes and as consequence we are at this point.”
As a Chamber we aim to drive forward a consensus in our policy advocacy work, speaking to various political groups, unions, civil society and think-tank. The summit aims to discuss the crucial elements of the reform process such as SOE reform while also discussing solutions to get growth back on track. Sri Lanka is at a crucial point in its economic development trajectory. There are difficult decisions to be made, and the steps taken now by the government and private sector will determine how we emerge from our current challenges.We need to complement the tax reform with other structural reforms related to trade, investment and ease of doing business. He appreciated the President’s efforts in the last 16 months or so to stabilize the economy.
“As we engage in healthy debate, advocate for necessary change, and call for accountability, we do so bolstered by the knowledge that while we may travel different paths, the destination remains the same – that of economic growth and prosperity to the people.”
