President Ranil Wickremesinghe emphasised that the government’s prudent decisions over the past two years have bolstered the nation’s economy, providing a favourable environment for political activities on the streets.
However, he cautioned that the economy still faces challenges, urging citizens to weigh the choice of either continuing with the government’s initiatives for prosperity or risking regression. Highlighting a remarkable increase of over 50% in government income in 2023 compared to 2022, President Wickremesinghe underscored the conducive backdrop for advancing confidently with a robust economy. These remarks were made during his attendance at the inauguration of the International Gem and Jewellery Trade Centre, known as the Ratnapura Gem Tower, yesterday (4).
Plans have been shown for the construction of the Ratnapura Gem Tower in Demuwawa in Ratnapura, to be executed in two phases. The initial phase saw the completion of a five-storey building, costing Rs. 365 million. The forthcoming second phase entails the construction of an additional 14 floors, with an estimated expenditure of Rs. 450 million.
The newly inaugurated International Gem Trade Centre comprises 27 business premises, with 17 allocated to local entrepreneurs and 10 designated for foreign counterparts. Financing for this venture is sourced from the National Gems and Jewellery Authority, aiming to establish an international hub facilitating seamless transactions between sellers and buyers.
Functioning akin to renowned sales centres in Bangkok and Hong Kong, the centre will offer comprehensive services including independent quality testing, laboratory facilities, and banking and export services. This initiative aims to bolster the gem and jewellery trade, positioning Ratnapura as a pivotal player in the global market.
During his visit to the International Gems and Jewellery Trade Centre, President Ranil Wickremesinghe unveiled the plaque to mark its inauguration and inspected the facilities.
The President emphasised the government’s commitment to further enhancing the gem and jewellery industry’s contribution to the national economy. He instructed officials to compile a report by the end of April outlining potential solutions to industry challenges and proposed reliefs for industry stakeholders. The President stressed the importance of ensuring benefits for gem miners as part of this initiative.
The President highlighted the significance of the International Gem Trading Centre in elevating Sri Lanka’s gems to attain their rightful value on the international stage. This initiative aims to position Sri Lanka as a prominent player in the global gem and jewellery market, fostering economic growth and prosperity for the nation.
During his address at the event, President Ranil Wickremesinghe acknowledged the origins of the International Gems and Jewellery Centre, noting that its construction commenced during the tenure of former President Gotabaya Rajapaksa. He also paid tribute to the dedication of Ministers Lohan Ratwatte and Chamara Sampath to the project’s realisation.
Highlighting the significance of the centre, President Wickremesinghe emphasised that its impact extends beyond Ratnapura, positioning it as a pivotal hub for the gem and jewellery industry nationwide. He reiterated the government’s commitment to fostering the industry’s growth and its pivotal role in contributing to the national economy.
Reflecting on the challenges faced by the gem and jewellery sector amid the COVID-19 pandemic and economic downturn in the 2021-2022 period, President Wickremesinghe noted a modest improvement in 2023. He underscored the industry’s resilience and its contribution as a cornerstone for economic recovery efforts.
“Following recent discussions with relevant ministries regarding challenges stemming from increased taxes in the gem and gold sectors, I have instructed officials to explore potential reliefs and submit a report by the end of this April,” President Ranil Wickremesinghe stated. “Additionally, we are aiming to generate at least US$ 2 billion in revenue from this field in the future, with a particular emphasis on ensuring benefits for gem miners during the sector’s development.”
In reflecting on the country’s economic trajectory over the past two years, President Wickremesinghe acknowledged the difficult journey, which necessitated tough decisions, including tax hikes. Nonetheless, he underscored the positive outcomes achieved to date, instilling confidence for the future.
President Ranil Wickremesinghe provided insightful data on the country’s economic progress. He noted that in July 2022, inflation stood at a staggering 54.6%, but today it has significantly reduced to 0.9%. This control over inflation has contributed to the strengthening of the Sri Lankan Rupee. Additionally, bank interest rates have decreased from 23.8% to 10.3%, with expectations for further reduction in the coming months as stated by the Governor of the Central Bank.President Wickremesinghe highlighted the improvement in the foreign exchange rate, which has decreased from Rs. 361.80 per dollar in the past to Rs. 300.40 presently. Efforts are underway to further lower this rate to Rs. 280, aiming to bolster the strength of the rupee.
In terms of government finances, President Wickremesinghe emphasised a significant increase of over 50% in government income in 2023 compared to 2022. Furthermore, expenditure for social services has tripled, reflecting the government’s commitment to enhancing social welfare.Regarding debt restructuring, President Wickremesinghe noted the completion of discussions on domestic debt and highlighted the on-going negotiations with creditor countries. He stressed the importance of adhering to relevant goals and agreements, including those with the International Monetary Fund, to ensure the successful continuation of this process.
President Ranil Wickremesinghe outlined ambitious targets for reducing government debt as a percentage of GDP, aiming to bring it down from the current 128% to 95% by 2032. He emphasised the necessity of achieving a cash income of 35% of GDP, which needs to be reduced to 13% by 2032. Additionally, the goal is to transform foreign loans, which currently stand at 9.4% of GDP, into a surplus of 2.3% by 2025. President Wickremesinghe stressed the importance of adhering to these targets to avoid repercussions such as demands for loan repayment from creditor countries.
President Ranil Wickremesinghe highlighted the stark contrast between the challenging conditions of the past and the current improved situation. He pointed out the scarcity of fuel for three-wheelers and electricity shortages in previous times, contrasting it with the present abundance of fuel and availability of electricity. President Wickremesinghe noted that the income of three-wheeler drivers has also increased, attributed to the influx of both domestic and foreign tourists. He emphasised the significance of these improvements by highlighting the three-wheeler drivers’ involvement in political activities, while displaying posters, which would not have been feasible without the economic progress achieved in the last two years.
Adressing the gathering, Industry and Health Minister Dr. Ramesh Pathirana expressed his enthusiasm as the International Gem Trade Centre, initiated in 2021, is officially inaugurated today. Dr. Pathirana emphasised the pivotal role of this centre in facilitating rapid growth in the country’s foreign exchange earnings, providing a crucial platform for gem businessmen. He highlighted the proactive approach taken by local leaders in addressing the challenges faced by gem traders, with the President offering directives for prompt resolutions.
