Business

SL seen as having made ‘commendable strides towards fiscal discipline’

Published

3 years ago

2024/01/10

Sahan Weerasooriya

Ruchir Sharma

By Ifham Nizam

Sri Lanka has made commendable strides towards fiscal discipline, particularly in the area of controlling government spending and managing inflation, Rockefeller International chairman and founder and CIO, Breakout Capital Ruchir Sharma said.

Sharma was speaking at a special public lecture in Colombo recently, organized by the Central Bank of Sri Lanka. At the outset he said that Sri Lanka is a country to which he could connect emotionally. `I love coming here whenever I can. If I have to come for a vacation it has to be Sri Lanka, he said.

Sharma added: ‘Sri Lanka’s mounting government debt and its low Tax-to-Gross Domestic Product (GDP) ratio is causing concern. These are significant fiscal challenges that the country must address.

‘Sri Lanka’s effective monetary policy has helped tame inflation. However, there should be sustained vigilance to prevent inflationary pressures from resurfacing.

‘In my book, “The 10 Rules of Successful Nations”, I have defined 10 rules and areas of growth. They are; Population, Politics, State, Debt, Currency, Investment, Inflation, Geography, Inequality and Sentiment.

‘There are some 200 countries and of these countries only 40 countries or so are classified as developed countries. All the other countries are classified as emerging markets and most of them have been emerging forever.

‘The only country to move up from developing to developed country status was South Korea in the 1980s and since then no other country has followed suit.

‘Sri Lanka too has been ranked as a developing country for many years but has not moved up. This is despite Sri Lanka having notched many a positive landmark, such as in education and health.

‘Sri Lanka has to do much to improve overall development and accelerate the engine of growth.

‘Sri Lanka’s working age population growth, for example, remains 0.1%, which is an obstacle to economic growth.

‘Furthermore, Sri Lanka scores low in the area of State because the tax contribution to the state remains minimal. Due to the current politically volatile state of the country, Sri Lanka also ranks low in terms of Politics, where results of an election would determine its development.

‘Currency being cheap is good if it is stable, but the key is avoiding unreliable measures. Sri Lanka ranks well in the area of Currency because it is cheap.

‘In terms of Geography, despite the many opportunities and potential, Sri Lanka has not been able to fully exploit and capitalize on its geography. Intraregional trade is vital for the development of countries, yet South Asia has low intraregional trade and therefore misses many opportunities for growth.

‘The problem of internal geography is of such proportions that much of the wealth is concentrated in the Colombo area and there is not enough in the other areas.

“Generally, I would say, Sri Lanka ranks relatively well at this point from an investment perspective and issues of liquidity, among other things. But this is a big improvement over the last couple of years. Once the political situation becomes stable, the key for Sri Lanka is, what is going to be your growth engine?

‘The classic growth engine is manufacturing exports. For countries with Sri Lanka’s per capita income, the latter is necessary to grow rapidly. But with that growth engine looking difficult to bring about, what could be the growth engine for Sri Lanka to grow even at 5%, because 6-7% seems very difficult given the demographics of the country.

‘The country should determine a suitable growth engine for it as even raising the economic growth rate by 5% is crucial. Sri Lanka should catch up considering the time lost during its economic crisis.’

Meanwhile, on the question of introducing a wealth tax, Sharma said, among other things, that it is very difficult to correct inequalities by initiating such a tax.

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Related Topics:Rockefeller International chairman and founder and CIO Ruchir Sharma

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SLEIS 2026 to examine Sri Lanka’s energy transition and its implications

Published

18 hours ago

2026/09/26

Thilina Walpola

Reliable and affordable energy is essential to Sri Lanka’s economic growth, industrial development and competitiveness. As the country seeks to strengthen energy security while reducing its dependence on fossil fuels, the energy sector will be a key area of discussion at the Sri Lanka Economic & Investment Summit 2026, organised by The Ceylon Chamber of Commerce on 12-13 October 2026.

The session, “Beyond Fossil Dependence: Balancing Security, Sustainability, and Growth,” will examine how Sri Lanka can diversify its energy sources, accelerate renewable energy adoption and attract investment while ensuring a reliable energy supply for businesses and households. Discussions will also consider the infrastructure and policy frameworks needed to support the country’s transition towards a modern and competitive energy system.

Ms. Edore Onomakpome – Regional Infrastructure Industry Manager – Bangladesh, Sri Lanka and Nepal, at the International Finance Corporation will keynote the session, and join the panel discussion featuring G.M.R.D. Aponsu – Secretary to the Ministry of Energy, Damitha Kumarasinghe – Director General (Chief Executive Officer), Public Utilities Commission of Sri Lanka, and Manjula Perera – Managing Director, WindForce PLC. The discussion will be moderated by Sheran Fernando – Senior Advisor, Plus94.

The session will also explore the role of public-private collaboration in developing new energy solutions, encouraging investment and creating opportunities within Sri Lanka’s evolving energy sector. It will consider how energy policy and investment decisions can support both economic expansion and the country’s longer-term sustainability objectives.

The Sri Lanka Economic & Investment Summit 2026 is supported by its valued sponsors and partners. Platinum Sponsor – Standard Chartered Bank Sri Lanka, Gold Sponsor – VISA Worldwide (Pvt) Ltd., Bronze Sponsor – South Asia Gateway Terminals (Pvt) Ltd., Strategic Development Partner – Asian Development Bank, Telecommunication Partner – Dialog Telecommunication, Television Partner – Dialog Television, Session Sponsors – David Pieris Motor Company (Pvt) Ltd., Hemas Holdings PLC, Sunshine Holdings PLC, International Construction Consortium (Pvt) Ltd., Official Logistics Partner – Hayleys Advantis Limited, Official Airline – SriLankan Airlines Ltd., Official Hospitality Partner – Shangri-La Colombo, Airline Partner – China Eastern Air Holding Co. Ltd.

Registrations are now open at https://sleis.chamber.lk/. For more information, contact Alikie on 011 558 8805 (alikie@chamber.lk) or Shanuka on 0701082541 (events.division@chamber.lk).

Business

A fresh chapter for the George Keyt Foundation: A renewed commitment to the Sri Lankan art ecosystem

Published

18 hours ago

2026/09/26

Thilina Walpola

The George Keyt Foundation (GKF), dedicated to preserving the legacy of modernist painter George Keyt and fostering local art, has announced strategic appointments to its leadership team, bringing together a mix of global academic expertise, corporate leadership, and artistic passion. These enhancements aim to inject fresh expertise and academic depth into the Foundation’s long-term vision.

Establishment of the New Advisory Committee

To broaden its operational reach and deepen its engagement with the global art market, the George Keyt Foundation has established an Advisory Committee. The newly appointed committee members include:

• Dr Sujatha Meegama is a Senior Lecturer in Buddhist Art History at the Courtauld. She is an acclaimed art historian, author and academic, bringing specialised knowledge in South Asian art history to guide the foundation’s curatorial and educational directives.

• Dr Shamil Wanigaratne: A clinical psychologist, author, and avid art historian, Shamil will lend his unique perspective to help the foundation design meaningful public outreach and cultural preservation strategies.

• Abbas Esufally: A veteran corporate leader and patron of the arts, Abbas is transitioning from his role as a GKF Trustee to this advisory position, where he will continue to offer his sharp business acumen and extensive network.

New Trustee Appointment

Leesha Captain has been appointed to the Board of Trustees. Inspired by Sri Lankan artists, Leesha is a recognised supporter of the local art scene. Leesha’s hands-on perspective will strengthen the foundation’s core team as they develop and design new art programs.

A Vision for the Future

“These new appointments mark an exciting chapter for us as we build on our decades-long history of promoting Sri Lankan artists,” says Malaka Talwatte, Chairman of the Foundation. “The combination of Leesha on the board, alongside the diverse expertise of our new Advisory Committee, will significantly amplify our efforts in curating high-profile exhibitions and expanding local and international partnerships”.

Business

Sun Siyam Pasikudah celebrates World Tourism Day with culture, cuisine and community

Published

18 hours ago

2026/09/26

Thilina Walpola

Sun Siyam Pasikudah, part of the Privé Collection under Maldivian-owned Sun Siyam Resorts, will mark World Tourism Day on 27 September 2026 with a full day programme celebrating the culture, cuisine and natural beauty of Sri Lanka’s east coast, paired with community focused sustainability activities.

The celebrations open with a special buffet of authentic Sri Lankan cuisine, followed by a street food festival showcasing regional snacks and traditional sweets rarely found on resort menus. A signature World Tourism Day mocktail and cocktail, created for the occasion, will be served through the day, while traditional Sri Lankan cultural dance performances bring the island’s heritage to life for guests.

Beyond the festivities, the resort has planned a tree planting activity with guests and a beach or park clean up campaign, both reflecting Sun Siyam Pasikudah’s ongoing commitment to responsible tourism along Sri Lanka’s northeast coast.