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A Rescue and Reset Plan for Sri Lanka

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by Sanath Nanayakkara

In the following interview given to The Island Financial Review, independent financial advisor and consultant Ranjith Wickremasinghe (Ranjith_@ymail.com) outlines what he describes as a Rescue and Reset Plan for Sri Lanka. Ranjith Wickremasinghe is a former chairman of the Sri Lanka Ports Authority and of the Ceylon Shipping Corporation.

What is the basic essence of your Rescue and Reset Plan for Sri Lanka – published on 14th April 2022 (ISBN 978-624-97686-5-9)?

Decades of fiscal deficits, trade deficits, balance of payment deficits, corruption, mismanagement, bad decisions, leakages, damage to our economic resources by pollution from SLiMDOE described below, and the loss of tourism income due to covid19 has caused the foreign debt to increase to US$ 60 billion from US$ 18 billion in 2009, leading to an untenable annual debt repayment US$7 billion.

In analyzing our strengths of the sea which is eight times bigger than our landmass, and our strategic location in the center of the Indian Ocean my research identified a hidden intrinsic asset which I have further researched, formulated, invented, monetized and published as the “Sri Lanka’s Multi-Billion Ocean-Air Expressway”, which I have named as SLiMDOE in my publication ISBN 978-624-97686-4-2 on 12th September 2021.

The carriage of 30% of world trade annually via 85,000 ocean and air crossings using the SLiMDOE short-cut across Sri Lanka and abutting the Dondra Head in the southern tip has enabled global economies to gain US$ 100 billion during the last decade whilst damaging our economy by an equal amount, which could be used as leverage to waive off our debt.

Basic Strategy of the Rescue and Reset Plan

1. Obtain a waiver on foreign debt repayments against the damage caused to our economic resources by pollution in using the SLiMDOE via a global initiative under the umbrella of the World Bank and UNDP. It is proposed that an interim waiver of debt repayments for 2022 and 2023 amounting to US$ 7 billion each are requested, pending discussions with the global economies and the creditors.

2. It is also imperative to obtain bridging finance of US$ 4 billion each for 2022 and 2023 needed to reset the stalled economy, from multilateral institutions and friendly countries.

3. Corresponding to the above “reset process” the GoSL is required to implement several other proposals to obtain a burst of development using the “South Sea of Sri Lanka”, to earn foreign exchange quickly, and to avert the present foreign exchange and the debt crisis. The full potential of export earnings could exceed US $ 20 billion per annum at full fruition enabling our economy to grow from US$ 84 billion in 2021 to over US$ 100 billion by 2026, detailed in my publication ISBN 978-624-97686-5-9.

These measures are expected to out wipe out the trade deficit of US$ Bn 8 to surplus of US$ Bn 2 by 2026 by increasing the exports from 2020 US$ Bn 10 to US$ 33 by 2026, and benefiting from the value addition, import substitution, and increased agricultural, fishery and livestock output, well over 100% by 2026.

Targets given are expected to turnaround the Sri Lankan economy to a GDP growth of 0.4 % in 2022, by 3% in 2023, 4% in 2024, 5% in 2025, 6% in 2026, and reduce the budget deficit from 11% in 2020 and 2021 to 6% of GDP by 2022, and to 3% by 2026, and substantially increase our external reserves and reduce our foreign debt. (As the relief measures are being delayed due to the present political impasse, this will cause a negative growth in 2022 than predicted above).

The UNDP recently proposed ‘debt-for-nature swaps’ to tackle Sri Lanka’s debt problem. This proposal from the UNDP came as Sri Lanka is getting ready to talk with its multiple creditors to restructure its debt. The International Rating Agency Moody’s has also expressed the view that it is wiser for Sri Lanka to explore this option. In another development, British Prime Minister Boris Johnson recently assured support to Sri Lanka for climate financing. In this context, do you think that Sri Lanka can leverage this opportunity to obtain such climate-related instruments to raise new funding as well as to forgo at least part of the country’s existing debt?

Yes, Sri Lanka can use my discovery, Sri Lanka’s Multi-Billion Dollar Ocean-air Expressway (SLiMDOE) as leverage to obtain a waiver on repayment of debt and obtain the bridging finance as per my concept published in September 2021, the principle of which has now has been reinforced by the UNDP and the British Prime Minister Boris Johnson.

Government tax revenue which recorded 12% in 2019 has fallen to 8% of GDP in 2020. It needs to be raised immediately and eased gradually as the economy grows as per your Plan. However, the private sector asks for a simplified tax structure and consistency in tax policy. The ordinary people want less indirect taxes and more direct taxes levied from the rich. How can we strike a balance between these two dynamics?

The President has stated that the reduction of taxes in 2020 was a mistake, and the new Prime Minister also holding the portfolio of Finance has already taken remedial aimed at correcting this situation. As the economy stabilizes during the tail end of the five-year period the corrections could be made appropriately to the ratio of direct to indirect tax.

According to your Rescue and Reset Plan for Sri Lanka, the government’s recurrent expenditure now standing at 17% of GDP needs to be brought down to 14% by end 2022, to help reduce the budget deficit now running at 11% of GDP. How can we do this in a sufficient and appropriate manner while protecting the country’s economic and public services interests?

Austerity has to start at the top, and has to percolate to the lower levels. We are a bankrupt nation; the carnival is over; we need to be lean and mean at the top and up to the bottom. We need to challenge every single item of expenditure based on “value for money” and lead by example. No more luxury living at the expense of the tax payer.Restructuring of SOEs is considered to be crucial for fiscal consolidation and Sri Lanka’s sustainable growth, but there’s a lot of resistance from trade unions to undermine such attempts. How can we achieve this against this backdrop?

All the CEO’s of SOE’s must be instructed to submit a five-year corporate plan and a financial plan immediately. All these plans must be evaluated by an expert committee who would give the policy direction. In this exercise the accounting and other professional bodies should be asked to volunteer their membership to assist in these evaluations to keep the costs to a bare minimum. All CEO, s must be given dividend targets.

Price of basic food and other essentials have increased from 30% to 80%. The poor has become poorer, and now have to skip meals. Do you think as a country running a twin deficit, Sri Lanka can provide relief to these vulnerable segments in the near future? If so, what’s the specific social safety net you propose?The dividends targets must be given to restructured SOE’s to finance the safety net of the poor.



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Priority areas for deepening Japan-SL economic ties

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Executive Committee for the Year 2026/2027

Japan Business Council (SLJBC) of The Ceylon Chamber of Commerce recently held its 47th AGM, with the Ambassador of Japan and the Patron of the Council, Akio ISOMATA, attending as the Chief Guest.

Addressing the gathering, Ambassador ISOMATA outlined three priorities for deepening bilateral economic relations: an effective and forward-looking trade and investment policy, the promotion of domestic industrial policy, and expanded investment in renewable energy. He noted that Sri Lanka’s ongoing review of its Free Trade Agreement policy would be important in shaping the country’s future negotiating landscape. He encouraged Sri Lanka to look Eastward toward Southeast Asia and Japan, proposing that the country adopt an export-oriented industrial model. The Ambassador welcomed the Government’s National Export Development Plan 2026 and National Mineral Policy 2026 as consistent with Japan’s vision of connecting Sri Lanka’s export-related manufacturing sectors with India’s high-growth manufacturing base.

In his address, President Athulla R F Edirisinghe reflected on nearly seven decades of humanitarian and development support extended by Japan to Sri Lanka, and paid tribute to the Chairman of the Sasakawa Peace Foundation Yohei Sasakawa, for his magnanimity in establishing the Foundation. Reflecting on the history of Japanese investment in the region from the 1970s onward, he observed that Sri Lanka had missed many opportunities to attract Japanese foreign direct investment. Highlighting the 2025 proposal for a Sri Lanka – Japan Economic Corridor by the Ministry of Economy, Trade, and Industry Japan, he called on Sri Lankan businesses, industry associations, and the wider community to come together in dialogue with the Government to ensure the country does not miss this opportunity as well.

2026/27 Committee: President: Athulla R F Edirisinghe – Director, Hirohama Ceylon (Pvt) Ltd, Senior Vice President – Ruwan Waidyaratne – Managing Director, Hayleys Advantis Ltd, Vice – President – Shamil Mendis – Managing Director, Spear International (Pvt) Ltd, Treasurer – Rohitha Mendis – Managing Director of Prudential Shipping Lines (Pte) Ltd, Immediate Past President – Mahen Kariyawasan – Managing Director, Andrew The Travel Company (Pvt) Ltd, representatives from Amano Lanka Engineering (Pvt) Ltd, BOV Capital (Pvt) Ltd, Brandix Apparel (Pvt) Ltd, Heritage Teas (Pvt) Ltd, Kalhari Enterprises (Pvt) Ltd, Lanka Harness (Pvt) Ltd, Dentsu Grant (Pvt) Ltd, MAC Holdings (Pvt) Ltd, and Vidullanka PLC. By invitation: HVA Foods PLC (subsidiary of George Steuart & Co), Spillburg Holdings (Pvt) Ltd, and Vaughan Chemicals (Pvt) Ltd.

The Sri Lanka – Japan Business Council plays an important role in promoting trade, tourism, and investments between Japan and Sri Lanka. For membership inquiries contact Kiyara at The Ceylon Chamber of Commerce via E-mail: businesscouncils1@chamber.lk or Tel.: 011 5588875/ 5588800.

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Rekawa turns turtle conservation into a 30-year community business model

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Stakeholders at 30th anniversary celebrations of the turtle conservation project.

By Ifham Nizam

What started 30 years ago as an effort to protect sea turtles has evolved into a community-based economic model that has generated livelihoods, attracted tourists and transformed Rekawa into one of Sri Lanka’s best-known nature tourism destinations.

The Rekawa Turtle Conservation Project, launched on September 2, 1996, by the Turtle Conservation Project (TCP) in partnership with the Department of Wildlife Conservation and the Rekawa community, marked its 30th anniversary last week, demonstrating how biodiversity protection can become an economic opportunity for communities living alongside sensitive natural resources.

Speaking at the anniversary celebrations, TCP chairman Thushan Kapurusinghe said the project currently provides direct livelihoods for 28 people, but its economic impact extends considerably beyond those directly employed by the programme.

‘Today, 28 people directly earn their livelihood through this project. But its impact goes far beyond those 28 individuals, Kapurusinghe said.

He pointed to the transformation of the area over the past three decades, arguing that the growth of tourism in the community has been closely linked to the turtle conservation programme.

‘If you travel from Netolpitiya to this area, you can clearly see how much the village has transformed over the years. There is no doubt that the growth of tourism in this community has been driven by the Turtle Conservation Project, he said.

The economic significance of Rekawa lies in its ability to convert the protection of a natural asset into a source of recurring community income.

Tourists do not come to Rekawa merely to see a beach. They come to witness sea turtles emerging from the ocean and nesting in their natural habitat—a tourism experience that depends directly on the continued protection of the nesting beach.

Kapurusinghe said tour operators regularly bring visitors to Rekawa, with some tourists traveling there after visiting major attractions such as the Kandy Esala Perahera.

The model represents a fundamental shift from viewing conservation as an expense to recognising biodiversity as an economic asset that can generate sustainable livelihoods when properly managed.

The 30th anniversary celebration at the Rekawa Turtle Conservation Project Information Centre brought together Southern Wildlife Region Director of the Department of Wildlife Conservation Channa Suraweera, government officials, conservation organisations, community representatives and long-standing supporters of the initiative.

Individuals who had contributed to the project over the past three decades were also recognised with awards for their service to sea turtle and environmental conservation.

Rekawa’s experience has attracted international attention because of precisely this combination of conservation and community development. The project has received international recognition as well as the Green Employment Award from the Ministry of Environment and Natural Resources. Earlier international recognition included a highly commended ‘Tourism for Tomorrow’ award, while the project’s turtle-watch programme subsequently received further recognition in responsible tourism and conservation.

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Ceylinco Life brings premium policyholders closer to the magic of the Kandy Perahera

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For an evening, the timeless spectacle of the Kandy Esala Perahera unfolded at especially close quarters for a select group of Ceylinco Life’s most valued policyholders and their families, who were hosted to an exclusive viewing experience by the Company’s Customer Relations Division.

Held at the Ceylinco Life Kandy Branch on Kings Street, the annual event coincided with the second Randoli Perahera, bringing guests into the heart of one of Sri Lanka’s most spectacular expressions of culture, tradition and pageantry.

As the procession made its majestic passage through the streets of Kandy, guests enjoyed VIP seating at a prime vantage point, allowing them to experience the colour, movement and grandeur of the Perahera up close. The evening offered a fitting setting for Ceylinco Life to celebrate its enduring relationships with its premium clientele.

The experience extended well beyond the spectacle outside. Guests were welcomed with evening refreshments and an exclusive dinner buffet presented by the prestigious Amaya Hills Resort, adding a fine-dining dimension to an already memorable evening.

Families, too, were at the centre of the occasion. A private movie theatre experience provided entertainment for children and adults alike, while each attending family received a beautifully framed family photograph as a personalised souvenir, a tangible reminder of an evening shared together against the backdrop of one of Sri Lanka’s most treasured cultural traditions.

Besides being a much sought-after opportunity to watch the Perahera, the occasion was an expression of appreciation. Through its continuing Customer Relationship Management activities, Ceylinco Life seeks to create experiences that recognise its most valued policyholders not simply as customers, but as relationships to be celebrated and nurtured. And on this particular August evening, the enduring splendour of the Kandy Perahera provided the perfect setting for doing just that.

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