Business

A Rescue and Reset Plan for Sri Lanka

Published

4 years ago

2022/06/25

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.

All News Advertisement

Business

Trade, Investment and Tourism Cooperation Forum strengthens economic ties between Sri Lanka and Vietnam

Published

5 hours ago

2026/05/9

Priyan

Marking a significant milestone in strengthening bilateral relations between Sri Lanka and Vietnam, the Sri Lanka– Vietnam Trade, Investment and Tourism Cooperation Forum was successfully held on Friday (08) at the Hilton Colombo.

The Forum, jointly organised by the Vietnam Chamber of Commerce and Industry and the Sri Lanka Export Development Board, was held in parallel with the State Visit of President Tô Lâm of the Socialist Republic of Vietnam and General Secretary of the Central Committee of the Communist Party of Vietnam. The event was attended by President Tô Lâm and Prime Minister Dr. Harini Amarasuriya.

The Forum underscored the importance of the longstanding bilateral relationship between the two countries and reflected the shared commitment to expanding economic cooperation.

The primary objective of the Forum was to further strengthen bilateral economic ties by focusing on key priorities including the expansion of trade, promotion of investment and enhancement of tourism cooperation. The event also provided an opportunity to explore new avenues of collaboration, strengthen business-to-business engagement and facilitate greater market access by bringing together senior government officials, entrepreneurs and industry leaders from both countries on a common platform.

During the Forum, direct air connectivity between Colombo and Ho Chi Minh City was officially launched. The new services, operated by Vietnam Airlines and VietJet Air, are expected to further strengthen relations between the two nations and their people.

Six Memoranda of Understanding covering key areas of cooperation were also signed during the Forum. In addition, a notable development was the establishment of the Sri Lanka–Vietnam Business Council under the Ceylon Chamber of Commerce.

Alongside the Forum, the Sri Lanka Export Development Board organised a business networking session, providing Sri Lankan and Vietnamese entrepreneurs with the opportunity to engage directly with one another. The event received strong participation from the private sectors of both countries, with businesses expressing keen interest in expanding trade and establishing resilient supply chains.

Representing Sri Lanka at the event were Minister of Industry and Entrepreneurship Development, Sunil Handunnetti, Minister of Environment , Dr. Dhammika Patabendi, Deputy Minister of Industry and Entrepreneurship Development ,Chathuranga Abeysinghe, Deputy Minister of Ports and Civil Aviation, Janitha Ruwan Kodithuwakku, Deputy Minister of Tourism Ruwan Ranasinghe, Secretary to the Ministry of Industry and Entrepreneurship Development, Thilaka Jayasundara, Secretary to the Ministry of Trade, Commerce, Food Security and Cooperative Development, K.A.Vimalenthirarajah, Chairman of the Export Development Board Mangala Wijesinghe along with several other dignitaries and officials.

Representing Vietnam were Politburo Member, Secretary of the Party Central Committee and Chairman of the Central Organisation Commission , Nguyen Duy Ngoc, Politburo Member, Secretary of the Party Central Committee and Chairman of the Central Commission for Policies and Strategies , Nguyen Thanh Nghi, Politburo Member, Deputy Prime Minister and Minister of National Defence, Phan Van Giang, Politburo Member and Minister of Public Security, Luong Tam Quang and Politburo Member and Minister of Foreign Affairs, Le Hoai Trung, among others.

(PMD)

Business

SL to launch first Dedicated Sustainable Tourism Association in South Asia

Published

8 hours ago

2026/05/9

Thilina Walpola

Tourism personnel at the press briefing

‘Sri Lanka embarks on a journey towards a more sustainable and prosperous tourism industry.’

The Executive Committee of the Sustainable Tourism Association of Sri Lanka (SusTour) announced the above at its final meeting held on May 6, at Connaisance head office, Colombo. The committee finalised all preparations for the official launch in August of the first private sector led, non-governmental Sustainable Tourism Association in South Asia, as most tourism associations in Asia operate as dedicated Eco Tourism entities while this is probably the first in Asia.

This momentous event will be officiated by Prof. Ruwan Ranasinghe, the Deputy Minister of Tourism, who has agreed to inaugurate the Association in conjunction with a media launch.

Prof. Ranasinghe is not only a qualified academic specializing in sustainable tourism but also a passionate advocate for the development of sustainable tourism practices in Sri Lanka. His involvement is pivotal, as he has expressed his commitment to provide unwavering support to the Sustainable Tourism Association of Sri Lanka.

In addition to Prof. Ranasinghe’s support, Buddhika Hewawasam, chairman, SLTDA and Dheera Hettiarchchi, chairman, Sri Lanka Institute of Tourism and Hospitality Management, have also pledged their cooperation in the implementation of sustainable tourism initiatives through their respective state organisations. Their combined expertise and resources are expected to play a crucial role in shaping the future of tourism in Sri Lanka, ensuring that it aligns with sustainable development goals.

This inauguration marks a significant step towards fostering a sustainable tourism framework in Sri Lanka, one that prioritizes environmental preservation, cultural heritage and economic viability. The Sustainable Tourism Association of Sri Lanka is poised to lead the charge in promoting responsible tourism practices, ensuring that the industry flourishes while respecting the rich natural and cultural resources of the island.

Speaking at an exclusive press interview the Tourism Deputy Minister noted; “I am thrilled to see the private sector actively participating in the promotion of sustainable development, particularly within the tourism industry. This partnership is not just beneficial but essential, as it represents a viable mission that requires the joint engagement of both government and private entities. By working together, we can ensure that our tourism practices not only enhance economic growth but also preserve our natural resources and cultural heritage for future generations. It is through this collaborative approach that we can create lasting change and fulfill our commitment to sustainability.”

Adding to this collaborative effort, Australian High Commissioner Matthew Duckworth said Australia would continue its long-term support for sustainable tourism development in Sri Lanka. Australia has contributed more than 50 million Australian dollars over the past decade to sustainable tourism initiatives in Sri Lanka, including to support more sustainable planning, accreditation and skills development for this crucial sector. The High Commissioner confirmed that this support would continue into the future and highlighted Australia’s partnership with the Market Development Facility (MDF), which had recently launched a new initiative using data analytics to help Sri Lankan policy makers better understand how travelers discover and engage with destinations.

“Our vision is to create a platform where all stakeholders including product manufacturers can collaborate and share best practices in sustainable tourism, said Chandra Wickramasinghe, elected founder president of the Association. “We aim to ensure that tourism in Sri Lanka not only provides economic benefits but also contributes positively to the environment and local communities, he added.

The founders of STASL-SusTour believe that sustainable tourism is the ‘Future of World Tourism’ and is crucial for the long-term viability of Sri Lanka’s tourism sector, which is a significant contributor to the nation’s economy. By fostering responsible travel practices, the association seeks to educate stakeholders, including tourists and businesses along with manufacturers about the importance of sustainability.

‘ The association plans to launch various initiatives, including workshops, awareness campaigns and partnerships with local and international organizations focused on sustainable tourism, said Nalin Malwenna, newly elected secretary. Through these efforts, SusTour hopes to position Sri Lanka as a leading destination for eco-conscious travelers looking for authentic and responsible travel experiences.

“The establishment of the Sustainable Tourism Association of Sri Lanka arrives at a pivotal moment, signaling a commitment to a more sustainable future in the nation’s tourism landscape, said elected treasurer Dr. Samantha Pathirathne.

By Claude Gunasekera

Business

Siyapatha Finance unveils 62nd branch in dynamic Horana City

Published

8 hours ago

2026/05/9

Thilina Walpola

Premier finance company Siyapatha Finance PLC recently unveiled its newest branch in Horana, successfully expanding its islandwide branch network to 62 branches. Located in one of the fastest-emerging economic hotspots in the Kalutara District, the Horana branch offers Siyapatha Finance’s wide range of holistic financial services including leasing, fixed deposits, gold financing, business loans,fast draft, factoring, and Smart Pay – the Company’s bill payment facility.

The branch was declared open by Siyapatha Finance PLC Directors- Jayanath Gunawardena and Ms. Sriyani Ranathunga , Chief Executive Officer (CEO) Mathisha Hewavitharana in the presence of Chief Operating Officer (COO) Rajeev De Silva, Ms. Dinuli Gihansi Perera -student of Govinna Maha Vidyalaya , Horana who has been selected to represent Sri Lanka for Asian Boxing Championship 2026 , Senior Management, staff members as well as Police HQI Ranga Perera , Grama Niladhari Mr. Chaminda Kumara, representatives of the government and private banks and insurance companies and well-wishers.

Speaking at the ceremony, Siyapatha Finance PLC CEO Mathisha Hewavitharana remarked: “Horana is a region that has captured massive interest nationally in terms of commercial and social development in recent years. Expanding our branch network to this area gives us a significant opportunity to broaden our reach and serve a larger, diverse ;;customer base’’.