Connect with us

Business

Cabraal says he wished the country held more foreign exchange reserves

Published

on

Says talk about the collapse of the economy would end up in the trash

 

by Sanath Nanayakkare

I wish there were more foreign exchange reserves in the country so that we would have been able to utilise it as and when the need arose, Ajith Nivard Cabraal, the State Minister of Finance, Capital Markets and State Enterprise Reforms said in Colombo yesterday.

He said so while speaking at an online media briefing organised by the Department of Government Information yesterday on the topic ‘Will the economy collapse? Will GSP+ be withdrawn?’ — moderated by journalist Shyam Nuwan Ganewatta of our sister newspaper.

When asked whether Sri Lanka’s current foreign reserves standing at or a little under US$ 4 billion was not a cause for concern for him, the state minister replied,” I wish there were more foreign reserves so that we would have been able to utilise it as and when the need arose. When Mahinda Rajapaksa administration handed over the government to Yahapalanaya Administration (YA) in 2015, the foreign reserves stood at US$ 8.2 billion. And the YA issued international sovereign bonds (ISBs) to the tune of US$ 12 billion in 5 years. If they had maintained the foreign reserves prudently from that period onwards, today we would have had US$ 8 billion +US$ 12 billion making it US$ 20 billion, and we would have been able to do anything with that.”

“However, we won’t run away from the current challenge. Restructuring existing debt with the IMF won’t be as meaningful as they claim, but ensuring the inflow of non-debt creating inflows to the country is the sustainable way to deal with debt repayment and other dollar-denominated expenditure. For this we have introduced new methodologies and innovative investment arms to attract foreign inflows to the country. For example, the taxes imposed on the gem industry were removed and foreign direct investments will soon flow into the Port City Colombo. The positive outcomes of such strategies and our economic management will become evident before long,” he said.

“The talk that economy is going to collapse soon is being heard all over the place is not a new concern. From the first day this government came to power, the detractors have claimed that the economy would collapse. Even back in 2006 they made the same claim when global oil prices rose and also during the global financial crisis in 2007-2008. They used to claim on a daily basis that the government would fall but it didn’t happen. This is being said again with political motivations and interests and not with real economic interests at heart. What is unfathomable is some economic analysts also pick such views and make the same claim. But none of them offer solutions to the issues they highlight. And when a particular issue or issues were fixed without rocking the boat, those who expressed those unfavourable opinions would vanish into thin air. This shows that they don’t say these things with honest intentions and their fervent wish has been to see the fall of the government.”

“Of course, challenges lie ahead of us. We know about them better than they do and we have taken action to address them and will take more policy measures in the next 2-3 weeks to further strengthen the foundation we have built for resolving the impending problems. By means of these measures, we will ensure the stability of the economy and the government and this talk about the collapse of the economy would end up in the trash.”

Responding to a question whether restructuring of debt with the IMF would be sensible, he said,” Different proponents express different arguments. The thing is they are only half-truths. They want us to go to the IMF because they know what happened to them when they did so. They had to comply with the IMF formula and they want us to go through it too. We had a growth rate of 7.4% in 2014 and they brought it down to 2.1% by 2019 – as a result of their international transactions. So we will find other alternatives rather than going to the IMF because the IMF requires us to follow conditions that are more related to our sovereignty than the economic conditions of the country,” he said.



Business

HNB partners IDEAL Motors to drive financial freedom through vehicle leasing solutions

Published

on

HNB, Senior Vice President/Head of Retail Banking, Kanchana Karunagama and Director of Legal & Corporate Affairs, Nimisha Welgama sharing the MoU, alongside the representatives from both organizations

HNB PLC, the leading private bank in Sri Lanka, has partnered with IDEAL Motors (Pvt) Limited to provide customers with attractive leasing solutions for brand-new vehicles & generators .

The partnership introduces a range of benefits designed to support individuals, entrepreneurs, and businesses seeking reliable vehicle and power solutions. Through this collaboration, customers can access structured lease facilities, special interest rates, free life insurance coverage, and attractive discounts through HNB General Insurance.

Commenting on the partnership, HNB, Senior Vice President/ Head of Retail Banking, Kanchana Karunagama, said, “At HNB, we believe that the right financial support can help people and businesses move forward with greater confidence. This partnership with IDEAL Motors shows our commitment to creating meaningful solutions that make vehicle and power investments more accessible, while helping our customers achieve their personal and business aspirations. By combining HNB’s financial expertise with IDEAL Motors’ industry capabilities, we are creating opportunities that support the ambitions of Sri Lankans and contribute towards a stronger, more connected economy.”

Customers purchasing vehicles through IDEAL Motors will also benefit from exclusive offers including free registration, and discounts on Bolero Maxx Pik-Up, Alfa Plus Load Carrier, Mahindra Pik-Up Single Cab, Mahindra Pik Up Double Cab, XUV 3XO vehicles, creating greater value throughout their ownership journey.

IDEAL Motors (Pvt) Limited, Director Legal and Corporate Affairs, Nimesha Welgama, said, “Our collaboration with HNB represents a shared commitment to supporting Sri Lankans in achieving greater financial independence through accessible ownership solutions. By combining IDEAL Motors’ mobility and power solutions with HNB’s financial expertise, we aim to empower individuals and businesses with opportunities that contribute to economic progress and community development. This partnership highlights our vision of creating lasting value by enabling customers to confidently invest in their future.”

With IDEAL Motors recognised for its diverse portfolio of automotive and power solutions, and HNB’s extensive expertise in financial services, the partnership aims to provide a seamless experience from selection to ownership, supported by flexible financing options and customer focused solutions.

The partnership further strengthens HNB’s commitment to supporting economic progress by providing financial solutions that enable customers to invest in personal mobility, commercial growth, and business continuity. Through collaborations with leading industry partners, HNB continues to expand opportunities for Sri Lankans while delivering a banking experience built around accessibility, trust, and value.

Continue Reading

Business

Sri Lanka Insurance Corporation General and the Ministry of Education committed to protect Sri Lanka’s schoolchildren

Published

on

Sri Lanka Insurance Corporation General Ltd (SLICGL) and the Ministry of Education, Higher Education and Vocational Education share a commitment to protect Sri Lanka’s children throughout their school education. The pledge is delivered through the Suraksha Student Insurance Scheme, which protects over 4 million school children.

The Government of Sri Lanka, through the Ministry of Education, Higher Education and Vocational Education, provides the Suraksha Student Insurance Scheme free of charge to schoolchildren throughout the country. SLICGL is proud to partner with the Ministry in delivering this national initiative, which helps safeguard students against the financial impact of unforeseen circumstances.

Eligible students include those aged 5-21 years in Grades 1-13 from government schools, government-approved private schools, and Pirivena education, as well as students aged 4-21 years in assisted special schools.

The scheme provides hospitalisation, outpatient and critical illness cover, as well as personal accident cover for permanent and temporary disability, together with a life insurance benefit for children from low-income families on the death of a parent. Cover applies to incidents within and outside school premises.

For a child, an illness or accident can be far more than a temporary setback. It can place added pressure on a family and, in some circumstances, disrupt schooling. Suraksha acts as a safety net, giving children and their families greater peace of mind and helping them stay in school despite life’s uncertainties. The scheme is easily accessible through SLICGL’s islandwide network of 200 branches and customer service centres.

Children’s Day is a celebration of hope, the hope for every child to have the opportunity to learn, grow and build a better future. Celebrating children also means protection, not for a single day but for every day they spend in the classroom.

Commemorating Children’s Day, SLICGL extended support towards the educational needs of children at an underprivileged school. The project highlighted the company’s belief in protecting the future not only by being supportive when the unexpected happens, but also in helping create an environment in which children can learn, grow and fulfil their potential.

As Sri Lanka’s National Insurer, SLICGL’s role goes further than protecting people against risk. It is also about contributing to a stronger, safer and more resilient country as children’s education, wellbeing and aspirations contribute directly to help build the journey ahead.

Continue Reading

Business

Vietjet launches Hanoi to Prague route via Almaty, expanding to Central Asia and Europe

Published

on

Inaugural celebrations for the new Prague to Almaty and Prague to Hanoi services mark an important milestone in Vietjet’s intercontinental network expansion

Vietjet, which already flies between Colombo and Ho Chi Minh City, has officially launched new services connecting Hanoi with Almaty, Kazakhstan, and Prague, Czech Republic, as well as Almaty with Prague, expanding its intercontinental network and marking its entry into the European Union. The new air links offer more affordable travel options while fostering greater tourism, trade and cultural exchange between Asia and Europe.

For Sri Lanka, the new routes widen the network that Vietjet is building out of Colombo. The airline has operated non-stop flights between Colombo and Ho Chi Minh City since August 2026, three times a week on Tuesdays, Thursdays and Saturdays, while its new Ho Chi Minh City to Maldives service via Colombo is scheduled to begin on 5 December 2026. With Hanoi now linked to Central Asia and Europe, Sri Lankan travellers have a growing choice of destinations reachable through Vietjet’s extensive network.

The inauguration ceremonies took place at Almaty International Airport and Václav Havel Airport Prague on 10 October, amid a warm welcome from local leaders, residents and visitors. The inaugural flights were greeted with traditional water cannon salutes and performances showcasing local cultural heritage, marking the beginning of new journeys connecting the three regions and welcoming international travellers to Vietnam. Passengers on the inaugural flights also received commemorative gifts from Vietjet and the airports, adding a special touch to their journeys.

Continue Reading

Trending