Business

CB Governor urges general public to be mindful of any deviations from the path of stability

Published

3 years ago

2023/07/24

Thilina Walpola

Central Bank Governor Dr. Nandalal Weerasinghe

Let’s continue along the conservative path we have carefully chosen’

In 5 years, we will be in a much better position in terms of debt sustainability’

by Sanath Nanayakkare

Central Bank Governor Dr. Nandalal Weerasinghe insisted Friday that the general public who elect governments has a responsibility to be mindful if the governments elected by them deviate from the path of stability because it could adversely affect all stakeholders of the economy and communities across the country.

“Stay mindful about any deviations from the current path of debt sustainability, recovery and growth targets, and if you see any veering off course, it is your responsibility to get them back on the right track,” he said.

The Governor made this remark on Friday while delivering the keynote speech at the CFA Society Sri Lanka CEO Forum.

Speaking further he said,” We have been able to achieve some stability in the short term. And next important step in completing the stabilization programme is to complete both Domestic Debt Optimization (DDO) and external debt restructuring and signing a deal with external creditors – both commercial and bilateral creditors.

We hope we will be able to complete it somewhere in September –October 2023, and complete the first review of the IMF programme. Once that is done, the most difficult path on short term reforms will be over. Then we have to get ready for medium term growth and recovery, stable exchange rate, higher reserves, robust policies and growth enhancing structural reforms. That is the only path we have to pursue.”

“Some people are concerned whether there would be a second DDO. If we deviate from the current path there could be a second DDO or even there could be another default or bankruptcy. The government has committed itself to 0.3% primary surplus through prudent fiscal policies. If Sri Lanka turns back and moves backwards to -6% primary surplus, then there would be another debt unsustainability issue and would need another DDO.

As things stand now, Sri Lanka doesn’t need another DDO because the current one is strong enough and consistent with the targets to restore debt sustainability subject to other policy elements moving in parallel; namely, fiscal policy, structural reforms and the envisioned growth path. In my view, this DDO and debt sustainability is a conservative path we have rightly chosen and we need to be consistent with it.”

“The current trajectory is targeted on a 3% growth rate. But Sri Lanka has the capacity to grow its economy by about 5%. So if we are able to exceed that growth target, we would be better off than we think, and we won’t have to wait for 10 years to achieve debt sustainability.

In five years, we will be in a much better position in terms of debt sustainability. Given the outlook is conservative, we have room to go higher in terms of growth , expected inflation targeting outcomes and building foreign reserves. The authorities have to maintain a prudent fiscal policy for which the government has committed itself. Because this is the only path, I hope they will continue on it.

Then we should be able to give relief to the people earlier than expected. But if we move on a different path, and go back to 4-5% deficit, then things would be worse. There is strong commitment on the part of both monetary and fiscal authorities to keep to the original programme. We need the support of the private sector and the general public also for this strategy to come to fruition,” Dr. Weerasinghe said.

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Business

“ViYASA” National Business Facilitation Centre (NBFC) to be opened tomorrow (22)

Published

28 mins ago

2026/09/21

Priyan

The National Business Facilitation Centre (NBFC), which is being established under the Presidential Secretariat with the aim of removing administrative and regulatory barriers that exist among government institutions in relation to investment and industry and expediting these processes, will be opened tomorrow (22).

The centre is being established on the President’s initiative with the aim of bringing about a positive transformation in the industrial sector. The centre will provide solutions to issues that arise in dealing with the government machinery when starting and operating a business, while also coordinating with the relevant government institutions to provide the necessary facilities.

The “ViYASA” National Business Facilitation Centre (NBFC) has been established at Building C-80, Hector Kobbekaduwa Mawatha, Colombo 07, and is headed by Senior Additional( Secretary to the President, Seevali Arukgoda.

The centre will be opened under the patronage of Minister of Labour and Deputy Minister of Finance and Planning Dr Anil Jayantha Fernando and Minister of Industry and Entrepreneurship Development Sunil Handunnetti, with the participation of Secretary to the President Dr Nandika Sanath Kumanayake.

The website https://nbfc.presidentsoffice.gov.lk is also scheduled to be officially launched on the occasion.

President’s Media Division)

Business

Charting a worker-centered AI future: Colombo hosts landmark ITF conference

Published

17 hours ago

2026/09/21

Thilina Walpola

The ITF’s first-ever AI-focused global conference and the first of its kind hosted in Sri Lanka

By Sanath Nanayakkare

Artificial intelligence and automation present serious challenges for workers – such as job consequences seen in docks and rail systems – and emphasises that workers cannot simply stop technological progress. By gathering young trade unionists in Sri Lanka, the ITF aims to establish key principles for engaging with technology, ensuring workers have a strong voice at the bargaining table, and encouraging constructive social dialogue with corporations and governments.

These compelling words from ITF General Secretary Stephen Cotton underscored the urgent reality facing modern labor as rapid technological advancements sweep across global industries.

Confronting this shifting landscape head-on, the International Transport Workers’ Federation (ITF), in partnership with the National Union of Seafarers of Sri Lanka (NUSS), convened a ground-breaking conference on artificial intelligence in Colombo from September 15–17.

As the ITF’s first-ever AI-focused global conference and the first of its kind hosted in Sri Lanka, the landmark event marked a critical milestone in balancing technological innovation with worker-centered safeguards.

Representing over 16.6 million transport workers worldwide, the ITF designed the gathering to tackle the multifaceted impacts of AI on safety, operations, workforce development, and governance. Rather than resisting progress, the conference focused on proactive engagement, establishing guiding principles to protect workers’ rights and privacy both at sea and on land.

Key discussions centred on sharing best practices for upskilling and reskilling transport personnel, ensuring that human oversight remains central to AI-driven logistics, routing, and maintenance.

Reflecting on the historic nature of the event, Boa Athu, CEO of National Union of Seafarers Asia Pacific, noted that the conference represented a monumental moment as AI emerges as a permanent fixture of contemporary life.

Highlighting NUSS’s pride in hosting the event in Colombo, Athu emphasised that AI offers transformative potential when guided by strong social dialogue, equitable access to training, and robust governance safeguards.

Ultimately, the Colombo conference demonstrated that the future of transport must be shaped by those who keep the world moving. By uniting international labour leaders, affiliates, port operators, and regulators, the event laid a vital foundation for inclusive policy frameworks that champion fair labour standards, securing a powerful voice for workers in an automated tomorrow.

Business

Bridging the digital divide: Sri Lanka’s airport licence challenge

Published

17 hours ago

2026/09/21

Thilina Walpola

As tourism surges from digitally advanced markets like India, modern independent travelers arriving at BIA find themselves caught in a mismatch between cloudstored credentials and local paper-based transport protocols.

By Sanath Nanayakkare

As Sri Lanka experiences a surge in visitors from its largest tourist market, India, a modern administrative hurdle has emerged at Bandaranaike International Airport (BIA).

While nations like India and Pakistan have successfully transitioned to fully digital driving licences and cashless ecosystems, Sri Lanka’s Department of Motor Traffic counter still requires a physical card to issue temporary local permits, The Island Financial Review learns.

This mismatch creates significant friction for independent travelers who rely entirely on smartphones and cloud-stored credentials. Tourists turned away at the airport – and sometimes redirected to the Werahera office in vain – find themselves unable to legally rent and drive vehicles. Consequently, this policy gap harms local car rental operators, causes tourist frustration, and deprives the government of valuable permit revenue.

The situation highlights a distinct irony: Sri Lankan motorists easily travel abroad using International Driving Permits that are readily accepted in India and Pakistan, yet local infrastructure cannot reciprocate due to outdated verification systems.

Recognizing the problem, Department of Motor Traffic officials have noted that upgrades and new equipment are currently in the works to integrate foreign digital platforms.

For a nation aggressively pursuing a national digitalisation drive, rapidly modernising these transport protocols is essential to keeping pace with global travelers and unlocking the full potential of its tourism economy.