Business
Is the interim budget speech growth-oriented?
Seneka Abeyratne
The interim budget speech, presented in parliament on August 30th, is eloquently written. It is easy to read and sprinkled with the right buzz words. It is crisp and flows like a meandering stream. But an interim budget speech should be a little more than a meandering stream. Though it possesses many positive features, what it lacks is a focal point, which could be articulated in the form of a question: “How do we resuscitate an ailing economy that is showing no signs of picking up?” The ADB’s GDP growth forecast for Sri Lanka in 2022 is a staggering -7.6 %. The private sector is the engine of growth.
As long as the engine remains in poor condition, the prospect of a strong economic recovery in this island will remain an elusive goal. The interim budget speech does not indicate how the government intends to breathe life into the crippled economy and stimulate rapid private-sector development, which is the key to attaining sustainable, catch-up growth. If the economy does not pick up soon, it is bad news for the country. Shortages of essential goods, including food, fuel and medicines, will worsen, inflation will continue to gallop like a racehorse, and the incidence of both absolute and relative poverty will reach obscenely high levels. A sense of urgency is missing in the interim budget speech.
The all-pervasive nature of the
economic crisis
The current economic crisis is so severe that it is threatening to transform the country into a basket case. How many businesses, including factories, shops, beauty parlors, and restaurants, have shut down during the past two years? How many workers have lost their jobs and fallen below the poverty line? How many families are suffering from extreme hunger and deprivation? How many outpatients and inpatients have died or are about to die due to the acute shortage of medicines? How much damage has the economic crisis inflicted on the educational sector? How many global business companies and financial institutions are staying away from Sri Lanka not only because it has committed the cardinal sin of going into debt default, but also because of its tepid business climate, its low global ranking in respect of business-friendly regulations, and its cavalier approach to macroeconomic policy formulation? What progress have the foreign lawyers and advisors hired by the government at prohibitive cost made to date in respect of negotiations pertaining to debt restructuring? What are the terms and conditions of the Staff-level Agreement reached by the IMF on an Extended Fund Facility (EFF) arrangement with Sri Lanka which even the parliamentarians have not yet seen? What proportion of the EFF of $ 2.9 billion will be diverted to the repayment of foreign loans obtained by the government from official lending agencies? How open and transparent is the government in the preparation of reform plans? How long will it take for the nation to emerge from the economic doldrums and learn to stand on its own two feet? The answer to all these questions is, “Heaven knows.”
The economy has been stuck in the emergency room for more than two years, rather like a bed-ridden patient who cannot survive without continuous blood transfusions. In this regard, a glaring omission in the interim budget speech is a section that outlines the core elements of an economic revival and stabilization strategy. Though the speech, by and large, is elegantly composed, there is no thread running through it that binds the narrative into a cohesive and consistent whole. The speech does make a serious attempt to dissect the true nature of the economic crisis or to enlighten the public about how it intends to extricate the economy from the mire of negative growth and stimulate sustainable, pro-poor growth. The narrative on the whole lacks depth due to the general absence of critical analysis and innovative thinking.
Will government fight corruption, nepotism and political patronage?
Be that as it may, the importance attached to some key areas of government policy intervention such as monetary and fiscal sector reforms, public sector reforms, restructuring of loss-making state-owned business enterprises, social welfare reforms, educational sector reforms, skills development, and the strengthening of macroeconomic fundamentals is a positive feature of the interim budget speech. To generate a primary surplus in the government budget by 2025 via higher revenues and lower expenditures is a notable goal, but to attain it, the government must make a serious attempt to eliminate corruption, nepotism, and political patronage. In this regard the sudden removal of the COPE Chairman, who was in the process of exposing the intimate link between political patronage and the current economic crisis, does not augur well for the future.
If the current administration continues with the abhorrent practice of replacing senior government officials who have no truck with corruption or political patronage with political stooges, it will be doing the country an immense disservice. Corrupt political stooges have wrecked the economy and will continue to wreak havoc in the nation as long as the deeply entrenched system of political patronage remains unchanged.
Private-sector must play key role
in economic revival
A central concern is whether the policy and regulatory reform agenda broadly identified in the speech is sufficient to stimulate rapid private-sector development and transform the nation from a high-cost producer of goods and services into a globally competitive economy. There is little or no mention in the interim budget speech of the critical need to address key constraints on private sector development and foreign direct investment inflows, given the current administration’s misguided notion that protectionism is the way out of the economic crisis.
Since the private sector (both local and foreign) must play a pivotal role in improving productivity, export performance, and global competitiveness, it follows that in the absence of a healthy business environment, the economy will continue to stagnate and government efforts to strengthen macroeconomic fundamentals will fail. If concrete measures are not introduced to create a salubrious ease-of-doing business climate, the economy is likely to remain in the doldrums.
In conclusion, as per the question: “Is the interim budget speech growth-oriented?” the answer is an emphatic, “No.”
The author is a retired economist/international consultant to ADB MANILA. He can be contacted at snabeyratne@gmail.com
In an era where global financial markets demand innovation and agility, Acuity Knowledge Partners has positioned Sri Lanka as a strategic hub for high-value knowledge services. At the helm of this transformation is Jehan Jeyaretnam, Country Head of Acuity’s Sri Lanka operations, whose two-decade journey with the firm mirrors the nation’s growing prominence in the global knowledge process outsourcing (KPO) sector.
Sri Lanka’s exceptional talent pool, which is highly educated, tech-savvy, and globally aware, is the cornerstone of Acuity’s success, asserted Jeyaretnam during an interview with The Island Financial Review. The following are some excerpts from the interview.
“With over 500 professionals in Sri Lanka supporting global clients in investment research, compliance, and data analytics, the firm has forged robust partnerships with universities like Kelaniya, fostering talent through graduate programmes, mentorship, and initiatives such as its decade-long sponsorship of inter-university academic competitions.’’
“Acuity’s commitment to nurturing expertise is evident in its status as a leading employer of CFA charter holders locally and its consistent recognition as a top employer by AICPA & CIMA, climbing to 9th place globally in 2024. Our people access global opportunities and clear career pathways,” Jeyaretnam noted, emphasising long-term growth over talent development.
“Beyond its economic footprint, Acuity’s “Be Kind” ethos drives community initiatives focused on education, sustainability, and welfare. Partnerships with NGOs like Child Action Lanka, tree-planting campaigns, and digital literacy programmes underscore Acuity’s dedication to uplifting underserved communities. Giving back isn’t optional. It’s ingrained in our culture,” Jeyaretnam stated.
Reflecting on his 20-year journey, Jeyaretnam attributed Acuity’s evolution from a ‘small team with big ambitions’ to a global KPO leader with a philosophy centered on trust and empowerment.
“Leadership is about building others up,” he said, highlighting mentorship and continuous learning as catalysts for innovation.
When asked about his personal accomplishments, he said, “Witnessing employees ascend to leadership roles is my most rewarding accomplishment.”
To youth eyeing careers in capital markets, Jeyaretnam advised adaptability, curiosity, and integrity.
“Success stems from asking questions, seeking feedback, and grounding yourself in financial fundamentals,” he stressed, citing Acuity analysts who’ve risen to become industry experts.
As Acuity eyes the future, Jeyaretnam reaffirmed its commitment to innovation, talent development, and scaling Sri Lanka’s capabilities.
“We’ll keep investing in Sri Lanka, ensuring we’re resilient and ready to meet tomorrow’s challenges together,” he asserted, encapsulating Acuity’s clients, employees and stakeholders.
In a world where knowledge is currency, Acuity Knowledge Partners and Sri Lanka’s talent are proving to be invaluable global assets.
By Sanath Nanayakkare
In a bold and pioneering move, John Keells Properties (JKP), in collaboration with MullenLowe, has launched “Minutes Away – The Smartest Campaign in Sri Lanka” for JKP’s smart apartment development, TRI-ZEN. Redefining how real estate is experienced and promoted in the digital age, this campaign is the first in Sri Lanka to utilize Meta Ray- Ban Smart Glasses—bringing viewers into a fully immersive, first-person perspective that captures the essence of smart urban living like never before.
As Sri Lanka’s first smart apartment complex, TRI-ZEN has consistently set new benchmarks in urban innovation. Now, with the Minutes Away campaign, John Keells Properties elevates its brand storytelling by delivering a unique point-of-view (POV) journey, giving audiences the chance to see through the eyes of a resident navigating the conveniences of smart city living—from seamlessly connected spaces to vibrant city life just minutes away.
“Innovation is embedded in the DNA of John Keells Properties,” said Chamal Fonseka, Assistant Vice President of John Keells Holdings and Head of Brand Strategy s Customer Experience at John Keells Properties. “With ‘Minutes Away’, we wanted to push the boundaries of how real estate is communicated. The use of Meta Ray-Ban Glasses not only allows us to immerse our audience in the daily rhythm of a TRI-ZEN resident—it also marks a first for Sri Lanka in terms of campaign technology and narrative style. This campaign is not just about showcasing a product—it’s about enabling prospective homeowners to feel the lifestyle TRI-ZEN offers. And there’s no better way than putting them quite literally in the shoes of a resident.”
The Meta Ray-Ban Glasses are at the heart of this one-of-a-kind activation, enabling content to be captured from a natural, unfiltered perspective—no gimbals, no staging, just real- time storytelling. Whether it’s a short commute to Colombo’s key hotspots, smart home features activating at a touch, or the energy of city life just steps away, the viewer experiences it all through the eyes of the modern, connected homeowner.
As global gold prices soar and investors worldwide turn to gold as a trusted store of value, Amana Life Insurance stands out for offering Sri Lankans a rare and rewarding opportunity to invest in gold through life insurance.
Amana Life Insurance is the only life insurer in Sri Lanka offering customers access to a dedicated Gold Investment Fund across all life insurance products including retirement, education, and health plans. This presents a unique opportunity for Sri Lankans to save in gold and receive gold at maturity, combining financial protection with the long-term stability of a globally valued asset.
As of March 31st, 2025, the Gold Investment Fund delivered an impressive 12-month return of 19 percent, offering strong returns for policyholders who chose the Gold Fund investment option as part of their wealth planning strategy.
Whether you’re planning for your child’s education, retirement, or long-term wealth creation, Amana Life Insurance gives you access to one of Sri Lanka’s most diverse and high-performing investment portfolios. These include the Protected Multiple Fund, Stable Multiple Fund, Growth Multiple Fund, Volatile Multiple Fund, Bullion Multiple Fund, and the standout Gold Investment Fund, each designed to match different financial goals and risk profiles.
Commenting on the fund’s performance, Gehan Rajapakse, CEO of Amana Life Insurance, stated: “The continued rise in global gold prices underscores the importance of offering innovative, long-term investment options. The strong performance of our Gold Investment Fund reflects our deep commitment to creating lasting value for our policyholders. However, we remind customers that past performance is not indicative of future results, and every investment should be aligned with one’s financial goals and market outlook.”
As Sri Lanka’s most awarded insurer, Amana Life Insurance continues to lead with foresight, innovation, and a customer-first mindset, enabling every Sri Lankan to secure their future with confidence and clarity.
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