Business

Is the interim budget speech growth-oriented?

Published

4 years ago

2022/10/27

Sahan Weerasooriya

Impoverished sections of Sri Lanka:Is any relief forthcoming?

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

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Business

Sri Lanka worthy of being ranked as the world’s top holiday spot – cricketing great Wasim Akram

Published

24 hours ago

2026/06/23

Sahan Weerasooriya

Cricketing great Wasim Akram being felicitated by chairman Softlogic Life Ashok Pathirage.(R)

Pakistani cricketing legend Wasim Akram said Sri Lanka is the best tourist destination and is worthy of being ranked the world’s top holiday spot. ‘The island’s natural beauty and my decades-long connection with the country, are factors that enhance Sri Lanka’s value, he explained.

Speaking at a Softlogic Life investor forum in Colombo last Tuesday Akram said Sri Lanka remained one of his favourite destinations despite having traveled extensively around the world.

Akram who captained the Pakistani national cricket team and was celebrated as Softlogic Life’s brand ambassador said filming the company’s latest television commercial gave him another opportunity to experience some of the country’s most scenic locations, including Galle and the central highlands.

Akram said Sri Lanka’s landscapes, rivers and coastline were among the most beautiful he had beheld during his travels and expressed surprise that the country was not already considered one of the world’s leading tourism destinations.

Having first visited Sri Lanka as a teenager in 1985, Akram said he had returned numerous times over the years as a player, commentator and tourist. He added that he plans to continue visiting the island regularly and hopes to explore more of the east coast in the future.

Softlogic Life had impressive growth last year and is looking forward to introducing new life insurance products to the local market considering the increasing the aging population in Sri Lanka.

By Hiran H. Senewiratne

Business

Veenath Indrajith from the University of Sri Jayewardenepura wins the 2026 Saman Kelegama Memorial Research Grant

Published

24 hours ago

2026/06/23

Sahan Weerasooriya

Veenath Indrajith / Dr Saman Kelegama

Veenath Indrajith, a fourth-year undergraduate from the Department of Business Economics at the University of Sri Jayewardenepura, has been selected as the winner of the Saman Kelegama Memorial Research Grant for 2026. Indrajith’s academic and professional interests lie in economics, finance, investment, and policy-oriented research. In addition to his undergraduate studies, he is currently pursuing the Chartered Accountancy qualification in Sri Lanka, demonstrating a strong commitment to analytical rigour and professional excellence. He aspires to contribute to evidence-based policymaking through applied economic research.

Indrajith’s research study, titled “Small Vehicle Businesses and Household Investors Using the Second-Hand Car Market as an Alternative Investment Method in the Colombo District of Sri Lanka,” will adopt a qualitative research approach to explore the motivations, experiences, perceived returns, and risks associated with investing in used vehicles. By analysing household-level decision-making and investment behaviour, the research aims to shed light on a relatively underexplored area of Sri Lanka’s alternative investment landscape. The findings are expected to provide valuable insights for policymakers, particularly in relation to financial literacy, household investment strategies, and the development and regulation of alternative investment markets in Sri Lanka.

The Saman Kelegama Memorial Research Grant, established in 2018, honours the legacy of the late Dr. Saman Kelegama, former Executive Director of the Institute of Policy Studies of Sri Lanka (IPS), whose work significantly shaped public policy discourse on socio-economic development in Sri Lanka and the broader South Asian region. The grant is awarded annually to an outstanding undergraduate student from a Sri Lankan university, with the aim of encouraging innovative, policy-relevant research and nurturing the next generation of policy thinkers. As part of this grant, Indrajith will receive training and mentoring from IPS senior researchers to complete the proposed study.

Business

Delmege Consumer partners with Daraz

Published

24 hours ago

2026/06/23

Sahan Weerasooriya

Signing ceremony - from Left to Right - Dushan Khadagammege, Head of Retail and Supply Chain, Daraz, with the team from the Delmege Group comprising Baratha Piyadigama Group Head of Marketing, Shanaka Rajapaksha Manager Marketing Delmege Consumer, Atheeq Kabeer Manager E- Commerce and Digital Marketing .

Delmege Consumer, the flagship FMCG cluster of the Delmege Group, has evolved into one of Sri Lanka’s most trusted household names, building lasting relationships with communities across the island through a diverse portfolio of quality products that have become an integral part of consumers’ everyday lives for generations. Renowned for enriching households with Delmege’s own brands, leading local brands, and world-renowned international brands, the company continues to strengthen its presence, reputation, and connection with consumers nationwide.

A key strength of the FMCG cluster lies in the strong and enduring partnerships it has cultivated with suppliers, enabling the company to establish a responsive, time-sensitive, and mutually beneficial distribution network that has made a significant impact across Sri Lanka. Through its extensive reach and customer-focused approach, Delmege Consumer serves retail, wholesale, HoReCa, export, and modern trade channels, supported by flexible channel management strategies and winning consumer-centric propositions that cater to evolving market needs.

Further strengthening its distribution network and expanding its digital footprint, Delmege Consumer has partnered with Daraz, Sri Lanka’s leading e-commerce platform, to offer customers a more convenient, seamless, and accessible way to purchase its extensive range of FMCG products online.

Commenting on the partnership, Anil Meegahage, CEO of Delmege Consumer, stated:

“At Delmege Consumer, we are committed to innovation, continuously strengthening our product portfolio, and enhancing customer convenience and experience. Our partnership with Daraz enables us to serve customers across the country more efficiently by providing them with an easy, secure, and reliable platform to purchase trusted Delmege FMCG products online.”

Adding further, Baratha Piyadigama, Head of Group Marketing, Delmege, said:

“This partnership with Daraz marks another important milestone in our journey to enhance brand positioning, visibility, and awareness, especially at a time when digital and online commerce continue to gain significant momentum. As one of Sri Lanka’s leading FMCG distributors, we are proud to extend our trusted portfolio of products into the digital space through Daraz, ensuring customers across the island can conveniently access their favourite products with just a few clicks.”

Delmege’s extensive FMCG portfolio includes well-known Delmege branded products such as Canned Fish, Hiru Kahata Tea, Delmege Soya, Flavours and Colours, Delmege Pasta,

Delmege Noodles, and Salt, together with the much-loved Motha range of dessert ingredients, beverages, and mixes. The company also represents globally renowned international brands including Kellogg’s cereals such as Corn Flakes, Muesli, and Oats; Pringles; and the Ferrero portfolio featuring Ferrero Rocher, Nutella, Kinder Joy, and Tic Tac. Through its diverse and trusted brand portfolio, Delmege Consumer continues to reinforce its position as one of Sri Lanka’s leading FMCG companies.