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
Malaysia is intensifying efforts to attract more Sri Lankan travelers by promoting its diverse tourism offerings, strong air connectivity, Muslim-friendly facilities and expanding business partnerships ahead of the ‘Visit Malaysia 2026’ (VMY2026) campaign.
Addressing the Tourism Malaysia product presentation yesterday in Colombo, Malaysian High Commissioner to Sri Lanka Badli Hisham Adam said tourism remains one of the strongest pillars of the long-standing bilateral relationship between Malaysia and Sri Lanka, helping strengthen cultural understanding, business links and people-to-people ties.
The event, organised by Tourism Malaysia Chennai in collaboration with the High Commission of Malaysia in Colombo, brought together Malaysian tourism stakeholders, airline representatives, Sri Lankan travel industry professionals and members of the media to explore new business opportunities.
The High Commissioner said Sri Lanka continues to be an important source market for Malaysia, with growing numbers of Sri Lankan travelers seeking destinations that combine diversity, affordability, quality experiences and convenient connectivity.
“As part of ‘Visit Malaysia 2026’, we warmly invite Sri Lankan travelers to discover the richness of Malaysia, he said.
Highlighting Malaysia’s tourism strengths, the envoy said the country offers a wide range of attractions, including multicultural cities, UNESCO World Heritage Sites, pristine beaches, tropical rainforests, cool highlands and unique wildlife.
These are complemented by world-class shopping, family-friendly attractions, educational opportunities, wellness and medical tourism, business events and internationally renowned hospitality.
He also stressed Malaysia’s position as the world’s leading Muslim-friendly destination, supported by an extensive halal ecosystem with internationally recognised certification, halal-certified restaurants, easily accessible prayer facilities and family-oriented amenities across the country.
Despite ongoing geopolitical uncertainties around the world, the High Commissioner said Malaysia remains a stable, peaceful and welcoming destination for international travelers.
He urged Sri Lankan travel agents to strengthen collaboration with Malaysian tourism providers by developing innovative travel packages targeting leisure travelers, business visitors and event participants.
The presentation featured leading Malaysian tourism partners, including Wyndham Ion Majestic, Lotus Desaru, Key Term Holidays representing the Sabah Tourism Board and Asian Overland representing The PULSE Group, showcasing Malaysia’s diverse tourism experiences and investment in the Sri Lankan market.
The envoy also acknowledged the contribution of airline partners and the media in enhancing Malaysia’s visibility and improving travel connectivity between the two countries.
Looking ahead to ‘Visit Malaysia 2026’, he said the future growth of tourism would depend on stronger collaboration, innovation and meaningful partnerships between industry stakeholders.
He expressed confidence that closer cooperation between Malaysia and Sri Lanka would generate fresh business opportunities while encouraging more Sri Lankan visitors to experience Malaysia’s culture, diversity and hospitality.
The High Commissioner concluded by expressing hope that the networking session would lead to stronger commercial partnerships and contribute to the success of ‘Visit Malaysia 2026’, further deepening tourism and economic ties between the two friendly nations.
By Ifham Nizam
Women Empowered Global (WEG), a network of award‑winning female leaders, corporate CXOs and entrepreneurs, experts and thought leaders dedicated to empowering women from six continents, unveiled the ‘WEG Leadership Lab’, a 24‑week virtual intensive programme, commencing 26 September. The programme is designed exclusively for women leaders who are ready to accelerate their careers, amplify leadership visibility, and drive transformational growth.
The women‑only leadership experience breaks the mould of conventional training, offering a powerful blend of masterclasses, mentorship, and practical leadership tools tailored for rising leaders, managers, and senior professionals. Participants will gain international exposure, sharpen essential skills, and the opportunity to join a vibrant knowledge‑sharing community which fosters confidence, resilience, and impact.
“The WEG Leadership Lab is not for casual growth. It is for women who are serious about transforming their leadership journey,” said Senela Jayasuriya, Founder/CEO, Women Empowered Global. “By combining global expertise with local delivery, we are creating pathways for women across manufacturing, trading, finance, marketing, technology, and management, as entrepreneurs, business owners, fractional executives, or corporate leaders, to thrive and build a more inclusive leadership landscape.”
WEG’s platform facilitates international exposure and career development for professionals and connects more than 4,000 members worldwide. The Leadership Lab builds on WEG’s flagship initiatives, including the 1 Million Women in Power campaign, the African Women Leadership Forum, the Business Hub, and the Global Online Academy. The programme aims to deliver a transformative journey equipping women to step boldly into leadership roles locally and internationally.
Led by Senela Jayasuriya (MBA, UK), an internationally recognized and awarded leadership & empowerment coach and innovation partner, keynote speaker, and certified expert, WEG collaborates with DEI specialists, corporate boards, Business and HR leaders, to design programmes which advance women’s careers, leadership visibility, equity, and inclusion. To date, she has successfully delivered leadership development programmes to more than 20,000 professionals.
John Keells CG Auto (JKCG Auto), the authorised distributor of BYD and Denza in Sri Lanka, has launched a strategic partnership with Green EV on 26th June 2026 to significantly expand the charging infrastructure available to its customers across the island. The collaboration, formalised through a Memorandum of Understanding (MOU), marks a pivotal step in JKCG Auto’s ongoing commitment to building a comprehensive and reliable New Energy Vehicle (NEV) ecosystem in Sri Lanka.
Through this partnership, BYD and Denza owners will gain seamless access to Green EV’s public charging network of 100+ DC fast chargers and 70 AC chargers, spanning 20 districts and all nine provinces of Sri Lanka, from Jaffna in the north to Hambantota in the south, and from Puttalam on the northwest coast to Trincomalee and Ampara on the eastern seaboard, encompassing a mix of 40kW, 60kW, and 120kW fast-charging infrastructure. The network has been designed to ensure that customers can charge conveniently and confidently, whether in the heart of Colombo or in suburban and outstation communities, removing one of the most commonly cited barriers to EV adoption in Sri Lanka. Further strengthening customer confidence, Green EV has partnered with SLIC to provide a comprehensive insurance cover of LKR 100 million for every Green EV charging station, offering protection against potential damages and ensuring complete peace of mind for every user.
The initiative reflects JKCG Auto’s broader strategy to invest in the foundations of sustainable mobility, ensuring that the transition to electric vehicles is supported not only by world-class vehicles, but by a dependable ecosystem that addresses the practical needs of everyday ownership.
“If the future of mobility in Sri Lanka is going to be electric, success will hinge on how accessible we are able to make the actual vehicles, as well as the enabling infrastructure around them. JKCG Auto is proud to partner with other visionaries like Green EV to ensure that we eliminate range anxiety, so that every customer – whether in Colombo or anywhere in Sri Lanka will have the confidence to go electric,” JKCG Auto Chief Executive Officer, Charith Panditharatne.
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