Connect with us

Business

Ranil recalls how India overtook Sri Lanka in economic reforms journey while latter was hesitant at policy wheel

Published

on

Former president Ranil Wickremesinghe delivers the Atal Bihari Vajpayee Memorial Lecture in India recently

By Sanath Nanayakkare

During the Atal Bihari Vajpayee Memorial Lecture delivered by former president Ranil Wickremesinghe in India recently, he recalled that his first visit to India was as a young boy of 18 years to Chennai to sit for the London GCE A-level Examination — as was the practice in Sri Lanka at the time.

Referring to multiple interactions with Indian leaders over the decades which started in his role as an assistant to former president J.R. Jayawardene, he said,” When you have been in politics as long as I have, you end up knowing everyone – at some point or the other.”

The following are a few excerpts from his speech.

“I have also been an eyewitness to the pivotal and sweeping economic metamorphosis of India from the late 1990s onwards.”

“As you may recall, Sri Lanka was a forerunner in instituting an open economy in South Asia – as far back as in 1977. By 1989, as Minister of Industries, I had brought in the 2nd Generation Economic Reforms in the country, which included Sri Lanka’s Strategy for Industrialization. Not long after, in 1991, India’s first Generation of Economic Reforms were introduced by Prime Minister Narasimha Rao, whom I had known from the early 1980s, since he was my counterpart in India when I was the Minister of Education.”

“Dr. Manmohan Singh’s first budget speech as Finance Minister in Narasimha Rao’s government changed the course of Indian history. Without him, there would not have been any economic reforms in India, and without those reforms, there would not have been a modern India.”

“Indo-Sri Lank economic cooperation moves never kicked off as envisioned due to protests by certain political parties and trade unions in Sri Lanka.”

“However, the calamity of Covid-19 and the consequential economic crisis in Sri Lanka showed India at its best. At the most crucial moment when Sri Lanka declared bankruptcy and had only a few hundred million dollars in reserves, India valiantly stepped up to help us.

“The Sri Lankan people could not have survived without the 4 billion US dollars of financing received from India through various credit lines. It was India’s Neighborhood First Policy – in practice – that benefited Sri Lanka. India was followed by Bangladesh with a loan of US$200 million.”

“Furthermore, India, as a Co-Chair of the Official Creditors Committee, gave us valuable help. All this vindicated my stand on closer economic cooperation with India, including improving connectivity in key sectors.  By then, it was clear to most in Sri Lanka that recovery from bankruptcy and fast growth could be achieved only through closer economic collaboration with India. In July 2023, PM Modi and I announced the “Promoting connectivity, catalyzing prosperity: India-Sri Lanka Partnership Vision.”

“The strategy in these statements is to enhance Sri Lanka’s economic development by coupling our economic recovery to India’s sustained and swift economic growth and technological advancement. It is expected that by 2040, India would be the third-largest economic power in the world. By then, Tamil Nadu’s GDP would have reached US$1 trillion. This is the powerhouse to which Sri Lanka has to connect as a nation.  All this will establish larger markets for Sri Lankan exports and create two new economic sectors which are expected to be fast-growing. Establishing grid interconnectivity — thereby enabling Sri Lanka’s potential for surplus renewable energy to engage in trading with India and Bangladesh.”

“In the context of maritime and air connectivity – in addition to India as a global economic power, Indonesia will also be among the top 10 in time to come with Bangladesh following closely behind if all goes well.”

“This will lead to an explosion of trade in the Bay of Bengal area. As noted before, if Sri Lanka positions itself as a regional logistic hub, we can become a beneficiary of these developments in the region.”

Thus, the two governments must finalize the outstanding issues of the strategy within a short time frame and agree on the modalities to implement these proposals.   Today, it is only fitting that we witnessed the conclusion of the talks on economic cooperation on Vajpayeeji’s birth century.

During his speech, Wickremesinghe said that Atal Bihari Vajpayeeji had an instinctive understanding of the nation-building exercise and the need to maintain the unity of India’s diverse peoples.



Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Business

SriLankan Airlines Alerts Customers to Social Media Scams

Published

on

18 March 2026; Colombo – SriLankan Airlines wishes to alert customers to social media scams circulating on Facebook, WhatsApp and other platforms, often sent from both known and unknown contacts, featuring fake offers that misuse the SriLankan Airlines name, logo and brand.

 

SriLankan Airlines will never request payments, OTPs, credit card details, bank information or any other financial details via social media channels.

 

Customers are advised to always verify that any promotional offer is linked to the airline’s official website, www.srilankan.com, or shared through the verified social media accounts of SriLankan Airlines, as scammers often use fake links with unusual characters or spellings, or impersonate the airline through fake social media accounts.

Continue Reading

Business

JSL & Fentons Joint Venture to Construct Double Circuit Transmission Line from Mannar Grid Substation to Mullikulam Collection Grid Substation

Published

on

By

Approval has been granted at the Cabinet meeting held on 03-02-2025 to implement the formal procurement procedure to select a contractor for the construction of a 28 km long double circuit transmission line with the capacity of 220 kW, from Mannar Grid Substation to Mullikulam Collection Grid Substation under the Lot B of the Mullikulam Wind Power Transmission Project.

Bids have been invited following the International Competitive Procurement Procedure and five (5) bids have been received.

Accordingly, based on the recommendations submitted by the High-Level Standing Procurement Committee after evaluating the aforementioned bids, the Cabinet of Ministers has approved the resolution furnished by the Minister of Power and Energy to award the contract to the JSL & Fentons Joint Venture – Intend (Jyoti Structure Limited, India and Hayleys Fentons
Limited, Sri Lanka), substantially responsive minimum bidder, for an equal amount of Sri Lankan Rs. 2,269.18 million (without VAT).

Continue Reading

Business

Fuel crunch forces midweek shutdown; courts told to show leniency

Published

on

Industry observers say some firms may be compelled to seek loan moratoria if the disruption linked to the oil crisis continues for another month

Economic pressure likely to push already-strained businesses into a liquidity crunch

By Sanath Nanayakkare

Sri Lanka is slowing to a midweek halt as a deepening fuel shortage has compelled the government to suspend most public sector operations every Wednesday, while courts have been advised to take a lenient view of attendance requirements amid transportation difficulties caused by fuel rationing.

The directive, issued by the Commissioner General of Essential Services, suspends most state functions one day a week until further notice in an attempt to conserve scarce fuel reserves. Authorities have also urged the private sector to adopt a similar arrangement.

Officials say the measure is aimed at reducing commuter traffic into major cities, particularly Colombo, where thousands of public servants travel daily from suburban areas.

Explaining the decision to select Wednesday, officials said declaring Friday a holiday could have effectively denied the public access to government services for three consecutive days when combined with the weekend.

However, the development underscores the fragility of Sri Lanka’s economic recovery as households continue to grapple with rising prices of essential goods.

The impact is already visible on the streets. Long queues have formed outside fuel stations while public buses have been seen overcrowded, with passengers clinging to footboards. Many commuters were also seen attempting to secure rides through the ride-hailing platforms Uber and PickMe, where drivers were demanding higher fares as demand surged.

Recognising these difficulties, the Judicial Service Commission (JSC) has issued a circular instructing judges to take transportation constraints caused by fuel rationing into consideration when making legal determinations.

Judges have been advised to consider the possibility that lawyers, litigants, witnesses and even suspects may be unable to attend court due to limited fuel availability.

While court proceedings are expected to continue, judicial officers have been asked to assess such situations on a case-by-case basis.

The JSC has also directed courts to make greater use of virtual platforms whenever possible. This is expected to apply particularly to proceedings such as extending remand orders, thereby avoiding the need to transport prisoners physically to court.

Authorities believe that conducting such hearings online could significantly reduce fuel consumption associated with prison transport. The temporary measures will remain in effect until further notice.

Meanwhile, officials say special fuel allocations may be considered for critical sectors including tourism, the Colombo Port, agriculture, health services, the plantation industry and public transportation in order to sustain essential services and economic activity.

However, the broader economic outlook remains uncertain. Business leaders warn that companies already burdened with higher taxes, rising operational costs and thin margins could face severe liquidity pressures if global oil prices remain elevated.

Industry observers say some firms may be compelled to seek loan moratoria if the disruption linked to the conflict involving Iran continues for another month.

Public concern has also been heightened by recent comments from Iranian officials indicating that Tehran has not sought a ceasefire in the ongoing conflict.

For President Anura Kumara Dissanayake, the unfolding fuel shortage is emerging as one of the most serious challenges facing his administration. Although the government has been holding internal consultations, critics say an all-party conference has yet to be convened to formulate a unified national response to the crisis.

Within business circles and sections of the public, questions are increasingly being raised about whether the government possesses the institutional capacity and experience required to manage a prolonged energy shock.

Continue Reading

Trending