Business
The Doing Good Index (DGI) 2022 reveals widespread pessimism about the future of Sri Lanka’s social sector
Optimism among social sector organisations in Sri Lanka is low, according to Doing Good Index 2022, a new report from the Centre for Asian Philanthropy and Society (CAPS) in partnership with the Institute of Policy Studies of Sri Lanka (IPS). The social impact study exposes the underlying structural conditions preventing the region’s social sectors from thriving. It also identifies opportunities for government, companies, philanthropists, and social delivery organisations (SDOs) to work together to address social and environmental challenges.
Sri Lanka’s ongoing social, political and economic turmoil has created a challenging environment for social sector organisations. Only a quarter of surveyed organisations feel optimistic about the sector’s future, less than half the Asian average of 56%.
“While the factors inhibiting Sri Lanka’s social sector are embedded within a larger context of the circumstances facing the country, there are still steps that can be taken to make improvements”, said Dr. Ruth Shapiro, Co-founder and Chief Executive of CAPS. “The need to revive the social sector is urgent, and the Doing Good Index is a starting point to show us how the sector can be fortified.”
Foreign funding for the social sector has declined, with only 50% of surveyed organisations in Sri Lanka receiving income from overseas sources, compared to 71% in 2020. Previously the dominant funding source for nonprofits, making up 59% of an organisation’s budget in 2020, this proportion has since fallen to less than a third in 2022. Exacerbated by the economic crisis, government funding, including grants and procurement contracts, is also low, comprising less than 2% of an organisation’s income.
Constant changes to the regulatory environment have created a challenging ecosystem for Sri Lankan SDOs to operate. Over the past 25 years, the NGO Secretariat has come under the purview of nine different ministries, resulting in high levels of uncertainty and unease among SDOs. Policy consistency and transparency are necessary enabling factors for the social sector to effectively carry out its work for Sri Lankan society.
The social sector has also seen major changes in the funding landscape. Foreign funding for the social sector has declined, with only 50% of surveyed organisations in Sri Lanka receiving income from overseas sources, compared to 71% in 2020. Previously the dominant funding source for nonprofits, making up 59% of an organisation’s budget in 2020, this proportion has since fallen to less than a third in 2022. Exacerbated by the economic crisis, government funding, including grants and procurement contracts, is also low, comprising less than 2% of an organisation’s income.
“Local support for Sri Lanka’s social sector organisations is high, and there is room to facilitate domestic giving”, said Dr. Asanka Wijesinghe, Research Fellow of the Institute of Policy Studies of Sri Lanka. “Sri Lanka has faced—and will continue to face—many challenges. It will be important to foster trust between the private, public, and social sectors so we can work together to rebuild.”
To join the event, please visit the link: bit.ly/dgi2022srilanka
Business
Affairs of Sri Lankan Airlines could be turned around using local expertise – former CAA chair
The financial affairs of national carrier Sri Lankan Airlines could be turned around along with the fortunes of Mattala Airport, using local management expertise without divesting these assets, former chairman CAA and veteran travel and tourism expert Upul Dharmadasa said.
“Sri Lanka has experts and knowledgeable persons to develop Sri Lankan Airlines into a viable entity. But when it comes to the debt restructuring process the government should absorb the losses to salvage our national carrier, former chairman Civil Aviation Authority Upul Dharmadasa told The Island Financial Review.
Speaking on Mattala Airport Dharmadasa said that during the Covid 19 pandemic he spearhead the airlines’ operations to bring more than 138,000 Sri Lankans back into the country. “At that time Mattala Airport functioned as a second international airport and it assisted the government in managing Covid patients in a more systematic way, he said.
Dharmadasa added: ‘Further, Mattala Airport’s 11 anniversary falls today. It falls on the government to develop it as the second international airport. It could attract large aircraft.
“We need to deploy proper and qualified persons to streamline the entire process.
“I have been in the airline industry for more than a decade. The number of airline arrivals in the country and departures from it have come down considerably after Covid 19 pandemic.
“In this scenario, Sri Lankan Airlines should focus on launching new flights to US and Canada. Together they account for more than 1.4 million Sri Lankan diaspora members who fly to Sri Lanka.
“Sri Lankan Airlines should resume Rome flights as well, which is a lucrative market. Apart from that Sri Lankan Airlines should focus on new destinations, wherein they could sell tickets and attract huge revenue to the airline.
“The airline should have 25 aircraft to offer uninterrupted services to air travelers but at present it has only 23 aircraft.”
By Hiran H Senewiratne
LOLC Al-Falaah, Sri Lanka’s leading provider of alternate financial solutions, proudly announces the launch of ‘Al-Falaah Wakalah Future-Cash’, a pioneering Shariah-compliant alternative for Factoring, Invoice & Cheques discounting facility, designed to transform business financing. This ground-breaking financial solution empowers businesses to elevate and realize future cash flows in real-time, while maintaining adherence to ethical financial principles. Setting a new benchmark in Sri Lanka’s Islamic financial services sector, this initiative strengthens LOLC Al-Falaah’s commitment to innovation and excellence in the alternate finance arena.
Unlike conventional Factoring, which relies on interest-based returns against receivables, LOLC Al-Falaah’s ‘Wakalah Future-Cash Today’ product is structured under the ‘Wakalah-Bil-Istithmar’ concept, ensuring full compliance with Islamic economic jurisprudence. Through this model, LOLC Al-Falaah provides capital infusion into business operations in exchange for a pre-determined Anticipated Profit Return (APR), eliminating interest-based transactions. Businesses are appointed as agents to deploy these funds within their operations, with surplus earnings allocated as a performance incentive. This structure enhances financial discipline, promotes transparency, and encourages ethical business practices.
The introduction of this pioneering facility is particularly timely as Sri Lanka transitions towards economic recovery and long-term stability. Shiraz Refai, Head of Alternate Financial Services at LOLC Al-Falaah, emphasized the significance of this initiative: “As Sri Lanka embarks on a path of economic resurgence, businesses require the right financial instruments to capitalize on emerging opportunities. As a trailblazer in the alternate financial services sector, LOLC Al-Falaah has identified a critical gap in the bills-discounting and factoring industry. The launch of LOLC Al-Falaah’s ‘Wakalah Future-Cash Today’ product presents a strategic solution that enhances liquidity and working capital efficiencies while adhering to Islamic financial principles.
City Cycle Industries Manufacturing (Pvt) Ltd, a leading provider of sustainable mobility solutions and renowned for its household brand Lumala, has been honored with the Best National Industry Brand award under the Large-Scale Other Industry Sector at the recent National Industry Brand Excellence Awards 2024.
Organized by the Sri Lanka Technical Development Board under the Ministry of Industry and Entrepreneurship Development, the award ceremony was held on 21 February at Eagle Lakeside and saw the participation of distinguished leaders from diverse industry sectors. The vent was graced by Prime Minister Harini Amarasuriya as the Chief Guest.
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