Business

‘You have my sympathy’, Sharmini Coorey tells Sri Lanka’s economic policymakers

Published

2 years ago

2023/11/6

Thilina Walpola

Dr. Sharmini Coorey

‘Sri Lanka cannot afford yet another replay of the old script’

‘People would know good governance when they see it’

by Sanath Nanayakkare

Dr. Sharmini Coorey last week expressed her understanding and sympathy with the Sri Lankan economic policymakers and the Central Bank of Sri Lanka (CBSL) for getting the blame from the general public as they were taking ‘corrective’ measures to rescue a faltering economy, without which it could ‘give way’ to another economic collapse in the years to come.

Dr. Coorey, Member of the Presidential Advisory Group on Multilateral Engagement and Debt Sustainability advising the government of Sri Lanka and a former Department Director of the International Monetary Fund (IMF) made this remark while delivering the 73rd Anniversary Oration of Central Bank of Sri Lanka (CBSL) on 01st November 2023 at the CBSL Head Office in Colombo.

Her oration was centred on the theme “The Way Forward: Price Stability and Prosperity Need Good Governance.

Addressing the policymaking and financial community in the audience she first recognised the talented and hardworking leaders and members of the CBSL staff and those on the policymaking front for taking on a ‘very challenging’ year and a half since April 2022 where they took ‘bold’ decisions in terms of technical work to stabilise the economy out of the deepest economic crisis that Sri Lanka has ever suffered.

Addressing the audience she said: “It is perhaps easy to take for granted the progress made so far. But let’s not forget that barely 20 months ago, Sri Lanka’s inflation was unanchored, the exchange rate was depreciating uncontrollably, foreign reserves were depleted and the economy was collapsing with shortages of food, fuel and essential medicine. However, you have been able to bring the inflation down from almost 74% in September 2022 to less than 2% a year later beating the projections. To accomplish this, financial stability was all the more important given the deep economic contraction together with the preceding pandemic which had dented financial sector balance sheets. The monetary policy was also responsive in lowering the policy rates as clear evidence was emerging that monthly inflation was stabilizing.”

“Let me say, based on my years of experience at the IMF working with countries around the world – often during economic stress – these are, by any standards, impressive accomplishments. Without skilled leadership and decision making the situation would have been a lot worse.”

“Deep monetary policy decisions were successful also because of the support from the government’s fiscal policy and the leeway given to the CBSL to conduct monetary policy according to its best judgment. Tax cuts from the previous government had reduced Sri Lanka’s tax ratio from 11% of GDP in 2019 to a mere 7.5% of GDP in 2020/21- one of the lowest in the world – lower even than very poor countries like Central African Republics. With interest rates taking up 73% of our revenue and the overall fiscal deficit of 12% of GDP in 2021, the fiscal position was not simply sustainable. The government took necessary steps to increase tax rates, tax collection and implement cost-recovery pricing in energy. Efforts were made to generate the needed improvements in the primary fiscal balance in line with the IMF-supported programme.”

“These were difficult decisions. They were politically unpopular, but were necessary. Unfortunately, the shift thus taken cannot turn around the economy quickly. So, people tend to blame the corrective approach to policymaking when the policymakers are doing the right thing rather than the reckless policies of the past that were fundamentally flawed. Such is the unenviable position of the policymakers who stepped into rescue their country from the crisis. So you have my sympathy.”

“So what now? Even though significant progress has been achieved, we are in a low level of equilibrium with our economic performance below potential. This crisis is not yet over. The only way out is to grow at a rate of about 5 or 6% a year in a sustainable and inclusive way. Without such work, we cannot escape our high debt burden even after a successful debt restructuring. And because the debt burden lies with the public sector, it will need to contract not just this year but also in the decade ahead. So growth will need to come from the private sector and be export-oriented given our foreign exchange need. There is simply no other option.”

“Much remains to be done to get the economy on a dynamic growth trajectory. It shouldn’t be taken for granted that having achieved your inflation target, it will stay within CBSL’s target of 5% or that the progressive fiscal endeavor would continue. Our post-independence economic history is full of stopgap policies and brief victories of stability that were not sustained. We cannot afford yet another replay of that familiar script. Why not? Well, this time it is really different for three reasons.”

According to the IMF even if we successfully restructure our debt and adhere to the tight policies that would generate a primary fiscal surplus of 2.2% of GDP , from 2025 until at least 2032, our public debt would decline to only about 95% of GDP by 2032 from about 130% of GDP now. By 2032, government debt to GDP would average 65%. Looking at our neighbours, this number is 55% in India, 40% in Indonesia and 54% in Thailand. So, unless we bring debt to GDP ratio to about 60-80% of GDP, the baseline debt ratio will be much higher. Sri Lanka will be at a higher risk of debt distress even after a successful debt restructuring. If we become complacent and go back to our past ways, we could easily go back to a crisis where we are unable to pay our debts. In such a context, the adjustments next time would be far more painful because we would already have restructured our domestic and external debt.

More people are now in poverty according to World Bank estimates and have little cushion against it. The UNDP has estimated that over a half the population grapples with multidimensional vulnerability. The World Food Programme has estimated that 31% of children aged under 5 are malnourished. Many people grapple with basic needs such as healthcare. Progressive education has been severely hampered as a result of the pandemic and the economic crisis. So, the impact of another debt default would entail adjustments that would be disastrous and would lead to social unrest.

Sri Lanka has suffered from a damaging outflow of professionals who are the backbone of economic recovery and growth. These professionals are leaving not merely because of taxes as is often said. They have lost hope because of the corruption Sri Lanka has been mired in for decades. They don’t see a future in a country where they don’t see the culprits are punished. We have also been vulnerable to many exogenous shocks like wars, higher world interest rates, poor agricultural harvests and natural disasters. We are on a knife-edge and there is no room for policy reversals.

“But, with the focus on progressive efforts, we can shift to a path of sustained growth and inclusive prosperity. What is the way forward? How can we avoid stop gap policies? For this we need, fiscal discipline, an open trade regime that encourages exports, protective markets, modernized labour laws and adequate infrastructure. I believe our fundamental problem is our poor governance. Unless we address that issue head on, we can’t overcome our economic problems and prosper. So, when we discuss economic policies, we need to primarily focus on the governance around those policies. What do we mean by good governance? There is no standard definition. But people know good governance when they see it.”

“My point today is not just about economic policies, for instance, whether interest rates or taxes or a particular SOE should be privatized or not. It is about ensuring policymaking and implementation more accountable, transparent and getting them to adhere to the rule of law and so on, which will improve the results of the economic policies. Good policymaking needs to be backed by strong institutions. It requires sustained social pressure to take on the vested interests that are served by poor governance. We need to ensure that policies serve the interests of not just a small group but an inclusive society,” Dr. Sharmini Coorey said.

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Business

Remotely conducted Business Forum in Paris attracts reputed French companies

Published

2 hours ago

2026/02/8

Thilina Walpola

The “Sri Lanka Business Forum 2026” was organized by MEDEF International, the French Business Confederation of leading French companies, in partnership with the Embassy of Sri Lanka in France, on 30 January 2026 at the MEDEF Office in Paris. The event, which was held in hybrid format, had a solid line up of reputed French companies participating.

Delivering the keynote address, the Deputy Minister of Industry and Entrepreneurship Development of Sri Lanka Chathuranga Abeysinghe presented the Government’s policy framework and the reform agenda aimed at strengthening investor confidence, improving ease of doing business, and accelerating export-led growth. The Deputy Minister elaborated on upcoming legislative reforms, including amendments to the Minerals Act, the Colombo Port City legislative framework, implementation of the Investment Single Window, and the Government’s broader digitization drive which would contribute towards enhancing transparency and business confidence.

Highlighting Sri Lanka’s comparative advantage in the South and Southeast Asian region, the Deputy Minister emphasized France’s role as a strategic investment partner, while inviting French companies to engage with Sri Lanka. The Deputy Minister’s address was followed by a vibrant Q&A where he responded to several questions posed.

The Forum was moderated by Chairman of the France–Sri Lanka Business Council at MEDEF International and Advisor to the Chairman of the Michelin Group, Eric Le Corre.

Delivering welcome remarks, the Ambassador of Sri Lanka to France and Permanent Delegate to UNESCO Manisha Gunasekera applauded the convening of the Forum a first step in broadening and deepening the investment partnership. She appreciated the role of MEDEF in connecting reputed French companies with potential investors and partners in Sri Lanka.

The Executive Director of the Board of Investment (BOI) of Sri Lanka Priyanka Samaraweera, in her presentation detailed, inter alia, investor facilitation measures, fiscal incentives including tax holidays, tariff benefits under preferential trade agreements, and upcoming industrial zones. The BOI also invited potential French investors to participate in the upcoming Investors’ Forum scheduled to be held in Colombo on 30 March 2026.

The presentation of the CEO of Orange Marine, Didier Dillard on the company’s successful collaboration with Colombo Dockyard PLC in building their cable vessel “Sophie Germain” in 2023; and two additional vessels scheduled for delivery in 2028 and 2029, helped position Sri Lanka as an attractive and competitive investment destination.

The Embassy highlighted “Sri Lanka Expo 2026” which will be held in Colombo from 18-21 June 2026, as a key global platform for buyers and investors; and encouraged French companies to participate.

Reputed French companies, SNCF, Bureau Veritas, Carrefour, Deviseo Fret, Emovis SAS, Union de Banques Arabes et Françaises (UBAF), Michelin, and Top Tech College, participated in the Forum, thus demonstrating the interest among French cooperates in doing business with Sri Lanka. The participating companies reaffirmed that the engagement marked a first step in expanding dialogue and collaboration between France and Sri Lanka.

Senior officials of the Ministry of Industry and Entrepreneurship Development, and the Export Development Board of Sri Lanka (EDB) also participated in the forum. The Forum was organised by the Commercial Section of the Embassy led by First Secretary (Commerce) Prasadi Boomawalage, in consultation with relevant stakeholders. The success of the Forum reflects the strong commitment of the parties concerned to organise a broader, outcome-oriented engagement with the French private sector in the future.

Business

LANKATILES Celebrates the Grand Opening of Its 58th Showroom in Historic Galle

Published

2 hours ago

2026/02/8

Thilina Walpola

From left: Priyantha Talwatte, Managing Director of LT PLC, LWT PLC and LC PLC, and K. K. Samanthilaka, Engineer and Deputy Chief Secretary (Engineering Services), Southern Province, ceremonially cutting the ribbon to declare open the new LANKATILES branch in Galle.

Sri Lanka’s leading tile manufacturer, LANKATILES, proudly announces the grand opening of its 58th showroom and second in the Galle located at No. 145, Matara Road, Pettigala Watta, Galle. This latest addition marks a significant milestone in LANKATILES’ continued journey of design excellence, innovation, and trusted service built over more than five decades.

Inspired by the heritage charm and timeless architecture of Galle, a UNESCO-valued destination renowned for its cultural tapestry and historic streets, the new showroom blends local architectural heritage with contemporary living needs, truly Creating Spaces That You’d Love to Live In.

“Galle’s unique character shaped by centuries of history, art and human ingenuity resonates deeply with LANKATILES’ ethos of design integrity and aesthetic depth,” said Priyantha Talwatte, Managing Director of LANKATILES. “We’re delighted to bring our design leadership and trusted product portfolio closer to the Southern market, supporting both residential aspirations and the burgeoning tourism-led growth across the region.”

Built on more than five decades of trust and excellence, LANKATILES continues to set the benchmark in tile design superiority while delivering solutions that uplift spaces with beauty and performance. The new showroom features standout products including the Majestica large-format tile collections and Mosaics, ideal for modern living spaces, luxury tourism projects, boutique hotels, and heritage restorations that demand both quality and visual impact.

As Sri Lanka’s tourism sector continues to grow, strategic destinations such as Galle play a vital role in LANKATILES’ long-term expansion strategy. The company aims to strengthen its presence in the Southern market through enhanced accessibility, tailored solutions, and meaningful collaboration with industry stakeholders.

“We recognize the indispensable role of architects, designers, contractors, and tilers in shaping inspiring spaces,” added Talwatte. “We look forward to deepening partnerships across the region celebrating creativity that transforms environments and enriches everyday living.”

The new showroom is operated by Franchise Owner Yasith Ranu Karunasekara, a Southern Province-based entrepreneur with a keen appreciation for design-driven business and customer-centric service. His local expertise and commitment to quality align strongly with the LANKATILES brand promise.

“This showroom is more than a retail space, it’s a destination where imagination meets craftsmanship,” said Karunasekara. “We’re excited to support local homeowners, hospitality developers, and professionals in redefining spaces across the Southern region.”

The LANKATILES Galle showroom officially opened on January 28, 2026, welcoming customers and industry professionals to experience the brand’s curated collections, design expertise, and innovative tile solutions.

Business

Four runs, a thousand dreams: How a small-town school bowled its way into the record books

Published

2 hours ago

2026/02/8

Thilina Walpola

The Under-13 Cricket Team of Kalawana National School, which set up the new school cricket record

By the time the last wicket fell at Gangakanda Vidyalaya in Pelmadulla, silence briefly hung over the ground. The scoreboard told an almost unbelievable story: the Under-13 team of Kalawana National School had dismissed their opponents, Mihindu Vidyalaya, Ratnapura, for just four runs. In six overs and five balls, a group of boys from a remote corner of Sabaragamuwa had etched their names into Sri Lanka’s schools cricket record books.

The achievement soon found its way onto the official Sri Lanka Cricket Facebook page. But behind that viral moment lies a quieter, more powerful story of children who train without a proper ground, a coach who works without pay, and parents who refuse to let poverty dictate their children’s dreams.

For the boys of Kalawana National School, cricket is not played on manicured turf. There is no proper pitch. Practice nets are borrowed and returned. The few bats and pads available are worn and broken. During the rainy season, there is often nowhere to practise at all.

Yet, every evening, they turn up.

“Our children play under conditions where even the most basic facilities are lacking,” said N. V. Pushpakumara, a parent. “There is no proper playground, no pitch. Still, they keep winning. We hope the authorities will see what these children are capable of and give them the support they deserve.”

: Cricket players of Kalawana National School undergoing training amid challenges

At the centre of this effort is their coach, Chanuka Pradeep Madhushan, who joined the school in late 2021. He trains the children voluntarily, without a salary, accepting only small contributions from parents who themselves struggle to make ends meet.

“I didn’t come here expecting facilities,” he said. “I came because I saw potential. One of our boys played for the district squad in 2025. This year, our Under-13 team is doing very well. We even have a left-arm bowler who has taken 21 wickets in four matches. When you see their commitment, you want to give your best, even without pay.”

The school’s principal, Ashoka Nandasiri, speaks of cricket at Kalawana National School as a journey marked by quiet persistence. The school began leather-ball cricket in 2011. In 2016, their Under-16 team broke into the top 16 at national level. In 2025, a student was selected to the Sabaragamuwa Under-15 provincial team. And in January this year came the moment that stunned school cricket circles across the country.

: N.V. Pushpakumara, Parent

: Chanuka Pradeep Madhushanka, Cricket Coach

: Ashoka Nandasiri, Principal of Kalawana National School

“These achievements did not come easily,” the principal said. “They came through the dedication of our coach and the sacrifices made by parents. Despite many difficulties, they have kept this programme alive.”

For the boys themselves, the record is not just about four runs. It is about being seen.

“We practise with many difficulties,” said team captain P. A. Pamod Lakshan. “We don’t have proper equipment or a proper ground. When it rains, we have nowhere to go. Once, a kind uncle from Kalawana helped build us a small indoor place to practise. We are very grateful. We want to go a long way in cricket.”

In a country where cricketing dreams often begin in elite school grounds with lush pitches and modern facilities, the story of Kalawana National School stands as a reminder of how talent can grow in the most unlikely soil. These children do not ask for luxury—only for a fair chance.

Their record-breaking performance is now part of Sri Lanka’s cricketing statistics. But the deeper question remains: will their struggle also be noticed? Parents hope that this extraordinary moment will prompt sports authorities and policymakers to look beyond the usual centres of privilege and invest in rural schools where potential waits quietly, often unseen.

For the boys from Kalawana, the scoreboard has already given its verdict. Now they wait for the country to do the same.

By Upendra Priyankara Jathungama