As a collective body of exporters, we have been at the forefront of sustaining employment and ensuring a steady flow of foreign exchange, even amidst the most severe economic downturns faced by our nation. Our membership covers the majority of merchandise exports, which account for some 13% of Sri Lanka’s GDP. Today, we stand united in urging the authorities to address the pressing challenges posed by the appreciation of the Sri Lankan rupee (LKR) against the US dollar (USD), further compounded by restrictions on the movement of foreign currency between commercial banks, and the mandatory conversion of export earnings into Sri Lankan rupees, a number of local organizations prominent in the field of exports said in a joint statement.

The organizations concerned are; the Exporters Association of Sri Lanka, National Chamber of Exporters, Sri Lanka Association of Manufacturers and Exporters of Rubber Products, the Joint Apparel Association Forum of Sri Lanka and the Tea Exporters Association.

Extracts from the statement:

‘The appreciating rupee has had a multifaceted negative impact on our business. A stronger rupee means our goods become more expensive for international buyers, directly affecting our competitiveness in the global market. The exchange rate peaked at over Rs. 364 per USD in May 2022, which led to increased operational costs, compelling us to adjust our cost base in line with higher inflation experienced in the country. The rapid appreciation of the rupee, with rates falling below Rs. 300 per USD since March 19th, has placed us in a precarious position, threatening the sustainability of our businesses and the livelihoods of those we employ. Despite the appreciation of the rupee, the cost of living remains high, continuing to level pressure on worker wages.

‘The timing of the rupee’s appreciation coincides with weak global demand for the majority of our merchandise exports and severe competition from competing countries. Factors such as global inflation and geopolitical tensions have continued to affect sentiment and purchasing power in the primary markets of our merchandise exports.

‘The painful economic stabilization process implemented with significant monetary and fiscal policy measures by way of policy rate, inflation, and tax adjustments; import controls; and debt service suspension, has had the desired impact to constrain economic activity and, in turn, adjust and constrain import demand. At the same time the collective efforts of the government, export community, tourism industry and remittances have continued to have a positive inflow and enhance foreign reserve positions to more comfortable levels.

‘This is in the backdrop of the extraordinary circumstances when the debt servicing by the country remains at a standstill, which is a temporary situation.

It is crucial to recognize that the landscape of our foreign exchange reserves has significantly transformed and the continued enforcement of the mandatory conversion policy, considering the current positive reserves, is counterproductive. Persisting with this approach has placed exporters at a market disadvantage and forced them to operate on an unleveled playing field, eroding their competitiveness. It further acts as and is viewed as an anti-export policy measure. Export-led recovery needs to be prioritized to ensure the inflow of vital export earnings and to encourage investments in the future.

‘In light of these considerations, we urgently request the Central Bank to revisit and repeal the aforementioned Gazette, in alignment with the evolving economic context. This appeal is made with a vision towards fostering an environment that not only enables but actively supports the growth and competitiveness of Sri Lanka’s exports. By addressing these policy concerns, we can lay the groundwork for sustainable economic development, secure employment for our citizens, and ensure the continued prosperity of our nation.

‘We invite the government of Sri Lanka to join us in taking decisive action towards these ends. Together, we can chart a course towards a brighter, more resilient future for the Sri Lankan export sector and, by extension, our economy at large.’

Axiata Digital Labs (ADL) proudly announces its first win at the 29th annual Global Mobile (GLOMO) Awards held during the recently concluded Mobile World Congress (MWC) in Barcelona. ADL secured the Open Gateway Challenge GLOMO Award, a new category in 2024, marking a significant milestone in the company’s journey as a leader in digital innovation and connectivity solutions, enabling telco-to-techco journey with their Axonect Telco Fabric.

The award recognizes ADL’s exceptional contribution to the mobile ecosystem through the MetaStage platform powered by Axonect Telco Fabric. Leveraging GSMA’s Open Gateway APIs, ADL demonstrated remarkable innovation in simplifying integration across two operators, Dialog (Sri Lanka) and XL Axiata (Indonesia). The MetaStage platform facilitated a groundbreaking metaverse concert, showcasing the immense potential of GSMA’s Open Gateway initiative to engage diverse customers across borders and drive new revenue opportunities for operators.

(Axiata Digital Labs’ CEO, Thushera Kawdawatta, and CTO, Namal Jayathilake, receiving the first-ever Open Gateway Challenge Award at the Annual Global Mobile (GLOMO) Awards at Mobile World Congress in Barcelona)

ADL stands at the forefront for GSMA Open Gateway innovation, pioneering the empowerment of developers and enterprises through universal access to network operator APIs. GSMA’s Open Gateway initiative, is poised to revolutionize connectivity by democratizing access to these essential APIs via the Linux Foundation’s CAMARA project. As the inaugural recipient of the Open Gateway Challenge GLOMO Award, ADL’s commitment to innovation and collaboration underscores its pivotal role in driving transformative change within the industry. With a focus on open standards and strategic partnerships, ADL continues to lead the charge in shaping the future of connectivity and unlocking new opportunities for digital innovation.

Dr Hans Wijayasuriya, Group Executive Director and CEO of Telecommunications Business, Axiata and Chairman, Axiata Digital Labs said, “It is a great source of pride to Axiata that ADL, our multi-country Software and Digital Transformation unit has won the GLOMO – Open Gateway Challenge. Axiata was an early signatory to the Open Gateway MoU of the GSMA and this accolade reaffirms our commitment to transforming the role of Telcos through innovation centered on APIs and Eco-Systems.

The award also reaffirms our belief in the power of open collaboration and underscores our commitment to establish federation and interworking between Telcos via the Open Gateway, and to reach out to developer and content creator eco-systems to create consumer experiences of the future – in this case a Metaverse experience spanning multiple markets and audiences. ADL will no doubt continue to push the boundaries of what’s possible with the Open Gateway and more generally through API orchestration, and thereby continue to lead the best practice in Telco-TechCo Transformation”

Thushera Kawdawatta, Chief Executive Officer of Axiata Digital Labs expressed, “We’re honored to win the Open Gateway Challenge GLOMO Award at MWC24 Barcelona! This prestigious recognition validates our dedication to developing Axonect, a groundbreaking telco fabric that’s transforming the digital landscape. Our collaboration with Dialog and XL, powered by Axonect, exemplifies the power of GSMA’s CAMARA initiative.

It fosters industry-wide innovation and synergy, unlocking the true potential of telco asset monetization. Axonect empowers businesses to collaborate and leverage standardized APIs, maximizing speed to market and accelerating innovations. As the Axonect Open Gateway solution, we’re confident in shaping the future of connectivity, and it will unlock long-term growth for businesses worldwide.”

Janashakthi Life, one of the leading life insurance companies in Sri Lanka, has recorded remarkable growth in profitability for the financial year 2023. Marked by a record profit before tax of LKR 5.2 billion, along with a resounding growth of 201% in profit after tax compared to 2022. This achievement is the highest in the entire history of Janashakthi Life. It underscores the company’s robust financial health and strategic proficiency in navigating market challenges.

The key financial indicators, such as a Capital Adequacy Ratio of 272%, a Liquidity Ratio of 3.9 times, an ROE of 27%, Earnings Per Share of LKR 18.25, and LKR 3.4 billion in claim settlements, solidify the prudent financial management from the perspective of all stakeholders.

“One of the key factors that contributed to Janashakthi Life’s success during the year under consideration has been our proactive approach to managing market risks, particularly in anticipating and navigating interest rate fluctuations. We accurately anticipated the dynamic behaviour of yield curve movements, allowing it to strategize its balance sheet accordingly. These strategic decisions have positively impacted the achievement of a historic highest profit before tax of LKR 5.2 billion,” commented Ravi Liyanage, Director/CEO of Janashakthi Life.

He further stated, “Despite market challenges, our focus on prudent investments and timely actions taken to mitigate risks in the business has positioned us to achieve continued success and significant growth in all our key business performance indicators.”

Prakash Schaffter, Deputy Chairman of Janashakthi Life, added, “The year under review stands out as one of our most successful. We have once again reinforced investor returns with the company achieving a remarkable 201% growth in Profit After Tax, amounting to LKR 4.1 billion. Strong financial discipline and swift decision-making in the investment front have paved the way for substantial and stable returns.”