Connect with us

Business

Public investment for closing the SDG financing gap: Sri Lankan perspective

Published

on

A new IPS study highlights the critical role of public investment in achieving Sustainable Development Goals (SDGs) in Sri Lanka.

The study reveals that bridging the SDG financing gap is vital, with an estimated additional investment requirement of USD 1.4 trillion, equivalent to 12.5% of GDP by 2030.

Policymakers must create an enabling environment for public and private investment, emphasising macroeconomic stability, transparency, and innovative financing strategies for SDG progress.

Dr Lakmini Fernando

Sri Lanka, like many nations, grapples with the challenge of bridging the gap between aspirations and resources to achieve the United Nations’ 2030 Agenda for Sustainable Development. A new study conducted by the Institute of Policy Studies of Sri Lanka (IPS) delves into this issue, highlighting the pivotal role of public investment in driving progress toward Sustainable Development Goals (SDGs) while emphasising the urgent need for financial strategies.

The study titled ‘Public Investment for Closing the SDG Financing Gap: Sri Lankan Perspective’ by IPS Research Fellow Dr Lakmini Fernando sheds light on the significant role of public investment in not only supporting the development process but also encouraging private investment. Given the dearth of systemic research on this nexus, the study highlights the importance of assessing the investment gap in SDG financing to enhance governments’ financial readiness. The study emphasises that a comprehensive fiscal needs assessment for SDGs is crucial for effective planning and budgeting at the country level. This report aims to contribute significantly to the existing literature on SDG-related research. The key findings of the study are highlighted below.

Key Findings:

The Investment Gap: To achieve key SDGs, emerging market economies (EMEs) need to allocate an additional 4% of their gross domestic product (GDP), while low-income countries (LICs) require a significant 15%. In Sri Lanka, the estimated additional investment requirement for SDGs by 2030 is approximately USD 1.4 trillion (Tn) or 12.5% of GDP, emphasising the critical need for securing additional funds. On average, Sri Lanka’s public investment is around 5-7% of GDP over the last decade, hence, the allocation of additional funds for SDGs is challenging.

Imbalanced Investment: Sri Lanka’s public investment allocation has been skewed toward infrastructure development, leading to disparities in sectors like education and technology/information communication technology (ICT). These imbalances pose challenges to meeting the development goals set by the 2030 Agenda.

The Role of the Public Sector: Bridging the investment gap cannot rely solely on the public sector; private sector participation is essential. Policymakers play a crucial role in creating a conducive investment climate, emphasising the need for macroeconomic stability, transparency, accountability and enhanced institutional quality.

Innovative Financing: The study highlights the significance of both traditional and non-traditional financing methods for SDG progress. Tax reforms, blended finance for SDG infrastructure, international tax reforms, and other strategies are discussed as potential means to mobilise financial resources for the SDGs.

Recommendations:

The study suggests several key recommendations to ensure the successful achievement of the 2030 Agenda in Sri Lanka:

Foresight Planning: Utilise the SDG framework as a tool to review and adjust sectoral investments, fostering a balanced approach.

Long-Term Targets: Extend short- and medium-term targets to long-term goals, aligning national objectives with the SDGs.

Domestic Resource Mobilisation: Strengthen domestic revenue collection to enhance financial readiness for SDG implementation.

Innovative Financing: Explore various innovative financing options and promote international cooperation in funding SDG initiatives.

Public-Private Partnership: Foster an enabling business environment through macroeconomic management, governance improvements, and the selection of productive projects.

Access the full policy discussion brief here: https://bit.ly/40Zhdhm



Continue Reading
Click to comment

Leave a Reply

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

Business

Strong Q4 net profit growth boosts Teejay Lanka’s outlook for year ahead

Published

on

Teejay Lanka Chairman Ajit Gunewardene (left) and CEO MPubudu De Silva

Strong net profit growth in the final quarter of 2023-24 has enabled Teejay Lanka PLC to end the financial year on an optimistic note despite the impacts of the appreciation of the Rupee, which contributed to its 12-month results falling below those of the preceding year.

Sri Lanka’s first multinational textile manufacturer has reported net profit of Rs 549.1 million for the three months ending 31st March 2024, up 260% over the corresponding quarter of the previous year and a 15% improvement over the preceding quarter.

Despite an increase in sales volumes, the Group’s revenue for the quarter, at Rs 15.3 billion, was down 4% over the figure for the third quarter of the year and 12% lower than the revenue of the corresponding quarter of the previous year. This was due to the appreciation of the Sri Lanka Rupee.

For the year ending 31st March 2024, Teejay Lanka reported revenue of Rs 60.8 billion, profit before tax of Rs 1.6 billion, and net profit of Rs 1.1 billion, reflecting declines of 28%, 49% and 48% respectively over 2022-23 as a result of the softening of the global market conditions during the year.

Nevertheless, the Group ended the financial year with a strong balance sheet with a cash and cash equivalents balance of Rs 8.9 billion and a net assets base of Rs 30.1 billion. Teejay’s net assets value per share of Rs 42 was lower by 6% when compared to the corresponding quarter, stemming from the strengthening of the Rupee against the Dollar, the Group said.

“The Group has reported gross profit of Rs 1.5 billion representing a year-on-year increase of 27% and a 17% increase when compared to the third quarter, as a result of the effective utilisation of the Group’s capacity at its two locations,” Teejay Lanka CEO Pubudu De Silva said. “Further optimisation of capacity utilisation and operational efficiency and stability in yarn prices have positively contributed to this growth, strengthening our confidence for the year ahead.”

Commenting on the Group’s performance in the concluded financial year, Teejay Lanka Chairman Ajit Gunewardene said it was encouraging to note the success of the multifaceted strategic initiatives undertaken to reverse the losses of the first quarter and to respond to market dynamics.

Gunewardene added: “The Group’s long-term priorities include digitalization, establishing and executing a robust ESG framework, reducing costs, developing new products, enhancing synthetic capacity, and uplifting and empowering human capital to enhance resourcefulness. These strategies are expected to come into effect in the current financial year, indicating promising prospects for the future and enabling the Group to mitigate the impact of identified pressures, volatilities, and challenges.”

The Teejay Group owns manufacturing facilities in Sri Lanka and India, along with a state-of-the-art printing facility in Sri Lanka. An ISO 9001:2015, ISO 14001:2015 and OHSAS 18001:2007 compliant company and the first in the industry to develop green fabric, Teejay Lanka was also the first textile manufacturer in Sri Lanka to receive membership of the US Cotton Trust Protocol. Teejay is a public quoted company with 40 per cent public ownership and the backing of Sri Lanka’s largest apparel exporter Brandix Lanka which has a 33 per cent stake in the Company. Pacific Textiles of Hong Kong, whose key shareholder is the Tokyo Stock Exchange listed Toray Industries Inc., owns 27 per cent of Teejay Lanka.(Teejay Lanka)

Continue Reading

Business

SriLankan Cargo partners with CargoAi to enhance airfreight booking and payment experience

Published

on

SriLankan Cargo, the cargo arm of SriLankan Airlines, has partnered with CargoAi, a leader in digital freight solutions, to simplify and enhance the airfreight booking and payment process for users

SriLankan Cargo, the cargo arm of SriLankan Airlines, has partnered with CargoAi, a leader in digital freight solutions, to simplify and enhance its airfreight booking and payment processes, and bring more transparency and velocity for users than ever.

The integration of SriLankan Cargo’s airfreight services into CargoAi’s ecosystem gives users access to online booking and instant cross-border payment capabilities, while allowing SriLankan Cargo to increase its reach and support forwarders that were previously untapped.

CargoAi’s integration with SriLankan Cargo also streamlines payment processes by offering multiple payment methods, ranging from local transfers to credit card payments, removing the reliance on cash payments and enhancing security and efficiency in financial transactions. Additionally, CargoAi’s CargoWALLET platform facilitates the reconciliation process, automating tasks that were previously manual and time-consuming.

For freight forwarders, the integration also means that they no longer need to provide a bank guarantee or pay yearly subscriptions. Everything is seamlessly integrated with CargoMART, simplifying operations and reducing overhead costs, allowing forwarders to focus on core business operations without the burden of administrative complexities.

Chaminda Perera, Head of Cargo of SriLankan Airlines commented by saying, “Our partnership with CargoAi marks another significant stride in our digitalization journey, aimed at expanding our horizons. We will be able to enhance the visibility of our inventory and offer customers a convenient airfreight booking experience. We are looking forward to extending our market reach and engaging with businesses of all scales with CargoAi.”

Continue Reading

Business

Mövenpick Hotel Colombo unveils ‘Space’ wellness brand

Published

on

Mövenpick Hotel Colombo proudly introduces ‘Space’, an innovative wellness brand designed to transcend boundaries and cultivate a culture of holistic well-being. The launch of ‘Space’ underscores the hotel’s unwavering commitment to fostering a vibrant and sustainable living experience for all.

‘Space’ represents a transformative leap forward for Mövenpick Hotel Colombo, consolidating its diverse offerings into a singular platform dedicated to holistic wellness. From the rejuvenating embrace of dance therapy to the serene tranquility of outdoor yoga and the invigorating energy of cross-functional fitness, ‘Space’ curates an unparalleled array of experiences tailored to nurture the mind, body, and spirit. Complemented by a thoughtfully curated selection of therapeutic treatments and a culinary journey inspired by the principles of nourishment and balance, ‘Space’ promises to redefine wellness in Colombo.

At its core, ‘Space’ is more than a brand – it’s a philosophy, advocating for the creation of space for oneself and others in the pursuit of a healthier, more fulfilling lifestyle. Through its multifaceted approach to wellness, ‘Space’ invites individuals to reclaim their well-being, fostering a sense of empowerment, connection, and community.

In a bold move towards inclusivity and accessibility, Mövenpick Hotel Colombo has brought together its entire spectrum of wellness offerings under the umbrella of ‘Space’. By consolidating these diverse experiences into one cohesive platform, the hotel seeks to ensure that every individual in the community has the opportunity to access and benefit from the transformative power of wellness. From guests seeking a rejuvenating escape to locals yearning for a sanctuary of self-discovery, ‘Space’ offers a welcoming embrace to all who seek balance and vitality.

Continue Reading

Trending