Business
Renowned Indian economist questions why Sri Lanka’s early social gains haven’t fueled lasting growth
Celebrated Indian economist Dr. Arvind Subramanian urged Sri Lanka to look beyond its current economic stabilisation, warning that the nation’s early human capital gains have historically lagged to translate into long-term, resilient growth.
Delivering a thought-provoking lecture at the Central Bank of Sri Lanka last week, the former Chief Economic Advisor to the Government of India placed human capital at the centre of Sri Lanka’s economic performance and what he described as puzzles – for which he knew no answers.
While acknowledging talks of regained stability and a growth shift here in Sri Lanka, Dr. Subramanian cautioned strongly against complacency. “Do not take stability for granted,” he emphasised, noting that macroeconomic stability has been very elusive in Sri Lanka’s past and that the recent crisis severely eroded living standards for ordinary citizens.
Quoting Austrian economist Joseph Schumpeter, he remarked: “The spirit of the people, its cultural level, its social structure… everything is written in fiscal history.” A country’s tax and expenditure patterns, he stressed, reveal deep truths about its societal and economic priorities.
Drawing a sharp contrast with India, he observed that while Sri Lanka achieved impressive early advances in health and education through deliberate state policy, India’s human capital improvements came largely after economic growth.
“In India, significant improvements in human capital indicators came after and because of economic growth. It happened despite society and despite the state, largely due to economic growth. Then growth boosted state resources for education and prompted families to invest in education spurring the rise of private institutions,” he explained.
“In contrast, Sri Lanka’s human capital space was characterised by early state-led achievements in health and education, preceding significant economic growth – a path that has not yielded the expected growth dividend,” he pointed out.
His analysis showed that Sri Lanka had a pressing intellectual and policy challenge:
In essence, it asked, why has Sri Lanka’s historical investments in people not driven more robust and sustained economic progress? And what must change in the country’s fiscal and economic strategy to turn its human potential into a true engine of secure and shared prosperity?
The lecture served as both a warning against complacency and an invitation to re-examine the fragile links between fiscal policy, human capital, and long-term economic destiny. For a nation on a fragile path to recovery, what he meant was: “Lasting stability must be built on tangible gains from its people’s capabilities.”
Despite Sri Lanka’s justifiable pride in its skilled workforce and social achievements, Dr. Subramanian’s insights revealed a different reality – one that calls for reflection and renewed strategy from the country’s policymakers.
However, a notable gap in the analysis was the absence of a contrast regarding Sri Lanka’s social fabric. While Dr. Subramanian powerfully quoted Schumpeter – that a nation’s spirit and social structure are written in its fiscal history, – he did not apply this lens to compare the cultural values and social structures of Sri Lanka and India, factors that may be critical to understanding the very paradox he outlined.
By Sanath Nanayakkare
By Sanath Nanayakkare
In a major boost to bilateral economic ties, the Chamber of Construction Industry of Sri Lanka (CCISL) and the Indo–Sri Lanka Chamber of Commerce & Industry (ISCCI) have signed a strategic Memorandum of Understanding (MoU) to deepen cooperation in real estate, infrastructure, and urban development.
The agreement establishes a formal framework for both institutions to drive collaborative initiatives, including business delegations, high-level conferences, workshops, B2B matchmaking sessions, and technical site visits. Designed to bridge businesses, government institutions, and project stakeholders across the Palk Strait, the partnership aims to unlock new avenues for cross-border joint ventures and technology transfers.
A focal point of this newly minted partnership is the facilitation of an upcoming trade delegation from the National Real Estate Development Council (NAREDCO) of India. Comprising major Indian players in the real estate and infrastructure sectors, the visiting delegation will engage in targeted business meetings, workshops, and inspection tours of prominent construction projects in Sri Lanka.
Under the terms of the MoU, CCISL will serve as the principal host coordinator in Sri Lanka. In close consultation with ISCCI, the apex construction body will curate itineraries, identify viable projects for engagement, and facilitate high-level dialogues with key government agencies, regulatory bodies, and industry leaders.
With both nations prioritizing sustainable urban growth, modern construction technologies, and infrastructure expansion, industry leaders view the partnership as a timely catalyst for economic rejuvenation. The collaboration is anticipated to accelerate market access, knowledge exchange, and foreign direct investment into Sri Lanka’s burgeoning property and development sectors.
To ensure the success of the upcoming NAREDCO delegation, CCISL has issued an urgent appeal to statutory authorities and relevant project owners to come forward with viable investment proposals. Stakeholders holding projects seeking foreign investment or technical partnerships are invited to submit comprehensive details to the Secretary General and CEO of CCISL via email at secyces@gmail.com.
Both chambers emphasize that translating this foundational agreement into tangible partnerships and robust capital flows will significantly strengthen bilateral connectivity between the construction and real estate sectors of India and Sri Lanka.
Hettich, the globally renowned German manufacturer of furniture fittings and architectural hardware known for its state-of-the-art manufacturing plants and magical interior solutions across the world celebrated a significant milestone in Sri Lanka, marking 10 years of presence in the country with its inaugural Partner Meet in Colombo.
The landmark event brought together Hettich’s key partners, stakeholders and industry leaders to celebrate a decade of growth, collaboration and shared success, while reaffirming the company’s long-term commitment to the Sri Lankan market.
Over the past decade, Hettich has strengthened its presence in Sri Lanka through its focus on German engineering, innovation, quality and functionality, contributing to the creation of contemporary and intelligently designed living and working spaces across the country.
The gala evening was graced by a distinguished delegation of senior leaders, including Dr. Andreas Hettich, Chairman, Hettich Group Advisory Board; S. K. Poddar, Chairman, Hettich India & Adventz Group; Mr. Akshay Poddar, Director, Hettich India; Andre Eckholt, Managing Director, Hettich India, SAARC, Middle East & Africa; Rahul Thakkar, Director – Sales, Hettich India & SAARC; and Dinusha Bhaskaran, Managing Director, Vallibel One PLC.
GS Evo Motors Limited, the authorized distributor of JMEV electric vehicles in Sri Lanka, has officially launched the JMEV EWIND, a next-generation compact electric SUV. The vehicle is designed to offer strong performance, intelligent technology, premium comfort, and high safety standards, marking another milestone in Sri Lanka’s growing electric mobility sector.
The EWIND features a sleek, aerodynamic exterior with penetrating LED daytime running lights, trapezoidal chain-inspired LED tail lamps, 19-inch alloy wheels, and a bold silhouette. Inside, it offers a spacious cabin with a panoramic moonroof and retractable curtain, an ultra-thin suspended instrument panel, a D-shaped multifunction steering wheel, multi-colour ambient lighting, premium finishes, and electrically adjustable front seats.
The SUV is available in single-motor front-wheel drive configurations, producing up to 108 kW and 210 Nm, with 0–100 km/h acceleration in 8.9 seconds.
Fast Attack Craft P 4447 recovered in successful salvage operation
Showers above 100 mm are likely at some places in the Western, Central, Sabaragamuwa, Southern, North-central and North-western provinces
Shafali, Mandhana power India to eighth Asia Cup title
Tharanga wins Ultimate Javelin title
CIABOC member’s appointment: Controversy over Speaker under probe heading selection process
GMOA: Countrywide cadre revision not done since 2015
‘Dates have the highest sugar content to fight Coronavirus’
Sunday Island 27 December – Headlines
#SundayIsland 17th December – Headlines
Sunday Island – 28th March
Sunday Island Headlines – 21 March
Sunday Island – 21st February – Headlines
-
Sports3 days agoDDS set to lose Test captaincy
-
News6 days agoThailand shuts door on undesirables from Sri Lanka
-
News3 days agoSri Lanka faces new grid challenge as rooftop solar surges: former CEB GM
-
Business6 days agoCEB successor company breaks into top three in competitive BESS tender
-
Latest News3 days agoShafali, Deepti power India into sixth T20 Asia Cup final
-
Opinion5 days agoNavigating Sri Lanka’s Israeli Dilemma
-
Latest News2 days agoSri Lanka thwart Fatima Sana challenge to secure Asia Cup final spot
-
Features4 days agoLost for 90 years: Rare Goby resurfaces in Jaffna