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Sri Lanka needs corrective economic package: Wijewardena

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ECONOMYNEXT – Sri Lanka needs a corrective economic package to put the economy on a stable path top economist WA Wijewardena said as foreign exchange shortages continued to dog the country amid low interest rates and a high budget deficit.

“We need a corrective policy package,” Wijewardena, who is an ex-Deputy Governor of the central bank said. “Sri Lanka has to take the bitter pill.”

There have been calls for Sri Lanka not to pay an upcoming loan and use the money for imports.

“That is a choice among alternatives,” Wijewardena said. “You need to look at it and carefully and analyze it.”

Unlike in the past currency crises, Sri Lanka’s credit has now been downgraded to ‘CCC’ and ‘CC’ levels by rating agencies and the country has been locked out commercial debt markets.

The finance ministry recently raised salaries and pensions and other subsidies via special allowances which would cost 227 billion rupees. The country is running a 6.0 percent policy rate now and inflation was at 12.1 percent in December.

Many economic players are feeling the effects of the controls and forex shortages.

One example was of a factory which was operating at 50 percent of capacity because there were no imported raw materials indicating that firms catering to the doemestic market are also in trouble.

Though the needed goods were in the port, the manufacture could not access the shipment because dollars were not released.

He said a comprehensive economic package was needed to fix the problem.

“Unless the bitter pill is taken Sri Lanka has no future,” Wijewardena warned.

His comments came as foreign banks tightened lines to Sri Lanka and restricted packing credit for shipment to Sri Lanka even without a default.



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Mahindra Ideal Finance One of Sri Lanka’s Great Places to Work

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MIFL team at the Great Place to work® Awards ceremony for Best 10 companies in the Banking, Financial Services and Insurance industry held at the Hilton Hotel, Colombo.

Mahindra Ideal Finance is not only one of Sri Lanka’s leading finance companies, but also one of Sri Lanka’s top employers of choice, attested to by the Company being certified as a Great Place to Work for 3 consecutive years, most recently in 2021.The Company has also been recognized amongst the Best 10 companies in the banking, financial services and insurance sector in 2021 by the Great Place to Work® Sri Lanka. As a result, Mahindra Ideal Finance has attracted a diverse group of individuals at the top of their game to be a part of the Company’s various teams. Having embarked on a landmark islandwide network expansion strategy, Mahindra Ideal Finance is also creating new opportunities for aspiring Sri Lankan professionals looking to build solid careers in financial services.

Duminda Weerasekara – Chief Executive Officer said, “As we are growing our presence around the country through the expansion of our branch network, we are looking for driven and passionate people to reinforce our teams. As we have been a dedicated, caring and trustworthy employer since our inception, Mahindra Ideal Finance is the ideal platform for dynamic young professionals looking to launch or grow their careers.”Great Place to Work®, headquartered in the USA, is the global authority on high-trust, high performance workplace cultures. Great Place to Work provides the benchmarks, framework, and expertise needed to create, sustain, and recognize outstanding workplace cultures.

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Daraz Cares introduces ‘Buy one Give One’ initiative – To support families in vulnerable communities

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The unfolding economic crisis in the country has presented Sri Lankans with unprecedented challenges, including scarcity of essentials, escalating living expenses and deteriorating living standards. The impacts of the crisis are graver and more ominous for those in vulnerable communities, where families struggle to make ends meet amidst mounting financial difficulties.As part of its commitment to give back to the community, Daraz Cares has come forward with a social initiative that pledges support for families in vulnerable communities. The initiative themed ‘Buy One, Give One’ will support Sri Lankan families faced with financial challenges with a pack of selected daily essentials. The selected items for the ‘Buy One, Give One’ initiative are, a 1kg pack of CIC Sudu Suduru Rice,a 500g of Orient Mysoore Dhal, a 300g pack of Maggi Coconut Milk Powder, 500g of Orient White Sugar, and 500 g packs of Sunlight Lemon and Rose Detergent Powder, which are all available for purchase via Daraz Mart.

The initiative will be implemented in a manner that, each time an individual purchase any desired quantity of one of the nominated items on the Daraz app, Daraz will donate an equal quantity of the same product to a family in vulnerable communities.Daraz invites everyone to purchase a preferred quantity of the selected items via www.daraz.lk/dmart/ and become a part of the ‘Buy One, Give One’ social initiative.

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DIMO partners with Allianz to provide innovative insurance scheme to its TATA customers

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DIMO together with Allianz recently introduced a state-of-the-art motor insurance & claim settlement scheme designed exclusively for DIMO’s TATA customers.The partnership is focused on assisting the customers to reduce costs incurred during conducting accident repairs through exemption of the owner’s payable portion for TATA vehicles within 5 years of date of manufacture. This innovative facility also offers all TATA customers of DIMO special insurance premium rates at the time of renewal of insurance. DIMO’s TATA customers will enjoy the utmost convenience and zero hassle as both DIMO and Allianz will coordinate all tasks from towing the vehicle to the nearest DIMO-TATA workshop, quick and efficient estimation & approval process, repairing of the vehicle according to exact manufacturer’s specifications, settlement of repair bills to handing over of the vehicle to the customer in original condition.

Ranjith Pandithage, Chairman & Managing Director of DIMO, said, “This partnership will further assist us in offering an enhanced service for our valued customers. As a company, DIMO has always stood for fuelling the dreams and aspirations of the communities we serve in, and it is a pleasure to be able to offer an innovative insurance scheme at a time like this, in collaboration with Allianz.

Gany Subramaniam, CEO of Allianz Insurance Lanka Ltd, said “We are extremely pleased to be partnering with DIMO to offer a customer-centric product, ensuring a vehicle is repaired and restored with minimum hassle.”

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