ECONOMIC ACTIVITIES MUST GO ON
Q: How do you view Sri Lanka’s COVID-19 response so far? What are the pros and cons?
A: At this juncture, COVID-19 seems invincible. However, while the global pandemic is unprecedented, Sri Lanka’s response has been a great success especially in managing the prevalence of infections.
The positive factors are the synergy between important stakeholders in driving the action plan, healthcare officials, the tri-forces and police, and government officials. We must commend the tireless efforts by all these parties to protect the general public from contracting this virus on a large scale.
It is also heartening to see how financial institutions and the private sector have risen to the challenge to ensure that essential services are uninterrupted, often working under trying conditions to serve people during the lockdown.
As for negative factors, there are no past scenarios to help decision making so it is hard to blame any single party for any setback.
Worldwide, every country is moving forward through trial and error by trying various methods. Sri Lanka is no different. The success of the country’s response will largely depend on how citizens respond to the official directives.
As always, Sri Lankans have come together at a difficult time with high spirits, which is an added plus.
Q: In your view, how should the authorities balance the twin imperatives of safety and the economy?
A: As global healthcare experts have warned, this pandemic will affect people for years if a successful vaccine isn’t discovered. The safety of people is of paramount importance but no country can be closed for a prolonged period. Economic activities must go on – financial markets should function and industries must be revived.
The strategies adopted by other nations show that when the curve begins to flatten, normal activities may commence on a staggered basis. I gather this is what the authorities are planning for Sri Lanka as well. The reality is that everyone will have to take additional precautions to ensure not only their personal hygiene but also the safety of others. Businesses will have to ensure the safety of their employees and customers.
Authorities have already provided clear guidelines for personal safety and everyone should follow them carefully.
Q: What lessons have we – the business community – learnt from this crisis?
A: Undoubtedly, the importance of business continuity planning (BCP) is an important lesson to take away from this crisis. It certainly helps a business cope with unprecedented events such as this and enables it to devise strategies to revive operations smoothly.
This pandemic has also brought new opportunities to re-evaluate business models, distribution systems, investments and operations as a whole. It has reminded businesses of the need to build cash reserves when operating conditions are normal, which can mitigate the impact during times of crisis.
In summary, while the pandemic has led to severe economic repercussions across all industries (including life-threatening repercussions for a few specific key industries such as tourism and apparel), it is also expected to provide new opportunities and avenues for future growth.
ABOUT LMD’S A LISTERS
BOOST TO REAL ESTATE INVESTMENT
Q: What are your expectations of the business environment in the next 12 months or so? A: With the reduction in interest rates and increase in money circulation, people have a greater tendency to invest in real estate over the money market amidst the pandemic. We have seen similar patterns even in developed markets such…
EMERGENCE OF A NEW ECONOMY
Q: How did the pandemic necessitate a digital economy? A: Countries were not prepared for the COVID-19 pandemic’s impact on the economy and people, but it has resulted in the emergence of a new economy and way of life. It is technology, and the spirit of humans to survive and push past boundaries that have…
PRIORITISING CRUCIAL SECTORS
Q: What are your expectations of the business environment in the next 12 months or so? A: I believe that business is not likely to pick up until at least mid-next year for the hospitality sector. Business was nonexistent and as a measure to prevent exorbitant losses, we converted our hotel into a quarantine centre…
A POSITIVE AND FLEXIBLE PATHWAY
Q: Do you expect the national economy to pick up this year? A: If the third wave of the pandemic is brought under control as soon as possible, then we can expect the national economy to pick up towards the second half of the year. To ensure this happens, the vaccine must be sourced in…
RELIABLE PARTNERS IN A CRISIS
Q: In brief, what are the main challenges confronting corporates at this time? A: I think corporates today are besieged with a plethora of problems caused by the prevailing situation. First and foremost is the challenge in keeping their workers safe from COVID-19, and flowing from that is the inability to keep production cycles running…
IN A STATE OF DELEVERAGING
Q: How do you perceive the economic climate at present? A: I would like to really think about the state that the country’s economy is in. Our debt repayments are much higher than our income and this puts Sri Lanka in a state of deleveraging. This recently manifested itself in a 14.2 percent increase in…
EVER EVOLVING EXPECTATIONS
Q: What modern-day challenges do businesses face? A: Information overload – in the new world we live in, there’s never a lack of information. About 2.5 quintillion data bytes are added every day; more data is created in a single day than the combined amount generated over 99 percent of human history. Previous generations of…
EXPANDING CREDIT FACILITIES
Q: What is the bank’s corporate strategy for 2021/22? A: DFCC Bank’s 2021/22 plan is based on our five year strategy for 2020-2025 with the aim of making it one of the most customer centric and digitally enabled banks by 2025. Our lending plans will align with the government’s budget proposals to facilitate the growth…
REMAINING IN THE SPOTLIGHT
Q: What are Sri Lanka Tourism Development Authority’s (SLTDA) priorities for 2021/22? A: The global tourism industry will continue to experience a huge shift in the way of doing business. Our innovative bio-bubble concept launch in January was recognised at ITB Berlin. We hope this will boost traveller confidence. Therapeutic destinations and experiential travelling are…
