THE DOUBLE-EDGED SWORD
Q: How do you view Sri Lanka’s COVID-19 response so far? What are the pros and cons?
A: I think we have responded very well to the crisis as the lockdown has been effective from mid-March. In an unprecedented situation like this, there is no blueprint for safeguarding the health of the nation while simultaneously keeping the economy going. Every nation has been forced to hit the ground running with different schemes based on its needs and political goals.
While easing lockdown will stimulate the economy, and prevent unemployment and poverty especially among daily wage earners who make up a huge segment of our working population, we run the risk of infections and crippling the healthcare services. In the long term, there will be complicated social and economic consequences.
Whichever response you take, there will be critics on either side of the spectrum regarding the lockdown’s duration – leaders must make the best decisions in the interest of the country according to the knowledge at their disposal.
Q: What is the outlook for jobs and employment in the medium term? And how should the authorities address the prospect of rising unemployment?
A: The economic impact of COVID-19 and unemployment will be colossal due to the global scale of the pandemic. Key segments of economic growth, the apparel and tourism industries, retail trade activity and foreign employment remittances will all see a decline.
Realistically, the tourism industry will not be able to recover quickly; not until a vaccine is found and made readily available. Meanwhile, the agriculture sector could play a part in creating employment. Additionally, we will need to focus a lot more on job creation in the IT sector and developing the online service segment. Innovative new employment opportunities in new fields make up one crucial part of the solution, which will help us weather this crisis.
Q: How do you see the ‘new normal’ for business panning out?
A: Work from home (WFH) in most businesses will become part of the new work ethic. So long as there is a requirement for physical distancing, group chat programmes like Zoom, MS Teams will be commonplace, in business, healthcare, education, fitness and social life.
Education and tutoring online will flourish. As such, we need to have cheaper internet options for all workers and students to be able to work and study online, along with a variety of packages and wider coverage.
A subsequent new range of online products being developed with faster and more efficient online retail marketing services will follow, and there will be further development of environmentally conscious organic products and services.
Predictably, there will be a rise in automated cleaning and sanitation equipment using new techniques such as UV light, to help clean all spaces and equipment efficiently to adhere to new standards.
We will need to create and innovate solutions to face the new economic and social challenges caused by COVID-19, in both business ventures and the workplace. Life as we know it will change but we must develop, adapt and revise our practices, in order to protect the environment and the public.
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…
