THERE’S A SILVER LINING TO THE CRISIS
Q: How do you view Sri Lanka’s COVID-19 response so far? What are the pros and cons?
A: In my opinion, the government has taken several commendable steps to contain the novel coronavirus (COVID-19) by focusing on physical distancing, quarantining where necessary, and even imposing a curfew to curtail public movement and contact with each other.
Yet, the state has to now concern itself with managing the shutdown for the sake of health security while simultaneously keeping the economic nucleus active in the country. Not doing so in due time will eventually inflict economic repercussions for the nation.
So far, the committee spearheading the state’s COVID-19 response has comprised medical officers and the military. Perhaps it is time for the government to widen its scope, and appoint other representatives from the private and public sectors to this committee – officials who can contribute towards facilitating the state’s economic resurgence.
The Ceylon Chamber of Commerce has made available a comprehensive set of recommendations for the economy under 10 key areas, which include Small and Medium Enterprises (SMEs), food security and retail, as well as logistics and transport. If the state can consider such recommendations in its strategy deliberations to help keep the economy afloat while continuing to follow through with the advice of the medical community, it might be able to sufficiently protect public and economic health.
Q: As for state finances, should we print money despite the obvious repercussions and/or seek more funding from global lending institutions and other channels?
A: Printing money isn’t a good solution for the national economy. If isn’t managed properly, the ‘cost push’ inflationary impact will most certainly affect the public adversely.
I would rather see the state follow a combination of renegotiated bilateral borrowing that would make for an easier strain on external debt with additional multilateral funding. Multilateral borrowing from institutions like the IMF and World Bank could even prove beneficial in the long run as they compel recipient countries to follow certain measures as a prerequisite to improve national economic practices.
However, this demands that there’s personal belt tightening across the public and private sectors right down to individuals. in controlling unnecessary expenditure in order to ease the strain of borrowing.
Q: How do you see the ‘new normal’ for business panning out?
A: There is a silver lining to COVID-19; the virus has necessitated change and forced both the public and private sectors to embrace evolution.
Work from home (WFH) measures have proven that in most cases, companies can maintain productivity – and this could signal a promising change to how Sri Lankan companies work in the future – this could be in the form of ‘hotdesking’ and rotational visits to the office a few times a week, which will lead to a better quality of life for both employees and businesses.
We have also seen that e-commerce has bloomed in several areas in the country and has compelled the public to learn to use and trust online platforms and facilities such as non-cash electronic payments. Even institutions such as the Inland Revenue Department (IRD) now allow payments to made by CEFTs and online methods.
Simply said, the virus has forced efficiency in interactions between consumers, the state and businesses.
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…
