Private sector urged to become engines of growth in Sri Lanka’s economy

April, 21, 2023

  • Calls for strong export-oriented economy.
  • Modernization of traditional sectors for Sri Lanka’s growth – President emphasizes at the Business Today Top 40 Awards Ceremony.

During his address at the Business Today Top 40 Awards Ceremony at the Presidential Secretariat in Colombo yesterday (20), President Ranil Wickremesinghe highlighted the need for a strong, export-oriented economy. He emphasized the importance of engaging in comprehensive economic and technological collaborations with India and negotiating entry into the Regional Comprehensive Economic Partnership (RCEP), while maintaining RCEP standards and remaining open to possibilities.

Furthermore, the President emphasized the need for modernizing and updating traditional sectors such as agriculture, fisheries, logistics, and tourism. He also urged the private sector to submit proposals for becoming the engines of Sri Lanka’s economic growth.

President Wickremesinghe also discussed the challenges that Sri Lanka faces this year and called for private sector involvement in tackling these challenges. He revealed that the government has set aside a billion rupees for Artificial Intelligence (AI) next year, with a focus on green energy technologies and renewable energy. The President also outlined the government’s plans to pursue the Comprehensive and Progressive Trans-Pacific Partnership (CPTPP) after RCEP, for which the government has already established criteria.

President Ranil Wickremesinghe presented Awards to 40 Veteran Businessmen at the Award Ceremony.

This event was attended by Ven. Uduwe Dhammaloka Thero, Deputy Minister Diana Gamage, Members of Parliament Vajira Abeywardena, Dayasiri Jayasekara, Udaya Gammanpila, Sarath Weerasekera, Premanath .C. Dolawatta, Senior Advisor to the President on National Security and Chief of Staff to the President Mr Sagala Ratnayake, President’s Secretary Mr Saman Ekanayake, Southern Province Governor Mr Willie Gamage, Former Ministers John Amaratunga, Arjuna Ranatunga and Veteran Businessmen including Mathi Parthipan and Glenda Parthipan.

Following is the full speech made by President Ranil Wickremesinghe at the Business Today Top 40 Awards Ceremony;

It has been two years since our last meeting, and looking back, I don’t believe anyone could have predicted the outcome of the past difficult years. Today, we gather here having just navigated our way out of the crisis we faced. However, we still have a long way to go before we can achieve a stable and fast-growing economy.

During this time, the Secretary to the Treasury, the State Minister, and the Governor attended the Spring Session in Washington and received encouraging messages from many multinational organizations that are willing to assist us. However, there is one condition that we need to fulfil, which is our agreement with the IMF.

Recently, I had a Zoom meeting with the Japanese Minister of Finance, India’s Minister of Finance, and the Head of the Paris Club in France, who represented all the creditors. They encouraged us to move forward, and we are also in talks with China, our other main partner, to join us in resolving this issue.

We will move forward together and individually, and the progress we have made so far has impressed many. In a short period, we turned the situation around through common sense and tough decision-making. This was probably the most challenging phase of my life, surpassing even my time in the Ministry of Education.

We had to make decisions that adversely affected a segment of the population, but in the long run, it was necessary for the betterment of the country. In the medium term, we can expect to see positive results.

There are two main challenges we face, the first being revenue. Despite everything, we need money. Therefore, we must find ways to increase revenue. Personal and company taxes were raised as the only viable solution at the time, although it is not a perfect solution. We hope to have a better revenue collection system and tax structure in the future. Currently, the Treasury is focusing on revenue collection, and we aim to make improvements this year.

The second challenge is debt restructuring, and there is no need to fear it. As we move forward, we must address the issue of salaries for the government’s 1.7 million employees, some of whom will retire while others will find new jobs. The government’s expenditure on the armed forces is also a concern, but we have calculated that by 2028, this issue will be under control. However, the larger concern is the amount of money we will need to pay salaries and pensions for those who will retire in the coming years. According to Treasury estimates, we may run into trouble from about 2030 onwards.

Therefore, this is a crucial issue that we must address. We can restructure debt and increase revenue, but we must also focus on the budget and retirement benefits for current employees. Despite these challenges, we will still need to obtain loans from time to time as we move forward.

Our balance of payment is not currently in our favour, so the next step we are taking is to implement reforms and restructuring to create opportunities for growth. Our immediate action this month has been to present the IMF arrangement to Parliament and request support. By the end of next month, we aim to have our growth agenda ready, with the Economic Stabilization Committee having already prepared their report and other drafts being reviewed and amended by the President’s Office and other stakeholders.

Looking towards the long-term future, we have set our sights on 2048, as well as the next five and ten years. Our plan is to open up the economy quickly by removing many of the barriers and hindrances that have been present for the past few decades. Our goal is to become a dynamic and export-oriented economy, with major initiatives such as entering into a comprehensive economic and technological partnership with India and joining the RCEP (Regional Comprehensive Economic Partnership).
Our objective is to reach the RCEP standards and eventually join the Comprehensive and Progressive Agreement for Trans-Pacific

Partnership (CPTPP) as well. To achieve this, we must modernize traditional industries such as agriculture and fisheries, develop a new approach to tourism and logistics, focus on green and renewable energy, and prioritize artificial intelligence by setting aside a billion rupees next year for this purpose.

To support these initiatives, we need a skilled workforce, including 10,000 engineers and 5,000 doctors annually, along with IT technicians and other professionals. The government currently operates around 400 vocational and technical training institutes, which may require running two shifts and partnering with the private sector to meet the demand for skilled workers.

As we open up the economy, we are leaving the burden of growth to the private sector, and we expect each of you to contribute to this vision. We will be seeking your input and participation in the coming months, as we work together to build a new future for our country.

We will engage with all of you, and the country will be watching closely. If you want the private sector to be the driving force behind growth, then you need to devise a plan and deliver results. I do not want to take up more of your time. I just wanted to give you an overview of what we intend to do and what we have done.

There have been many queries regarding the growth agenda and our plans for other issues. So, here we are. We are ready to move forward, and we will be consulting with you all in the next few months to determine your contributions and roles in the new economy.

Video Story

A Crisis If Economy Does Not Grow – Sujeewa Mudalige & Talal RafiLiberal Handling of Market Will Continue | Duminda HulangamuwaTax exemptions have not served very well for SL - IMF's Peter Breuer ‘At Hydepark’SL tourism to showcase a new era of growth at WTM 2024 in LondonExclusive Interview with Dr. Nandalal Weerasinghe at Ada Derana Hyde ParkThe Nightly Business Report |17th May 2024The Nightly Business Report | 15th May 2024The Nightly Business Report | 13th May 2024The Nightly Business Report | 07 May 2024The Nightly Business Report | 30th April 2024The Nightly Business Report | 29th April 2024The Nightly Business Report | 26th April 2024The Nightly Business Report | 25th April 2024The Nightly Business Report | 22nd April 2024The Nightly Business Report | 19th April 2024The Nightly Business Report | 17th April 2024The Nightly Business Report | 16th April 2024The Nightly Business Report | 15th April 2024RICH MUST PAY MORE TAXES, IMF’S PETER BREUER & SARWAT JAHAN ‘AT HYDEPARK WITH INDEEWARI AMUWATTE’2024 Will Have More Positivity – CBSL Governor Dr. Nandalal Weerasinghe ‘@ HYDEPARKBudget 2024 - Dr. Roshan PereraWhat's happening to tourism ?SALIYA PIERIS & NALAKA GUNAWARDENE ON SL ONLINE SAFETY BILL - 'AT HYDEPARK WITH INDEEWARI AMUWATTE’Ravi Abeysuriya and Deshan Pushparajah join Indeewari Amuwatte 'At HydePark' on Ada Derana 24Former IMF-ICD director Dr. Sharmini Coorey joins Indeewari Amuwatte 'at HYDEPARK' on Ada Derana 24Dr. Priyanga Dunusinghe and Dr. Nadeem Ul Haque join Indeewari Amuwatte At HydeParkHEAD OF SOE RESTRUCTURING UNIT SURESH SHAH JOINS INDEEWARI AMUWATTE 'AT HYDEPARK' ON ADA DERANA 24Sri Lanka: Supporting Recovery and Promoting Stable & Inclusive GrowthCBSL Governor is confident that Sri Lanka will be able to achieve debt sustainability even before the timeframe envisaged through the IMF EFF programmeCSE had a bullish start for the week but later drop in prices capped early gains of the dayForeign Investors resulted a net foreign inflow of LKR 230 millionCSE continued to move upward ahead of monetary policy review meetingCSE records downward trend for second consecutive dayThe current tax policy is a rescue operation - PresidentCSE managed to secure its bull run for 2nd consecutive session in the weekCSE’s ASPI records massive gain - 20.02.2022Sri Lanka Stock Market 13.02.2023Sri Lanka Stock Market 10.02.2023Sri Lanka Stock Market 08.02.2023Sri Lanka Stock Market 03.02.2023Sri Lanka Stock Market 02.02.2023Govt needs to have a policy framework to bring about the necessary change - Ranjit PageSri Lanka Stock Market 26.01.2023Sri Lanka Stock Market 24.01.2023Sri Lanka Stock Market 20.01.2023Sri Lanka Stock Market 18.01.2023Sri Lanka Stock Market 13.01.2023Sri Lanka Stock Market 12.01.2023Alternative solutions for Sri Lanka's economic recovery - Dr. Howard Nicholas, EconomistSri Lanka Stock Market 10. 01. 2023Sri Lanka Stock Market 09.01.2023Sri Lanka Stock Market 04.01.2023Sri Lanka Stock Market 03.01.2023IMF bailout package can be approved by the global lender in January 2023 by which time Sri Lanka would have secured creditor assurances from countries including India and China – CBSL GovernorADA DERANA POST-BUDGET DISCUSSION ON 'RECOVERING FROM CRISIS, REGAINING STABILITY'CSE Chairman says they expect to introduce a host of new financial instruments to the Colombo Bourse by mid-2023Sri Lanka’s Turnaround Strategies and the Role of the International CommunityPresident Ranil addresses Sri Lankan diaspora in UKUSAID ADMINISTRATOR SAMANTHA POWER WITH INDEEWARI AMUWATTE AT HYDEPARK ON ADA DERANA 24PETROLEUM ENGINEER SALIYA WICKRAMASURIYA JOINS INDEEWARI AMUWATTE AT HYDEPARK ON ADA DERANA 24US Ambassador to Sri Lanka Julie Chung Joins Indeewari Amuwatte at Hydepark on Ada Derana 24Press Conference on Current Economic SituationSri Lanka may take weeks to hire debt advisers, Sabry saysExpert Panel of Industrialists Join Indeewari Amuwatte @HydeparkExperts Discuss How to Best Address Sri Lanka’s Economic Situation with Indeewari Amuwatte @HYDEPARK@Hyde Park with Indeewari Amuwatta | Srimathi ShivashankarHow can Sri Lanka reset and revive its economy while finding solutions to address a health crisis?CBSL Governor Ajith Nivard Cabraal Joins Indeewari Amuwatte @HYDEPARKU.S. Ambassador to Sri Lanka Alaina B. Teplitz says that Sri Lanka should choose its partners based on openness, transparency and true investments rather than loans.We're not taking anything away from investors - SEC ChairmanEconomic Freedom of Sri LankaCSE Chairman Dumith Fernando Joins Indeewari Amuwatte @Hydepark on Ada Derana 24Inaugural speech by His Excellency President Gotabaya Rajapaksa at Sri Lanka Economic Summit 2020US SEC. of State Mike Pompeo Joins Indeewari Amuwatte @Hydepark on Ada Derana 24Foreign Secretary Joins Indeewari Amuwatte @HYDEPARK on Ada Derana 24GET REAL - Senior Deputy Governor of the Central Bank of Sri Lanka Dr. Nandalal WeerasingheMAS joins global efforts to contain spread of COVID-19Preventing Disruptions to Economic Activity amidst the Spread of the COVID-19 PandemicDUMITH FERNANDO JOINS INDEEWARI AMUWATTE @HYDEPARK ON ADA DERANA 24FORMER CBSL GOVERNOR AJITH NIVARD CABRAAL JOINS INDEEWARI AMUWATTE @HYDEPARK ON ADA DERANA 24BE BOLD! DR. MARK MOBIUS TELLS SRI LANKASri Lanka urgently needs a nation branding strategy that will help the island nation be a game-changer - Dr. Udaya IndrarathnaLotus Tower officially declared openAgreement signed to develop East container terminal at Colombo PortUpdate from Washington: US Foreign Policy towards China and South Asia and what it means for Sri LankaEaster Day attacks are a blow in the economy at large, not just tourism industryILO Launches Report on the Future of Work in Sri LankaMacroeconomic Impact of the Budget 2019Fiscal Impact of the Budget 2019Harry Jayawardena @ KPMG's post Budget ForumDissecting Budget 2019Sri Lanka Economic Association – Annual Sessions 2018Land reclamation for Port City completedSri Lanka Targeting 3 Million Tourists in 2019Susantha Ratnayake bids farewell to JKH, Balendra junior in as ChairmanThe economy cannot operate isolation - PallewattaDo we have the money to pay our obligations coming due next year? Answer is yes.CBSL Governor Dr. Indrajit Coomaraswamy, addressing 22nd Annual General Meeting of the ACGMr. Ranjit Page addressing the 2nd Annual General Meeting of the Sri Lanka Retailers’ AssociationCentral Bank issues a new series of coinsUS$ 184 million spent to defend Rupee - CBSL GovernorSri Lanka PM Ranil ‘Concerned on rebalancing of the Global Order’ at World Economic Forum on ASEANSri Lanka Economic Summit 2018 - Keynote Address Mr. Arun M Kumar - Chairman and CEO, KPMG IndiaSL at risk of exchange rate crisis - NomuraSumal Perera suggests Dhammika Perera should be the Next Presidential Candidate at Fireside ChatSL's IT/BPM Marks $1.2 Bn in Revenue - EDBContent creators can now monetize via YouTube in Sri Lanka!There are about 20 other reports like of the bond scam - Auditor GeneralA rapid development in coming 18 months - PMEconomic growth cannot be achieved with a small marketSL Rupee should be allowed to float – IMFSri Lanka highly important in terms of business in South Asia - Petri PeltonenSri Lanka blessed with rich natural resources we can only dream about - Harri KämäräinenGovt planning new national economic strategy – Prof. Lalith SamarakoonSri Lanka rupee hits record lowMonetary Board decides to reduce SLFR by 25 bpsEU delegation highlights need for further progress on human rightsTourism Minister requests diplomats to invite countrymen to visit SLSri Lanka statistics office withdraws GDP dataJapan-Sri Lanka Business Forum held under President's patronageEvening with a Corporate Leader : Mr Dhammika PereraThere is scarcity of talent - Kathy Tingate, Director HR, Microsoft Asia PacificGas cylinder prices to be increased?Budget Openness: Sri Lanka Needs Higher StandardsStock Market continues strong start to the year with the second listing of 2018United States GSP program expires on Dec 31President to request Russia to withdraw tea banJAT Holdings could go public in SingaporeLVL Energy Fund announces Rs. 1.2 billion IPO to fund its strategic growth and expansionWe still haven't found all the dead bodies - PMA budget office to be established in parliament by the end of 2018 - Minister EranWe have a serious concern about debt distress – CBSL GovernorPetroleum Minister Arjuna Ranatunga explains cause for fuel shortageAnika Wijesuriya has fled country due to threats - AG's DeptSri Lanka and Finland to ink agreement on digitalizationMorison PLC unveiled to mark new eraDSL Enterprises joins with Little Hearts social welfare projectPM inaugurates largest naval vessel to be produced in SLAG's dept grills PTL legal officers over litigation errorPresident declares open star class hotel in Nuwara EliyaFormer CB Governor questioned on Greek bond investmentsNew Inland Revenue Bill to be tabled on FridayRevelations at treasury bond commission by former EPF SuperintendentBOI should be closed down - Justice MinisterAloysius asked to hand over personal electronic devices to bond commissionSri Lanka Customs launches online payment platform for declarationsSri Lanka’s tallest building gets shaky from the startBeneficiaries of EPF will have to pay taxes - BandulaWe need an export oriented economy - PMRavi Karunanayake on why he switched from finance to foreign affairsSL looking to import fabric to meet new demand due to GSP+ - Felix Fernando18% duty on fish exports to be lifted under GSP+GSP+ is granted to encourage govt. towards reforms - Tung-Lai MargueNew tax revenue proposal to increase government coffers - RaviDHL is committed to enhancing its investments in SLHambantota port deal is a major plus, will benefit country - CB GovernorDerana launches Derana SME Club with IDBWe will bring in new legislation – PMSL’s first A320 touches down at BIAAll securities issued by the government are absolutely safe – CB GovernorSri Lanka spending Rs 35 billion to import milk powder - HarshaGoogle internet balloon plan hits a legal snag - HarinLAUGFS Creates History at HambantotaFinance Minister calls CB Governor a hospital attendant - VIDEOEPF can buy over all companies in Sri Lanka, says Premier – VIDEOHandunnetti questions how Perpetual Treasuries gained heavenly wisdom – VIDEOLondon Stock Exchange Group opens new technology facility in Sri Lanka - VIDEO
The requested content cannot be found
A Crisis If Economy Does Not Grow – Sujeewa Mudalige & Talal Rafi

Stock Market

Exchange Rates