The Chamber of Young Lankan Entrepreneurs (COYLE) would like
to take this opportunity to wish all Sri Lankans here and afar a Happy and
Prosperous Sinhala and Tamil New Year. Our current stance on the economy of Sri
Lanka is one of optimism but tempered with caution. As the nation begins to
emerge from the turmoil of its recent political strife, the Sri Lankan economy
is starting to show the first signs of recovery. However, while COYLE
recognizes the improving financial health of Sri Lanka, they urge the government
and all political parties to take a moderate and sensible approach that will
ensure a long-term recovery.
The most recent International Monetary Fund (IMF) bailout package marks an
important milestone in Sri Lanka’s economic recovery. Through this agreement as
well as the finalization of Sri Lanka’s debt restructuring program through its
creditors, Sri Lanka can expect to secure a substantial amount of financial and
technical assistance in the form of loans, grants, and investments. As Sri
Lankans we must be mindful to stay the course and deliver on our obligations as
the package is conditional.
The Chamber of Young Lankan Entrepreneurs believes that this assistance should
be used for both short-term and long-term economic and development strategies.
As such, IMF assistance should only be taken as a temporary solution and must
be supplemented with the implementation of sound and sustainable fiscal
policies.
Furthermore, the Chamber of Young Lankan Entrepreneurs warns that currency
depreciation could be expected if import restrictions are eased too soon. It is
therefore recommended that these limitations are lifted only by yielding
satisfactory values of our economic indicators, when further stabilization of
the economy is achieved.
The Sri Lankan government is also advised to take steps to create an enabling
environment for entrepreneurship, including simplifying bureaucratic processes
and reducing redundant Policies, Acts and Gazettes in addition to restructuring
its taxation regime. This would be the right time to course correct for the
future.
In order for the Sri Lanka’s economy to grow, both the current government and
all political parties must work together to find lasting solutions rather than
looking at partisan political opportunities. The Chamber of Young Lankan
Entrepreneurs believe that this can only be achieved by approaching the
economic recovery process in an honest, transparent, and practical manner that
takes into consideration the needs of the people and businesses of Sri Lanka.
It is clear that while Sri Lanka has begun to make strides toward economic
recovery, there is still a lot of work to be done. We hope that the coming
years will bear witness to the growth of the Sri Lankan economy and the
continued well-being of our people.