Massive export push, key in getting growth back in coming years -CCC

The Ceylon Chamber of Commerce is satisfied that the government has finally engaged the IMF and appointed experts to help with debt restructuring. The programme will need to consider the synchronisation of key policy levers across fiscal, monetary, investment, industrial and social development spheres.

This was opined by Vish Govindasamy who was re-elected as Chairman of the Chamber for the year 2022/23 at their AGM.

“As early as March 2020 when the pandemic broke out and the country’s sovereign credit ratings dropped, and the emerging scenario was disturbing we urged the then Government to seek assistance from the IMF through their Rapid Financing Instrument. The RFI funding came with no conditions, but unfortunately it was not pursued. I am told that some one hundred and

thirty other countries benefited from this scheme. It was the belief of almost all professional economists that securing an IMF program while restructuring our debt to make it sustainable will be key in stabilising the economy and reinstilling confidence in Sri Lanka. He said that as the private sector we have over the years learnt to survive in the face of destructive challenges.

“We have demonstrated strong resilience and the importance of continued perseverance. Once again, it is now up to us to stand together to preserve our enterprises and survive this unprecedented crisis and then prepare our businesses to grow as we emerge from the darkness. The Chamber will stand firm and bold to lead the private sector in managing these difficult times.”

Trade and investment policy reform will be crucial in increasing foreign direct investments. “A massive export push will be the key in getting growth back the coming years after the estimated contraction of the economy by perhaps over 5 percent this year.” A well-designed and properly targeted social safety net will be crucial to ensure social stability in what will be a difficult set of reforms across the board, including in public sector and labor, causing pain to the people..

“It is a difficult environment for businesses large and small. SMEs in particular and tens of thousands of entrepreneurs are finding it almost impossible to survive with rapidly escalating costs and slowing demand.”

Sri Lanka’s crisis is threefold; economic, social and political. In this backdrop, the Chamber has had to rise to the occasion and provide leadership and guidance while offering possible solutions for the socio economic revival process. In order to have a better chance of success in these extraordinary times, the Chamber revamped its committee structure. “We now have 20 steering and sector committees that provide guidance to the main committee on policy related issues.

The last year has been the most challenging period for our nation, our people and our economy, first the C-19 pandemic and now an economic meltdown. I never expected to face such an enormous challenge when I assumed the chair of the Ceylon Chamber last year while in London in a virtual AGM; the first in our 183-year history. “But the reality has been and continues to be unprecedented.”

The Chamber continues to highlight and communicate to the government the enormous hit on the economy due to the lack of foreign exchange and the resulting shortage of fuel, food and medicine. “We have proposed several mechanisms to correct the situation and use every opportunity to push the government to consider our solutions.” The focus on SMEs, start-ups and youth continued with numerous programmes, webinars and knowledge transfer workshops.

We are at a crucial point of our economic and development trajectory. The steps taken now by the government and private sector will determine how we emerge from our current challenges and signal the direction for the national economy and the prosperity of its people.