Economic liberalization programme to go unhindered: Mangala
Says shipping industry liberalization very much on the cards
Stresses need to improve competitiveness of the economy
Says economy stabilizing after political uncertainty
Finance and Mass Media Minister Mangala Samaraweera yesterday vowed that the government’s economic liberalization programme will press ahead undeterred and the delayed shipping industry liberalization is very much on the cards.
“We will continue to build competitiveness by liberalizing the economy, where we see excessive control and cost, and our liberalization programme will go unhindered in the next few months—specially the liberalization of the shipping sector is very much on the cards now,” Samaraweera told the inaugural Breakfast Buzz series organized by the American Chamber of Commerce in Sri Lanka.
This was Samaraweera’s first official engagement with the country’s private sector business leaders after Prime Minister Ranil Wickremesinghe’s government was reinstated in December following a 52-day political crisis.
The minister said building competitiveness in the economy by continuing the reform programme remains a key economic priority of the government.
Samaraweera in his 2018 budget proposed to do away with the restrictions imposed on foreign ownership of shipping agencies to attract foreign investments to the country’s shipping and logistics sectors.
But the move was vehemently opposed by a powerful domestic shipping industry cartel.
Meanwhile, the minister said since the reinstatement of Prime Minister Wickremesinghe’s government, the country’s economy has been brought back on to the right track after much hard work.
He pointed out that the loss of confidence caused by the prolonged political uncertainty resulted in a surge of capital flight, foreign reserve depletion, rupee depreciation and downgrading of the sovereign rating by all three international rating agencies.
Samaraweera said had there been no interruptions, Sri Lanka would have been able to enjoy a robust boost to the economy with the favourable developments in the domestic front, such as better weather and, declining oil prices and easing of its stance by the US Federal Reserve in the external front. “Unfortunately, Sri Lanka was deprived of the opportunity to benefit from these emerging tailwinds as we got engulfed in a political crisis,” he said.
However, the minister stressed that a lot of damage caused by the political uncertainty has now been addressed and the economy has been stabilized.
A lot of the damage of the coup has been addressed and the economy is stabilized.
“External borrowings cost has declined by 200 basis points, assuming US $ 3 billion in fresh borrowings this year, which translates into savings of over Rs.10.8 billion.
“Foreign capital is now flowing back into the economy with Rs.8 billion inflows in government securities.
The rupee has appreciated 2.3 percent so far this year,” he said.
Samaraweera added that the government’s focus now is on rebuilding and repositioning the economy through responsible fiscal policies while enabling space for targeted growth support programmes such as Enterprise Sri Lanka and the rapid rural development programme, Gamperaliya.