Business chambers welcome election result
The National Chamber of Commerce (NCC) Sri Lanka welcomed the election of a new government which will be able to meet the economic challenges in the aftermath of COVID-19.
The country needs structural and other reforms necessary which are critical to unlocking impediments to growth, chamber officials said.
The NCC noted that the government should take prompt action to allow the importation of essential raw material for local value added industries removing existing barriers and tackle fundamental economic imbalances and problems facing the country.
Chairman of the Chamber of Young
Lankan Entrepreneurs (COYLE) Chamath Kottage told the Business Times that they are very positive about future handling of economy under the vision of President Gotabaya Rajapaksa to gain prosperity and splendour.
The government has a clear majority and mandate given by the people to achieve this vision with a robust export growth strategy and a regionally competitive incentive framework for attracting foreign direct investments on a larger scale while supporting local entrepreneurs.
He expressed the belief that the new administration will implement necessary economic reforms removing red tape and bureaucracy of the public sector paving the way for entrepreneurs to contribute to the country’s GDP.
Priority should be given to eliminate corruption, waste and irregularities and provide necessary assistance for local industrialists to weather the COVID- 19storm, he emphasised.
When contacted, the Ceylon Chamber of Commerce (CCC) said it was planning to issue a statement after the appointment of the new cabinet of ministers.
The short term task of the new government is to treat the COVID-19- ailing economy without political and economic disruptions, eminent economist and retired Central Bank Deputy Governor Dr. W. A. Wijewardena said.
The present challenge for Sri Lanka is to address the deteriorating growth the country is currently experiencing and to revive the economy with a concerted effort to reach higher growth.
He noted that it is essential to look into recent economic disruptions and how past lessons may help to make predictions on some of the possible outcomes during the recovery from the COVID-19 disruption.
Sri Lanka’s economic growth for the first quarter of 2020 has dwindled drastically to minus 1.6 per cent compared to 3.7 per cent during 2019’s first quarter, official data showed.
Under this set up it is not possible to achieve the target of 6.5 per cent or higher GDP growth rate before 2025 as earmarked in the policy statement issued by the President, he said adding that the government should spring into action to gain a positive growth.