Consumption contracts 6th quarter in a row to -14.5%: Rohantha

Amana Bank recognised as the Best ‘Up-and-comer’ Islamic Bank in the world by Global Finance Magazine with over 250,000 customers and network of 28 branches and 4000+ ATM access points launched a Toast Masters Club to promote stronger communication, more impactful public speaking and develop sharper leadership skill among its staff members. 

The event was graced by Chief Executive Officer Mohamed Azmeer with the keynote speaker being the corporate personality Dr. Rohantha Athukorala who is the Country Director for Turner Investments L.P apart from being on many private and public sector director boards. 

“As per the latest data of AC Nielsen for the 6th quarter in succession, the overall consumption at the household end has declined with the last quarter (Q2-2018) declining the sharpest at -14.5% which means purchasing power is at its highest challenge,” said Dr. Athukorala. This comes at the backdrop of Sri Lanka’s GDP recording a 3.1% growth as against India and Pakistan recordings growths of 6-7% which means Sri Lanka is losing its competitiveness cautioned, Dr. Athukorala who is a Former Chairman of Sri Lanka Export Development Board, Sri Lanka Tourism and subsequently spearheaded Lanka Sathosa for the country. “Our role is to work harder linking to the knowledge economy,” he said.

The seriousness of the situation as per the research company AC Nielsen, is that on the question ‘What will you do with the spare cash?’ the answer quoted by 53% of the housewives was ‘I don’t have spare cash’. This must be addressed by banks targeting the SME sector, commented Dr. Athukorala. SME sector contributed to three quarter of GDP in the country and 73% of exporters which is the backbone of Sri Lanka’s economy, he said.

Whilst the banking the finance sector has to align themselves to the latest BASL stipulations (which is a Government policy) we must support SMEs; we must make Sri Lanka once again achieve the 6% GDP growth objectives, voiced the speaker. He went on to analyse the macro data and shared how Sri Lanka’s Quarter 1- 2018 GDP growth was stunted due to very poor performance of the industrial sector which is at 1% growth as against the 4.1% recorded in the previous quarter – which must be the focus by the finance and banking sector.