SLEA launches Quarterly Economic Review

The Sri Lanka Economic Association (SLEA) has recently launched a new publication, an e-newsletter titled “SLEA Quarterly Economic Review” (SQER), to provide an analytical discussion of Sri Lanka’s current economic issues, examining root causes, and consequences, with appropriate policy prescriptions. The SQER addresses both macroeconomic and sector-specific economic issues. SLEA hosts discussion forums with experts in the field to gather first-hand knowledge, which is then synthesised and compiled.

In response to this initiative, SLEA President Rev. Prof. W. Wimalaratana said: “In its annual calendar program, SLEA conducts conferences, seminars, organises education programs, and publishes research work. Within the scope of SLEA, economic research is a key agenda item. The analysis of current issues is one of the most important aspects of such economic research. The SQER is the brainchild of the SLEA’s Economic Research Committee (ERC).”

According to ERC Chairman Dr. Malraj B. Kiriella “all are greatly more concerned about the development of the Sri Lankan economy than before in view of the worst economic crisis the country is undergoing since independence. Our position as the country’s premier economic organisation is vital, and the SQER intends to discuss the country’s most pressing issues from an economic perspective, while proposing solutions with the guidance of subject experts.”

The first issue of the SQER consists of one macro-issue focusing on the current debt trap and two sector-specific issues focusing on the health sector and women’s empowerment following COVID-19 and the economic crisis.

Is the IMF path the only solution available in the current context?

SQER Article on ‘Possible Solutions for Getting Out of the Debt’ based on Discussion Forum held with Institute of Social Studies The Hague, Netherlands Professor Howard Nicholas, Open University of Sri Lanka Emeritus Professor of Economics Professor Sirimevan Colombage, University of Peradeniya Department of Economics & Statistics Senior Lecturer Professor O.G. Dayaratna Banda, University of Colombo Faculty of Arts Department of IT Head Professor Priyanga Dunusinghe. SLEA Vice President C. Maliyadde moderated the session and authored the paper.

According to SQER, the IMF bailout will only provide short-term macroeconomic stability while facilitating the paving the way for borrowing from foreign markets. The IMF’s solution is only short-term. It should be accompanied, supplemented, and complemented by reduced government spending, debt recycling, and borrowing. The Government must seek bilateral and multilateral official assistance. Restructure the public sector. It is important to revitalise the manufacturing sector and encourage industrialisation geared toward exports. The slow, painful, but long-term way out of the Debt Trap is to allow the economy to grow to the point where the ‘debt-to-GDP ratio’ is manageable.

A responsible fiscal and monetary discipline, institutional and economic reforms to facilitate private investment and tradable export growth, sectoral development, ethically and morally sound human capital development, promoting exports of goods and services and entrepreneurship, foreign exchange savings measures, new financing mechanisms-green/social/sustainability bonds are strongly recommended. While CBSL should not be fully independent, a rapid policy and program of private sector-driven growth revival should be prioritised, and there should be a rule-based fiscal policy with legal limits for budget deficits as well as borrowing limits/debt ceilings.

The health sector requires solutions for both supply and demand side constraints

SQER recommendations for the health sector emphasise the need to address both supply-side and demand-side constraints.

Reducing the registration fee, changing administrative systems and policies, reviewing and revising current practices, IT-enabled modern and centralised storage, addressing drug use and waste, developing a MIS system, and keeping an eye on WHO recommendations and local prices are some of the supply-side recommendations.

On the demand side, addressing current cost and quality issues, introducing a health insurance scheme for the most marginalised, developing a new model with greater efficiency and effectivity for free public health services funded by tax payers’ money to achieve sustainability, establishing public-private partnerships for health goods (medicines, equipment, etc.), and services (hospitals, laboratories, knowledge sharing, and so on), instituting payment schemes in public health care for those who can afford, and promoting healthy eating and living habits, all with the goal of demonstrating that “prevention is better than cure”.

The resource persons for the discussion of current health sector issues were Ministry of Health Sri Lanka Production, Supply, and Regulation of Pharmaceutical Additional Secretary Dr. Saman Rathnayake, and Wayamba University of Sri Lanka Faculty of Applied Sciences Department of Industrial Management Senior Lecturer Dr. Asankha Pallegedara. SLEA Vice President and ERC Chairman Dr. Malraj B. Kiriella led the discussion and wrote the article for SQER.

SLEA has collaborated with the Organisation of Professionals Associations of Sri Lanka (OPA) on the discussion on health sector issues and hopes to continue working with such organisations in the future to acquire first-hand knowledge.

Women’s empowerment is critical in post-COVID and economic realities

SQER states that Economic empowerment is connected to both economic and non-economic factors. However, women’s jobs and livelihoods are more vulnerable to COVID-19 and economic crises. Possible austerity measures taken to overcome the crisis would result in unintended and adverse impacts on women, especially those already vulnerable to socio-economic shocks.

The SQER’s recommendation to give childcare top priority in budgeting and policymaking is one illustration. By building out the infrastructure for childcare, offering more accessible, high-quality childcare options, and launching programs to increase female participation in STEM disciplines in both education and the workforce, long-term solutions that can assist in achieving this goal are recommended. As per the suggestions made in the SQER, companies can use long-term strategies to promote gender-sensitive organisational cultures and management styles in addition to short-term tactics to support networking opportunities for women, mentorship programs, and on-the-job training to support aspiring female leaders.

University of Peradeniya Economics Chair Professor Prof. Dileni Gunewardena, University of Uva Wellassa Economics Professor Prof. Thusitha Kumara and University of Colombo Department of Demography Senior Lecturer Dr. Kumudika Boyagoda took part in the discussion on women empowerment, which was moderated and documented by SLEA Economic Research Committee member and SLEA Executive Council member Prof. Seetha Bandara.

The SQER is edited by SLEA Chief Editor Sarath Vidanagama and General Secretary Dr. Maringa Sumanadasa. The SQER is free, and anyone interested in subscribing should email [email protected]