Mixed signals keep investments away: IFC Country Manager

By Ashwin Hemmathagama

Challenges will continue to remain unless the Government stages a moderate role to improve investor confidence by relaxing the export tariff structure, creating an environment for industries to compete locally and abroad, extending the high productivity seen with export industries to all sectors, and providing cheaper and wide access for finance, according to International Finance Corporation (IFC) Country Manager Adam Sack, who delivered the keynote speech at the inauguration of the 33rd national conference of Chartered Accountants on Friday.

“Now is a terrific time to invest in developing economies such as Sri Lanka where over one billion people were alleviated from poverty during the past three decades. More than half of the global growth is provided from the developing countries, which is a defining feature. We at IFC have invested over US$ 20 billion in developing countries ranging over 100, which also include Sri Lanka. Sri Lanka has been exporting to EU despite the challenging situation there. Still the horizons are gloomy, but be optimistic. Connection to global economy will improve Sri Lanka’s position in trade and free trade zones. But the export basket has to change where the garments and tea currently hold over 60 per cent. Private equity is the best option for investment at this moment for investment. Currently Sri Lanka has 29 per cent of the GDP as investments. Ideally this should be 30 to 40 per cent of GDP. Unfortunately investors are kept away due to mixed signals from the Government,” said Sack.

Exploring a motivating theme for this year’s conference held for two days of technical sessions that navigated around ‘WINNING: Country, Corporate, Citizen,’ aimed to solve the puzzle of success and thereby ensure winning at all stakeholders at different levels.

According to National Conference Committee Chairman Lasantha Wickremasinghe with the present unpredictable environment pushing corporates across the world to revamp their overall policies and strategic framework, the conference this year explored means to overcome the current uncertainties prevailing in the world.

“We will focus on a theme important to the profession and country. During the conference we will analyse the knowledge imparted by experts to understand the issues confronting us. Today the global economy is facing numerous challenges – low growth, physical imbalances, and recurring liquidity crisis. Almost all economies in the world are subjected to high levels of volatility. These international problems create difficulties to our stakeholders who are the participants of this conference. This conference will identify the issues confronting the stakeholders and find ways not only to survive but also to progress in this difficult period. A good mix of business leaders, expatriates, and professional are invited to take part in this conference. For the first time in the history of CA Sri Lanka this conference is webcasted,” said Wickremasinghe.

During the past 53 years the Institute of Chartered Accountants of Sri Lanka (ICASL) has continuously supported the development of the country by producing account professionals. The 33rd national conference is an important event in the ICASL annual calendar that helps to discuss issues and possible improvements to the profession.

“Today we live in a challenging era. As the world progress and become smarter the challenges also become complicated. Professionals including Chartered Accounts have a major role to play in this challenging world. Competition is important to survive at corporate level. Last year’s theme was ‘Quest for Balance’. This year we have a timely theme; ‘Winning – Country, Corporate, Citizen’. Today we witness dynamic development in our country. Infrastructure development and facilities, construction of highways and sky rise buildings, and power plants are seen important. But we need to learn to survive in today’s complicated world. This institution has a big role helping to survive and reach success. 2012 will be an important year for CA Sri Lanka where we will be completing our multi storied building with facilities at our premises in Colombo 7,” said ICASL President Sujeewa Rajapakse.

Deputy Speaker of Parliament of Sri Lanka Chandima Weerakkody (MP) who was the Chief Guest said: “Sri Lanka is on a mission to regain what it was deprived for many years. We are witnessing an improved economic growth together with an impressive number of infrastructure development projects taking place in all parts of Sri Lanka.

All professional including the chartered accountants plays a big role in this development program supporting the government to meet its objectives. Now is the time to invest in your country.

This is not a place where you can invest black money or take out the profits earned from the investments made in Sri Lanka at the mercy of the rulers. Let us join hands to gain what we lost.”

CA Sri Lanka introduced the concept of national conference to Sri Lanka in 1979.  The conference, over the last three decades has built a reputation, as a business summit that provokes thoughts and spurs insights into broad economic and business issues; apart from its core emphasis on finance related topics. Every year the conference attracts over 1,000 participants, making it one of the most attended corporate events in the country.

This year’s conference covered a range of pertinent issues relevant in today’s unpredictable economic and business conditions, including how to recover following the 2008 financial meltdown, the importance of following a sound and winning strategy, and the importance of winning against all odds, in the face of failures.

This year’s conference saw over 1,500 participations including chartered accountants and business leaders steered by a high profile panel of experts who discussed and deliberated on the means of overcoming the challenges posed by persistent volatility on the pathway to solving the puzzle of success and ensuring ‘winning’ at a country, corporate and citizen level. A total of six sessions were held over a two-day period.