Sunday Dec 22, 2024
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Tuesday, 8 March 2022 04:00 - - {{hitsCtrl.values.hits}}
Ceylon Chamber of Commerce Chairman Vish Govindasamy (fourth from left) addresses the media yesterday along with members of the eight other chambers. Others from left are FCCISL Senior Vice President Keerthi Gunawardena, ICCSL Senior Vice President Capt. Nalin Peiris, CNCI Chairman Canisius Fernando, NCCSL President Nandika Buddhipala, JAAF Chairman Sharad Amalean, WCIC Chairperson Anoji De Silva, COYLE past Chairman Dinuk Hettiarachchi, CCI CEO/Secretary General Eng. Col. (Rtd.) Nissanka N. Wijeratne and EASL Chairman Talal Shums - Pic by Upul Abayasekara
By Nisthar Cassim
Private sector yesterday came together to urge the Government to painfully bite the bullet today in fixing the multiple crises to avert a looming catastrophe in the country.
The Joint Chambers, comprising nine leading private sector business, industry, commerce and entrepreneurship lobby groups, said they have expressed willingness to take up additional burden by way of higher taxes as well as utility prices thereby extending support to the Government to resort to difficult yet critical decisions to resolve the crisis sparked by depleting foreign reserves, shortage of dollars, disruption in power and fuel supplies.
“It is better to do it today than face a far worse debacle tomorrow,” Ceylon Chamber of Commerce Chairman Vish Govindasamy told journalists at a joint briefing along with eight other groups - Federation of Chambers of Commerce and Industry (FCCSIL), Sri Lanka Apparel (JAAF), Chamber of Young Lankan Entrepreneurs (COYLE), International Chamber of Commerce Sri Lanka (ICC), National Chamber of Commerce (NCCSL), the Exporters Association of Sri Lanka (EASL), the Chamber of Construction Industry (CCISL) and the Women›s Chamber of Industry and Commerce (WCIC).
They unanimously decided to go to the press to list their concerns and suggestions to resolve the precarious country situation after having met at an emergency session last week and issuing a statement subsequently.
Joint Chambers yesterday renewed their suggestion to the Government. They are:
1. Establish a market driven pricing formula for fuel, gas and electricity while also allowing flexibility on the exchange rate. This is on the basis that it is better to manage a situation of cost escalations compared to the present shortage of essential items including foreign exchange which is crippling economic activity.
2. Immediately commence a pre-emptive foreign debt restructuring process in an orderly manner. This the Chambers said should involve restructuring of both commercial and non-commercial debt. We feel commencing this process soon will provide a breathing space to allocate the scarce dollars towards essential imports such as fuel and medicines.
3. Pursue the support of the IMF and formulate a reform program that would provide confidence to the market and private sector with immediate effect.
The private sector also renewed their expression of support to the Government in developing and implementing a program that would help Sri Lanka emerge from this crisis and stage a strong post-pandemic recovery as envisioned by all stakeholders.
Govindasamy recalled that the private sector came together previously at times of severe crisis impacting the future well-being of the economy and people. Past instances included the 52-day political coup in October 2018; in the aftermath of the Easter Sunday terror attacks in April 2019, outbreak of COVID-19 pandemic in mid-March 2020 as well as soon after the Government’s sudden ban on the use of chemical fertiliser.
“Realising the gravity of the current crises, the private sector has come together to speak in one voice,” Govindasamy pointed out. The media was told that collectively and individually the nine chambers of commerce and industry have made representations to the Government and other relevant officials on the impact of the crisis and remedial measures. However, given the lack of progress in addressing the issues and worsening of the situation promoted the private sector to go public.
Govindasamy also said in the past there had been power cuts but the productive economy functioned with the aid of generators. However, today the factories and businesses are coming to a halt due to lack of diesel to power the generators. The combined issue of power cuts and shortage of fuel has brought business, especially SMEs, to a grinding halt impacting employees and their families.
Chamber of Construction Industry (CCI) CEO/Secretary General Eng. Col. (Rtd). Nissanka N. Wijeratne revealed that 50,000 people have been rendered jobless due to lack of imported construction material and cost rising by 35% to 50%.
“Several companies within the construction industry are facing liquidation and unless the crisis is resolved, especially shortage of foreign exchange, more jobs will be lost,” added the official of CCI who said the industry provides direct employment to 650,000.
He also expressed doubt on Government plans to step up public investment benefitting the construction industry given the current crisis.
Ceylon National Chamber of Industries Chairman Canisius Fernando said that in reality the SMEs are dying, threatening livelihoods and jobs. Hence, the Government needs to take urgent action. The plight of SMEs especially following the power cuts and fuel shortage was also emphasised by the Women's Chamber of Industry and Commerce Chairperson Anoji De Silva
The Joint Chambers also emphasised the need for the Government to ensure its home-grown solution delivers or opt for alternatives if Sri Lanka is wary of going to the International Monetary Fund (IMF) for help.
“Given the high foreign debt servicing we believe the Government must restructure its debt as well as go to the IMF. If the Government isn’t keen then it must come up with a credible alternative that will deliver the desired stability as well as resolve the crisis,” the private sector emphasised.
“We are not finding fault but the crisis demands urgent action so that the public and private sector can efficiently function and jointly take the country out of the crisis,” Govindasamy added.
Chamber of Young Lankan Entrepreneurs (COYLE) Former President Dinuk Hettiarachchi said that the private sector has come forward and recommended “difficult yet critical” remedial measures. “This way we are extending support. The Opposition too must join and recommend the same since a mere change of government won’t change the problems faced by the country,” he argued.
Hettiarachchi emphasised that the need of the hour is an apolitical approach, greater unity and national policies because the reforms and tough decisions needed today to resolve the crisis will need to be carried through over the medium to long-term irrespective of who is in power.
“Right now, the country can’t give priority to narrow and petty politics because the fall out of a catastrophe will be far greater and requires united action today,” COYLE’s former President reiterated.
JAAF President Sherad Amalean, though acknowledging that the apparel sector has until recently performed well given its resilience, future prospects look bleak unless the Government urgently resolves the forex crisis, and disruptions to power and fuel supplies. “Failure to deliver our orders on time would force buyers to look elsewhere and regaining lost opportunities will be much harder,” he added.
National Chamber of Commerce President Nandika Buddhipala said the private sector will continue to lobby for progressive measures in the national interest irrespective of whether the Government turns deaf ear or not.
“We are not discouraged,” he said in response to a question whether there is any value in making recommendations and the Government not taking those into consideration. “Apolitically we will continue to lobby for what is best for socio-economic development,” he added.
