Sri Lanka’s developmental partners and private sector express confidence in reform efforts

At the second high-level roundtable discussion on ‘Crisis to Recovery’ today (Oct. 31), both developmental partners and the private sector have expressed overwhelming commitment and confidence in the Sri Lankan government’s current reform efforts.

Today’s roundtable has provided an open and candid forum between the government of Sri Lanka, the developmental partners and the private sector to share key updates and recommendations to sustain the momentum of the nation’s reform efforts, the President’s Media Division (PMD) said.

Marking a significant momentum of the economic recovery and stabilization, the second high-level roundtable discussion on ‘Crisis to Recovery’ was held this morning in Colombo. This event follows the previous session in December 2022 and provides a forum to discuss the progress of the government’s reform programs aimed at addressing key economic and structural issues.

The event also focuses on transitioning from crisis recovery to a sustainable growth path, challenges and opportunities for attracting investment, promoting private capital mobilization, creating jobs, and maintaining commitments by the government and participating partners towards Sri Lanka’s greener, resilient, and inclusive development, the PMD added.

The session was opened by President Ranil Wickremesinghe, representing the Sri Lankan government. He has delivered an address on the growth and strategic directions for Sri Lanka as it moves from recovery to a sustainable growth path.

The President has also made firm commitments for the government to work hand in hand with the private sector to unlock key investments in new and existing economic sectors moving forward, together with exploring opportunities in pursuing Green initiatives and championing Sri Lanka as a regional logistics hub in the near future.

The Sri Lankan government has also provided a clear framework for improving coordination and communications, along with detailed action plans for the implementation and delivery of the reform agenda.

To strengthen delivery, the PMD said the government has plans to set up a Presidential Delivery Unit, conduct Economic Labs with the private sector, and hold Open days to communicate outcomes to the public of what has been achieved and delivered.

Governor of the Central Bank of Sri Lanka (CBSL) Dr. P Nandalal Weerasinghe has highlighted the progress on debt restructuring made by the Sri Lankan government.

Alongside these presentations and remarks, international development partners including International Monetary Fund (IMF), World Bank, Multilateral Investment Guarantee Agency (MIGA), Asian Development Bank (ADB), Asian Infrastructure Investment Bank (AIIB), Japan International Cooperation Agency (JIСА), United States Agency for International Development (USAID), European Union (EU), United Nations (UN) and private sector development partners made an interactive length long discussion and shared their views on the matter.

The session was also attended by Prime Minister Dinesh Gunawardena, Minister of Foreign Affairs Ali Sabry, Minister of Power and Energy Kanchana Wijesekera and State Minister of Finance Ranjith Siyambalapitiya and Senior Advisor on National Security to the President and Chief of Staff Sagala Ratnayaka, Dr. R.H.S. Samaratunga and Foreign Ministry Secretary Aruni Wijewardane, all representing the Sri Lankan government.

Additionally, the following international representatives took part in the discussion: Ms. Anna Bjerde, World Bank Managing Director of Operations; Martin Raiser, World Bank Vice President for South Asia Region; Mr. Junaid Kamal Ahmed, Vice President for Operations, Multilateral Investment Guarantee Agency (MIGA); Ms. Sarwat Jahan, Resident Representative of the International Monetary Fund (IMF); Mr. Shixin Chen, Vice President (South, Central, and West Asia) of the Asian Development Bank; Dr. Urjit Patel, Vice President, Investment Operations of the Asian Infrastructure Investment Bank (AIIB); H.E. Ambassador Carmen Moreno, Ambassador of the EU Delegation; Ms. Sachiko Imoto, Senior Vice President, JICA; Ms. Anjali Kaur, Deputy Assistant Administrator USAID; and Mr. Marc-André Franche, Resident Coordinator, UN.

From the private sector, Mr. Krishan Balendra, CEO of John Keells Holdings; Mr. Mahesh Amlean, Chairman of MAS Holdings; Mr. Ajit Gunewardene, Chairman of the Oversight Committee for Trade and Investment, Duminda Hulangamuwa, President of the Chamber of Commerce and Ms. Sherin Cader, Chairperson of Nations Trust Bank joined as private sector representatives from Sri Lanka.

During the previous session in December 2022, representatives from the World Bank, ADB, IMF and AIIB had emphasized that a coordinated assistance program, supported by the multilateral financial institutions, is required for Sri Lanka to recover from the economic crisis currently facing the country.

The Sri Lankan economy has shown initial signs of stabilization, with moderating inflation, easing foreign exchange liquidity pressures, and some progress on debt restructuring, including the approval of the domestic debt restructuring strategy.

Under the Sri Lankan government’s reform program, underpinned by the IMF Extended Fund Facility (EFF) and supported by other development partners, cornerstone legislation is being developed, and structural reforms are being implemented to restore stability and regain access to international financial markets. However, the path to recovery remains narrow, with limited fiscal and external buffers, the PMD said further.