Ceylon Chamber’s Outlook for 2020 explores the economic growth and business opportunities
The Outlook 2020 survey, released by the Ceylon Chamber’s Economic Intelligence Unit (EIU), discusses the macroeconomic and sector outlook for the year ahead. The segments covered are Apparel, Consumer Durables, FMCG, Tourism, Manufacturing, Farming, Plantations, and Dairy, following interviews with industry experts.
The report offers an outline of the performance of the economy and the viewpoints of each sector for the year ahead. In delivering the welcome address, Chamber Secretary-General and CEO Manjula de Silva highlighted the need for a growth rate of nearly 7 per cent over the next five years to make a difference. The report’s key takeaways are as follows:
- Global outlook improves but is fragile Stability of VS economic growth – growth acceleration may come at the cost of stability
- Significant structural reforms need to introduce to maintain growth momentum
- Better performance in crucial sectors expected in 2020
To make a rapid leap forward in economic terms, Sri Lanka ought to develop a reliable production economy. They will introduce and establish a banking system that will encourage industrial fields such as import-export trade, construction industry, small and medium scale enterprises, and agriculture through long-term loans at concessionary interest rates. This initiative will implement through a newly established ‘National Development Bank.’
With a domestic market with a small per capita income of only 20 million customers, Sri Lanka needs to look ahead of its boundaries and increase its global competitiveness to sustain fast and long-term growth.
To this end, the newly elected government has set Vision 2025 of Sri Lanka which to set out a reform course to make the country more competitive and to lift the living standards of all Sri Lankans. Such changes range from the immediate need to overhaul labour law to reforming social security network systems and promoting the development and digitisation of software.
OSL Take:
The move by the newly elected government of Sri Lanka to formulate a national policy on economic development would undoubtedly result in the creation of new business/investment opportunities as well as contribute to the overall development of the county’s economy.
Sri Lanka is already engaged in an aggressive development program that covers all vital economic sectors island-wide. Sri Lanka also has a strong export sector that has been supported by many trade agreements as well as trade concessions enjoyed by the country with foreign countries. Therefore, international businesses/investors could explore business/investment opportunities in Sri Lanka’s industrial sector.
| Article Code : | VBS/AT/20200411/Z_T2 |