Sri Lanka told to use global economic slowdown to rethink growth strategy

• Deloitte Consulting Specialist Leader Sheri Pitigala says SL’s economy is highly vulnerable and at a disadvantage compared to many peers
• Says ‘business as usual’ is no longer a viable option, if plan is to remain relevant

By Shabiya Ali Ahlam

Sri Lanka needs to make efforts to use the ongoing global economic slowdown as an opportunity to rethink its growth strategy, as its economy is highly vulnerable and remains at a disadvantage compared to many of its competitors and peers, asserted an international economist.

Deloitte Consulting Specialist Leader Sheri Pitigala stressed that the island nation needs to be more proactive and understand that ‘business as usual’ is no longer a viable option, if it is to remain relevant in today’s fast-paced global economy.

“Whether it is the private sector or public sector, it is essential to think and act boldly. Think strategically, get connected and innovate your business models. This will ultimately require a higher degree of collaboration within the private sector and government,” she said.

Pitigala made these comments during a webinar hosted by the Ceylon Chamber of Commerce on the theme ‘Global Trade Slowdown: Implications for Sri Lanka’s Trade Outlook Confirmation’.

As the engine of growth, the private sector is expected to take the lead in identifying opportunities in the global marketplace.

The government, on its part, must play a key role in supporting the private sector, although the current macroeconomic crisis has dramatically reduced the fiscal space to assist the private sector.

Pitigala noted that there are a number of initiatives that can yield near-term impacts, while more difficult reforms must be pursued in the medium term.

Some of the efforts include involving the private sector by way of partnering with the Board of Investment and commercial attaches, to identify strategic investments.

Initiatives are also needed via collaboration with the government and private sector, to identify priority markets, secure and expand market access, including reciprocal trade agreements and plurilateral agreements. 

Furthermore, the stakeholders of the economy must advocate for deeper regulatory reforms to streamline and create an enabling business environment.

“Advocacy will be critical when focusing in the immediate term on rapid regulatory reforms that can be done with a stroke of a pen and have an immediate impact on the business enabling environment,” she said.