Business leaders hail stimulus package

Hiran H.SENEWIRATNE

All stakeholders in the business sector hailed the Government's decision to offer a stimulus package worth Rs. 16 billion to increase the economic activities in the country.

The government has announced some rate cuts including on fuel prices and gas prices to give relief to the public. The industrial and other revenue generating sectors will also achieve a rapid growth in the year 2009.

"The Government's stimulus package to consumers, exporters, and plantation and industrial sectors will boost the economic activities in the country," N.R. Gajendran Chartered Accountants Gajma and Company said.

He said the stimulus packages are beneficial to the country and it is better late than never.

Therefore, concessions and stimulus packages have been given to fast track and accelerate economic activities globally.

The Government's plan to maintain a 6.5 per cent budget deficit is commendable through the curtailment of Government expenditure and increase productivity. This will have a positive impact on all economic activities in the country, he said.

Gajendran said that the reduction of fuel prices and gas prices will give some relief to the public but has a huge challenge for the Government to achieve revenue targets for the year 2009.

President, Federation of Chambers of Commerce and industries of Sri Lanka (FCCISL) Kosala Wickramanayake said the private teaholders; smallholders and industrialists were extremely happy with the Government's move to bring down fertilizer prices.

He said the Central Bank has a pivotal role to play to encourage all commercial banks to provide loans at concessionary rate to help the small and medium scale sectors in the country. Sri Lanka had been maintaining a steady economic growth of over 6 per cent over the last four years and the stimulus economic package that was spelt out last Tuesday will ensure its continuance.

Central Bank Governor Ajith Nivard Cabral said the Government was keen to continue with this trend despite the global economic crisis and the stimulus economic package was the key to continueit.

"If this was not provided there would have been a possibility of a decline in the economic growth," he pointed out.

Director, Economics of the Government Peace Secretariat who serves on 14 national committees which includes the Ministry of Industries, Tourism and Tea, Rohantha Athukorala, said the need of the hour was an effective operational mechanism to make the 16 billion Economic Stimulus package work on ground with a private-public partnership approach. "This must be supported with a new low cost business model for 2009. These have been the key lessons from other countries that have launched similar Economic Incentive packages." he opined.

The Public-Private partnership approach in launching this package is commendable as Sri Lankan companies are feeling the impending fall out of the global financial crisis," said Athukorala.

"We have to accept that like every other economy in the world there will be Economic shocks to the Sri Lankan economy.

We have to now use these stimulus packages creatively to benefit our organizations in the Tea, Rubber and Cinnamon Industries together with the Garments and Tourism sectors.

But a key factor to remember is that all CEO's need to take the lead and have new 'Low cost business models which require a new leadership style," he said.