Positive mindset necessary to derive benefits

Sri Lanka can contribute to growing Asian economy:

Sanjeevi Jayasuriya

Sri Lanka could be a part of the strongly growing Asian economy by changing the perception as the country is now free of terrorism. It is necessary to have a positive mindset to derive the benefits of peace, Laugfs Holdings Limited Chairman, W.K.H. Wegapitiya told Daily News Business.

The country is at a crossroad and we are faced with an economic war. With the natural and human resources available Sri Lanka is poised to have a faster economic growth within the next five years, he said.

There is an improvement in the consumer purchasing power and spending ability. However, due to the high cost of energy there was a direct bearing on transportation cost thereby reducing the purchasing power.

This disparity has been reduced at present, he said.

The Government’s decision to reduce interest rates has solved a key fundamental problem in funding. The reduced cost of capital would lead to an economic growth in the country as capital is the backbone of a business. The country recorded the highest capital cost in the region in the past averaging 25 percent of the total cost of production, he said.

There would be a cyclical effect in economic growth due to the reduced interest rates and this is a significant step by the Government.

This would provide a solution to the working capital requirement and would have a major impact on all aspects of economic activities, he said.

The global economic recession is slowing down and the global economy is in the process of bouncing back. This would also have a positive impact on Sri Lanka’s economy. It is important to have long-term goals to enable sustainable self-sufficiency in the country, he said.

Tax is an important component of the Government’s revenue and as responsible corporate citizens we need to pay taxes.

Tax is a tool that helps generate revenue to carry out infrastructure development and a strategic tax policy is an advantage to a country, he said.