Low interest regime welcome - ICC

Sanjeevi JAYASURIYA

Sri Lanka needs to be an export oriented country from its current net importing country position.

A well planned strategy is necessary to make Sri Lanka an exporting country as its imports are greater than exports. It is important for the rupee to be strong to facilitate continued export growth, International Chamber of Commerce (ICC) Chairman Tissa Jayaweera told Daily News Business. "A strong rupee will have multiple benefits, especially for exporters and it will also bring down the cost of production. The country could capitalize on its stable economic and political environment for rapid socio-economic development," he said.

The low interest rate regime is encouraging. However, the interest rate should be single digit and inflation should be controlled. The single digit interest rate will motivate borrowers and it will also reduce the cost of funds. There should be a low inflation rate to maintain cost of living.

The country needs to focus on a different strategy in producing its labour force as it concentrates only in producing graduates at present. "We need to provide skilled, semi-skilled and unskilled labour. No country can survive with graduates alone. We need all types of labour to keep the economy moving," he said.

Venture capital plays a vital role in a country's development drive and this facility should be made available to aspiring entrepreneurs. The country has a significant number of innovators and people with good ideas. However, banks are reluctant to provide funding for them and this has curtailed the number of entrepreneurs in the country. "Our people still believe in the banking system and banks should consider new applicants favourably. There are 40,000 registered financial companies and only few hundreds of companies are listed. There is a need for more companies to be listed as it will enable more capital. This capital could be re-invested and could be made available for borrowers as well," Jayaweera said.