Sri Lanka Equity Forum
Dear Reader,

Registration with the Sri Lanka Equity Forum would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc..

All information contained in this forum is subject to Disclaimer Notice published.


Thank You
Sri Lanka Equity Forum

Discussion Forum for Stock Market Investors in Sri Lanka

සිංහල පරිවර්තනය
Contribute
Submit Post

Latest topics

» Shares to Buy
by Teller Today at 7:04 pm

» Year end dull market
by chandike73 Today at 6:20 pm

» ALLIANCE FINANCE COMPANY PLC (ALLI.N0000)
by KavinduTM Today at 3:47 pm

» POSITIVE ECONOMIC & POLITICAL STABILITY
by Kipling Today at 1:22 pm

» CSE RULES (CSE වල දැනට තියන නීති ගැන)
by ThilinaM Today at 12:04 pm

» RENUKA CAPITAL PLC (KZOO.N0000)
by ThilinaM Today at 11:54 am

» Seylan right issue
by ThilinaM Today at 11:45 am

» Company එකක් DELIST කරන...
by ThilinaM Today at 11:40 am

» EAST WEST PROPERTIES PLC (EAST.N0000)
by Invest2018 Today at 10:25 am

» What's going on about vone
by glad Today at 9:09 am

» SEYLAN BANK PLC (SEYB.N0000)
by Intrinsicvalue Today at 6:29 am

» Central bankers trigger crises, don’t admit or learn from mistakes: economist at Sri Lanka forum
by fireshelter Yesterday at 11:18 pm

» Sri Lanka targets US$6,500 per capita income by 2025
by fireshelter Yesterday at 11:15 pm

» RENUKA AGRI FOODS PLC (RAL.N0000)
by fireshelter Yesterday at 10:45 pm

» GALADARI HOTELS (LANKA) PLC (GHLL.N0000)
by fireshelter Yesterday at 10:42 pm

» Banking Sector
by PDH Yesterday at 8:16 pm

» Dhammika Perera Aquire ALUF @23 Now at 50%Discount
by NZ BOY Yesterday at 2:02 pm

» Key to staying in the trading game for Day Traders
by NANDANA2012 Yesterday at 11:30 am

» LANKA IOC PLC (LIOC.N0000)
by Teller Yesterday at 10:35 am

» Investment Advice
by Gajaya Yesterday at 9:17 am

» කාලෙකට පස්සෙ එන අවස්තාවක් උදා වෙලා කියලයි - හැබැයි අවදානම තියනවා
by Kipling Sat Dec 14, 2019 9:31 pm

POPULAR COMPANIES
A

ABANS ELECTRICALS PLC

ACCESS ENGINEERING PLC Hot

ACL CABLES PLC

ACL PLASTICS PLC

ACME PRINTING & PACKAGING PLC

AGSTAR PLC

AITKEN SPENCE HOTEL HOLDINGS PLC

AITKEN SPENCE PLC

ANILANA HOTELS AND PROPERTIES PLC

ARPICO INSURANCE PLC

ASIA ASSET FINANCE PLC

ASIA CAPITAL PLC

B

BAIRAHA FARMS PLC

BALANGODA PLANTATIONS PLC

BIMPUTH FINANCE PLC

BLUE DIAMONDS JEWELLERY WORLDWIDE PLC

B P P L HOLDINGS PLC

BROWNS BEACH HOTELS PLC

BROWNS INVESTMENTS PLC

C

CARGO BOAT DEVELOPMENT COMPANY PLC

CENTRAL INDUSTRIES PLC

CEYLON COLD STORES PLC

CEYLON GRAIN ELEVATORS PLC Hot

CEYLON TEA BROKERS PLC

CEYLON TOBACCO COMPANY PLC

CHEVRON LUBRICANTS LANKA PLC

COLOMBO FORT LAND & BUILDING PLC

COMMERCIAL BANK OF CEYLON PLC

CITRUS LEISURE PLC Hot

COMMERCIAL CREDIT AND FINANCE PLC

D

DANKOTUWA PORCELAIN PLC

DFCC BANK PLC

DIALOG AXIATA PLC

DIALOG FINANCE PLC

DIPPED PRODUCTS PLC

DISTILLERIES COMPANY OF SRI LANKA PLC

DUNAMIS CAPITAL PLC

E

EAST WEST PROPERTIES PLC Hot

EASTERN MERCHANTS PLC

EXPOLANKA HOLDINGS PLC

E-CHANNELLING PLC

F

FIRST CAPITAL HOLDINGS PLC

G

GALADARI HOTELS (LANKA) PLC

GUARDIAN CAPITAL PARTNERS PLC

H

HATTON NATIONAL BANK PLC

HAYLEYS PLC

HAYLEYS FABRIC PLC

HAYLEYS FIBRE PLC Hot

HEMAS HOLDINGS PLC

HIKKADUWA BEACH RESORT PLC

HNB ASSURANCE PLC

HVA FOODS PLC

J

JANASHAKTHI INSURANCE COMPANY PLC

JOHN KEELLS HOLDINGS PLC Hot

JOHN KEELLS HOTELS PLC

L

LANKA ASHOK LEYLAND PLC

LANKA IOC PLC

LANKEM CEYLON PLC

LANKEM DEVELOPMENTS PLC

LAUGFS GAS PLC

LAUGFS POWER LIMITED

LOLC FINANCE PLC

LOLC HOLDINGS PLC

LUCKY LANKA MILK PROCESSING COMPANY PLC

M

MELSTACORP PLC

N

NATIONAL DEVELOPMENT BANK PLC

NATION LANKA FINANCE PLC

NESTLE LANKA PLC

O

ORIENT FINANCE PLC

OVERSEAS REALTY (CEYLON) PLC

P

PANASIAN POWER PLC

PEOPLE'S LEASING & FINANCE PLC

PIRAMAL GLASS CEYLON PLC

PRIME FINANCE PLC

R

RAIGAM WAYAMBA SALTERNS PLC

RENUKA AGRI FOODS PLC

RENUKA CAPITAL PLC

RENUKA HOLDINGS PLC

RICHARD PIERIS AND COMPANY PLC

RICHARD PIERIS EXPORTS PLC Hot

ROYAL CERAMICS PLC

S

SAMPATH BANK PLC

SEYLAN BANK PLC

SIERRA CABLES PLC

SINGHE HOSPITALS PLC Hot

SMB LEASING PLC

SOFTLOGIC HOLDINGS PLC

SOFTLOGIC LIFE INSURANCE PLC

SRI LANKA TELECOM PLC

SWISSTEK (CEYLON) PLC Hot

T

TEEJAY LANKA PLC

TESS AGRO PLC

THREE ACRE FARMS PLC

TOKYO CEMENT COMPANY (LANKA) PLC Hot

U

UNION BANK OF COLOMBO PLC

V

VALLIBEL FINANCE PLC

VALLIBEL ONE PLC Hot

VALLIBEL POWER ERATHNA PLC

W

WASKADUWA BEACH RESORT PLC

Advertise

You are not connected. Please login or register

Sri Lanka Equity Forum » Stock Market Talk » FORMER CENTRAL BANK GOVERNOR UNFOLDS 12-POINT REVIVAL PLAN

FORMER CENTRAL BANK GOVERNOR UNFOLDS 12-POINT REVIVAL PLAN

Go down  Message [Page 1 of 1]

Quibit

Quibit
Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics
UNLESS REMEDIAL MEASURES ARE QUICKLY IMPLEMENTED, THE COUNTRY WILL EXPERIENCE TREMENDOUS ECONOMIC PAIN AND HARDSHIPS

Former Central Bank Governor Ajith Nivard Cabraal presented a 12-Point Revival Plan for the Sri Lankan economy, at the Viyathmaga Seminar, held in Matara, on October 6, 2019.

Around 1500 professionals attended the seminar, which was also addressed by former Secretary Charitha Herath, Major General Kamal Gunaratne, Dr. Prasanna Gunasena and Dr. Seetha Arambewela.
Cabraal explained that economic growth is now at a standstill. The debt-to-gdp has risen from 71 percent in 2014 to almost 100 percent now and the government’s interest rates have escalated almost 60 percent and the interest cost has reached a staggering Rs.852 billion in 2018, from Rs.436 billion in 2014.
New investments have dried up and job losses are mounting. Consequently, banks and finance companies are also struggling with massive non-performing loans, due to the slowdown of business activities.
Cabraal warned that unless remedial measures are quickly implemented, the country will experience tremendous economic pain and hardships.

In such circumstances, a special revival plan needs to be implemented, if the business sector is to be revitalised and he set out a 12-Point Revival Plan, which he said a new government will have to immediately start implementing.

God Father


Senior Equity Analytic
Senior Equity Analytic
*12 Point Revival Plan unfolded by Former CB Governor Ajith Nivard Cabraal on 6th October 2019*

Former Governor of the Central Bank of Sri Lanka Ajith Nivard Cabraal presented a 12 Point Revival Plan for the Sri Lankan Economy at the Viyathmaga Seminar held in Matara on Sunday 6th October 2019. Around 1500 professionals attended the Seminar which was also addressed by former Secretary Charitha Herath, Major General Kamal Gunaratne, Dr. Prasanna Gunasena and Dr. Seetha Arambewela.

Cabraal explained that Economic Growth is now at a standstill, Debt to GDP has risen from 71% in 2014 to almost 100% now, and the Government's interest rates have escalated almost 60% and the interest cost has reached a staggering Rs.852 billion in 2018 from Rs.436 billion in 2014. New investments have dried up and job losses are mounting. Consequently, banks and finance companies are also struggling with massive non performing loans due to the slowdown of business activities. Cabraal warned that unless remedial measures are quickly implemented, the country will experience tremendous economic pain and hardships.

In such circumstances, a special Revival Plan needs to be implemented if the business sector is to be revitalised and he set out a 12 Point Revival Plan, which he said a new Government will have to immediately start implementing.

That Plan is set out briefly.

1. Immediately slash tax rates by at least 20% while also abolishing several obnoxious taxes which have seriously affected business sentiment and confidence. Examples are tax on inward remittances and VAT on apartment sales

2. Steer the country's macro-economic fundamentals so that interest rates will contract by at least 20%. It was pointed out that the AWPLR was only around 6% in 2014 but has now zoomed to over 12%. Cabraal stressed that steps must be taken to reduce that rate to around 8% by end 2020.

3. Take steps to stabilize the Exchange rate by instilling confidence among key investors and gradually steer the Sri Lanka Rupee to a value of around Rs.150 per USD by end 2021. Such gradual strengthening of the Rupee will be based on the improvement of the business environment which will then allow all stakeholders to gradually adjust to the strengthening currency.

4. Call for a moratorium on Capital Repayment by customers who service their interest payments without interruption, for a period of 18 months. By doing so, banks and finance companies will not be compromised since their revenue streams will not be affected, while struggling customers will enjoy some much needed short term relief which will allow them time and space to stabilize their businesses. At the same time, special short term measures will need to be implemented at the CRIB so that financial institutions can be advised to take a more flexible approach over the next 18 months to nurse entrepreneurs back to health.

5. Government to establish a Business Revival Fund with a seed capital of about Rs.50 billion on similar lines as done in Malaysia with the creation of the "Danaharta" Fund in the wake of the economic crash due to the Asian crisis. Such a Revival Fund will provide much needed relief to the financial institutions to face the rapidly increasing NPL scenario, while also enabling viable enterprises that were struggling due to the adverse macro conditions to recover and grow, without having to close down permanently.

6. Stabilize all Financial and Banking institutions immediately and wherever necessary, provide liquidity support via the Deposit Insuyand Liquidity Support Fund. For this purpose, earmark a total funding maximum of around Rs.25 billion. Also request the financial institutions to actively pursue opportunities to consolidate

7. Initiate several mega Infrastructure development projects in order to give a significant boost to the real economy at the ground level. Possibly embark on the 600km ellipsical ring expressway around the entire island. These type of projects will signal a new momentum that will be vital to kick-start the economy.

8. Stimulate the village level economy by increasing the purchasing power in the hands of a large segment of the population. To generate that type of activity, release 25% of all Samurdhi balances to the account holders to be spent or invested according to their needs: such an infusion of funds mainly into the village level will lead to a reawakening of the village level economies

9. Unlock the large number of projects that are awaiting approvals for their commencement. Board of Investment to grant approvals for all pending projects that meet with specified criteria within 4 weeks. Building permits to be issued by the UDA and local authorities in 2 weeks. All pending solar and mini hydro projects to be approved in 4 weeks. The start-up of a large number of projects in this manner will further energize the economy.

10. Immediately start on road shows and promotional activities to attract 5 million tourists into Sri Lanka before 2025. Also assist small *airbnb" type enterprises to flourish by improving their image as well as their service levels

11. Renegotiate all unfavorable commercial agreements that have been entered into or to be entered into by the current Government. These will include the Hambantota Port, Mattala Airport, Millennium Challenge Agreement, etc

12. Re-brand Sri Lanka on a continuous basis as a safe Investment destination, a vibrant and growing economy, an attractive tourist paradise, a bustling IT centre, a country with sound health, education and transport infrastructure and services, with rule of law being practiced

Quibit

Quibit
Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics
Join us on Friday the 11th of October 2019 from 1:00pm to 2:30pm for a LIVE Q&A with Mr. Ajith Nivard Cabraal, Former Governor of the Central Bank.

FORMER CENTRAL BANK GOVERNOR UNFOLDS 12-POINT REVIVAL PLAN 71883410

Sponsored content


Back to top  Message [Page 1 of 1]

Permissions in this forum:
You cannot reply to topics in this forum