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.