SL business says investment policies unclear, unpredictable
Many Sri Lankan businessmen lament over the lack of clear policies by the new government, which has forced them to halt their ventures till the proposed political transformation after April via elections.
“We’re awaiting clear policies. It’s now unpredictable. The government hasn’t come up with a concrete policy pertaining to business,” the chairman of a large conglomerate told the Business Times. He said as a result he’s waiting for general elections to be over and then test the business climate.
Another businessman said there’s an acute absence of clear, strong leadership. “All are making statements; we don’t know whom to listen to,” he added.
But there were others who didn’t take it to heart. “Overall, business sentiment in Sri Lanka is a wait-and-see approach. This is due to most people not being certain about the political climate and the policies that are expected going forward. Overall, market participants are bullish about the state of the Sri Lankan economy, but await policy clarity prior to committing real funds,” Deshan Pushparajah, Head of Investment Banking Capital Alliance, said.
He also said that in the meantime, consumption continues to pick up due to the budget concessions and therefore earnings may come in much higher over the next few months. Suresh Shah, Chairman Ceylon Chamber of Commerce noted that local corporates are tenacious which is evident from the fact that they forged on with their businesses during the 30-year old war and also in spite of it.
“So, Sri Lankan companies are investing in spite of all the uncertainty. But what we hear is that despite there being a healthy foreign appetite to invest, the foreigners are waiting till the general elections,” he said adding that ‘uncertainty’ is a big problem from a country perspective. “Elections are looming and it’s not a good thing. When they’re over, there will be certainty.”
A top lady CEO noted that many businesses feel that the business environment isn’t corrupt anymore. “All are positive. I am feeling a real difference.”