Advocata Policy Brief : Minimum Room Rates

The proposed minimum room rates seek to place a rate of USD 100 on 5 star hotels, USD 75 for 4 star hotels, USD 50 for 3 star hotels, USD 35 for 2 star hotels, and USD 20 for 1 star hotels within the city of Colombo, effective from October 1, 2023. This will, in effect, act as a price control, ensuring that hotels within these star classifications located within the city of Colombo cannot price their rooms at rates lower than those prescribed by the government. The below policy brief will explore the dynamics of the hotel industry and provide a critical analysis of the potential consequences and challenges of implementing this scheme. By critically evaluating these effects, we aim to provide policymakers and stakeholders with a holistic perspective to inform their decisions.

Here is a link to Advocata’s Policy Brief on Sri Lanka’s Minimum Room Rates

AdvoChats | The Renewable Energy Industry in Sri Lanka with Akhila Randeniya and Prabath Wickramasinghe

Listen to the AdvoChats discussion with Prabath Wickramasinghe (Executive Committee Member & Past President, Small Hydro Power Developers Association) and Akhila Randeniya, (Research Assistant, Advocata Institute) as they speak about the renewable energy sector in Sri Lanka.

Follow @advocatalk on Instagram for future chats https://www.instagram.com/advocatalk/

You can watch the full discussion on Youtube

AdvoChats | Economic Reforms, The Need of the Hour? with Rehana Thowfeek and Daniel Alphonsus

The Advocata Institute hosted its first 'AdvoChats' with Rehana Thowfeek (Economic Researcher and Blogger) and Daniel Alphonsus (Former Advisor to the Ministry of Finance) on the topic 'Economic Reforms, Need of the Hour?' where they discuss the need for economic reforms in Sri Lanka.

Advochats is a series specifically designed to convey the seriousness of the current economic situation of the country to our audience and encourage the crowds to initiate conversations, ask questions and take part in the much-needed discussions on reforms Sri Lanka needs.

Follow @advocatalk on Instagram for future chats https://www.instagram.com/advocatalk/

You can watch the full discussion on Youtube

Razeen Sally delivers Lecture on Three scenarios for Sri Lanka's future

Prof. Razeen Sally delivered a public lecture at the Advocata Institute, last week on Sri Lanka's future.  This is the third edition on Advocata's series of public lectures.  The full lecture is now online.  The event was done in partnership with the Echelon Magazine. 

From Economy Next:

Sri Lanka had windows of opportunity to change direction in the past, but had 'missed the bus' several times in its post-independence history according to many commentators.

Sally recalled something that is said often about Brazil: "Brazil is the country of the future, it always was and it always will be.

"There is that golden potential out there, but it is never achieved," Sally said.

"Of course Sri Lanka never misses an opportunity to miss an opportunity. I hope that opportunity has not been squandered. It is late in the day, but it is still there."

Sri Lanka's economy did not have enough competition with 'commanding heights' of the economy controlled by oligarchs. 

The country was in the grip entrenched political and economic interests without any new blood to bring change and competition.

"Sri Lankan economy has a competitiveness problem," Sally said. "It has a productivity problem," The way to raise productivity and to raise competitiveness is to have a stronger private sector. 

"And also to have much more globalization of the Sri Lankan economy. More trade, more exports import as well as more foreign investments.

Doing business policies had to change. A combination of domestic and private sector investment was needed to transform the economy to have 6-8 percent growth.

Reforms were needed to bring 3 to 5 billion US dollars of foreign investment. 

Sri Lanka needed simple and predictable tax policies.

"No more price controls, no more announcements of exchange controls."

A stable macro-economic policy that went beyond the IMF program, including tax reforms that were genuinely simpler and relatively low without sudden changes was needed.  Institutional checks were needed including a genuinely independent central bank with better policies.

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