Online Discussion: How Can We Improve Sri Lanka's Debt Sustainability?

ONLINE DISCUSSION by Advocata Institute featuring Prof. Ricardo Hausmann (Director Growth Lab, Harvard University's Center for International Development), Prof. Mick Moore (Political Economist, Founding CEO & Senior Fellow, International Centre for Tax and Development, Professorial Fellow, Institute of Development Studies), Dr. Nishan De Mel, (Economist, Executive Director, Verité Research). The Panel was moderated by Dr.Roshan Perera (Economist, Former Director Risk Management Department of the Central Bank of Sri Lanka and co-moderated by Aneetha Warusavitarana (Research Manager, Advocata Institute).

To watch Murtaza Jaffarjee’s Three-part Primers on Debt Sustainability, Fiscal Performance and Economic Growth.

To watch the video on Youtube

Deep Dive EP 1. 3 : How Can We Improve Debt Sustainability in Sri Lanka | A Primer on Economic Growth

The Advocata Institute launched its latest public policy discussion series 'DeepDive'. This series commenced with several discussions on the topic "How can we improve Sri Lanka's Debt Sustainability?".

The discussion series kickstarted with three-part primers by Mr. Murtaza Jafferjee, Chairman of the Advocata Institute.

Print media partner - Daily FT

This is the final part of a three-part primer.

Click here to access the presentation by Mr. Murtaza Jafferjee

To watch the Primer on Debt Sustainability

To watch the Primer on Fiscal Performance

Watch this video on Youtube 





Deep Dive EP 1. 2 : How Can We Improve Debt Sustainability in Sri Lanka | A Primer on Fiscal Performance

The Advocata Institute launches its latest public policy discussion series ‘DeepDive’. This series commences with several discussions on the topic “How can we improve Sri Lanka's Debt Sustainability?”.

The discussion series kickstarted with three-part primers by Mr. Murtaza Jafferjee, Chairman of the Advocata Institute.

This is the second part of a three-part primer.

Print media partner - Daily FT

Click here to access the presentation by Mr. Murtaza Jafferjee

To watch the Primer on Debt Sustainability

To access the Primer on Economic Growth

Watch this video on Youtube 





Deep Dive EP 1. 1 : How Can We Improve Debt Sustainability in Sri Lanka | A Primer on Debt in Sri Lanka

The Advocata Institute launches its latest public policy discussion series ‘DeepDive’. This series commences with several discussions on the topic “How can we improve Sri Lanka's Debt Sustainability?”.

The discussion series kickstarts with a primer on debt sustainability, presented by Mr. Murtaza Jafferjee, Chairman of the Advocata Institute. This is the first part of a three-part primer, focusing on Sri Lanka's debt sustainability.

Print media partner - Daily FT

To access the presentation by Mr. Murtaza Jafferjee

To access the Updated presentation on Debt Sustainability

To access the second Primer on Fiscal Performance

To access the third Primer on Economic Growth

Watch this video on Youtube 





NEWS RELEASE: The Advocata Institute Event Series on “How can we improve Sri Lanka's Debt Sustainability?”

NEWS RELEASE

Originally appeared in the Daily News and Daily Mirror

COLOMBO, Sri Lanka—  The Advocata Institute launches its latest public policy discussion series ‘DeepDive’. The series will commence with several discussions on the topic  “How can we improve Sri Lanka's Debt Sustainability?”. The discussion series will kickstart with a lecture on the same topic, presented by Mr. Murtaza Jafferjee, Chairman of the Advocata Institute. 

This lecture will be released in the lead up to the first discussion, which will feature an eminent panel consisting of Prof. Ricardo Hausmann  (Director Growth Lab, Harvard University's Center for International Development), Prof. Mick Moore (Political Economist | Founding CEO & Senior Fellow, International Centre for Tax and Development| Professorial Fellow, Institute of Development Studies), Dr. Nishan De Mel, (Economist | Executive Director, Verité Research). The Panel would be Moderated by Dr.Roshan Perera (Economist | Former Director Risk Management Department of the Central Bank of Sri Lanka and  Aneetha Warusavitarana (Research Manager, Advocata Institute). The event would be live-streamed on the Advocata Institute Facebook on the 30th of September at  3.45 PM. 

The Advocata Institute remains committed to finding policy solutions to key challenges holding back Sri Lanka’s road to development. Debt sustainability remains a key structural issue affecting Sri Lanka’s Economy. With the emergence of the COVID 19 Pandemic, economies have experienced worsening debt positions.  Sri Lanka’s position has become precarious, with total repayments  (of capital and interest for 2020) amounting to an estimated $ 4.2 billion according to the Ministry of Finance Annual Report. The discussion series would discuss in detail policies and strategies that would enable Sri Lanka to meet all its current and future payment obligations without exceptional financial assistance supported by an analysis of our current position. 

The Advocata Institute cordially invites members of the public to tune into the Live streamed event on Advocata Institute Facebook Page. Questions will be taken online through SLIDO.com Code:#DEEPDIVE. The lecture on "How can we improve Sri Lanka's Debt Sustainability?" would be available on https://www.youtube.com/channel/UCB9AgjGYUTJhpdjAid4Y2Lg/featured, to get a comprehensive understanding of debt sustainability and how it affects Sri Lanka’s economy and livelihoods of all Sri Lankan’s. To keep yourself updated register at https://forms.gle/hUSNVK7QCZdBCyMJ6

Advocata is an independent policy think tank based in Colombo, Sri Lanka. We conduct research, provide commentary and hold events to promote sound policy ideas compatible with a free society in Sri Lanka. Visit advocata.org for more information.

Advocata spokespersons are available for live and pre-recorded broadcast interviews via 077 621 6788

CONTACT:

Yasodara Kariyawasam,

Communications Manager, Advocata Institute

Email: yasodhara@advocata.org

Dhananath Fernando on the Lane law and the economy

Dhananath Fernando, Chief Operating Officer of the Advocata Institute was featured on the News1st Newsline Live that was aired on the 17th of September. Dhananath comments on the transportation and infrastructure system in Sri Lanka and how it immensely affects the economy of the country. He addresses that the priority of Lane law is to encourage the general public to use public transport as a mode of transport. In addition, Dhananath also comments on Sri Lanka’s imports restrictions and exports.

NEWS RELEASE: Sri Lanka ranks 83 among 162 jurisdictions on the Economic Freedom of the World index

NEWS RELEASE

Originally appeared in the Daily FT, Daily Mirror, Ceylon Today, Economy Next, Colombo Telegraph , Lanka Business Online, Ada Derana, Sunday Observer and Daily News

Colombo, Sri Lanka— Sri Lanka ranks 83  out of 162 countries and territories included in the Economic Freedom of the World: 2020 Annual Report, released by Canada’s Fraser Institute in association with the Advocata Institute Sri Lanka. 

Hong Kong and Singapore top the index, continuing their streak as 1st and 2nd respectively. New Zealand, Switzerland, the United States, Australia, Mauritius, Georgia, Canada, and Ireland round out the top 10.  

Research shows that people living in countries with high levels of economic freedom enjoy greater prosperity, more political and civil liberties, and longer lives. For example, countries in the top quartile of economic freedom had an average per-capita GDP of $44,198 in 2018 compared to $5,754 for countries in the bottom quartile.

Moreover, in the top quartile, the average income of the poorest 10 percent was $12,293 compared to $1,558 in the bottom quartile. Interestingly, the average income of the poorest 10 percent in the most economically free countries is more than twice the average per-capita income in the least free countries.

Sri Lanka’s ranking for Economic Freedom

According to the Fraser Institute Report on Economic Freedom,  Sri Lanka gained 15 places to be ranked 83 compared to the previous year where the country was ranked 98. Sri Lanka’s scores in key components of economic freedom (from 1 to 10 where a higher value indicates a higher level of economic freedom):

Press Release, table (1).png

“It is noteworthy that this 2020 annual report is based on the data for 2018. If it were based on the data for 2018, 2019, and 2020, for Sri Lanka, there could have been a different score, most likely a lower rank and a smaller score compared to 83 and 6.88 for 2018,” commented Dr Sarath Rajapatirana,  Chair of the Academic Programme at the Advocata Institute.  “This is based on the categories: 1. Size of Government, 2: Legal System and Property Rights, 3: Sound Money,  4: Freedom to Trade Internationally, 5: Regulation. During this period the size of Government increased, freedom to trade did not improve with para-tariffs still in place while regulations were not clearly defined.  With COVID 19 pandemic coming into Sri Lanka in March 2019, economic freedom had to be curtailed with a complete lockdown of activities. But this was a precautionary strategy. Without a lockdown, it could have been worse. Sri Lanka did better than most countries. The danger is that the measures adopted could be retained which would restrain economic freedom beyond what was necessary to restrain the virus. “  he went on to say.

Sri Lanka is particularly weak in the category related to “Legal System and Property rights” in the index with little improvement from last year’s report.   According to Professor Sirimal Abeyratne Professor in Economics at the University of Colombo and advisor to Advocata Institute,   "Economic freedom requires discipline and discipline is constituted by the rule of law. Proponents of economic freedom lose ground when they forget this. Opponents of economic freedom look smart when they ignore this. Economic freedom ensures the prosperity of a nation, only when it is founded on the rule of law."  

About the Economic Freedom Index

The Fraser Institute produces the annual Economic Freedom of the World report in cooperation with the Economic Freedom Network, a group of independent research and educational institutes in nearly 100 countries and territories. It’s the world’s premier measurement of economic freedom, measuring and ranking countries in five areas—size of government, legal structure and security of property rights, access to sound money, freedom to trade internationally and regulation of credit, labour and business.

This year’s publication ranks 162 countries and territories. The report also updates data in earlier reports where data has been revised.

For more information on the Economic Freedom Network, datasets and previous Economic Freedom of the World reports, visit www.fraserinstitute.org. And you can “Like” the Economic Freedom Network on Facebook at www.facebook.com/EconomicFreedomNetwork. See the full report at www.fraserinstitute.org/economic-freedom.

Advocata spokespersons are available for live and pre-recorded broadcast interviews via 077 621 6788

CONTACT:

Yasodara Kariyawasam,

Communications Manager, Advocata Institute

Email: yasodhara@advocata.org

Advocata on Public Savings and Investments

Dhananath Fernando, Chief Operating Officer of the Advocata Institute was featured in the News1st English Prime Time Bulletin that was aired on the 16th of September at 9.00 PM. Dhananath comments on how trust is important when it comes to investment. He also mentions that when it comes to the savings in banks, the public is skewed to State-owned banks due to the perception that the government will intervene and rescue if a problem arises.

NEWS RELEASE: The Advocata Institute Discusses the case for Women’s Representation in Government

NEWS RELEASE

Originally appeared in the Economy Next, Lanka Business Online and Daily FT

COLOMBO, Sri Lanka— The Advocata Institute hosted a live online discussion on “Female under-representation and its socio-economic impact” via our YouTube channel on the 6th of September 2020. 

The panelists for the discussion were Dr. Sujata Gamage (Advisor to the Advocata Institute), Vraie Cally Balthazaar (Social Entrepreneur, Activist, Media Professional), Lihini Fernando (Member of Moratuwa Municipal Council, Attorney at Law, Women's Activist) and Sherien Perera (Marketer, Corporate Trainer). The session was moderated by Sathya Karunarathne (Research Executive (Policy) Advocata Institute). 

The World Gender Gap Report published by the World Economic Forum ranked Sri Lanka amongst the top 20 countries in 2006. However, as previously highlighted by the Advocata Institute Sri Lanka has drastically slipped in the rankings and has descended to be ranked 102 out of 153 countries in the year 2020 despite performing well on other indicators such as health and education. This is clearly reflected in our current majority-male parliament. Despite Sri Lanka’s women constituting 52% of the population, they are left unrepresented in parliament and deprived of positions of power and access to national decision making and policy implementation. The Advocata Institute through the panel discussion highlighted the importance of improving female representation in parliament.

Given the myriad of issues Sri Lankan women face; ranging from discriminatory laws, taxes that disproportionately affect women, and labour laws that impede their entry and retention in the labour force, it is all the more important that women are represented in parliament. 

The discussion identified key issues preventing female leaders from getting into key policymaking roles. Some of these issues include structural barriers faced by women when entering into politics, especially due to the existence of pedigree politics in Sri Lanka, illustrating the urgent need to extend the minimum female quota to provincial councils and the parliament. Other issues identified by the panelists include a lack of access to finances. We believe that there needs to be a level playing field as skyrocketing campaigning costs deprive competent and hardworking women from entering parliament. Another important issue being the lack of female role models in Sri Lankan politics, highlighting the immediate need to empower female role models both in politics and governance, and the need for a support system within political parties for women.  

Implementing policies that reduce these structural barriers preventing the political empowerment of women would be a starting point to address this issue. As agreed by our panelists, creating a transparent and fair framework to finance election campaigns through the Election Finance Act, encouraging women to obtain a varied education, empowering female leadership in our communities and introducing a mandatory quota for women in the National list for major political parties would be a progressive step towards increasing female representation in government.    

The event can be accessed on https://www.youtube.com/watch?v=yN4qhGDa3k8. 

Advocata is an independent policy think tank based in Colombo, Sri Lanka. We conduct research, provide commentary and hold events to promote sound policy ideas compatible with a free society in Sri Lanka. Visit advocata.org for more information.

Advocata spokespersons are available for live and pre-recorded broadcast interviews via 077 621 6788

CONTACT:

Yasodara Kariyawasam,

Communications Manager, Advocata Institute

Email: yasodhara@advocata.org

Online discussion: Female Under-representation in Government & Its Socio-economic Impact දේශපාලනයේ කාන්තා අවම නියෝජනය සහ එහි සමාජ ආර්ථික බලපෑම්

The Advocata Institute hosted a live online discussion on “Female under-representation and its socio-economic impact” via our YouTube channel on the 6th of September 2020. 

The panelists for the discussion were, 

Dr. Sujata Gamage (Advisor to the Advocata Institute), Vraie Cally Balthazaar (Social Entrepreneur, Activist, Media Professional), Lihini Fernando (Member of Moratuwa Municipal Council, Attorney at Law, Women's Activist) and Sherien Perera (Marketer, Corporate Trainer). The session was moderated by Sathya Karunarathne (Research Executive (Policy) Advocata Institute). 

The discussion focused on gender discriminatory and insensitive laws and policies and its socio-economic impact.

Click here to access the opening presentation by Sathya Karunarathne

Watch this video on Youtube 





News Release E-Registry proposal by the DCS satisfies a much-needed reform for MSEs

NEWS RELEASE

Originally appeared in the Economy Next, Daily FT, Daily Mirror and Ada Derana

COLOMBO, Sri Lanka— The Advocata Institute commends the decision taken by the Department of Census and Statistics (DCS) to launch an e-registry portal to register unregistered and registered businesses in Sri Lanka.  Advocata Institute looks forward to the fruition of this proposal and calls upon Cabinet to support this reform. This will allow thousands of Sri Lankan entrepreneurs, unregistered micro, small and medium businesses to formalize their ventures and gain access to formal sources of finance. 

Research carried out by the Advocata Institute identifies a significant array of regulatory barriers that discourage or hinder micro and small enterprises. An all-island survey carried out during the course of our research identifies access to finance as a critical problem. Further analysis identifies the complexity of the business registration process and related regulation as a barrier to registration.  According to the DCS, 45% of micro-enterprises and 10% of small enterprises remain unregistered in Sri Lanka, even though sole proprietorships account for 63.1% of all businesses in the country, and account for 27.1% of national employment. Reforming the registration process through the proposed e-registry achieves the commendable objective of reducing barriers faced by micro and small enterprises. 

Advocata Institute’s report titled “Barriers to Micro and Small Enterprises in Sri Lanka” which can be accessed on https://www.advocata.org/ provides a comprehensive analysis of the problems faced by these businesses.  A key reform recommendation of the report is the establishment of an E-Registry. While commending the DCS for putting forward this timely reform, we further invite all policymakers to rally behind the task of reducing the documentation and approvals required to register a sole proprietorship or a partnership in Sri Lanka and bring the process in line with that of registering a private company. 

Implementing policies that incentivize the registration of businesses would be a step towards achieving the government’s vision of empowering entrepreneurs and creating a vibrant national ecosystem for businesses.  

Advocata is an independent policy think tank based in Colombo, Sri Lanka. We conduct research, provide commentary and hold events to promote sound policy ideas compatible with a free society in Sri Lanka. Visit advocata.org for more information.

Advocata spokesmen are available for live and pre-recorded broadcast interviews via 077 621 6788

CONTACT:

Yasodara Kariyawasam,

Communications Manager, Advocata Institute

Email: yasodhara@advocata.org

Dr Sujata Gamage comments on the allocation of portfolios for ministers

Dr. Sujata Gamage Advisor to the Advocata Institute was featured on "Pathikada" that was aired on the 13th of August. Dr. Gamage commented on the allocation of portfolios for ministers, the role of state ministers, district coordinating committees, the number of ministers appointed, and the way forward.

Advocata ආයතනයට උපදේශිකවරියක් වන ආචාර්ය සුජාතා ගමගේගේ "පැතිකඩ" වැඩසටහනට අගෝස්තු 13 වන දින සම්බන්ද වන ලදී. අමාත්‍යවරුන් සඳහා අමාත්‍යංශ වෙන් කිරීම, රාජ්‍ය අමාත්‍යවරුන්ගේ කාර්යභාරය, දිස්ත්‍රික් සම්බන්ධීකරණ කමිටු, පත්කරන ලද අමාත්‍යවරුන් සංඛ්‍යාව සහ ලංකාව ඉදිරියට යා යුත්තේ කෙසේද යන්න පිලිබඳ එතුමිය අදහස් දැක්වීය.

Online discussion on Sri Lanka's Economy Post Election? ඡන්දෙන් පසුව ශ්‍රී ලංකාවේ ආර්ථිකය?

The Advocata Institute hosted an online discussion on Zoom with Prof. Ranjith Bandara, (SLPP), Prof. Ashu Marasinghe (UNP), Dr. Anil Jayantha Fernando ( NPP), Dr. Harsha de Silva (SJB) moderated by Dhananath Fernando (COO, Advocata Institute) and Sathya Karunarathne (Research Executive, Advocata Institute) on their take on the economy and their proposed economic policies for a prosperous Sri Lanka post-General Election 2020.

Click here to access the opening presentation by Dhananath Fernando and Sathya Karunarathne

Watch this video on Youtube 





Extension of import controls further batters Sri Lankan economy

NEWS RELEASE

Originally appeared in the Daily News, Daily Mirror, Daily FT, Ada Derana and Ceylon Today

COLOMBO, Sri Lanka— According to the Extraordinary Gazette No 2182/10 of June 2020, import controls imposed by the earlier gazette Number 2176/19 of 22 May 2020 have been extended for another six months commencing from the 2nd of July 2020. The Sri Lankan economy, battered by the impact of the curfew and global recessionary patterns is in dire need of liquidity and access to credit. Downward pressure on the currency worsened the LKR’s position in the foreign exchange market which in turn led to a significant foreign exchange shortage during the COVID 19 Lockdown.  

To protect the currency, the Ministry of Finance (MOF) announced import restrictions on consumption. Therefore by use of the above extraordinary gazettes, the import of vehicles, refrigerators, luxury goods, certain raw materials and fruits and vegetables have been further restricted. Considering the nature of the emergency, it would be acceptable to limit the import of luxury goods and vehicles temporarily however import controls on consumer goods would be harmful and inflationary.  

 The Advocata Institute argues that such import restrictions will further hamper Sri Lanka’s growth prospects and will disadvantage businesses that rely on imported raw materials. As reported by the Central Bank, imported consumer goods only amount to 19.8% of total imports, while 57% of imports are intermediate goods for production. Therefore local manufacturers are already starting to experience the adverse effects of the import controls. One such key industry is the confectionery industry which is experiencing a  340% special commodity levy on block fat and margarine. The industry is already impacted by increased taxes on palm oil and sugar and is expected to experience an additional cost of Rs. 500 million to Rs. 600 million per month with import tax increases. The confectionery industry, directly and indirectly, employs over 600,000 people while exporting to over 55 counties bringing in $100 million in export revenue. 

Key Points 

  • Advocata urges the government to eliminate import controls on consumer goods and raw materials, as import restriction would distort production and raise the price of goods.

  • Importance of respecting consumer choice, while allowing imports of essential products which will allow for domestic production chains to sustain themselves.

  • Maintenance of competitive and stable exchange rates to boost and support local producers as an essential tool to help the post lockdown recovery.

The Advocata Institute looks forward to venturing into exciting research in economic policy in the upcoming year. For more information on The Advocata Institute, visit https://www.advocata.org.

Advocata is an independent policy think tank based in Colombo, Sri Lanka. We conduct research, provide commentary and hold events to promote sound policy ideas compatible with a free society in Sri Lanka. Visit advocata.org for more information.

Advocata spokesmen are available for live and pre-recorded broadcast interviews via 077 621 6788

CONTACT:

Yasodara Kariyawasam,

Communications Manager, Advocata Institute

Email: yasodhara@advocata.org

ශ්‍රී ලංකාවේ රජය සතු ව්‍යවසායන් 2019 දී අඛණ්ඩව විශාල පාඩු විඳිමින් සිටී

රජයට අයිති ව්‍යාපාරය ලබන සම්පූර්ණ පාඩුව සෙවීමට  කලින් රජයට ව්‍යාපාර කීයක් අයිතිද කියා සොයා බලා ලයිස්තුවක් සෑදිය යුතුයි. 

නැරඹීමට මෙතන ක්ලික් කරන්න

State-Owned Enterprises in Sri Lanka continue to suffer massive losses in 2019

Aneetha Warusavitarana, Research Manager of the Advocata Institute was featured in the News1st English Prime Time Bulletin that was aired on the 26th of June at 9.00 PM. Discussing the loss-making SOEs Aneetha recommended reforms which include compiling a comprehensive list of all State-Owned entities, an ongoing monitoring setup with a clear framework to track Key Performance Indicators in line with the OECD’s guidelines on corporate governance of state enterprises and strengthening the Parliamentary Committee on public accounts, and the Parliamentary Committee on public enterprises to improve accountability within the system

“In 2019 the total losses sustained by the key 52 state entities amounted to rupees 151 billion, with budgetary support amounting to 49 billion. Of this 49 billion budgetary support, 20 billion was allocated for recurrent expenditures on salaries and overhead costs. The key reason for these losses is the lack of oversight and governance structures in state enterprises” 

Click here to watch

The Advocata Institute Celebrates Four Years

NEWS RELEASE

Originally appeared in the Daily FT, Ada derana, businessnews.lk and Ceylon Today

COLOMBO, Sri Lanka— The Advocata Institute is pleased to celebrate its fourth anniversary as an independent policy think tank in Sri Lanka. The institute was established in April 2016 as a platform to discuss issues of economic freedom, progress and prosperity in Sri Lanka. Since its inception, the organisation has actively engaged in policy debates in Sri Lanka and hopes that it has contributed positively to the discussion.

The Advocata Institute started with its flagship report on state-owned enterprises and has since then published on price controls and barriers to enterprise. The Advocata Institute co-hosted Atlas Network’s Asia Liberty Forum in 2019 with 250 academics, with leading economic and policy thinkers from over 30 countries in attendance. The launch of their Red Tape project earlier this year, to identify and advocate against legal and regulatory restrictions faced by businesses in Sri Lanka, provided entrepreneurs with a powerful platform to express their thoughts. In the recent past, The Advocata Institute brought together leaders in the export, tourism and the banking and finance industry to unpack the consequences of Covid-19 on the economy. Advocata looks forward to hosting virtual events as the ‘new normal’ unfolds in Sri Lanka.

The Advocata Institute set a high standard for think tanks in the country as they earned a place in the ‘Go to Think Tank Global Index’ by the University of Pennsylvania in 2017 and 2018. Additionally, Advocata’s report on State-Owned enterprises in Sri Lanka, written in 2016 gained a place on the coveted list of the Best Policy Study-Reports.  

“I would like to thank our Chair Mr. Murtaza Jafferjee, our Chair for the Academic Programme Dr. Rajapatirana as well as our board of advisors, policymakers, public representatives and party leaders who have shown their support by receiving and sharing their policy briefs, the media and the citizens of Sri Lanka” expressed Dhananath Fernando, the Chief Operating Officer. 

The Advocata Institute looks forward to venturing into exciting research in economic policy in the upcoming year. For more information on The Advocata Institute, visit https://www.advocata.org.

Advocata is an independent policy think tank based in Colombo, Sri Lanka. We conduct research, provide commentary and hold events to promote sound policy ideas compatible with a free society in Sri Lanka. Visit advocata.org for more information.

Advocata spokespersons are available for live and pre-recorded broadcast interviews via 077 508 0256

Menstrual Hygiene Day: Advocata Institute recommends tariff removal for sanitary napkins

PRESS RELEASE

Originally appeared in the Daily News, Daily Mirror and Adaderana

The Advocata Institute recommends that the government removes the tax levied on menstrual hygiene products for women, this Menstrual Hygiene Day. The female population in Sri Lanka is 52% of the total population, with approximately 4.2 million menstruating women. However, for many Sri Lankan women, access to safe and affordable menstrual hygiene products has become a luxury. A main contributor to the unaffordability of menstrual hygiene products in Sri Lanka is the taxes levied on imported menstrual hygiene products. The Advocata Institute explores this issue in-depth in a newly released policy brief, which can be found on their website www.advocata.org.

Sanitary napkins and tampons are taxed under the HS code HS 96190010. The import tariff levied on these products is 52%, and until September 2018, the tax on sanitary napkins was 101.2%. The components of this structure were Gen Duty (30%) + VAT (15%) + PAL (7.5%) + NBT (2%) and CESS (30% or Rs.300/kg). 

Calculations made by the Advocata Institute through the Tariff Calculator, Customs Department of Sri Lanka.

Calculations made by the Advocata Institute through the Tariff Calculator, Customs Department of Sri Lanka.

The removal of this significant barrier to girls' education, women’s health and labour force participation will create a wide-scale positive impact on closing Sri Lanka’s present gender gap and facilitate more inclusive economic growth. 

Key Recommendations

In light of the continued unaffordability of menstrual hygiene products for women in Sri Lanka, the Advocata Institute proposes the following policy recommendations:

  • The Ministry of Finance should remove PAL (10%) and General Duty (30%) components from the current taxation structure pertaining to essential menstrual hygiene products in Sri Lanka, bringing the total tax levied on these products down to 8%.

  • The Ministry of Finance should declare the reduction in taxes through the means of an extraordinary gazette. 

Advocata is an independent policy think tank based in Colombo, Sri Lanka. We conduct research, provide commentary and hold events to promote sound policy ideas compatible with a free society in Sri Lanka. Visit advocata.org for more information.

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Impact of COVID-19 on small and micro enterprises, unregistered businesses

Aneetha Warusavitarana, Research Manager of the Advocata Institute, was featured in the News1st English Prime Time Bulletin that was aired on the 04th of May at 9.00 PM. Discussing the impact of Covid-19 on small and micro enterprises, Aneetha weighed in on certain stakeholders such as unregistered businesses that remain invisible to policymakers and government officials.

“Even though Sri Lanka is seeing a relaxation of curfew measures, it will be a while before the economy opens fully and returns to a pre-Covid level of activity. Business registration is vitally important within this context as it is a prerequisite to opening a bank account, being eligible for formal assistance and even applying for something like a curfew pass.” 

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Advocata panel discusses way forward with Banking Sector Leaders

PRESS RELEASE

Originally covered in Ceylon Today

The fourth installment in a series of online events centering on the Sri Lankan economy in light of Covid-19 explored the way forward for Sri Lanka’s banking and financial sector.

The discussion was moderated by Murtaza Jafferjee (CEO, JB Securities and Chairperson, Advocata), and the panelists were Yvette Fernando (Assistant Governor, Central Bank of Sri Lanka), Manil Jayesinghe (Senior Partner, Ernst & Young), Roshan Abeygoonewardena (Chairman, The Finance Houses Association- Sri Lanka) and Jonathan Alles (Managing Director/ CEO, Hatton National Bank).

Yvette Fernando, (Assistant Governor, Central Bank of Sri Lanka) emphasised that banking is vital for healthy economic development. The expectation of the government is that there will be a slack period and that public welfare will have to be provided at this juncture. By providing early debt relief, the hope is that things will get back to normal, and cash flow will start to come in.

Jonathan Alles  (Managing Director/ CEO, Hatton National Bank) spoke on how the new norm will be to go digital in 2020. This switch to digital platforms should be something that is continued, even post-Covid.  The panel also touched on some of the practical issues the sector is facing. As stated by Roshan Abeygoonewardena (Chairman, The Finance Houses Association- Sri Lanka), about 66% of their branches are located outside the western province. During curfew and non curfew period, all out-station branches were opened for about 2-3 hours during the 6-hour lift of curfew, in order to provide banking services to customers.

Manil Jayesinghe (Senior Partner, Ernst & Young) touched on the macro perspective, given that most major economies in the world will be facing a contraction, factors like accounting standards are of greater importance; they would reassure and attract investors in the country.