IMF & The Urgency of State-Owned Enterprise Reforms

In the wake of Sri Lanka's economic challenges, it is undeniable that State Owned Enterprises (SOEs) have had a substantial impact on the country's fiscal health. They squander resources, land, labour, and add to the debt burden. They monopolize markets limiting competitiveness and contribute to the inefficiency in the economy. At this economic juncture, the necessity for SOE reforms is not just a matter of economic prudence; it is a matter of national importance. Without swift and comprehensive SOE reforms, we risk prolonging our current economic downturn.

The Advocata Institute hosted a press briefing on IMF & The Urgency of State-Owned Enterprises Reforms, to create further awareness and public debate on the urgency of implementing reforms to State Owned Enterprises (SOE’s). This Press Brief was held at BMICH, Tulip Hall on October 10.

The Event commenced with a 15 minute presentation by Rehana Thowfeek, Research Associate at the Advocata Institute analysing the issues surrounding SOE’s and their link to broader macroeconomic issues. Following this, there will be introductory remarks by the main speakers for the evening:

• Professor Rohan Samarajiva - Advisor, Advocata Institute.

• Mr. Dhananath Fernando - Chief Executive Officer, Advocata Institute.

• Mr. Ravi Rathnasabapathy - Independent Consultant

The Presentation by Rehana Thowfeek can be found here

The Full video of the briefing can be found here

Sri Lanka Slips in Economic Freedom

Originally appeared in the The Island, Daily Mirror, Economy Next, Lanka Business online, NewsWire

Sri Lanka ranks 116 out of 165 jurisdictions included in the Economic Freedom of the World: 2023 Annual Report, released by Advocata Institute in conjunction with Canada’s Fraser Institute. The current ranking represents a decline in the economic freedom of the country which ranked 104th during 2020.

The report measures the economic freedom of individuals—their ability to make their own economic decisions—by analyzing the policies and institutions of 165 jurisdictions. The policies examined include regulation, freedom to trade internationally, size of government, legal system and property rights, and sound monetary policy. The 2023 report is based on data from 2021, the last year with available comparable statistics across jurisdictions.

Sri Lanka’s decline in score was driven by 4 out of the 5 sub indicators of economic freedom registering declines in their respective individual scores. These indicators are the size of government, access to sound money, freedom to trade internationally, and the regulation of credit, labour, and business. The only indicators that registered an improvement in its score is the indicator of legal system and property rights.

“The report captured a stark warning: Sri Lanka's economic freedom declined prior to the economic crisis of 2022, a testament to the vulnerability of nations with limited economic freedom in the face of economic turmoil. If the country is to recover, Sri Lanka must prioritize economic growth within the framework of maximising economic freedom for its citizens to trade, work, and transact freely in a stable monetary and fiscal environment” said Dhananath Fernando, Chief Executive Officer at the Advocata Institute.

The number one spot is now occupied by Singapore, followed by Hong Kong, Switzerland, New Zealand, the United States, Ireland, Denmark, Australia, the United Kingdom, and Canada. Other notable countries include Japan (20th), Germany (23th), France (47th) and Russia (104th).

Venezuela once again ranks last. Some countries such as North Korea and Cuba can’t be ranked due to lack of data.

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 measure of economic freedom.

The report was prepared by Professor James Gwartney of Florida State University and Professors Robert A. Lawson and Ryan Murphy of Southern Methodist University.

According to research in top peer-reviewed academic journals, 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 US$48,569, compared to US$6,324 for bottom quartile countries. Poverty rates are lower. In the top quartile, less than one per cent of the population experienced extreme poverty (US$1.90 a day) compared to 32 per cent in the lowest quartile. Finally, life expectancy is 81.1 years in the top quartile of countries compared to 65 years in the bottom quartile.

“Where people are free to pursue their own opportunities and make their own choices, they lead more prosperous, happier and healthier lives,” Fred McMahon, Dr. Michael A. Walker Research Chair in Economic Freedom with the Fraser Institute said.

See the full report at www.fraserinstitute.org/economic-freedom.

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.

Economic Freedom of the World measures how policies and institutions of countries support economic freedom. This year’s publication ranks 165 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, go to www.fraserinstitute.org/economic-freedom.

The Government Should Rethink the Minimum Room Rates Policy

Originally appeared in the Daily FT, Daily Mirror, Daily News, Lanka News Web

The Advocata Institute expresses concern over the recent proposal by the Sri Lankan Authorities to impose minimum room rates on hotels in the city of Colombo.  

This proposal, set to take effect from October 1st 2023, stipulates rates of USD 130 for 5-star hotels, USD 100 for 4-star hotels, and USD 80 for 3-star hotels. While the authorities argue that this measure aims to counter underpricing by higher-tier hotels, this policy threatens to undermine the growth and vitality of the tourism sector. It places an unnecessary burden on hoteliers already grappling with the challenges posed by the global pandemic and subsequent economic crisis. Further, it undermines the country’s competitiveness in the regional tourism market.  

Pricing acts as a reflection of the quality of services offered by hotels and serves as a differentiating factor. If prices fail to accurately represent the services provided, customer dissatisfaction can ensue, especially when compared to more competitively priced options in neighboring countries such as Thailand and Vietnam. This is supported by a comment made by the Sri Lanka Association of Inbound Tour Operators (SLAITO) which states that “before implementing such prescribed rates, it is crucial to generate demand and interest in Sri Lanka...Adopting these rates will render Sri Lanka uncompetitive and result in a loss of clients, even when compared to hotels in New Delhi, with which they are currently competitive”.

Sri Lanka has previously attempted to implement price controls between 2009 and 2019, following lobbying by a segment of  hoteliers aiming to compete more effectively against 5-star rated hotels. However, this policy failed due to numerous violations resulting from inadequate monitoring and enforcement by the authorities. Many hotels, including those that initially advocated for the government's proposed room rates, have not complied with the established rates, as alleged by the former Minister of Tourism, John Amaratunga. 

The imposition of minimum room rates restricts hotel owners' flexibility in setting prices in accordance with market demand and effectively stifles healthy competition among various establishments. The tourism industry experiences fluctuations in demand that correspond to seasonal and weekly trends. Such demand patterns necessitate the ability for hotels to tailor their pricing strategies to capitalize on peaks and optimize profitability.

Every hotel has its unique room pricing considerations depending on factors such as location, size of the hotel, market demographics, level of competition, and type of service offered to name a few. The uniform imposition of minimum rates disregards the diverse range of hotels and accommodations available in Sri Lanka, catering to various budgets and preferences. This one-size-fits-all approach disregards the crucial factor of consumer choice. Imposing minimum room rates on a certain type of accommodation whilst disregarding alternate forms of accommodation available within the city of Colombo such as guest houses and Airbnbs, undermines the effectiveness of this policy.  

Furthermore, hotels do not solely rely on revenue from room occupancy; rather, the occupancy of rooms paves the way for alternative sources of income such as from food and beverages, along with the provision of other hotel-related services. For example, a leading hotel in Colombo earned 77% of their revenue from food and beverages in contrast to the 19% earned from accommodation services in 2022. Therefore, when the government intervenes in one component of a hotel’s business model, it disrupts the interconnected methods of revenue generation.  

Further, the foundation for these minimum rates—star classifications—is itself flawed. This system primarily relies on quantitative factors, often overlooking qualitative aspects such as service quality and ambiance. The inability to quantify these vital attributes compromises the accuracy of the classification.

The tourism industry in Sri Lanka has historically played a crucial role in the country's economic development, providing employment opportunities, promoting cultural exchange, and contributing significantly to foreign exchange earnings. However, the recent decision to enforce minimum room rates could deter these potential visitors who are seeking affordable accommodation options, particularly given the publicity international vloggers have given Sri Lanka as a tourist destination. Further, this approach stifles innovation within the hospitality sector, and ultimately leads to reduced tourist arrivals and negatively impacts the entire value chain that relies on a thriving hospitality sector.

This policy undermines competition and oversteps in a serious way the role of government in a competitive market economy, the stated policy framework of the government. 

The Advocata Institute strongly urges Sri Lankan Authorities to reconsider this ill-advised proposal. 

By fostering an environment that embraces market competition, Sri Lanka can position itself as an attractive destination for travelers while allowing its hotels to thrive and cater to diverse consumer demands.

Women's Policy Action Network: Empowering Women :A Future-Ready Workforce

The Women's Policy Action Network hosted a conference on August 29th at the Lavender Hall, BMICH on the topic Empowering Women : A Future-Ready Workforce. The conference facilitated two separate discussion sessions on improving Social infrastructure and digital infrastructure, with panelists who are experts in the relative conversations. This discussion was supported by the Kingdom of the Netherlands and facilitated by the Advocata Institute.

You can access the presentation to the sessions on:

Social Infrastructure for Gender Equality & Empowerment

Unlocking women’s potential in the digital economy

The full video of the Women’s Policy Action Network conference can be found here.

The ‘Social Infrastrastructure for Gender Equality & Empowerment' policy brief can be accessed here

The ‘Unlocking Women’s potential in the Digital Economy’ policy brief can be accessed here

Dhevin De Silva & Dhananath Fernando | Growing a Business: The Story of Torch Labs | Advocata Studio

From High School to Entrepreneurship: The Story of Torch Labs

Dhevin De Silva (Founder and CEO of Torch Labs) shares his personal journey of becoming an entrepreneur with Dhananath Fernando (CEO, Advocata Institute). Dhevin discusses how he discovered a lucrative opportunity in the sneaker reselling market and built a successful business around it. He also highlights the importance of a market-based system in providing equal opportunities for entrepreneurs and creating job opportunities for society. Dhevin shares his experiences, challenges, and successes in growing his business and provides valuable tips for aspiring entrepreneurs. His story inspires and encourages people to pursue their entrepreneurial dreams.

Check out our previous episode with Hithesh Fernando ( Founder | Fintech Digital Pvt Ltd )

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

Reset Now! Podcast - Ep 14 | Sri Lanka's labour market trends & Reform recommendations to address the barriers in it

Sri Lanka's labour market trends & Reform recommendations to address the barriers in it

In this episode of the Reset Now! podcast, Dr. Ramani Gunathilaka speaks with Thathsarani Siriwardena, Research Assistant at Advocata Institute on the trends seen in Sri Lanka's labour market and the reform recommendations that need to be implemented in order to address the barriers within the industry. Dr. Ramani Gunathilaka is an independent consultant, her research has been mainly focused around labour markets and issues related to female employment in Sri Lanka.

Check out our previous episode with Thanuja Jayawardene (Head of Women Go Beyond I MAS Holdings)

Launch of Women's Policy Action Network 'Reforms to Empower Women During an Economic Crisis'

The Advocata Institute launched the Women's Policy Action Network on Thursday, the 30th of March, 2023 at the Lavender Hall in BMICH at 6.30PM. The Women's Policy Action Network aims to bring about policy reform through advocacy for the economic empowerment of women. It will be a network run by individuals who are committed to women's empowerment. Harnessing advocacy, collating research, and identifying key problem areas that will impact the lives of women are a few of the targets to be achieved. The group will comprise representatives from Civil Society Organizations, policymakers, and women leaders to generate strong conversations advocating for women.

In light of the disproportionate impact of both the pandemic and the economic crisis on women , enhancing women’s participation in the workforce is even more critical. Therefore, the launch of WPAN was followed with a panel discussion on the thematic area of “Reforms to Empower Women During an Economic Crisis”. 

The keynote speaker was Ms.Shiromal Cooray, the Chairman and Managing Director of Jetwing Travels. Remarks were given by the Deputy Ambassador of the Kingdom of the Netherlands, Anouk Baron. The panel discussion was moderated by Dr. Roshan Perera, Senior Research Fellow, Advocata Institute.

The panel included, Shan Yahampath (Advisor to the Labour Ministry and the Foreign Employment), Sampath Thrimawithana (Director at Virtusa), Anarkali Moonesinghe (Former CEO, CIMB Investment Bank Sri Lanka) and Sumini Siyambalapitiya (Senior Research Analyst, Verite Research)

This WPAN launch was supported by the Kingdom of Netherlands and facilitated by the Advocata Institute

You can access the policy brief here

The full video of the launch of the Women’s Policy Action Network can be found here.

අපේ ඉරණම තීරණය කරන අයවැය with Prof. Abeyratne, Prof. Samarajiva & Pasan Wijayawardhana

With the current economic crisis, the 2023 budget is critical to setting the fiscal direction of the country. How will the government tackle reducing the budget deficit, what tax and expenditure reforms will be brought in, and how will they commit to tackling the rising socio-economic issues such as poverty and malnutrition

Advocata hosted an online post-budget 2023 discussion, with Prof Rohan Samarajiva (Founding Chair, LIRNEasia | Advisor, Advocata Institute), Prof. Sirimal Abeyratne (Professor in Economics | Department of Economics, University of Colombo), moderated by Pasan Wijayawardhana (Economic Research Analyst, Advocata Institute) on Thursday, November 17th at 6.00PM

Short presentations on government expenditure and revenue trends was also done by Udahiruni Atapattu (Research Analyst, Advocata Institute) and Thashikala Mendis (Data Analyst, Advocata Institute).

Watch the full video on our YouTube channel

You can access the presentation from the discussion by Thashikala Mendis and Udahiruni Atapattu below

Taxation, Stability and Growth by Thashikala Mendis

Government Expenditure Trends by Udahiruni Atapattu

Economic crisis to reverse SL’s gains in economic freedom

Originally appeared in the Daily Mirror, Daily News, The Morning

Sri Lanka ranks 89 among 165 jurisdictions on the Economic Freedom of the World index. 

Colombo, Sri Lanka— Sri Lanka ranks 89  out of 165 countries and territories included in the Economic Freedom of the World: 2022 Annual Report, released by the Fraser Institute in association with the Advocata Institute in Sri Lanka.

Hong Kong and Singapore top the index, continuing their streak as 1st and 2nd respectively. New Zealand, Switzerland, Denmark, Australia, the United States, Estonia, Mauritius, and Ireland round up 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, nations in the top quartile of the economic freedom index had an average per-capita GDP of $48,251 in 2020, compared to $6,542 for nations in the bottom quartile (PPP constant 2017, international US $).

In the top quartile, the average income of the poorest 10% was $14,204, compared to $1,736 in the bottom quartile (PPP constant 2017, international US $). The average income of the poorest 10% in the most economically free nations is more than twice the average per-capita income in the least free nations. 

Sri Lanka’s ranking for Economic Freedom

The report, which is based on data until 2020 shows that Sri Lanka gained 11 places to be ranked 89th compared to the previous year where the country was ranked 100. However, Sri Lanka’s overall score has remained the same (6.72), which suggests that the improvement in ranking is due to a decrease in economic freedom in other countries.

 Sri Lanka’s score in key components of economic freedom (from 1 to 10 where a higher value indicates a higher level of economic freedom)

“Improvement of Sri Lanka’s ranking on the Economic Freedom index is welcome, but we have to note the data is based on upto the year 2020 and the ground reality today is the economy has deteriorated further as Sri Lanka defaulted on its sovereign debt for the first time in history," Said Dhananath Fernando, CEO of Advocata Institute.

"Hence, it is quite evident that due to the ongoing economic crisis in Sri Lanka several of these indicators, if measured now, are going to paint a different picture, especially in the areas of access to carryout international transactions unhindered and the freedom to trade.”

Based on Advocata’s own calculations with 2021 data, the access to sound money has fallen.

"In the process for Economic Recovery, Economic Freedom is the best framework to structure our reforms, especially on reforms that target Economic Freedom will not only provide stability but also ensures economic growth and higher quality of life for our citizens,“ Fernando further stated

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 165 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.

Dhananath Fernando appointed CEO of Advocata Institute

Originally appeared in the Daily FT

Advocata Institute, a public policy think tank based in Colombo has appointed Dhananath Fernando, as its Chief Executive Officer. Dhananath, who is a founding member of the Institute has worked as Advocata’s Chief Operating Officer since its inception. 

Advocata Institute was started in 2016 by a group of professionals aiming to provide market-oriented policy alternatives to existing public discourse in Sri Lanka. The founding group was advised by leading academics and business leaders. 

“Dhananath has been instrumental to the growth of Advocata as a significant voice in the policy debate in Sri Lanka,” said Advocata Institute Board of Directors Chairman Murtaza Jafferjee. “The Board has no doubt that he will lead Advocata into even greater heights”. As the COO of Advocata, Dhananath has managed to play a pivotal role in the organisation with key responsibilities in fundraising and communication. He is a frequent writer and commentator on economic policy in national media. 

Prior to joining Advocata, Dhananath worked in market research and administration. He is a graduate from the University of Colombo and studied at St. Sebastian’s College in his hometown of Moratuwa. Dhananath volunteers his time for CandleAid, a charity based in Sri Lanka, and a number of other initiatives including the AK Lit Fest, a trilingual literary festival and Lakmahal, a community library. 

In 2022, Dhananath was chosen from Sri Lanka for the prestigious Eisenhower fellowship. He is also recognised as a “Asia 21 Young Leader” for 2022 by the Asia Society for his impact with the Advocata Institute.   

“I thank the Advocata board of directors for trusting me and supporting me,” said Dhananath Fernando. “I feel we have all contributed to a greater cause bigger than ourselves to make Sri Lanka prosperous and competitive where hard work and free exchange is valued. A big thank you to our founding members and our Board of Advisors and our team for their continued dedication and support. It’s always a team effort.”

For more on Advocata’s scholars, members and associates see www.advocata.org/about

Media Coverage on #ReformNow Conference: Let's Reset Sri Lanka

Let us focus on global changes immediately - President

We can’t use the old economic model further:

We can no longer use the old economic model and we must pay attention to global changes by thinking innovatively, said President Ranil Wickremesinghe yesterday. He was delivering the keynote address at the professional forum to launch the Advocata Institute’s research report on Sri Lanka’s economic reforms held at the Bandaranaike International Conference Hall in Colombo yesterday (05).

The conference organised by the Advocata Institute under the theme “LET’S RESET SRI LANKA” is held on August 5 and 6 at the Lotus Hall of the Bandaranaike International Conference Hall.

Read the full article here

President reiterates, difficult times ahead

President Ranil Wickremesinghe says Sri Lanka has '6 difficult months ahead' as the island nation attempts to stabilize the economy through agreements with the IMF.

Speaking at a forum organized by the Advocata Institute in Colombo today (05), President Wickremesinghe said that the 'way out' for the country is through the agreements reached with the IMF.

"Although people talk of alternative measures, they have not worked out," the President said, emphasizing that first and foremost, Sri Lanka has to enter into the standby agreement, with the staff level agreement with IMF.

Read the full article here

Sri Lanka President hints on possible wealth tax for economic, social stability

Amid widening gap between the rich and the poor in Sri Lanka, the island nation will have to go for higher taxation including on wealth, President Ranil Wickremesinghe said on Friday while delivering a keynote speech at an economic forum.

The crisis-hit country is struggling with lower state revenue and higher government expenditure with 86 cents of each rupee of tax revenue spent on state sector wages and pensions.

Read the full article here

Sri Lanka President hints on possible wealth tax for economic, social stability

Amid widening gap between the rich and the poor in Sri Lanka, the island nation will have to go for higher taxation including on wealth, President Ranil Wickremesinghe said on Friday while delivering a keynote speech at an economic forum.

The crisis-hit country is struggling with lower state revenue and higher government expenditure with 86 cents of each rupee of tax revenue spent on state sector wages and pensions.

Read the full article here

SL must focus on higher revenue mobilisation to overcome crisis

Sri Lanka still has scope to overcome the macroeconomic instability if the Government could focus on revenue mobilisation through inclusive tax reforms based on scientific analysis, Advocata Institute Senior Research Fellow Dr. Roshan Perera opined.

Speaking at the ‘Let’s reset Sri Lanka’ forum organised by the Advocata Institute recently, she underscored that the root cause of the existing macroeconomic instability was due to lack of fiscal discipline.

Read the full article here

The old economic model is no longer viable, IMF proposals must be implemented - President

President Ranil Wickremesinghe says the old economic model can no longer be implemented adding that innovative thinking is required while paying attention to global changes.

Delivering the guest speech at a conference today (05) Mr. Wickramasinghe said proposals of the International Monetary Fund (IMF) must be implemented to recover from the economic crisis the country is facing, regardless of whether they are good or bad, and regardless of who likes them or not.

Read the full article here

‘National carrier matters, but profitability matters more’

Delaying the privatisation of SriLankan Airlines will not help, however the steps towards privatisation of the national carrier should be taken in consultation with international experts who understand the aviation industry, Thilan Wijesinghe, Chairman and CEO of TWCorp (Pvt) Ltd., said at ‘Let’s Reset Sri Lanka –Reform Now’ conference hosted by Advocate Institute, recently.Thilan who is knowledgeable about many aspects of SriLankan Airlines’ operational outlook said so responding to a query on how debt-laden SriLankan Airlines can attract potential buyers to push a privatisation process forward.

Read the full article here

IMF, a starting point in path to recovery - President

Advocata Institute hosted its economic reform conference, #ReformNow last week. The two day event discussed the economic reforms needed to recover from the current crisis and promote growth.

The event brought together policymakers, l internationally recognised thought-leaders, the business community, civil society and citizens of Sri Lanka to facilitate this much needed discussion. The sessions focused on themes such as reforming taxation, state-owned enterprises, social safety nets , trade policy and land policy.

Read the full article here

‘Only 15 out of 40 employment laws in regular use’

Sri Lanka has over 40 laws that relate to employment, of which only about 15 are in regular use.

Most are dated before independence or shortly thereafter and many are outdated, Shyamali Ranarajah- Attorney at law (Pictured) said.

Sri Lanka’s labour reforms must be led by the highest level of government whilst stakeholders must have a seat at the discussions for labour reforms.

Moreover, Ranarajah said dispute resolution mechanisms must be made efficient, productive and must not become a barrier or a hindrance to growth and employment creation, she opined.

Read the full article here

South Asia can have integration in dancing & cooking, but not trade, quips Prez RW

Strengthening trade relations with the world is essential for countries to fulfil their economic aspirations, however, efforts will have to be made by individual countries to strengthen ties as within the South Asian region and trade integration will not happen, said President Ranil Wickremesinghe. “There will have to be bilateral agreements with whoever we want. There is too much politics involved for there to be a regional trade agreement in South Asia,” the President told a fully-packed audience at the ‘Reform Now’ conference hosted by Colombo-based economic thinktank Advocata Institute.

“So we can keep that aside. We can have integration in dancing, we can have integration in cooking. but certainly, we are not going to have integration as far as the economy is concerned,” Wickremesinghe quipped.

Read the full article here

CSE seen as being controlled by a few people; ‘not a proper platform to list SOEs’

The CSE is not a proper platform to list state owned enterprises because it’s being controlled and dominated by a few people or small groups of them. It cannot be a match for leading stock markets like the London Stock Market because it doesn’t reflect a broader perspective, President Ranil Wickremesinghe said.

“Either you must change or bring into being a new organization to broad base the stakeholder participation level without allowing a small set of people to control it, Wickremesinghe told an economic forum which was organized by the Advocata Institute and held at the BMICH yesterday.

Read the full article here

‘Negotiations with China needed as well to evolve sustainable debt restructuring proposal’

Sri Lanka’s debt advisors are currently looking at local debt, as a restructuring plan to negotiate with our creditors is being developed as part of efforts to make debt sustainable in order to obtain support from the IMF. The latter has specifically told us to bring a sustainable debt restructuring proposal through negotiations with China as well, President Ranil Wickremesinghe said.

Read the full article here

#ReformNow Conference: Let's Reset Sri Lanka

Sri Lanka is in the midst of its worst economic crisis since independence. Advocata Institute organised Sri Lanka’s first ever reset economic conference prioritizing economic recovery and growth. You can now watch these conferences once again on the Advocata Youtube channel and Advocata+ Youtube Channel.

Sessions of the conference were live-streamed on 05th and 06th August 2022 on the Advocata Institute Facebook page!

During the conference Advocata Institute launched it latest report and a policy product tracking the performance of State Owned Enterprises

To access the the platform and report visit https://soe.lk/

This report can be accessed below.

The State of State Owned Enterprises in Sri Lanka

Watch the full sessions on our YouTube channel

You can access the presentation from our sessions below:

Debt Crisis, Structural Adjustment and Trade Policy by Prof Prema-chandra Athukorale

Centralizing the State's Ownership Function by Daniel Alphonsus

State of State-Owned Enterprises by Ravi Rathnasabapathy

Air India Privatisation Story – takeaways for Sri Lanka by Thilan Wijesinghe

Taxation, Stability and Growth by Dr. Roshan Perera

Taxation, Stability and Growth by Prof. Mick Moore

Resetting Samurdhi -Social Safety Nets by Dr Stephen Kidd

Resetting Samurdhi - Social Safety Nets by Ms Gayani Hurulle

Context setting - Labour market Presentation by Udahirini

Labour market reforms for more inclusive growth by Ms Shyamali Ranaraja

Unlocking Land for development – Current Land Utilisation by Migara Rodrigo

Unlocking urban potential by Mr Nayana Mawilmada

Agricultural land by Dr Roshan Rajadurai

The Case For Private Industrial Zones – Lessons From The Dominican Republic by Mr Juan Jimenez

#ReformNow # Let’sResetSriLanka

Day 01 - August 05th

Day 02 - August 06th

Masterclass | Total Factor Productivity | Ep 1 | Advocata Academy | Dr Sarath Rajapatirana

Welcome to the Advocata Academy! We are launching the Masterclass series, conducted by Dr. Sarath Rajapatirana, Academic Chair of Advocata Institute. 

The first episode is on “Total Factor Productivity”, which focuses on the role productivity plays in the economic growth of a country. This episode also highlights some of the reasons why Sri Lanka’s productivity levels are low and how this can be improved.

Dr. Rajapatirana has worked across the world with leading international organizations such as the World Bank, World Trade Organisation, ITC in Geneva, and the International Cooperative Alliance in Latin America. He is a former economic advisor to the President of Sri Lanka and has advised governments and policymakers around the world. 

The second episode is on “Introduction to International Trade”

The Third episode is on “Industrial Policy’

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Masterclass | Introduction to International Trade | Ep 2 | Advocata Academy | Dr Sarath Rajapatirana

Welcome to the Advocata Academy! We are launching the Masterclass series, conducted by Dr. Sarath Rajapatirana, Academic Chair of Advocata Institute. 

This is the second masterclass on “Introduction to International Trade” which highlights the important role that international trade has played in the development of many countries around the world. The masterclass also explains import substitution and describes Sri Lanka’s experience with import substitution and how it affects efficiency and productivity. 

Dr. Rajapatirana has worked across the world with leading international organizations such as the World Bank, World Trade Organisation, ITC in Geneva, and the International Cooperative Alliance in Latin America. He is a former economic advisor to the President of Sri Lanka and has advised governments and policymakers around the world. 

The first episode is on “Total Factor Productivity”

The third episode is on “Industrial Policy”

Masterclass | Industrial Policy | Ep 3 | Advocata Academy |Dr Sarath Rajapatirana

Welcome to the Advocata Academy! We are launching the Masterclass series, conducted by Dr. Sarath Rajapatirana, Academic Chair of Advocata Institute. 

This is the third masterclass discusses on “Industrial Policy” and the difference between industrial policy and policy toward industry within the context of Sri Lanka's policies over time and how this can affect economic growth. 

Dr. Rajapatirana has worked across the world with leading international organizations such as the World Bank, World Trade Organisation, ITC in Geneva, and the International Cooperative Alliance in Latin America. He is a former economic advisor to the President of Sri Lanka and has advised governments and policymakers around the world. 

The first episode is on “Total Factor Productivity”

The second episode is on “Industrial Policy”

Year on Year food price increase close to 50%

Originally appeared in the Ceylon Today, Lanka Business Online, Daily FT

Advocata’s  Bath Curry Indicator (BCI) , which tracks the monthly changes in the retail price of food, recorded an increase of 14% from March 2022 to April 2022.  This is a year on year increase of 49% for this basket of food. 

This is driven primarily by prices of dhal and samba rice being the highest recorded by the BCI. A kilo of Dhal in April 2021 was Rs 178, a year later it costs Rs 466. A kilo of samba in April 2021 was close to Rs 130, a year later this costs Rs 210. With food prices increasing at this rate, a family of four to spend on the BCI basket of food would have to pay approximately Rs 560 more for a week. 

The Colombo consumer price index recorded a similar rate of 47% year on year increase in food inflation. Comparing supermarket food prices from March 2021 to 2022 there has been an increase of close to 40%. 

This drastic increase in food prices in 2022 is a result of macroeconomic instability within the country. Although global prices have increased due to the pandemic and issues with supply chains, global prices have not  increased as fast as the prices in Sri Lanka. 

In Sri Lanka in addition to the global pandemic related issues, we are currently facing shortages of foreign currency which impacts local supply chains.  This impact has also been exacerbated by consistent import restrictions, both causing shortages. These shortages compounded by the fact that the value of the currency has been falling steeply have all contributed to food prices rising faster and faster in 2022. 

The BCI tracks the weekly retail prices in the Colombo market of the most commonly consumed food ingredients that might be used in a typical Buth curry meal. The prices are collected from the “Weekly Indicators” that the Central Bank publishes. 

The BCI Indicator can be accessed at www.bci.advocata.org.

Media Coverage on Gender Discriminatory Labour Laws in Sri Lanka and Female Labour Force Participation

Gender discriminatory labour laws hold back women’s participation in the workforce

New Advocata Institute Report spells out the gender discriminatory labour laws such as banning work at night that impacts female labour force participation

Advocata Institute says that Sri Lanka’s labour laws that discourage the entry and retention of women in the labour force are a factor preventing female participation in the workforce.

The report identifies the lack of reference to part-time and flexible employment in the existing labour law, time restrictions on employing for women at night, dearth of legal provisions for sexual harassment in employment and restrictions on overtime work for women, as legal obstacles that discourage women joining and actively participating in the workforce.

The report focused on four main areas of discrimination in the labour market: sexual harassment in the workplace, overtime work, work at night, and part-time work. The report highlighted that if these issues were addressed it is likely that female participation in the workforce would greatly improve which would benefit the economy and attract investment (particularly in the context of Sri Lanka’s tight labour market and the cost of labour).

Read the full article here

How our labour laws have limited our ladies

Experts discuss legal and practical issues preventing female workforce participation

Even though the world has moved forward considerably in terms of ensuring gender equality in the workforce through laws and policies, Sri Lanka is yet to improve and update its labour laws, most of which are archaic. Due to the unavailability or the lack of laws that match today’s society, females are greatly inconvenienced, and it is hindering them from achieving their full potential and contributing to the country’s economy and strengthening their own and their households’ economies.

The need for law reforms and other practical issues that discourage females from playing their role in the country’s workforce were extensively discussed at an event held by the think tank Advocata Institute on 7 March, where the findings of a study about the existing labour laws and how those should be reformed were highlighted.

Study on laws affecting the female workforce

The report titled “Gender Discriminatory Labour Laws in Sri Lanka and Female Labour Force Participation” authored by T. Yapa, T. Hoole, G.S. Sallay, S. Bamaramannage, and J. Peerez – identifies the lack of reference to part time and flexible employment in the existing labour laws, time restrictions on employing females for duties at night, the dearth of legal provisions to prevent and address sexual harassment in employment, and restrictions on overtime (OT) work for females, as legal obstacles that discourage females from joining and actively participating in the workforce.

Read the full article here

Freedom For Her: Gender Discriminatory Labour Laws in Sri Lanka and Female Labour Force Participation

Advocata Institute is launching a research study on 'Gender Discriminatory Labour Laws in Sri Lanka and Female Labour Force Participation' in celebration of International Women's Day 2022!

The study concentrates on laws related to sexual harassment at the workplace, gender discriminatory laws on overtime, part-time and nighttime work and the event is organised in order to bring awareness to the topic amongst the general public and policymakers and implementers.

Panelists for this discussion are Thalatha Atukorale (Member of Parliament and Women Parliamentarian's Caucus), Dr. Ramani Gunatilaka (Independent Consultant and Research Associate at ICES), Ayomi Fernando (Industrial Relation Advisor, Employers Federation of Ceylon) and Thanuja Jayawardene (General Manager, Women's Empowerment, Advocacy and Code of Conduct, MAS).

The event was live-streamed on 07th of March 2022 at 6.00PM (IST) on the Advocata Institute Facebook page!

This report can be accessed below.

‘Gender Discriminatory Labour Laws in Sri Lanka and Female Labour Force Participation'

#FreedomforHer #AyataNidahasa

Prof Razeen Sally on the Economics and Geopolitics of Trade Deals

Prof. Razeen Sallay (Academic Advisor at Advocata Institute, Associate Professor at the Lee Kuan Yew School of Public Policy at the National University of Singapore) joined Kopi Time, a podcast hosted by Taimur Baig to discuss trends in regional and global trade.