Business leader Dhammika Perera has unveiled 12 strategies that can boost much-needed dollar earnings and help Sri Lanka come out of the prolonged foreign exchange shortage which has triggered an economic crisis leading to political instability and social unrest.

As per his action plan, if the 12 strategies are implemented the country could garner an additional $ 8 billion inflow per annum. He says implementation of these 12 strategies does not incur additional capital investment on the part of the Government.

His 12 strategies encompass sectors such as tourism, agriculture, power generation, foreign employment, higher education and ICT and focus on foreign exchange generation as well as saving measures.

In tourism, strategies suggested include increasing tourism revenue by 10% by extending the tourist visa validity period for six months and establish budget airline hubs to generate additional $ 2 billion whilst in agriculture strategies mooted will generate an additional $ 600 million income from coconuts exports and Government lifting ban on planting palm oil thereby saving $ 200 million spent on imports. Dhammika also recommends measures to save 20% of the $ 2.5 billion outflow on account of students opting for overseas education and earn foreign exchange by attracting more foreign students and shows how ICT export earnings can be increased to $ 5 billion.

In the power sector, Perera suggests saving of $ 1 billion by allowing the private sector to invest in new power plants generated by solar or coal in Norochcholai and Sampur.

Dhammika also expands on the special residency visa scheme for foreigners which he is confident of racking in $ 5 billion within five years. He also lists measures to boost workers remittances to $ 24 billion via a 10-year plan.

He says outward payments such as dividend payments, air and sea transport fees, travel, construction, insurance, royalty fees, telecommunication, and computer service fees can be converted to dollars and deposited for a three-year period with an interest rate decided by the Government (for example, at a 6% interest rate). Via this measure he says an annual deposit of $ 300 million can be received.

Separately his plan includes new ways to boost FDI.

“Sri Lanka has an annual shortage of inflows of $ 6 billion to accommodate basic needs such as fuel, gas, medicine, fertiliser, and food. The International Monetary Fund and other multilateral funding agencies have also stressed the importance of Sri Lanka’s external debt sustainability. By implementing the proposed 12 key strategies, an additional annual income of $ 8 billion can be generated as future cash inflows,” stresses Dhammika.

“It will be easier to build confidence in Sri Lanka’s macroeconomic stability and unlock international financing from the International Financial Institutions (IFIs) such as the IMF and World Bank if additional cash inflows as suggested in my action plan are generated to reduce the deficit in the balance of payments,” he added.

 

Strategies to boost dollar earnings by Sri Lanka