Sri Lankan Economy

[jilbuwa]

I am in the Hotel Industry and We had the Baddest year of All. Things are so bleak. We were not even given Bonuses.

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Many foreign governments have issued travel advisories discouraging their nationals from visiting Sri Lanka. For the first time during the five-year long ceasefire hotels and tourist resorts have been virtually empty. Some small time resort operators have stopped paying their employees and are providing them only meals. Five star hotels in the City faced one of their worst experiences on New Year 's Eve. Some even cancelled the revelries planned.

Please share your Experiances of what do you think will happend to Us.

[Pericles]

I am in the Hotel Industry and We had the Baddest year of All. Things are so bleak. We were not even given Bonuses.

Try working in a place where u don't get bonuses anyway.

[jilbuwa]

Try working in a place where u don't get bonuses anyway.

[GTAm]

It definitely seems to be getting worse. Our currency is slipping each week. And eventhough the Central bank posts 8% growth, they don't mention that inflation is over 20%. Things can only get even scarier in the near term.

What's even more worrying is that apart from the war, the lawless culture that's developing in the country. We are looking uglier each day to the rest of the world.

This means very few tourists and even fewer foreign investors will consider SL.

[MRM]

It definitely seems to be getting worse. Our currency is slipping each week. And eventhough the Central bank posts 8% growth, they don't mention that inflation is over 20%. Things can only get even scarier in the near term.

What's even more worrying is that apart from the war, the lawless culture that's developing in the country. We are looking uglier each day to the rest of the world.

This means very few tourists and even fewer foreign investors will consider SL.

totally agreed

even garment trade is the same, getting cost effective day by day no support from the government

i think this will be the last year with my VZR with 6.5km/ltr in colombo .

unless zackie gets me 8, .

Edited January 8, 2007 by MRM

[Memphis]

Try working in a place where u don't get bonuses anyway.

I second that

[jilbuwa]

totally agreed

even garment trade is the same, getting cost effective day by day no support from the government

i think this will be the last year with my VZR with 6.5km/ltr in colombo .

unless zackie gets me 8, .

bro i thought the garment trade was doing good ???

why is it doing bad.

[noaim]

bro i thought the garment trade was doing good ???

why is it doing bad.

Doubt any trade in SriLanka is doing good @ the moment...

[Hola]

With our cheap politics and ethnic problem we never can move forawrd. Few decades back Singapore looked at us and copied our factory and economic process and now we try to be half of them. Look at India, they got all of their own made cars and they got even Nuclear power. At the time of indipendance Sri Lanka had GDP better than India. Its soo sad that such a great nation is going down under becuase of misunderstanding....

No trade is doing better. In the future as we all see funeral directors will do good

[Blazin]

Its definitly getting worse, but we have a civil war in the country. So I think we just need to be patient and bite the bullet for the time being until an end to the ethinic problem is found.

I think the govenrment is doing the right thing by focusing the resources on the war, to try and put an end to it for once and for all. Once the war has ended the economy will pick up in no time.

[The Don]

Incidentally world wide it was a bad year for inflation driven up by high energy prices, but from a few weeks back the price of a barrel of oil has been falling, which should trickle itself down within a month or two but hey since its SL don't know what exactly will happen.

Incidentally I think the Indians are hitting everybody hard because of the massive availability of cheap labour, and I hear the few big low level technology companies involved in tasks such as Data Entry etc. are also uprooting and moving their operations to India.

I wonder how the high tech industry would fare in the coming years, as that is also under serious threat from India. Interestingly the normal indian isn't doing that well either, since there are so many of them, former mates of Indian and Sub Continent origin who have come here for post grads tell me that it is exceedingly difficult to land yourself a decent job in the high tech industry, and a lot of people thus resort to working in call centers etc which pay well, but when you have a Bsc in Computer Engineering isnt the most rewarding job is it.

Maybe the company Peri works in might be affected by the Indian onslaught as well, to me it seems its only a matter of time, and I wonder how we can make our industries more competitive.

I guess everybody is in aggreement that the war is the single biggest problem our ecconomy faces after corruption and tax evation I guess.

The Don

Edited January 8, 2007 by The Don

[mazdaspeed]

With our cheap politics and ethnic problem we never can move forawrd. Few decades back Singapore looked at us and copied our factory and economic process and now we try to be half of them. Look at India, they got all of their own made cars and they got even Nuclear power. At the time of indipendance Sri Lanka had GDP better than India. Its soo sad that such a great nation is going down under becuase of misunderstanding....

No trade is doing better. In the future as we all see funeral directors will do good

Can agree to that up to a limit- this blooming thing has been going on for over 20 years now - main reason been our politicians and others making a living out of it - To hell with the country and the people....

I too am hoping the economy would pick up after the war...... I'm happy on what the current gov. is doing with the war.... let's just hope it ends soon.

As Hola said Singapore wanted to be like Sri Lanka.... now look where they are and where we are ..... sad man....

[The Don]

Hi Guys,

Just a small point on Singapore and Even China, Both countries work on the principle that as long as the people have enough money to go arround they won't care about anything else. Essentially that means though it might not be evident to the naked eye, there is little political freedom in any of these countries, and though singapore is supposedly a multi party democracy, its still the same ruling fraction that has ruled for nearly its whole history still ruling, and I am told any opposition is usually immediately and sometimes quite harshly crushed.

No need to say anything about China.

I know material wealth is an important aspect of modern society. But I wonder how long people can be blinded to the fact their social and political freedoms have been severely restricted. And the governments are nearly autocratic.

And history will tell you these nearly benevelonent dictatorships would go pretty well but under one ruler but when the power is passed on its not always so rosy.

Successive government changes in Sri Lanka atleast points to the fact that we do have the freedom of political choice in Sri Lanka. Whether we use it wisely or not is a different matter. I know how much we complain about how indiciplined our people are (indeed we are) but I wonder how all of us would feel like if we are all made to live like school boys in a public school with enforced dicipline all our lives.

Democracy isn't without problems, obviously our country has lost its way somewhat, and missed out golden opportunities to become a more prosperous land, and still there is a lot of corruption in politics. Well we are a very ressilient people, I think we will all prevail (I hope)

The Don

[Hola]

The developed countries doesnt have war but they sell their arms to poor countries like us to do wars. And we are sending out our wealth to them.

Sri Lanka has extreme knowledge, skills and sound people. Only if we did not have these ethnic problem we can be a super nation. I think 2007 will soon give an answear for this. But careful, there is a general election coming soon....Keep your money out of stock market untill you get a clear indication

[ucscsades]

At the time of indipendance Sri Lanka had GDP better than India. Its soo sad that such a great nation is going down under becuase of misunderstanding....

No trade is doing better. In the future as we all see funeral directors will do good

GDP per capita or Total GDP?? If it's total GDP, damn..that's a great stat and its sad that we've slipped so far down the ladder (our per capita GDP is obviously much higher than that of India).

Speaking of development, a few weeks ago while I was in SL I saw a news article saying that Sri Lanka is now classified by the World Bank (and hence many other governments/organizations who rely on their rankings) as a Lower Middle Income Country (up from being a Low Income Country). This is absolutely horrible for the country I think! Just because AVERAGE income per capita in Sri Lanka was bumped over the World Bank's threshold for classifying a country as an LIC it now means that we'll be a far less likely candidate to recieve foreign aid, and whatever aid we do recieve will be on harsher terms.

Is there any real solution to the problem in Sri Lanka?? The war needs to end (I think it's doable, but there are too many people benefiting from it who don't want it to end..either that, or they just don't care), the political system needs to be dealt with (I totally agree that we do have higher levels of freedom though than Singapore, etc.), and this whole corrupt culture where there are so many people trying to rip others off needs to be taken care of. But to be honest it sounds like a horribly difficult thing to do!

Many economists say that corruption is usually a result of poverty, and it may be true in most cases...but while there are lower level workers in Sri Lanka accepting (or rather demanding) bribes etc (the police, anyone??), it seems like the people at the top (who obviously aren't being corrupt because they're poor) are the main cause of the problem...and stopping them will be a LOT harder. Hypocritical politicians obviously won't do anything about putting an end to corruption, does anybody else have the power? Will anything short of a coup or a mass overthrowing of all people in power really do anything??

[Hola]

GDP per capita or Total GDP?? If it's total GDP, damn..that's a great stat and its sad that we've slipped so far down the ladder (our per capita GDP is obviously much higher than that of India).

Speaking of development, a few weeks ago while I was in SL I saw a news article saying that Sri Lanka is now classified by the World Bank (and hence many other governments/organizations who rely on their rankings) as a Lower Middle Income Country (up from being a Low Income Country). This is absolutely horrible for the country I think! Just because AVERAGE income per capita in Sri Lanka was bumped over the World Bank's threshold for classifying a country as an LIC it now means that we'll be a far less likely candidate to recieve foreign aid, and whatever aid we do recieve will be on harsher terms.

Is there any real solution to the problem in Sri Lanka?? The war needs to end (I think it's doable, but there are too many people benefiting from it who don't want it to end..either that, or they just don't care), the political system needs to be dealt with (I totally agree that we do have higher levels of freedom though than Singapore, etc.), and this whole corrupt culture where there are so many people trying to rip others off needs to be taken care of. But to be honest it sounds like a horribly difficult thing to do!

Many economists say that corruption is usually a result of poverty, and it may be true in most cases...but while there are lower level workers in Sri Lanka accepting (or rather demanding) bribes etc (the police, anyone??), it seems like the people at the top (who obviously aren't being corrupt because they're poor) are the main cause of the problem...and stopping them will be a LOT harder. Hypocritical politicians obviously won't do anything about putting an end to corruption, does anybody else have the power? Will anything short of a coup or a mass overthrowing of all people in power really do anything??

Lets hope the CORRECT PARTY wins this general election..

If you know whom i mean

[Memphis]

Hi Guys,

Just a small point on Singapore and Even China, Both countries work on the principle that as long as the people have enough money to go arround they won't care about anything else. Essentially that means though it might not be evident to the naked eye, there is little political freedom in any of these countries, and though singapore is supposedly a multi party democracy, its still the same ruling fraction that has ruled for nearly its whole history still ruling, and I am told any opposition is usually immediately and sometimes quite harshly crushed.

No need to say anything about China.

I know material wealth is an important aspect of modern society. But I wonder how long people can be blinded to the fact their social and political freedoms have been severely restricted. And the governments are nearly autocratic.

And history will tell you these nearly benevelonent dictatorships would go pretty well but under one ruler but when the power is passed on its not always so rosy.

Successive government changes in Sri Lanka atleast points to the fact that we do have the freedom of political choice in Sri Lanka. Whether we use it wisely or not is a different matter. I know how much we complain about how indiciplined our people are (indeed we are) but I wonder how all of us would feel like if we are all made to live like school boys in a public school with enforced dicipline all our lives.

Democracy isn't without problems, obviously our country has lost its way somewhat, and missed out golden opportunities to become a more prosperous land, and still there is a lot of corruption in politics. Well we are a very ressilient people, I think we will all prevail (I hope)

The Don

Well said Don. I was having the same argument with my father a few days back Eventually it won't matter how much money is passing around, if our civil liberties are jeopardized. Yes, Sri Lanka is a mess but most of this is caused by petty political agendas and economic mismanagement resulting from those. If we think carefully before we vote, we can minimize the damage caused by such agendas, if not eliminate it fully.

The path we, as a nation take towards economic growth and prosperity should never be trough dictatorships or at the cost of freedom.

[Pericles]

U know guys, as someone who came into this forum to talk cars, I am finding this newspaper length political pontification extremely boring. U guys are welcome to continue of course, but someone else moderate this thread, coz I am out.

[The Don]

I guess the title indicates the content matter of the thread. People who are not interested can easily avoid it.

It is relevent to matters automotive (For in the end what decides what we can drive, what we can afford, where we can drive and so forth) and counting the number of views and replies there is some interest in the matter.

Everybody has behaved quite well.

All moderators themselves are volunteers i guess, since they don't get paid for their valuable service, so I assume their services are voluntary.

All I can say I am sorry Peri if we all have bored you. Just glad I am I am not an moderator myself for I totally understand how you feel. A lot of people rambling on on issues which you see no relevence and have no interest in. we are all human.

Whether this thread is moderated or not, is up to the moderators and the site admin. Sorry for any inconvenience.

And Hola Machan, I notice a certain bias in your post, but I think the solution to the problems in our country is not as simple as ellecting a certain party, it is ellecting the right people irrespective of the party.

And whoever comes in even if completely uncorrupt, and benevolent, I don't think we can expect overnight sollutions to decade old problems.

And I think unfortunately with regards to the war, due to the nature of Gurrilla warfare, the best case scenario for us would be to attempt to inflict enough damage on the opposing forces to be the point they have no option but to negotiate for a solution. Ample lessons to be learned from the experiences of the allies in the so called "War against terror". and the reemergence of the Talaiban. I mean even if we defeat them to the point they are no longer an effective fighting force, they will just blend in to the population, and re emrge when stronger again.

[Blazin]

Yes Machan, I agree with you Don.

I think the difference is that people that live in Sri Lanka are probably sick to death of hearing about Lankan politics and peoples opinions. Because I know when I visit Lanka, its always a hot topic of conversation where ever you go. But for people living abroad its nice to hear other sri lankan opinions on the state of the situation in Sri Lanka. Like you said, at the end of the day it will ultimately affect what is affordable to drive, I mean Sri lanka must be one of the few countries in the world where cars appreciate in value.

With the war, I think it depends entirly on how the forces, handle the situation. If they can inflict considerable damage on the LTTE without civilian casualities, I don't think the LTTE will get much support. This war has dragged on for 20 years I think even the LTTE supportes will be getting tired of it now.

[Duncan]

There are other issues apart from the war that is giving SL a bad name.

In a recent prog. on the Travel Channel all they could show was garbage on the roads and the poor services. Whilst I felt the prog. was biased, I also have to agree with some of the stuff they showed.

When ever I visit SL, I do a lot of travelling around the country and I have seen these eye sores along with fake tour guides, very poor service, etc.

Frankly speaking for a tourist looking for value, SL has no chance of competeting with countries such as Thailand.

Our country and its people needs a complete overhaul!

[Velocity]

Living in USA is much cheaper now for sure.

[The Don]

There are other issues apart from the war that is giving SL a bad name.

In a recent prog. on the Travel Channel all they could show was garbage on the roads and the poor services. Whilst I felt the prog. was biased, I also have to agree with some of the stuff they showed.

When ever I visit SL, I do a lot of travelling around the country and I have seen these eye sores along with fake tour guides, very poor service, etc.

Frankly speaking for a tourist looking for value, SL has no chance of competeting with countries such as Thailand.

Our country and its people needs a complete overhaul!

Yes talk about it Duncan,

For a country which is supposed to be a tourist destination, the service you get at the immigration desks is appauling, not even a smile, or a nice greeting just frowning, and thats where it starts and it drags on and on and on.

I don't know about anybody else, but I frankly can't stand the service offered on Sri Lankan airlines especially on middle eastern routes, and comparitively you get much better service on cheaper airlines such as Etihad. Might be better service on long haul flights.

Places like Hikkaduwa are quite a disaster, a tourist can't go arround in peace away from beggers sellers and all sorts, and thus I guess people don't really have the best of times over which might be affecting the numbers as well.

i mean the rise of maldivian resorts can directly be attributed to its seclusion, people do like to be left alone to enjoy things in their own time.

and mind you we are locals, we have gotten used to these things ....... though its still very annoying.

I think we also need a change of mentality as well, speaking about Thailand I think they ran an add campaign which encouraged everybody to smile and welcome tourists highlighting how much money they bring to their ecconomy.

The Don.

[Watchman]

Yes talk about it Duncan,

For a country which is supposed to be a tourist destination, the service you get at the immigration desks is appauling, not even a smile, or a nice greeting just frowning, and thats where it starts and it drags on and on and on.

Gotta agree there. Not to mention the eternal queing. First the imigrations desk. Then the customs. and if that isnt enough i remember there was another guy at the exit 'just checking' the passports!!!

One thing i'm confused is the imigration/emmigration card we have to fill out. Come on, why do we (sri lankan passport holders) have to tell the imigration dept WHY we're coming back to Sri Lanka!?!?!?!? Hello, we're comign home.

I'm in S'pore on a student pass, and when i got back last week, i realized there's a counter dedicated for singapore residents and and one for student pass holders. And guess what the officer there said.. "Welcome back to Singapore"... and they just let us enter. Not even a seal on the passport! Bus in SL, everyone local or not stand together in the stagnent ques while the officer takes his own cool time to check out the passport..

In my view one reason our country isnt getting anywhere are the unions and rights goups. There's all out to stop work and protest against the smallest thing, no matter how right/wrong they may be, but when it comes to shortcomings on their behalf there's no sound. I think sri lanka is abusing the concept of democracy.

[ruwds]

Gotta agree there. Not to mention the eternal queing. First the imigrations desk. Then the customs. and if that isnt enough i remember there was another guy at the exit 'just checking' the passports!!!

One thing i'm confused is the imigration/emmigration card we have to fill out. Come on, why do we (sri lankan passport holders) have to tell the imigration dept WHY we're coming back to Sri Lanka!?!?!?!? Hello, we're comign home.

I'm in S'pore on a student pass, and when i got back last week, i realized there's a counter dedicated for singapore residents and and one for student pass holders. And guess what the officer there said.. "Welcome back to Singapore"... and they just let us enter. Not even a seal on the passport! Bus in SL, everyone local or not stand together in the stagnent ques while the officer takes his own cool time to check out the passport..

In my view one reason our country isnt getting anywhere are the unions and rights goups. There's all out to stop work and protest against the smallest thing, no matter how right/wrong they may be, but when it comes to shortcomings on their behalf there's no sound. I think sri lanka is abusing the concept of democracy.

talkin bout SL immigration...they forgot to enter the details to the comp though they stamped my passport when i was leavin SL for studies and when i gt back for vacation the guy at the desk was like ur details arent on the comp n then talked wth the other person nxt to him n asked so much q's and one question was 'are u sure u went thru here'. i tld yes n that someone did stamp my passport n then had to go to a higher officer n they checked my uni ID card and more checks and said its ok n to enter the details then.

So some officer forgot to enter das stuff n i had a delay of like 20~25 mins jus because of that and thats also comin back to ur own country lol.

journey to SL was in SL airlines n it was ok (it was mostly empty) but the service was rubbish frm CMB to uk. 1st time to Uk i used Etihad n i hav to agree that their service is extremely gud.