DFCC Bank recently hosted an event titled “Future Ready Sri Lanka: Resilience, Competitiveness and Digital Transformation,” which gathered key figures from the fields of economics, investment, digital governance, and banking. The purpose was to explore the necessary steps for Sri Lanka as it transitions from a phase of economic stabilization.
The event’s keynote address was presented by Mr. Gregory Smith, the Manager for Country Advisory and Economics at the International Finance Corporation (IFC) for South Asia. Following his address, a panel discussion took place featuring notable leaders such as Dr. Hans Wijayasuriya, Chief Advisor to the President on Digital Economy and Chairman of GovTech Sri Lanka; Mr. Duminda Hulangamuwa, Chairman of the Board of Investment of Sri Lanka; and Mr. Thimal Perera, Director and CEO of DFCC Bank PLC. The session was moderated by Mr. Chayu Damsinghe, Head of Macroeconomic Advisory at Frontier Research.
Mr. Smith acknowledged the advancements Sri Lanka has made since the economic crisis, including improvements in government revenue, bolstered foreign reserves, managed inflation rates, and a resurgence in private-sector credit. However, he warned against equating stability with true resilience, especially as the nation faces impending high debt repayments amidst ongoing global uncertainties related to energy, trade, and geopolitics. “There will be shocks. There will be significant shocks,” he stated, posing the critical question: “How do we survive 2030?”
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He emphasized the importance of proactive debt management, accessible international capital markets, achieving a stable single-B credit rating, large-scale renewable energy initiatives, and safeguarding fiscal improvements to fortify the economy against potential disruptions. He drew parallels with countries like India, Vietnam, Georgia, and Armenia to illustrate how nations can swiftly gain or lose economic ground based on divergent trajectories.
The panel then delved into the concrete obstacles hindering the transition from stability to growth. Mr. Hulangamuwa pointed out the lengthy and intricate process of obtaining investment approvals, mentioning that a tourism initiative could require clearance from around 18 different agencies, and that accessing government land or completing significant tenders might take up to two years. He emphasized the necessity for Sri Lanka to expand its market reach, stating, “If you are selling to 22 million people, we cannot expect growth beyond 3% to 4%. We need to target global markets.”
Dr. Wijayasuriya discussed the transformative potential of digital public infrastructure in linking government entities and minimizing the time citizens and businesses spend navigating various agencies. He highlighted initiatives like the Sri Lanka Unique Digital Identity and the National Data Exchange as crucial steps toward more integrated, efficient, and citizen-focused services. He cautioned that the adoption of digital solutions must be driven by genuine convenience and value for users.
Regarding the financial sector’s role, Mr. Perera noted that the resurgence of private-sector credit is a positive indicator of renewed confidence. However, he pointed out that the quality of growth hinges on the sectors where this capital is allocated. Banks must increasingly leverage data, technology, cash-flow assessments, and credit-guarantee programs to support start-ups, small enterprises, and micro-entrepreneurs with high potential but limited physical collateral. “It’s about attracting the right deposits and channeling them into industries that will genuinely propel our economy forward,” he asserted. He also advocated for enhanced collaboration among policymakers, regulators, and the financial sector to facilitate Sri Lanka’s next developmental phase.
Through the “Future Ready Sri Lanka” initiative, DFCC Bank has established a vital platform for a national dialogue regarding the strategic choices that must be made in the aftermath of economic recovery. The discussions highlighted that while Sri Lanka has regained a degree of stability, its future progress will hinge on its capacity to endure shocks, lure investments, modernize public services, and allocate capital toward productive growth.
