Championing Ethics: Ceylon Chamber’s Anti-Crony Capitalism Stance
In a rapidly changing global landscape, where economic uncertainties loom large, the role of ethical leadership in navigating the complexities of fiscal instability has taken centre stage. This was powerfully underscored in a recent address by Duminda Hulangamuwa, the newly appointed Chairman of Sri Lanka’s Ceylon Chamber of Commerce (CCC). Speaking at the annual Chamber media gathering in Colombo, Hulangamuwa’s discourse illuminated a practical path towards economic stability, highlighting the pivotal significance of proactive engagement and comprehensive reform. His insights resonated deeply, sparking discussions that delved into leadership dynamics, economic transformation, and the weight of private sector accountability.
Collective Action and Collaborative Spirit for Economic Balance
Hulangamuwa’s address revolved around the potency of collective action in sustaining economic equilibrium while simultaneously addressing complex social disparities. The CCC, renowned for its collaborative ethos, emerged as a steadfast advocate of strength derived from unity. Hulangamuwa emphasised that in the face of economic fluctuations, a unified approach that involves collaboration among the private sector, governmental bodies and the broader society is pivotal for enduring stability and prosperity. This philosophy rests on the belief that a collective front can more adeptly weather economic storms and ensure balanced progress.
During periods of economic turbulence, Hulangamuwa dismissed the notion that mere statements and declarations held the key. Instead, he stressed the necessity for dynamic strategies that encompass active participation and solution-driven mindsets. The CCC’s distinctive role as a mediator between various stakeholders, ranging from political entities to labour unions, became apparent. This role, especially during crises, has proven to be instrumental in driving tangible change. Hulangamuwa’s assertion that “our primary approach has been one of engagement and active involvement” vibrantly illuminated the transformative role of the CCC.
Critical Juncture and Proactive Engagement
Hulangamuwa’s discourse acknowledged the critical juncture that Sri Lanka’s economy finds itself in, labelling the present period as “one of the most critical years” in the nation’s economic history. Amidst a multitude of challenges, he lauded the CCC’s proactive stance in directly confronting economic crises and their pioneering efforts in exploring innovative solutions. A central theme underlying these efforts was an unwavering commitment to building partnerships that transcend political boundaries, uniting diverse stakeholders, and empowering labour unions. This united effort sought to chart new paths even in the face of adversity, underscoring the CCC’s dedication to shaping the economic destiny of the nation.
Hulangamuwa affirmed, “I believe in an active role of engaging political parties, stakeholders, and unions during crises to find solutions and alternatives to current challenges. This proclamation underscored the CCC’s commitment to an engaged and adaptable approach, with innovation and synergy being pivotal during times of crisis.
Balancing Optimism with Realism in Economic Reform
Even as Hulangamuwa celebrated the achievements arising from collaborative endeavours, he maintained a balanced perspective, acknowledging the inherent complexities of economic reform. While acknowledging progress towards economic stability compared to the previous year, he openly acknowledged the challenges intertwined with reform efforts. Importantly, he underscored the paramount importance of unwavering determination in pursuing engagement and reform, shedding light on the deep-rooted issue of economic and social disparities.
Hulangamuwa’s explanation of the path to reform emphasised that addressing the social inequalities stemming from economic disparity requires collective endeavour. “We need to follow the same path as before in order to introduce reform, as reform is not easy,” he asserted. This statement unveiled the intricate interplay between economic transformation and the broader societal fabric.
领英推荐
Guarding Against Crony Capitalism and Influencing Media Narrative
Hulangamuwa’s address extended its reach to encompass the looming presence of crony capitalism in the private sector. He underscored the CCC’s pivotal role as a guardian, ensuring that economic pursuits align with ethical principles and the public welfare.
However, going against its role as an economic guardian, the CCC supported tax cuts proposed by Gotabaya Rajapaksa in 2019 for economic revitalisation. Despite the optimism, concerns arose about the potential financial risks linked to this move. An economic principle by David Ricardo came into focus, highlighting that any losses faced by the Government due to these tax cuts would eventually result in higher taxes or inflation, which would burden the public. This detailed insight sheds light on the complex interactions involved.
Fast forward to 2022, and a new scenario emerges. Ranil Wickremesinghe overturned the tax cuts, revealing the dangers of hasty economic decision-making. This action highlighted the need for careful deliberation and a thorough grasp of the potential consequences of economic policies. This moment marked a significant shift in the CCC’s stance, as it started to emphasise stronger fiscal responsibility. This shift involved supporting tax increases that followed recommendations from global financial organisations such as the IMF and the World Bank. The goal was to counteract practices that sought short-term gains at the expense of the economy, which could have negative impacts. This shift showcased how the private sector sometimes preferred quick profits, even if it meant adopting policies that didn’t entirely match larger, longer-term economic reforms.
Furthermore, until Sri Lanka’s debt became unstable, the private sector didn’t warn about the needed steps to stabilise it. Despite warnings from global organisations, some private investors, including Sri Lankan banks, kept buying international sovereign bonds from the secondary market, even as foreign institutions were pulling out. However, this buying trend stopped after a cautionary note from Fitch Ratings, which signalled a possible shift towards negative credit status for these bonds.
Consequently, Sri Lankan banks had invested a significant USD 1.5 billion in these bonds, putting the financial safety of bank shareholders at risk. A part of these investments is now in danger due to an ongoing debt restructuring programme.
Navigating Sri Lanka’s Debt Challenge and Future Pathways
Hulangamuwa’s address extended into the media domain, advocating for a balanced reporting paradigm that transcends factual dissemination. He proposed that injecting optimism into narratives could shape public perspectives and influence pivotal decisions, especially in sectors like tourism and exports. His statement, “While facts are crucial, we also need positivity in our messaging,” emphasised the media’s role in steering the nation’s economic trajectory.
In conclusion, Duminda Hulangamuwa’s address emerges as a clarion call for collective and concerted efforts. It urges the private sector, government bodies and media to pool their resources and expertise, collaborating to chart a stable and inclusive economic path for Sri Lanka’s future. The proactive stance demonstrated by the CCC acts as a constant reminder that collaborative initiatives have the power to surmount the intricate challenges posed by crony capitalism, ultimately steering the nation towards a prosperous economic trajectory. As Sri Lanka grapples with economic uncertainties, Hulangamuwa’s address crystallises the effectiveness of unified action and the urgency of forging a united front when confronted with adversity. It underscores the potential of collective action in shaping the economic landscape and fostering inclusive growth, offering a beacon of hope and direction in a world fraught with uncertainties.
By Ishara Gamage