Govt. should focus on the bottom of the economic pyramid, a reason why the previous administration failed
Sri Lanka’s economic pyramid at the bottom has been neglected particularly in the economic performance and the SME sector and this showed up in voting patterns at the presidential election (in which incumbent President Mahinda Rajapaksa was defeated), according to a prominent business consultancy expert.
Hilmy Cader, International CEO, MTI Consultancy expressed this view, while speaking at the “Chartered Institute of Management Accountants (CIMA) Corporate Partners 2015 – Cultivating Business Excellency” event held in Colombo last week. He was discussing the ‘Business Outlook Survey 2015 conducted by MTI in collaboration with CIMA.
He said that the survey was conducted with 150 CEOs of the companies in this country where information was obtained on corporate performances. Mr. Cader pointed out that the survey indicated that there have been low performances during the last two year in some of these companies, though he conceded that 50 per cent of them have performed better.
Dwelling on the outcome of the survey, he said that there were a few suggestions to make considering the results. He said that given their expectations, in the banking sector, etc the major concern in 2014 that possibly would spill over in 2015 is very slow credit growth in 2014 despite lower interest rates.
He said that this is a major concern because borrowing at SME level was quite low despite the lower interest rates coupled with attractive campaigns run by the banks.
The model of the lending he said was more biased towards lifestyles rather than livelihoods as seen from the portfolios and products the banks and the finance companies have provided lending to.
Mr. Cader said, “Perhaps it is this performance that the people have showed up in their voting during the election as well, because the bottom of the pyramid by and large has been neglected. This fact has to be kept in mind in 2015.”
Based on the survey, he urged the government to be more focused on the bottom of the economic pyramid rather than make Sri Lanka the world’s best or enhance the improvements of Greater Colombo or the Western Province. “There is a clear indication that lending in the past had been more on improving lifestyles.”
He said that the only silver lining was the significant growth in the micro finance sector, but then again on a low base.
Twenty-nine, top level Sri Lankan business entities in the country were registered with CIMA and recognized at the function as corporate partners 2015.
Chairman CIMA Sri Lanka Board Vipula Gunatilleke welcoming those present said that CIMA has been in Sri Lanka for the last 50 years and the corporate partner scheme though ongoing, this year had a special significance since it coincided with the 50 year anniversary of CIMA being in Sri Lanka.