Consumer market to shrink by 60% by April, unemployment rate to rise

8 March 2023 02:21 pm Views - {{hitsCtrl.values.hits}} 5 Bookmark

CHATURANGA PRADEEP SAMARAWICKRAMA Follow

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If the Central Bank Governor is unable to take a firm decision to prevent the contraction of the economy, the consumer market will shrink by 60% by April, the Sri Lanka United National Businesses Alliance (SLUNBA) said.

The consumer market had shrunk by 40% last December and due to this, the unemployment rate had increased.

The small and medium-sized enterprises (SMEs) will be forced to close their companies and while facing the current situation, the government is requesting that Sri Lanka should downsize the SME facilities, the SLUNBA said.

Therefore, SLUNBA Chairman Tanya Abesundara requested the government to take immediate action to protect the SMEs.

Meanwhile, National Construction Association of Sri Lanka (NCASL) Chairman Susantha Liyanaarachchi said the government did not control the dollar, but it had controlled inflation and created a recession while contracting the economy.

While describing the devaluation of the dollar and appreciation of the Sri Lankan rupee, he said the Etham market had not operated since March 2022 and the dollars in Sri Lanka had been saved.

"The dollar exchange rate was reduced, and people were forced to release their dollar reserves because they couldn't get more Sri Lankan rupees. Now people have no buying power. People do not have rupees in their hands,” he said. (Chaturanga Pradeep Samarawickrama)

Pix by Pradeep Dilrukshana

Comments - 5

Shera Wednesday, 08 March 2023 04:11 PM

Everyone has a talent or gift they can monetize. But Sri Lankan system is socialist which limits people's thinking and abilities, starting from school age. The system restricts achievements, and suppresses the creativity of people and their ability to think outside the box. This is why capitalist countries do better where the system places no limits on a citizen's earning potential or achievements. This failed system in Sri Lanka and corruption on every level, has made a rich upper class and allowed only them the opportunities and access that are denied to others. If everyone had equal opportunities; creativity and thinking skills; and access to resources (without a politician involved) to get their break, the country would have been quick to turn around the economy. Instead, people don't know what to do with themselves. It's a waste of human resources.

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Bernard Jayatilake Wednesday, 08 March 2023 05:34 PM

Nothing to worry as come April, the IMF bailout package of USD 2.9 billion will solve all these problems like a majic wand.

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DD Wednesday, 08 March 2023 07:26 PM

What about the 51B dept we owe the world? How are we to sort this? 2.9 agic wand can help a little the bigger question is the 51B.

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VJ Thursday, 09 March 2023 07:27 AM

This is a viscous cycle, consumers reduce purchases due to hardship, sellers reduce their goods on the shelves, manufacturers reduce productivity due to less demand. The employer will reduce production capacity and in turn reduce staff.

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Era Friday, 10 March 2023 06:06 AM

Diverse into exports will be an good option for all SMEs.

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