SLAMERP expresses grave concern over developing economic environment

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The Sri Lanka Association of Manufacturing and Exporters of Rubber Products (SLAMERP), in a media release expressed its grave concern over the developing economic environment.

The release stated: A month ago, the industry collectively warned the Government and all the Parliamentarians, the serious economic consequences Sri Lanka would face if fast action is not taken to stabilise the macro economy. It is disappointing to note that very little progress has been made in bringing in this stability. Sri Lanka Association of Manufacturing and Exporters of Rubber Products (SLAMERP) believes prudent political decisions to bring in stability in the political economy is the only way forward to correct the macro-economic catastrophe the country is facing. If we lose one day of exports the cost would be around $50 million to the country and the stability of the labour force too is going to get affected, we cannot afford strikes and hartals to cripple the economy any further and call on the Government and Parliament to act fast to bring in political stability.

It would be an uphill task for the country, if the executive branch and the legislative branch fail to bring in an accepted political structure, within the constitutional framework.  As the Finance Minister disclosed, the country’s useable reserves are below USD 50 million and with the IMF support will only yielding further down the stream, the economy will fall into an abyss in the next few weeks if it is further disrupted. Without energy and power SLAMERP believes it’s like trying to revive a dying patient without oxygen. The export sector which has been resilient and has done its part is waiting for the politicians in power and in Opposition to carve out a speedy solution before industry and exports come to a grinding halt.

We need the exchange rate, interest rates and inflation to be brought under some sanity. We appreciate the actions taken by the Central Bank and the proposals made by the Finance Minister in Parliament. We need these reforms from the Finance Ministry as early as today. Without this confidence in macro-economic policy, no international organisation or investor will take Sri Lanka seriously.

The SLAMERP would like to remind the government that stability and confidence is the key to revive the economic sentiments. Therefore, we call upon all responsible in making decisions, at political level, to deliver the critical decisions both politically and economically if they are to save Sri Lanka’s national interest and its people. Otherwise, the country will be thrown into a spiral of social unrest that would bring in unbelievable and unprecedented consequences and pain to every citizen.