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Sunday December 3rd, 2023

14 Sri Lanka firms pledge to increase female board representation to 20-pct

ECONOMYNEXT – Fourteen (or is it 13) Sri Lanka companies have pledged to boost female directors and management to 20 percent by 2025, at an event initiated by the International Finance Corporation and Colombo Stock Exchange.

A ‘Ring the Bell for Gender Equality’ event was on International Women’s Day the Colombo Stock Exchange said.

According to an IFC study supported by Australia’s DFAT the number of women on CSE-listed boards was only 10.1 percent in 2022 up from 8.2 percent in 2018 rising from 144 to 240.

“We know that making even small inroads in closing the gender gap can yield clear and positive results for businesses especially in financial performance and better decision- making processes,” said Sarah Twigg, Manager, Women in Work Program, IFC.

“The commitment of the 13 top Sri Lankan companies is a significant step towards accelerating the progress we have made so far and this is also the time that Sri Lanka needs more women corporate and business leaders to help ensure an inclusive and resilient recovery in the country.”

Dilshan Wirasekera, Chairman of the Colombo Stock Exchange said the event, held for the 8th time is used as a ‘call to action’ for businesses to advance women’s empowerment and gender equality/

“We wanted to invite initially the 20 S&P companies today to pledge their commitment towards increasing female representation at the board level and in management to a minimum of 20 percent by 2025,” he said.

Reserves by IFC’s Women on Boards program, has also shown a clear correlation in Sri Lanka between increased board diversity and financial performance, with positive trends reported in line with indicators such as return on total assets and price-to-earnings ratio, the statement said.

IFC’s work on the ‘Women on Boards’ program in Sri Lanka is supported by the government of Australia under the IFC-DFAT Women in Work program.

Lalita Kapur the Australian Deputy High Commissioner to Sri Lanka and Maldives participating in the event said, as Sri Lanka navigates significant economic challenges, it is critical now more than ever to find new ways to advance gender equality.

At the event 14 companies signed onto a commitment to boost female representation at the board level and in management to a minimum of 20 percent by 2025.

“We know that making even small inroads in closing the gender gap can yield clear and positive results for businesses especially in financial performance and better decision- making processes,” said Sarah Twigg, Manager, Women in Work Program, IFC.

“The commitment of the 13 top Sri Lankan companies is a significant step towards accelerating the progress we have made so far and this is also the time that Sri Lanka needs more women corporate and business leaders to help ensure an inclusive and resilient recovery in the country.”

The International Finance Corporation (IFC) and the Colombo Stock Exchange (CSE) partnered for ‘Ring the Bell for Gender Equality’ event in Sri Lanka for the eighth consecutive year on Wednesday, celebrated in line with the International Women’s Day.

The annual global initiative highlights how greater participation of women in the economy can spur sustainable and inclusive growth, thereby shaping a more equal future.

The Global Gender Gap Report of 2022 indicates the share of women hired into leadership roles have seen a steady increase, from over 33 percent in 2016 to nearly 37 percent in 2022.

However, amid multiple global crises, sparked initially by the COVID-19 pandemic, there are concerns that women’s workforce participation has dropped, risking further backsliding on gender parity.

IFC’s commitment to the initiative is part of its strong focus on gender equality, which includes leveraging relationships with financial institutions to expand access to finance for female entrepreneurs and increase the number of women in leadership roles.

At the event 14 companies signed onto a commitment to boost female representation at the board level and in management to a minimum of 20 percent by 2025.

“We know that making even small inroads in closing the gender gap can yield clear and positive results for businesses especially in financial performance and better decision- making processes,” said Sarah Twigg, Manager, Women in Work Program, IFC.

“The commitment of the 13 top Sri Lankan companies is a significant step towards accelerating the progress we have made so far and this is also the time that Sri Lanka needs more women corporate and business leaders to help ensure an inclusive and resilient recovery in the country.”

The female labor force participation rate remains stagnate at around 35 percent in Sri Lanka, compared with a steady male participation rate of 74 percent. Similarly, the average female unemployment rate (7 percent) remained more than double that of men (3 percent) between 2011 and 2019.

(Colombo/ Mar 12/2023)

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UAE investors express interest in Sri Lanka’s energy, tourism, ports, real estate: Ali Sabry

ECONOMYNEXT – A group of investors based in the United Arab Emirates have expressed their interest in renewable energy, tourism, ports, and real estates, Foreign Minister Ali Sabry told Economy Next.

A Sri Lankan delegation led by President Ranil Wickremesinghe is in Dubai to take part in the 2023 United Nations Climate Change Conference (COP28).

Sabry said a group of large investors met the President on Friday and discussed possible opportunities in Sri Lanka.

“We met big investors here particularly on renewable energy, tourism, port development and also infrastructure development and real estate. That’s where they are doing very well,” Foreign Minister told Economy Next.

“Our embassy will organize a higher-level business delegation to visit Sri Lanka to look at the available opportunities.”

“There is a lot of traction and interest in Sri Lanka.”

Sri Lanka has been exploring to attract investors to crisis hit Sri Lanka which declared bankruptcy in April last year with sovereign debt default.

Since then, most investors have taken a step back from investing in the island nation due to its inability to serve debts and uncertainty over such investments.

Several government officials said investors may start pouring dollars into Sri Lanka very carefully after they see some certainty of debt repayments. (Dubai/Dec 3/2023)

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Sri Lanka to push for green initiative investment “after OCC finalizing” debt deals – President

ECONOMYNEXT – Sri Lanka will push for investment into green initiatives globally after the Official Creditor Committee (OCC) finalizing on the island nation’s debt restructuring, President Ranil Wickremesinghe told Economy Next at the 2023 United Nations Climate Change Conference (COP28).

President Wickremesinghe along with local and global advisors has inaugurated three ambitious projects to convert climate change-led disaster funding, which is mostly seen as donations, into viable commercial enterprises involving private sector investments.

The idea is to rally all the global nations in the Tropical Belt threatened by disasters related to climate change and bargain collectively with advanced economies which emit more greenhouse gases into the environment resulting in global warming for more green initiatives like renewable energy projects.

Wickremesinghe initiated a Climate Justice Forum (CJF), Tropical Belt Initiative (TBI), and called on the world to help establish the International Climate Change University in Sri Lanka.

His moves have been welcomed by global leaders, though analysts said an initiative like TBI is a “bold and imaginary” step.

“This is the first step. We have now put forward the proposal,” Wickremesinghe told Economy Next on Sunday on the sideline of the COP28 in Dubai’s EXPO 2020.

“There is an interest. We have to wait for OCC finalizing (debt restructuring) before pushing for investments.”

HARD INVESTMENTS

Global investors are hesitant to invest in Sri Lanka due to its bankruptcy and sovereign debt default.

Sri Lanka is still recovering from an unprecedented economic crisis which has compelled the island nation to declare bankruptcy with sovereign debt default.

President Wickremesinhe during a forum on Saturday said his initiatives would help government in advanced countries not to use tax money of its own people for climate related disasters in other countries and instead, private sector investors could help by investing in renewable energy initiatives.

President Wickremesinghe’s government has been in the process of implementing some tough policies it committed to the International Monetary Fund (IMF) to stabilize the country and ensure sustainability in its borrowing.

Sri Lanka is yet to finalize the debt restructuring fully as it still has to negotiate on repayment schedule of commercial and sovereign bond borrowing.

The OCC and Sri Lanka had agreed on the main parameters of a debt treatment consistent with those of the Extended Fund Facility (EFF) arrangement between Sri Lanka and the IMF.

The members of the Paris Club which are part of the Official Creditor Committee are representatives of countries with eligible claims on Sri Lanka: Australia, Austria, Belgium, Canada, Denmark, France, Germany, Japan, Korea, the Netherlands, Russia, Spain, Sweden, the United Kingdom, the United States of America.

The OCC has said it was expecting other bilateral creditors to consent to sharing, in a transparent manner, the information necessary for the OCC to evaluate comparability of treatment regarding their own bilateral agreement.

The OCC also has said it expects that the Sri Lankan authorities will continue to engage with their private creditors to find as soon as possible an agreement on terms at least as favourable as the terms offered by the OCC. (DUBAI/Dec 3/2023)

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Sri Lanka alcohol regulations may be spurring moonshine: Minister

ECONOMYNEXT – Sri Lanka’s alcohol regulations may be reducing access to legal products and driving illegal moonshine sector, State Minister for Finance Ranjith Siyambalapitiya said amid plans to change opening times of retail outlets.

Sri Lanka is currently discussing changing the opening times of bars (retail alcohol outlets), he said.

Sri Lanka’s excise laws may be contributing to the growth of illegal products, Minister Siyambalapitiya was quoted as saying at the annual meeting of Sri Lanka’s excise officers.

Over 20 years legal alcohol sales have grown 50 percent but illegal products are estimated to have grown 500 percent, he said.

It is not clear where the 500 percent estimate came from.

In Kandy there was a bar for every 6,000 persons but in Mullativu there was one for only 990,000 persons and people had to travel 80 kilometres to get to a legal outlet, Minister Siyambalapitiya had said.

However Sri Lanka has a widespread moonshine or ‘kasippu’ industry driven by high taxes on legal products.

The widely used ‘gal’ or special arrack is now around 3,500 rupees and may go up further with a hike in value added tax. About 2000 rupees of the sale price is taxes.

After a currency collapse and tax hikes legal alcohol sales have fallen, leading to local sugar companies burying ethanol, according to statements made in parliament.

An uneven distribution of bars may also be driving people towards alcohol.

Alcohol sales is controlled on the grounds that it is an addictive product which can lead to poverty, ill-health, bad behaviour and criminal activities, though advocates of high taxes ignore the poverty angle.

High taxes are promoted by temperance movements some of whom have called for outright prohibition in the last century.

Temperance movements spread among evangelical groups in the West and were also embraced by nationalists/moralists and independence movements in colonial authorities.

Prohibition in the US however led to more criminal activity as an organized crime took to bootlegging. (Colombo/Dec03/2023)

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