IMF or no IMF, Sri Lanka needs Economic Analysis and Plan going forward: Advocata Advisor Dr. Nishan De Mel

Covered by The Island

Whatever Sri Lanka decides about dealing with its debt and paying its way through the world, the country needs to formulate a very good economic analysis and a publicly-backed plan that will establish the credibility of the world in its economy going forward, Dr. Nishan De Mel, Advocata Institute Advisor and Executive Director of Verité Research said recently.

He made this remark at a virtual forum called the Advokatha (Advoකතා) a weekly series conducted by the Advocata Institute on ‘How to Resolve Sri Lanka’s Debt Crisis Without Seeking Assistance from the International Monetary Fund (IMF)’.

The full discussion can be found on Advocata Plus YouTube Channel.

Further speaking he said:

“Such an analysis needs to be thorough and well-structured with the focus on the real economic activity and the financial conditions in the economy. That would be the first step to build credibility of the world about the Sri Lankan economy. It is actually credibility that we lack rather than foreign reserves. If we can build that credibility about us in the countries that we deal with, we may not need assistance from the IMF to resolve our liquidity issue. When such a favourable environment is created and other countries repose their trust in Sri Lanka’s economy, its sovereign credit ratings would see an upgrade and Sri Lanka would be able to raise funds at the international capital market at reasonable interest rates, The skill we need for this is to present an analysis and a plan and then demonstrate our commitment to stick to it. Our concern is whether the government has such a plan and if it does have one, why it is not publicized”.

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July Food Prices Increase by 0.70%

Originally appeared in the Daily FT and Daily Mirror

Advocata’s Bath Curry Indicator (BCI) which tracks the monthly changes in the price of food recorded a jump of 0.70% for the month of July 2021. 

The month of July experienced an increase in prices compared to the month of June, according to the basket of food tracked by the BCI.

The 3 items that contributed most to this increase were:

For the month of July 2021, the prices of pumpkin showed the largest increase of 66.4%.

Likewise, the prices of Samba rice, Beans, Dhal and fish (balaya) also experienced minor increases in prices as well.

In comparison to the month of July 2020, the BCI has increased by 45% for 2021, which translates that an average family of 4 that spent Rs. 899.85 on this basket of goods for a week in July 2020 would pay Rs. 1308.10 for the same amount of goods in a week in July 2021.

The BCI tracks the weekly retail prices in the Colombo market of the most commonly consumed food ingredients that might be used in a typical Bath curry meal. The prices are collected from the “Weekly Indicators” that the Central Bank publishes.

The BCI Indicator can be accessed at www.bci.advocata.org.

Advocata welcomes full time Minister of Finance for Sri Lanka’s Public Finances

Originally appeared in the Daily FT and Daily Mirror

An independent Minister of Finance can lead the way for better management of Public Finances.

COLOMBO, Sri Lanka— For 23 of the last 30 years, the Head of Government in Sri Lanka has simultaneously held the title of Minister of Finance.  Experience shows that combining the two roles is usually a big mistake as the job of the Head of Government is already very demanding. It is almost impossible for any one person to combine that with being an effective Minister of Finance. The tasks associated with being the Head of Government almost always gain priority.  Secondly, an effective Minister of Finance needs to maintain fiscal discipline by resisting pressures from the political office. The head of government who is also the head of a party or coalition cannot simultaneously meet this requirement due to such conflicting priorities. 

 Analysis of Sri Lanka’s public finances further provides convincing evidence that the absence of a dedicated Minister of Finance has undermined revenue collection. From post independence to around 1990, Sri Lanka’s tax revenue averaged over 20 per cent. At present Sri Lanka has one of the lowest income tax rates compared to peer countries as well as a tax threshold which is several times its GDP (Gross Domestic Product) per capita.

The Advocata Institute, therefore, welcomes the government decision to appoint a dedicated Minister of Finance.

Key Points:

  • A dedicated Minister of Finance is beneficial to effective public Finance management.

  • The Advocata Institute welcomes the appointment of a full-time Minister of Finance.

  • Poor public finance management and poor revenue collection are partly a result of a lack of a dedicated Minister of Finance.

  • Understanding the seriousness of the present crisis and utilising pragmatic public policies is the way forward.

[1] The Political Economy of Long-Term Revenue Decline in Sri Lanka, Mick Moore, ICTD Working Paper 65, February 2017

 

June Food Prices Increase by 14.3 %

Originally appeared in the Daily FT and Daily Mirror

Advocata’s Bath Curry Indicator (BCI) which tracks the monthly changes in the price of food recorded a jump of 14.3%  for the month of  June 2021. 

The month of June experienced an increase in prices comparatively to the month of May, according to the basket of food tracked by the BCI.

The 3 items that contributed most to this increase were:

For the month of June 2021, the prices of green chillies, coconut, and beans, increased by 64%, 33% and 17% respectively. Likewise, the prices of Samba rice, pumpkin, Brinjals, Dhal and red onions also experienced minor increases in prices as well.

 In comparison to the month of June 2020, the BCI has increased by 30%, for 2021, which translates that an average family of 4 that spent Rs.1,136 on this basket of goods for a week in May, would pay Rs.1, 299 for the same amount of goods in a week in June.

 The BCI tracks the weekly retail prices in the Colombo market of the most commonly consumed food ingredients that might be used in a typical Buth curry meal. The prices are collected from the “Weekly Indicators” that the Central Bank publishes.

The BCI Indicator can be accessed at www.bci.advocata.org.

Advocata's Sathya Karunarathne Wins Asia Think Tank Shark Tank Competition

Originally appeared on the Daily FT, The Morning

Advocata Institute secures a $10,000 project grant for research work on improving women’s property rights.

Sathya Karunarathne, Research Analyst, from Colombo based independent policy think-tank Advocata Institute won the coveted Asia Think-Tank Shark Tank competition for the proposal to expand their work on economic freedom for women, specifically on women’s property rights in Sri Lanka. 

The Asia Liberty Forum Think Tank Shark Tank competition is a rigorous project pitch that identifies the best project out of Think Tanks in the region.  The winning think tank is awarded a grant to implement the proposed research project.

As highlighted by Sathya during her pitch “Sri Lankan women’s property rights are not firmly established in the legal system. A 2002 survey by the Agriculture and Environment Statistics Division highlighted that only 16 per cent of privately owned land in the country belongs to females. The lack of updated, gender-disaggregated data makes it difficult to fully understand the extent of this problem”.

The project has three major components; the research effort that will focus on formulating a policy brief on the issue, the communication effort to create awareness on the issue, and an advocacy campaign to highlight to policymakers the importance of property rights, and the urgency of revising these gender discriminatory laws.

As an independent public policy think-tank, the Advocata Institute looks forward to implementing this project in order to improve the ownership of property by women. Securing property rights for women will secure many more rights such as the ability to grow and sell crops, obtain agricultural services and assets, and access debt capital from formal financial institutions with lower interest rates.

Looking beyond awareness, the Advocata Institute hopes to lobby policymakers to amend existing gender-discriminatory land inheritance laws, in line with the equality provisions in the Article 12 of the Constitution of 1978 that recognises all individuals as equal in front of the law and worthy of equal protection.

Advocata is an independent policy think tank based in Colombo, Sri Lanka. We conduct research, provide commentary and hold events to promote sound policy ideas compatible with a free society in Sri Lanka. Visit advocata.org for more information.

Advocata Conversations Pricing Fuel & Energy : Lessons From India with Dr Narayan and Murtaza Jafferjee-

The Advocata Institute hosted a live conversation with Dr S Narayan, Former Secretary, Ministry of Finance, Department of Petroleum and Industrial Development | Former Economic Adviser to the Prime Minister of India and Murtaza Jafferjee, Chair of Advocata Institute on 'Pricing Fuel and Energy: Lessons From India'. The conversation was live-streamed on ZOOM, Facebook and Youtube on Thursday, June 24 at 10.30 AM.

Click here to watch the full conversation

Click here to access the presentation by Murtaza Jafferjee

Click here to access the updated presentation by Murtaza Jafferjee

Click here to access the updated presentation 20/02/2022

K D Vimanga on Newsline in conversation with Sharlan Benedict 22/06/2021

K D Vimanga, Policy Analyst at Advocata Insitute on News1st NEWSLINE program 22/06/2021. She addresses the policy stability the need of the hour on Newsline with Sharlan Benedict.

"The most important thing we need to realize about public policy is that it deals with peoples issues and the issues that impact their livelihood. And then we analyze those issues. As a policy-maker or policy analyst what we do is try and propose solutions that are equitable, in line with the development and with other factors. The problem in Sri Lanka is that we haven't prioritized this process."

Click here to watch the full video:

Dr. Roshan Perera on Newsline in conversation with Sharlan Benedict 18/06/2021

Dr. Roshan Perera, Senior Visiting Fellow at Advocata Insitute on News1st NEWSLINE program 18/06/2021. She addresses the policy stability the need of the hour on Newsline with Sharlan Benedict.

"The fundamental problem that Sri Lanka is facing, which it has been for decades, is our twin deficit problem. We have both a fiscal and external deficit. Basically, we have been living beyond our means and consuming more than we produce. We must address this problem."

Click here to watch the full video:

SL's COVID Response & the Role of the Private Sector with Dr. Rannan-Eliya, Dr. Lakith Peiris and Shyam Sathasivam

Sri Lanka’s Covid19 response and what role does the private sector play?

The Advocata Institute hosted a Twitter Spaces on ‘Sri Lanka’s COVID-19 Response: What is the role of the private sector? with. Ravindra P. Rannan-Eliya, Executive Director & Fellow at Institute for Health Policy, Dr. Lakith Peiris, President of APHNH and Managing Director of Hemas Hospitals Sri Lanka & the Laboratory Chain, and Shyam Sathasivam, Executive Director of Sunshine Healthcare Lanka Ltd

Listen to the conversation as they discuss the topic with Advocata, Research Manager, Aneetha Warusavitarana.

This originally aired on Twitter Spaces on Thursday (June 17, 2021) at 8.00.P.M

Follow @advocatalk on Twitter for future chats on Twitter Spaces. https://twitter.com/advocatalk

You can listen to the full discussion on soundcloud

You can listen to the full discussion on Youtube

Murtaza Jafferjee on Face the Nation: Overcoming Sri Lanka's economic woes

Murtaza Jafferjee Chair of Advocata Institute was featured on the News1st Face the Nation: Overcoming Sri Lanka's economic woes that was aired on the 14th of April 2021.

'It is a pity that we have been playing politics with fuel prices. The first time I recollect a fuel pricing formula was put into operation was back in the early 2000s. In 2005 this program was suspended by the new government. It's by far the single largest component of our import bill. So it's vital that we price it correctly. This price increase was long overdue. Even now we are running at a loss.' - Murtaza Jafferjee

Click here to watch the full video:

Aneetha Warusavitarana on the much debated fuel price hike 'Talk of the Town'

Aneetha Warusavitarana (Research Manager at the Advocata Institute) was feautured on the newest episode of 'Talk of the Town' on Yes 101 on June 14 speaking on the much debated fuel price hike.


'We need to face the reality of the situation that Sri Lanka needs to purchase fuel. Then you need to think of how this must be done in a sustainable manner so you don't see intermittent increases that invariably end up hurting the consumer. And the solution to that I believe, is to introduce a price formula.

Aneetha Warusavitarana on Newsline in conversation with Sharlan Benedict 14/06/2021

Aneetha Warusavitarana (Research Manager at the Advocata Institute) speaks about the fuel pricing mechanisms & economy. SHe addresses this on Newsline with Sharlan Benedict. June 14, 2021.

'Ideally the solution that would work best here is a fuel pricing formula. A crucial factor is that this formula is transparent. The way in which it is calculated should be made available to the public, it should be vetted by the relevant authorities and we should be able to understand how this formula works and how it is linked to international changes in fuel prices.'

Click here to watch the full video:

COVID and Education w/ Dr. Sujata Gamage and Dr. Tara De Mel

Will the COVID-19 Education Crisis become a generational catastrophe?

The Advocata Institute hosted a Twitter Spaces on COVID-19 & Education with Senior Research Fellow at LIRNEasia, and Advocata Institute Advisor Dr. Sujata Gamage, and Former Secretary, Ministry of Education and Co-founder of Education Forum Sri Lanka, Dr. Tara De Mel.

Listen to the conversation as they discuss the topic with Sumhiya Sallay (Advocata Institute).

This originally aired on Twitter Spaces on Monday (May 31, 2021) at 6.30P.M
Follow @advocatalk on Twitter for future chats on Twitter Spaces. https://twitter.com/advocatalk

You can listen to the full discussion on soundcloud

You can listen to the full discussion on Youtube

"Consider all teachers as frontline workers and vaccinate them"- Dr Sujata Gamage.


Dr Sujata Gamage, an advisor to the Advocata Institute in her capacity as the Education Forum Sri Lanka co-coordinator, has called upon the government to take urgent steps to avoid the Covid education crisis becoming a generational catastrophe. The Covid-19 pandemic is not going to go away anytime soon. Therefore, even in the midst of a third  wave of infections, education authorities should be planning to open schools at the earliest  opportunity.

Do not let the Covid education crisis become a generational catastrophe

The whole world is in the middle of a pandemic. Beginning around March 2020 schools across the  world had to close at once, for the first time since World War II. The health crisis created by the  pandemic is obviously the number one priority of governments. The economic crisis the pandemic has  caused too is taken as a serious concern by governments. Unfortunately, the gravity of the Covid  education crisis is yet to be fully appreciated. We will recover eventually from the pandemic; We will recover from the economic crisis too; But the long-term effects of the loss of education for children  will last a generation or more. As António Guterres, Secretary General of the UN said:  

“Covid has led to the largest disruption in education ever. It is a generational catastrophe that would  waste untold human potential, undermine decades of progress in getting children to school and  exacerbate existing inequalities.” 

Schools have been closed for more than 16 months and the difficulties of being trapped indoors for  children and their families are all too well familiar. Less familiar is the fact that not all homes are safe  places for children. Disputes or even violence in the family affect the children. In some cases, children  are abused and there is no teacher or other caring adult to whom to confide. Some children who used  to get a midday lunch at school may be affected nutritionally. Yet, these are somewhat short-term  issues because they would subside once schools start. But the long-term consequences are more  serious. 

In the long-term, students who were already at the risk of dropping out even before the pandemic are  very likely to not return when schools start. Secondly, whether the schools are open or not, the  growth of these children, including their brain growth, will continue. If their education does not  parallel this natural growth, there will be severe deficiencies in the intellectual development of these  children. This deficiency is now known by education experts around the world as Covid Learning Loss.  Schools need to do diagnostic tests to understand the extent of this loss and take remedial measures. 

This Covid-19 pandemic is not going to go away anytime soon. Therefore, even in the midst of a third  wave of infections, education authorities should be planning to open schools at the earliest  opportunity. Not all schools can or should be opened on the same day. Regional or even school-wise  differences in each region need to be considered.  

The first step in such a plan is to consider all teachers as frontline workers and vaccinate them, perhaps  prioritizing teachers in high-risk areas. Once schools start children should be tested regularly for Covid  using low-cost methods. As mentioned before, diagnostics tests should be carried to assess the  learning loss of each child and remedial action taken, as necessary.  

If we do not take those steps with an urgency, the educational crisis of this epidemic will turn into an  education catastrophe that will affect generations to come. 

Sujata Gamage and Tara de Mel 

Co-coordinators

Media coverage on Advocata Colombo Port City Debate! Live Fireside Commentary

Sri Lanka Port City still at risk of incompetent regulators: Samarajiva

Economy Next: Sri Lanka’s China-backed Colombo Port City, which has attempted to cut through a regulatory morass that is holding back the rest of the country via a fast-track ‘single window’ law is still at risk of delays from incompetent regulators, a top policy specialist has warned.

Rohan Samarajiva, the founder of LIRNEasia, a regional policy research body and former regulator of Sri Lanka’s telecom sector who carried out an extensive de-regulation, says the state ends up regulatory activities of citizens in multiple ways.

“We talk about regulators as some special breed but quite a lot of what the government does is regulations,” Samarajiva said at a seminar organized by Advocata Institute, a Colombo based think tank.

“The difference is that there are entities that do formal explicit regulations, rule-bound; and there are those that can say yes or no therefore regulate but don’t necessarily do in that in a formalized manner.”

Limiting Discretion

Regulations become unclear to investors and the general public and also lead to corruption where there is room or discretion for officials to vary decisions. Delaying decisions also make it difficult to get anything done at all.

“I believe it important to make regulations more efficient and the whole essence of regulations is something called discretion – that is the ability to say yes or no,” Samarajiva said.

“To bound that and to limit that. Of course, you have to say yes or no but to bind it.”

The Port City bill was passed to cut regulatory barriers through a ‘single window’ for investment approvals as the government was called upon to start a state regulator for beauty pageants by people who believe the coercive state with a broken public sector is better at it.

“Why is this concept important? To do any one thing you can ask how many steps you must go through and places you have to go through and any of those places can slow you down due to incompetence,” explained Samarajiva.

“When you talk about the basic concept of greater Colombo Economic Commission law from 1978, the BOI and all the work that was done in the last few years on improvising Sri Lanka’s position in the ease of doing business index; all these hinge on a central concept that is the ‘single window’.

“The whole point of all these activities – I’m not saying it is unique to the Port City bill – but the whole point of all these is the single window concept of simplifying things for the investor.”

Read the full article

Colombo Port City Debate! Live Fireside Commentary

The Advocata Institute hosted a live fireside commentary on the Port City Commission Bill Parliamentary debate took place on 19th and 20th of May. The commentary was streamed online from 2.30.P.M onwards.
The session featured a pool of experts who shared their opinions and arguments on the timely and relevant issue. The speakers included an expert panel of speakers; Vinod Hirdaramani, Suren Fernando, Manjuka Fernandopulle, Rohan Samarajiva, Dayan Jayathillake, Lihini Fernando, Milinda Rajapaksha, Lakshman Siriwardana, Murtaza Jafferjee, Charindra Chandrasena, Indika Sakalasooriya, Ganeshan Wignaraja, Thulci Aluwihare, Mevan Pieris, Dr. Paikiasothy Saravanamuttu, Amar Raj Singhe and Iroma Perera.
The session explored the impact of the bill on areas such as Sri Lanka’s economy, Foreign Direct Investment, Sri Lanka’s external relations, and the impact on organisations and businesses.

You can watch the full discussion here

Watch this video on Youtube 

Five areas for consideration in Colombo Port City Economic Commission Bill debate

Originally appeared in the Daily FT, Ada Derana Biz, Sunday Observer

Advocata Institute submitted a letter to all members of Parliament on Monday 3 May, on the proposed Colombo Port City Economic Commission Bill. The letter was addressed to all MPs, highlighting the potential opportunity the Port City project presents and observations on how to maximise the economic opportunities. 

The full letter can be read on www.advocata.org. The recommendations and observations are summarised below. 

1. The case for Special Economic Zones in Sri Lanka

  • Special Economic Zones (SEZs) have been a tool employed around the world by bringing in positive value addition to an economy. More broadly, SEZs are places that have all the facilities that firms need to thrive. SEZs can play an important role in creating the right conditions for industrial success. This might include suitable land plots, hard infrastructure, and site-specific policies or clearances. Moreover, firms in SEZs can benefit from each other’s proximity – they can be each other’s suppliers and customers – thereby making a strong case for Sri Lanka to utilise SEZs to achieve economic growth.

  • If implemented with the right policies and a globally accepted regulatory framework, the Colombo Port City has the potential to emulate some of the successful financial centres in the region and become a driver of growth that Sri Lanka needs.

  • However, the success of an SEZ can only be determined by evaluating the linkages generated within the local economy. In order to become successful, Port City should facilitate positive spillovers in technology and know-how that enable the local economy to enhance productivity.

  • In order to become truly effective, given the thicket of red tape in Sri Lanka, SEZs require a certain degree of discretionary powers. The provision of such powers allows SEZs to operate independently and achieve productive targets without having to deal with tedious and time-consuming processes that hobble businesses in the rest of the country. This is why SEZs can effectively accelerate economic growth while also being an incentive for Foreign Direct Investments.

2. The issues with tax concessions 

  • Taxes are the most important source of revenue for the Government. However, in 2020, tax revenue fell to 8.1% of GDP, exacerbating an already precarious fiscal situation. With a history of fiscal deficits, the compounding effects of debt financing has snowballed into serious concerns regarding debt sustainability.

  • The tax concessions as provided for in the Bill can create distortions within the economy while seriously impairing fiscal sustainability. Businesses located within the Port City will benefit from the agglomeration effects of being in the Port City and having access to world-class infrastructure. Therefore an investment in the Port City should yield a much higher return, thus not requiring further fiscal incentives. Research also suggests that the effectiveness of tax incentives in attracting foreign investment is low. Having only a marginal impact in attracting FDI compared to other factors.

  • While recognising the need to be competitive vis-à-vis other zones, the provisions to provide tax relief over and above the tax concessions already provided for under the Inland Revenue Act No. 24 of 2017 will further compromise the progressivity of the tax system and affect competitive neutrality.

  • There are, however, instances when fiscal incentives (tax credits, grants, etc.) may be warranted, for example, where private returns are below the cost of capital but social returns (positive externalities) can be generated. However, the existing Inland Revenue Act provides for such incentives – we recommend that the power to grant fiscal incentives be retained within the Ministry of Finance.

3. Considerations on financial regulation 

  • Developing a fully-fledged OFC (Offshore Financial Centre) requires the relaxation of capital controls to permit free movement of capital, improving the ability to compete globally. However, given Sri Lanka’s current status of debt sustainability, sovereign rating downgrade, and foreign exchange crisis, it may not be the most appropriate time to set up an OFC. Stringent foreign exchange controls in place as of now may not allow the relaxation of capital controls.

  • The success of a financial centre depends on the confidence and trust that it evokes in investors and customers. The key to building this trust and confidence is dependent on two factors. First, the governance structure in place, i.e., the laws, rules and regulations governing financial products and services. Second, the way in which the regulatory authority/ies apply and enforce the regulations. Further, these regulations must conform to international best practices set out by institutions such as the Basel Committee on Banking Supervision (BCBS) and Financial Action Taskforce (FATF) recommendations on anti-money laundering and combatting the financing of terrorism and proliferation (AML/CFT), to ensure global acceptance. Any attempts to circumvent these standards could have adverse impacts on financial institutions operating in the rest of the country as well.

  • There is, however, a case for moving from a rules-based financial regulation, as is currently in place, to a more principle-based financial regulation. Such a move encourages financial innovation and facilitates the expansion of financial services in a dynamic global environment. There is also a case for unified regulation of financial services (a single omnibus legislation which has been adopted by other financial centres). The Bill only refers to regulation of banks and capital market institutions. It is silent on whether insurance companies would be allowed to operate within this jurisdiction and who would regulate that sector. It is of vital importance that this issue be addressed if the Port City is to be operated as an OFC.

  • According to the draft Bill, licensing (Section 42(4)) and regulating (Section 45) for offshore banking businesses is done by the Commission with the concurrence of the Monetary Board under the Banking Act No.30 of 1988. However, as per the Bill, the examination of such entities would be undertaken by a “competent authority” appointed by the Port City Commission (Section 49), and the Monetary Board may only call for information and reports from these entities through the Commission (Section 51). But the Bill is silent on the expertise and experience of those who would be appointed by the Commission to undertake the examination of these entities. Our recommendation is that until a separate financial regulatory framework for the OFC is set up in the Port City, and until persons with the necessary capabilities are recruited, the existing regulators must undertake both the regulation and supervision of financial institutions set up within the Port City.

Advocata also call upon members of Parliament to make an addition to clause 5, as subsection (k) reading “Uphold laws and regulations on anti-money laundering and terrorism financing” in light of the above mentioned AML/CFT issues.

4. The need for flexible labour regulations 

  • The Colombo Port City expects to operate as a service-oriented SEZ that propels Sri Lanka to be a major trading and services hub within the Indian Ocean. It hopes to attract top-notch IT, financial service firms and types of businesses and economic activity that will be highly innovative. In order for such firms to thrive and grow, a labour environment that accommodates failure, mistakes and high rates of experimentation is crucial.

  • This requires a flexible labour market with low redundancy and restructuring costs that promotes swift adaptability to market changes. Prioritising labour solutions over capital will result in job creation that will ultimately benefit the country. However, the labour regulations in operation in Sri Lanka does not facilitate the same.

  • Unemployment is a social problem, the burden of which must not be borne by the employers alone. Hence, we recommend the establishment of an Unemployment Insurance Scheme similar to EPF and ETF funds to compliment flexible labour regulations.

5. Recommendations on Parliamentary oversight and accountability

  • At present, the Bill states that the Commission should submit to the President or Minister in Charge an annual report setting out the status of operations, income and expenditure of the Commission. Alongside this, it also provides for the audit of accounts of the Commission. However, as the main parliamentary oversight mechanisms in place to examine the activities of the government bodies responsible for public accounts and public enterprises are the COPA and the COPE, we recommend that the Port City Commission be made accountable to these committees.

  • In relation to the composition of the Commission, it is our recommendation that the Secretary to the Treasury be appointed as an ex-officio to the Commission since this would allow for fiscal accountability.

  • Parliament should also consider the provision of including a mechanism for staggered appointments to the committee would ensure institutional stability, preserve institutional memory and political representation. In line with the international governance standards, Parliament should also consider having a minimum quota for women’s representation in the Commission.

The Advocata Institute recommends the consideration of the reforms outlined above to achieve maximum economic outcomes. 

Murtaza Jafferjee on Face the Nation: Port City Economic Commission Bill, the good, the bad and the ugly

Murtaza Jafferjee Chairman of Advocata Institute was featured on the News1st Face the Nation: Port City Economic Commission Bill, the good, the bad and the ugly programme that was aired on the 19th of April 2021. Murtaza comments on the Good and the Bad of port city and why do we need the Port City workaround

Click here to watch the full video:

Dhananath Fernando on Newsline with Faraz Shauketaly. April 19, 2021

Dhananath Fernando, Chief Operating Officer of the Advocata Institute speaks how Special Economic Zones are needed because doing business in SriLanka is difficult and how the Port City is not going to solve all our problems. He addresses this on Newsline with Faraz Shauketaly. April 19, 2021.

Click here to watch the full video:

Media coverage on the launch of Advocata's Bath Curry Indicator

Daily Mirror: Sri Lanka gets localised food price tracker - ‘Bath Curry Indicator’

Sri Lanka yesterday saw the launch of its own localised food tracker ‘Bath Curry Indicator’ (BCI), a spin on the popular ‘Big Mac Index’ conceptualised by The Economist in 1986. 

The BCI, designed by Colombo-based free market think-tank Advocata Institute, is aimed at tracking the retail prices of the goods that could be included in a packet of rice and curry. 

The indicator, that is specific to Colombo at present, tracks on a weekly basis the prices of common food items that go into rice packets and provides an insight on the rate of change of the prices over time. 

The Central Bank’s weekly economic indicators publication is used to feed the indicator. The retail prices used are from the Pettah Market, except where data is unavailable, in which case data from the Narahenpita Economic Centre are taken into account.

The items on the BCI are selected from the Household Income and Expenditure Survey (HIES) 2016.  

Pointing out that the food prices are a fairly volatile indicator, Advocata stated the prices are not only dependent on the seasonal and weather patterns but are also affected by policies.

While the BCI is not a measure of inflation, it indicates the manner in which the cost of a specific basket of goods has moved over a short period, thus providing an insight on the impacts of certain policies, as they come into effect.

Furthermore, Advocata noted that although the Colombo Consumer Price Index (CCPI) is a comprehensive method of calculating inflation and is a useful indicator to help assess the country’s macroeconomic conditions, there are some shortcomings in the process. 

The index does not necessarily measure consumer reactions and preferences that change relative to price changes, the think tank noted. 

Read the full article


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