• Implement a unified and central system for publication of information on the current and future actions. A 24-hour Media response centre should be established to respond to false reports that create fear and concerns among the general public and employees. An update could be provided at a pre-determined time and at 12-hour intervals.
• In order to ensure that there is no disruption in supply of goods to retail stores with special emphasis on food and medicines, the government should have special procurement measures so that the private sector is able to source from different sources such as economic centres. Special attention should also be given to the smooth running of logistics during the period of containment.
• Border agencies should provide uninterrupted services albeit with a skeleton staff and maximum precautionary steps taken to ensure their safety. To facilitate this process, customs and border agencies should deploy a less stringent regime with respect to examination checks – for example, reduce referring the cargos to grey line 1 and 2 or red channel and so on.
• Priority should be given to the facilitation of local production of essential safety items (such as masks, gloves, hand sanitiser liquid) to meet the demand. In this respect, it is recommended that the government waives or relaxes the licensing requirements placed on the importation of raw material required to produce such items.
• Safety of all employees in essential business services (such as healthcare, pharmacy and retail) be mandated via the compulsory adoption of safety measures including the use of masks, gloves, thermometers.
• For worst affected industries like Tourism and Construction, the government could consider in consultation with the Banks to look at short term working capital loans to ensure payment of wages etc. The criteria for working capital loans could include demonstration of a certain threshold of orders/business lost due to COVID-19. The working capital loans should be time-bound so as not to have an overall impact on the financial sector and fiscal position of the economy.
• For the industries affected the most, the government in collaboration with the EPF and ETF could consider a three-month moratorium on EPF and ETF contributions.
• The safety and well-being of the tourists who are presently in the country should be looked at by the relevant tourist authorities so as to ensure there is no negative impact on the image of the country.
• Government to outline a policy framework with the stipulation of necessary regulatory approvals so that the private sector healthcare providers would be ready to augment the country’s capacity in terms of testing and treatment, when called upon to do so.
• The Government to consider extending the package of concessions given to SMEs (Debt moratorium, etc) which lapsed on 29th February for companies with a turnover of less than Rs. 750 million, subject to demonstration of being impacted by COVID-19.
• Activate foreign missions in key markets so that Sri Lankan businesses can seek/access foreign buyers that would be an alternate to imports from countries like China. The missions can also facilitate exports (such as Tea) from Sri Lanka which are held up in ports overseas.
• Make preparations for the augmentation of Air Freight Capacity into Sri Lanka (including the use of Charter Aircraft where required) to meet the likely surge in demand for the import of raw material for key sectors as production capacities in overseas markets return to normal.
• Deploy strategic procurement strategies to exploit the sharp fall in global oil prices. The benefit of low oil prices can be translated in to targeted benefits to consumers and targeted activities and sectors. Such measures can ease the financial burden on low income households, companies operating in impacted sectors and in particular SMEs impacted by COVID-19.
• Accelerate the programs and activities identified by the Task Force for Poverty Eradication and Livelihood Development. The activities/program proposed should include low-income earners and own-account workers (32% of the employed workforce as at 3Q 2019) whose livelihoods are impacted due to the outbreak of COVID-19.
• Establish a committee with representatives across all sectors to strategize Sri Lanka’s response to the demand slowdown that is expected to take place in key export markets as a result of COVID-19. The committee could also look at opportunistic strategies (to grow exports) in taking advantage of organisations looking to diversify their supply chain and mitigate geographical risk linked to high dependency on countries like China.
• Initiate a focused programme to access multilateral funds made available to help countries manage with the fallout from COVID-19:
a. World Bank Fund through IFC- focus on impact on economies, sustain supply chains, and limit downside risk
b. IMF – If financial market conditions and the external accounts of Sri Lanka deteriorate further, Sri Lanka could potentially face a Balance of Payment crisis. The IMF has a Rapid Funding Instrument (RFI) for member nations in such emergencies in particular during COVID-19.
• Increase overtime (OT) limit from current 60 hours to 80 – 90 hours per month for a limited period for industries like apparel when raw materials become available again. It is our belief that above actions if implemented will help to arrest the rapid spread of the virus and help stabilise the economy in the coming weeks and months.