Several companies registered with the Board of Investment (BOI) and in the SME sector are reportedly looking to reduce or suspend operations in Sri Lanka after the April New Year.
It is reported that at least 30 percent of the companies registered with the Board of Investment are downsizing and many are unlikely to resume operations after the New Year holidays this year, while 40 percent of those in the SME sector have decided to downsize or close. .
The new President of the Manufacturers Association (MA) Dhammika Fernando stated that this was due to the slow economic recovery in Sri Lanka and lack of orders due to the global economic downturn and the shift of business to other regional areas.
He said that Sri Lanka has lost its competitive advantage due to the fact that it is 25 percent more expensive than other countries and the cost of production has increased.
