How can Sri Lanka recover?

While it’s too early to quantify the economic impact from the attacks, the overall economic impact could be far-reaching. The economic hit will be felt in the tourism sector with spill-over impact to the financial, food and beverage sectors – Pic by Shehan Gunasekara

The well-coordinated suicide-bombings on Easter Sunday 21 April that left over250 people dead was a catastrophic failure. 

The world has learned a great deal about how to thwart terrorists since 11 September 2001. A crucial lesson is that it is vital to share information quickly and widely, so that fragmentary intelligence can be pieced together, followed up and actioned. 

This is precisely what our leaders and Ministry of Defence failed to do, despite receiving an unusually detailed “operational grade intelligence” from Indian security agencies on an imminent attack by National Thowheed Jamath (NTJ) on 4 April.

If the discovery of a huge haul of explosives weighing over 100kg and detonators in a training camp in Puttalam and the Philippines church bombings by Islamic State (ISIS) both in January 2019 together with detail warnings received were pieced together and followed up, this carnage of innocent people could have been easily prevented.

While it’s too early to quantify the economic impact from the attacks, the overall economic impact could be far-reaching. The economic hit will be felt in the tourism sector with spill-over impact to the financial, food and beverage sectors. This will have an impact on the livelihood of millions of people who depend on sectors that are adversely affected. A lot of hard work will have to be put in to build confidence and credibility on the country among the local and international community.

Terrorism rarely destroys tourism for good. When a terrorist attack occurs, prospective tourists may exhibit greater reluctance as they fear becoming victims of future terrorist attacks. While terrorist attacks tend to cause an immediate decline in tourism demand, revenues are typically quite resilient, recovering in a matter of months as was the case in several countries that endured terrorist attacks on tourism. 

Secular declines in tourism activity are much more likely to be the result of protracted periods of political instability, due to its crippling effect on all components of the economy. Restoring normalcy, preventing any further terrorist attacks and any retaliatory action among the communities in Sri Lanka is imperative for the country to move ahead.

The people need to be assured that the Government machinery to safeguard its people from acts of terrorism is effective, and that all political parties collectively work together setting aside political differences to accord the highest priority to national issues.

Several chambers of commerce and the business community have proposed five action points for the Government to do better in reviving the nation. The five action points are:

1. National security

The National Security Council mechanism to be activated and the portfolios of Defence and of Law and Order to be placed in the hands of those who have the capacity to provide leadership to handle current and future challenges with foresight and devoid of political aspirations. 

The President, the Prime Minister and Government should speak with a unified voice on the current and future actions after considered decisions are taken together. A 24-hour media response centre should be established to respond to false reports that create fears and concerns among the general public. The current legal provisions available (ICCPR Act) should be used to deal with hate speech.

2. Revival of the economy

Formulate a national policy for the revival of the major sectors (such as tourism) that are currently affected. For this purpose, adopt an inclusive process that secures inputs from all stakeholders.

3. Decision making in Government

To ensure speedy and sensible decision making in important areas, persons of competence should be appointed to key positions. Identify key positions in Government relevant to implement the development agenda and re-examine the capabilities of current holders of those positions. The government functionaries should have the capacity to take decisions speedily and without fear. If necessary, invite private sector leaders to handle those key positions.

4. Overall revival

Take appropriate action to inspire persons of all political parties to unite in the revival processes. This is a time to unite for the good of the country. Condemn the actions of those who seek to stifle a resurgence for narrow political gains. Ethnic unity should be consistently called for and extremism of all kinds should be abhorred and acted against, by the political leadership.

The elected representatives of the people should be required to comply with a code of conduct when making public comments. They’re opinion makers and must act with responsibility. The media should be required to comply with the need for responsible reporting.

5. Effective communication and management of perceptions

Inspire confidence in the people of this country as well as internationally. Such an effort will result in our ability to reinforce the pursuit of vital economic objectives such as attracting investment, attracting tourists and being held out as a country that has systems and processes in place to deal with vulnerability to terrorism and the resilience to overcome such threats.