LLRC and Govt.’s successful development initiatives

Having successfully defeated terrorism, ended years of civil war, ushered an era of peace and prosperity to the country, initiated resoundingly successful development initiatives in the north and the east, the Government of Sri Lanka needs to be applauded for consolidating a unified national identity; an identity that only occasionally reared its head at cricket matches during 30 years of prolonged conflict.

This sense of ‘Sri Lankanism’ – that we citizens are one family, celebrating our common bonds, as well as unique cultural differences – is what truly inspires confidence in the business community and enables them to support the efforts of the Government to re-build the war-ravaged north (and indeed the whole country) as a beacon of trade and commerce once more.

Inclusive economic and political strategies

These inclusive economic and political strategies of the Government has witnessed rising GDP percentages in the country for the first time in years, with sectoral growth (agriculture, services) ballooning, contributing to the overall growth patterns of the Sri Lankan macro economy.

The Government is now fully implementing peace and reconciliation initiatives and has already taken significant measures to rehabilitate LTTE cadres, successfully amalgamating them into society, and has also found shelter phase by phase for thousands of IDPS rendered homeless during the war. News of an Army officer marrying a recently rehabilitated child solider of the LTTE is no longer shocking.

Encouraging investment

The Government has encouraged an environment of investment in the country – both foreign and local – with its commitment to peace. Peace has always been the end goal of the Government and this is evident in the reconciliation process set in motion, which has taken into account a range of factors including economic development, rehabilitation and resettlement and livelihood development, in addition to addressing the need to redress those who suffered trauma and the loss of loved ones.

The eventual abolition of emergency regulations in August 2011 was also a significant milestone. The business community has often supported such endeavours and will continue to do so as a peaceful society translates into more competitive markets and confident consumers.

Resettlement and rehabilitation

The Government has made significant contributions towards the resettlement of IDPs, de-mining, rehabilitation of ex-combatants, implementation of the language policy, the recruitment of Tamil speaking police officers, the removal of the military from facilitation of civil administration in the north making available land previously used for security purposes for resettlement/return and carrying out a comprehensive census in the Northern and the Eastern Provinces.

A Land Task Force was established at provincial and district levels to deal with land issues and to seek expeditious solutions. In relation to livelihood support, a self-employment loan scheme has been put in place in the north and east where thousands of beneficiaries have been apportioned US$ 318 million.

Moreover, beneficiaries were provided with Enterprise Development Services (EDS) including the establishment of organisations for the self-employed. Even the area cover of lands under the former High Security Zones of Palaly and Trincomalee-Sampur, has significantly diminished in terms of both land area and restriction of movement. This gives confidence that a new level of dedication has been embraced to re-structure and unify the country, enabling it to reach new heights in the global sphere.

Infrastructural and market development

Furthermore, it is a testimony to the Government’s intentions towards infrastructural and market development that 44 different banks have now opened up in the north and the east, along with many finance companies.

In the Eastern Province, 46,000 new loans were granted up to last year, a total of Rs. 2.9 billion and in the Northern Province 56,000 new loans were granted, totalling up to Rs. 6 billion. Such financial inclusiveness has greatly contributed towards social enrichment of the local communities.

Other major investments in the north and the east made by the Government are the rehabilitation of key roads, railroads, hospitals, and bridges, restoration of industries that closed down because of the violence, implementation of large scale irrigation schemes, implementation of projects for providing electricity and water, establishment of vocational training centres, and technical colleges for skills development, upgrade of fisheries harbours, and development of tourist attractions.

It is laudable that in the Budget for 2012, the Government had also provided several tax and concessions to encourage investment in agriculture and fisheries.

Reconciliatory efforts

The Government’s reconciliatory efforts cannot be doubted. The number of persons in detention for suspected involvement in terrorist activity has been reduced to 225 out of a total of over 4,000 on the face of LLRC Interim recommendations.

The establishment of normalcy and the re-democratisation of the Northern and the Eastern Provinces, including the holding of provincial elections in the east, local government elections, as well as the restoration of civil administration including the network of 33 divisional secretaries and 912 village level officials in the north have given the Government of Sri Lanka an air of credibility.

In honouring the recommendations of the LLRC, the military has also been withdrawn from aspects of civilian life, and are now confined to security-related matters. Despite such measures, the US Government’s determination to pass a UN resolution against our country merely functions to undermine the confidence that the majority of the people have had in their leaders, as well as the trust the investors and businessmen have in the progressive governmental policies. Having already readily agreed to implement the LLRC resolutions and having taken monumental steps towards achieving long-lasting peace, it is indeed challenging to overcome the false accusations of certain players of the international community who do not have a true understanding of the issues at hand.

Furthermore, the LLRC provides for home-grown solutions and international/external pressure to implement them is completely unwarranted and borders on gross interference. The LLRC is a domestic mechanism and needs to be utilised and exhausted by the Government of Sri Lanka without being appropriated by an international body.  

Robust growth

One must also not forget that despite these challenges posed by the certain players of the international community the local economy had sustained robust growth during the last few years while showing commendable performance in all key sectors, facilitated by a peaceful domestic environment, favourable Government policies and improved overall investor confidence.

The strong performance of the Sri Lankan Government in all areas of economy and in securing a peaceful society only proves its commitment in strengthening the local market and re-democratising a post-war society.

It is not surprising then that Sri Lanka rose to the 89th position in the Global Ranking from 183 countries, as one of the best places to do business with, on the ‘Doing Business Index’ compiled by the World Bank and the International Finance Corporation.  Our country’s strengthened investor protection and reduced taxes on business, clearly underlined the general investor confidence the international community has for Sri Lanka. The country’s willingness to fully implement the LLRC recommendations will only augur well for the gushing of foreign investments, most of which the Government seems keen to invest in developing the war-torn north and east.

(The writer is Chairman, Ceylon National Chamber of Industries, Member of the Monitory Policy Consultative Committee of Central Bank of Sri Lanka and Member of the Executive Council of Sri Lanka Institute of Directors.)