MPs imbalance over economy at summit

Friday, 12 July 2013 00:01 - - {{hitsCtrl.values.hits}}

Govt. politicos hail post - war development
Opposition claims State sector expansion is stifling private sector growth
Harsha says State sector investment must be based on priorities instead of whims
Faiszer says Govt.’s economic policies have been consistently approved at people’s forum

By Dharisha Bastians Government and Opposition Parliamentarians yesterday crossed swords over the state of economic development and the future at a platform created by the Ceylon Chamber of Commerce Economic Summit. During a lively and entertaining final session of the third day of the summit, MPs exchanged multiple ideas and traded barbs about how to manage Sri Lanka’s economy. Ruling party politicos hailed the post-war growth as phenomenal but insisted on more time to deliver on the economic peace dividend while their counterparts from across the aisle claimed an over-large State sector was stifling private sector growth and a

breakdown of the rule of law was dampening investor confidence. At the final session the summit yesterday, organisers facilitated an exchange of views between parliamentarians on how best to address the economic challenges highlighted during previous sessions during the two-day conference. The panel was moderated by former Public Enterprise Reform Commission Chairman and Copyline Group and APEX Consultancy Services Chairman Mano Tittawela. Government and Opposition Parliamentarians exchanged ideas and traded barbs about how to manage Sri Lanka’s economy, with ruling party politicos hailing post-war growth as phenomenal and demanding more time to deliver on the economic peace dividend while their counterparts from across the aisle claimed a over-large State sector was stifling private sector growth and a breakdown of the rule of law was dampening investor confidence. “The Government would look at economic development based on the people’s pulse. Without peace there would be no economy to rebalance. This Government has taken loans to facilitate development for the people. And at the people’s forum, at successive elections, this Government has been consistently successful,” Deputy Minister of Investment Promotion Faizer Mustapha said in an emphatic opening statement. Mustapha said that with Sri Lanka reaching mid-income status as a country, it was no longer eligible for concessionary loans and grants. “What option does the Government have but to borrow commercially in order to fund development projects?” the Deputy Minister charged. Deputy Speaker of Parliament Chandima Weerakody said that while there were criticisms levelled against increased Government borrowings these loans have gone towards developing crucial infrastructure with a focus on Sri Lanka’s strategic location and human resources. Both Government Members said Sri Lanka’s economic prospects were affected by the global economic meltdown that had stemmed the flow of investments and earnings from exports into the country. Tamil National Alliance Parliamentarian M.A. Sumanthiran said good governance practices were integral to rebalancing the economy. He charged that the recent impeachment of the country’s Chief Justice and her strange trial by Parliament had sent a bad signal out to investors. “If that kind of verdict can be given to someone of her calibre, what chance would ordinary investors or entrepreneurs have,” Sumanthiran queried. The TNA Legislator said that while the Deputy Speaker had alluded to falling rates of unemployment, the fact was that employment in the state sector had grown exponentially. “This is jobless growth. The State is employing people – like in the north where for the last month, Government jobs have been doled out to the people – and this makes unemployment figures fall. The actual picture is different,” he said. UNP National List Parliamentarian Dr. Harsha De Silva charged that the State sector was growing at the expense of the private sector, with growth in State sector credit and declines in private sector credit. The former World Bank economist said that what was required to confront economical challenges was to rebalance attitudes. “State, State, State mindset will not help to sustain growth. The Government is trying to print their way to prosperity by relaxing monetary policy,” he claimed. With regard to recent mega infrastructure projects, De Silva said that the question was not whether Sri Lanka needed more airports but whether they were a priority at this juncture. “Have cost-benefit analyses been performed? Experts at this forum said yesterday that the dire need was for increased State spending on science and technology and research and development. So the way forward is to rebalance strategies,” he said. Also participating in the panel were UNP MP Dayasiri Jayasekera who said the country’s deteriorating rule of law was killing tourism and investment with many countries issuing travel notices against Sri Lanka in the last few weeks. JVP MP Wasantha Samaranayake also participated in the panel discussion, making a case for a socialist economy and claiming that the Government was engaging in casino economics that gave 13-year tax holidays to casino kings, thereby depriving the public of much-needed revenue.