Private sector unites, warns against Expropriation Bill

The country’s private sector in a welcome united move, has succeeded in securing some assurances over the upcoming Expropriation Bill from the Government, which however remains stubborn in not withdrawing the contentious new piece of legislation.

Leading chambers of commerce and trade, which met early last week at an emergency session in a rare yet urgent unity, got an audience from President Mahinda Rajapaksa and the Government on Saturday to vent their serious reservations over the Revival Of Underperforming Enterprises and Underutilised Assets Bill.

At the near two hour forum with the President, private sector leaders had said that the Government could go ahead with the Bill if it wishes to, but had expressed serious concern over inclusion of assets for takeover of entities which are going concerns such as Pelwatte Sugar Industries and Sevenagala Sugar Industries. The Chambers had also wanted some amendments including the changing of certain wording and an assurance that the Bill not take over private land.

The Government was also presented with written proposals from the private sector comprising from the Federation of Chambers of Commerce and Industry of Sri Lanka (FCCISL), National Chamber of Commerce of Sri Lanka (NCCSL), National Chamber of Exporters (NCE), Chamber Of Young Lankan Entrepreneurs (COYLE), Joint Apparel Association Forum (JAAF), Free Trade Zone Manufacturers Association (FTZMA) and the Ceylon Chamber of Commerce (CCC). “The business chambers will continue to remain engaged with the government on the proposed bill,” the collective private sector said in a a joint communiqué issued yesterday after the meeting.

The statement said: “At this meeting the chambers appraised the President of the impact of the proposed bill, suggested some amendments and requested that some companies be removed from the schedule.The chambers were given the following assurances;

1. That this is a one off bill

2. The intention of this one off bill is purely to revive the 37 underperforming enterprises and underutilised assets listed in schedules 1 and 2.

3.  The bill is not meant to target privately owned land.

4.  The government proposes to revive these enterprises or assets through the private sector.

5.  The present holders of these enterprises or assets will be given the opportunity to submit proposals to the government to revive their respective enterprises or assets.”

The Daily FT learns that the private sector had suggested the Bill/Act to be renamed as revival of state lands in addition to confining the scope of the Bill/Act to the listed enterprises/assets.

It had been emphasised that the post-war challenge for Sri Lanka was to aggressively stimulate investments both from the local and foreign private sector which is critical to achieve the desired high economic growth.

The proposal to give the existing investors/owners the first right of refusal in the restructuring was refused but the Government had agreed they will be requested to submit proposals.

Economic Development Minister Basil Rajapaksa had said that the Bill was necessary to put idling or underutilised assets in to productive use as well as achieve the originally intended purposes of the enterprises.

With regard to sugar companies it was disclosed that despite their existence the country’s sugar production hasn’t increased whilst the two entities were more focused on producing molasses.

President was joined by senior cabinet ministers and senior government officials associated with the subject of economic development. Some of them were Senior Minister Dr. Sarath Amunugama, Ministers Rajapaksa, Prof. G.L. Peiris, Anura Priyadarshana Yapa, Dinesh Gunawardena, Wimal Weerawansa, Keheliya Rambukwella, Geethanjana Gunwardene and advisor Milinda Moragoda.

Secretary to the President Lalith Weeratunga, Secretary to Ministries of Finance and Economic Development Dr. P.B. Jayasundera and legal advisor to Cabinet Mohan Peiris were among officials present.

Private sector leaders included FCCISL President Kumar Mallimaratchi, Former FCCISL President Kosala Wickramanayake, Ceylon Chamber of Commerce Chairman Susantha Ratnayake, Ashroff Omar, A. Sukumaran from JAAF, Neil Umagiliya from Free Trade Zone Manufacturers Association, National Chamber of Commerce Secretary General E. M. Wijetilleke, National Chamber of Exporters Vice President Mangala Yapa, W. K. H. Wegapitiya from Chamber Of Young Lankan Entrepreneurs.