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by Victor Jayanetti

Minister of Constitutional Affairs, Professor GL Peiris, who is on a brief visit to London, drew a large audience of British businessmen at the Royal Commonwealth Society on September 19, with a speech inviting foreign investment in the now peaceful Sri Lanka. The event, organised by the Commonwealth Business Council, was attended by a substantial number of potential investors, reflecting the new interest in Sri Lanka that the peace process has engendered.

Prof. Peiris consistently linked the issues of peace and economic growth, and used his confidence in the former to build up investors' confidence in the latter.

"It is my genuine and sincere conviction, that there is no better time than present for you to take a close look at the alternatives that are available in Sri Lanka today for investment. There is one factor which has transformed beyond recognition the political landscape of the country. And that is the ceasefire, which has held now for an uninterrupted period of nineteen months," he said.

Professor Peiris was at pains to emphasise why this ceasefire would succeed where others, particularly that of 1995, had failed. He said that this process was Qualitatively different' to its ancestors, in particular due to the depth of conviction within Sri Lankan society that there are benefits flowing directly from the ceasefire, a Peace dividend' in his words, and that these benefits would disappear if there is a return to violence.

The benefits are considerable. Foreign direct investment in Sri Lanka has risen by an extraordinary 310% over the last year, whilst domestic investment has grown 56%, much of which Professor Peiris insisted is reaching the poorer areas of the nation. Foreign investment has created 33,000 jobs in the first part of this year, whilst the revitalised tourist industry, a clear benefactor of the peace process, has created 22,000 new jobs. In the new Climate of stability Professor Peiris hailed Sri Lanka's free trade deal with India, the only such deal with India anywhere in the world, whilst discussions are also being held to conclude a full free trade deal with the US.

The minister held up Prime Minister Ranil Wickremesinghe's strategy as key to the peace process' success. In particular, the government has been willing to show patience, rather than trying to force unrealistic deals upon the LTTE.

Confidence-building measures to tackle issues of hatred and mistrust were put in place before deals were struck with the LTTE, food and medicine was unilaterally sent to troubled areas, without demands being made of the LTTE. An interim structure has been put in place before a final settlement is reached, giving the Tigers the chance to influence economic development.

The development that is now occurring has enabled Sri Lanka to derive the fullest benefit from the natural advantages the country has always enjoyed', its geographical location as an entry point to the huge Indian market; its well-educated workforce, with a literacy rate of 92%; and its commitment to free market policies going back to 1977, long before other countries in the region. In the past, violence has stopped Sri Lanka making the most of these advantages.

Peter Longworth, Director of Corporate and Government Relations at Commonwealth Business Council chaired the meeting.

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