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| Tuesday, 04 January 2005 |
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Economic damage less than feared In an unprecedented show of unity, President Chandrika Bandaranaike Kumaratunga, Opposition Leader Ranil Wickremesinghe, JVP leader Somawansa Amarasinghe and the leaders of practically all other parties shared the same stage last week and vowed to rebuild the Nation in the aftermath of the massive tsunami disaster. This augurs well for the country's future. Now is the time for unity and swift action to take the country forward. The tsunami waves struck mercilessly and without any discrimination. All communities and religious groups were affected. Both the rich and poor are now together in camps for the displaced. Likewise, the response to appeals for disaster relief has been overwhelming. People from all communities, religious groups and walks of life are contributing in whatever way they can to alleviate the suffering of the survivors. While continuing to help the tsunami victims, we should now begin the process of rehabilitation and reconstruction. In this context, it is heartening to note that the economic damage seems to be much less than originally feared. The Central Bank is optimistic that long-term economic growth prospects will not be affected drastically. Estimates on the rehabilitation costs vary, but the general consensus is that it should be manageable with a combination of local and foreign financial resources. Out of the tsunami-hit Asian countries, Sri Lanka has already been earmarked for the bulk of aid. The World Bank has pledged more than US$ 100 million. The ADB, UN, other multilateral agencies, NGOs and individual countries have made similar pledges. This is in addition to normal foreign aid allocations and Treasury funds. The corporate sector too has pledged substantial donations in cash and kind. Even as a tranche of these funds is disbursed for relief, the rest should be reserved for reconstruction. The infrastructure in coastal areas has been battered. These facilities should be re-developed in a systematic manner to withstand any future earthquake/tsunami threat. The National Engineering Research and Development Agency has already proposed a low-cost housing solution, which should be seriously considered in any resettlement plan. The new houses are likely to be built inland, as it has been agreed that no new developments would be allowed on the beach. The local construction industry should be given priority in the allocation of contracts for reconstruction. The Chamber of Construction Industry (CCI) has promised to extend its fullest support to the Government in this regard. "We are confident that with the professional skills and implementation expertise, equipment and machinery available with our members we are in a position to engage teams of professionals and contractors to assist the Government in the implementation of their priority projects," the CCI says. Engaging local companies for reconstruction has the added benefit of saving foreign exchange, which is a crucial factor in this emergency situation. With an insurance penetration of less than one per cent, insurance payouts will not be a drastic burden on that sector. Nevertheless, there are reports that some insurers are planning to wield the 'Act of God' clause to avoid honouring insurance claims. Some insurance companies have ruled out doing so, saying they will honour all claims. Others must follow suit, lest the people lose faith in the industry as a whole. However, the authorities should explore the possibility of formulating a compulsory social security insurance scheme for all citizens through a centralised fund, so that compensation payments for victims could be fast-tracked. There are signs that vital sectors of the coastal economy are slowly but steadily getting into gear. Despite the destruction of several hotels, most of the remaining ones are back in operation. Transport links are being restored, albeit through circuitous routes. Seafront shops and supermarkets are being opened. Courage, perseverance and resilience will be needed abundantly as the Nation makes a new beginning in the New Year. With political, social and ethnic unity, Sri Lankans could yet look forward to a prosperous new year in spite of the December 26 cataclysm. |
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