Peace for a healthy economy

THE business community has enthusiastically endorsed the Post-Tsunami Operating Management Structure (P-TOMS), signed last week by the Government and the Liberation Tigers of Tamil Eelam (LTTE).

After weeks of speculation and uncertainty, the two parties finally signed the landmark agreement which is likely to impact positively on the burgeoning economy.

This was evident on Friday itself when the stock market showed considerable gains and the rupee appreciated against the US Dollar. Once the pact is fully implemented, the long-term benefits will start to emerge.

More than anyone else, the business community knows the importance of peace for a healthy economy, which suffered enormously during the bleak years of the war. The economy has grown significantly during the three years of the ceasefire and it would be a pity if such gains are reversed.

A peaceful environment is vital for foreign investors to come in and local businesses to thrive. Fears that another war could be imminent do not help this cause. Fortunately, the pact that has just been inked has made war a remote possibility and paved a way for direct negotiations to begin at some point in the future.

Another factor vital for economic health is political stability. There were fears that the Government would collapse with the exit of the JVP, but these have now proven to be unfounded.

The Opposition has assured that it would not use this opportunity to topple the Government and the JVP has agreed to support the Government from the Opposition on other matters that would benefit the country.

There seems to be a general consensus that a General Election is unnecessary at this stage, a sentiment shared by much of the population and the business community.

The rallying cry of the business community was that the country's interests should come first - and it is heartening to note that most political parties, apart from extremely nationalistic elements, are accepting this view.

Political leaders have realised the need to put aside their differences and come together in seeking a permanent settlement in the North-East conflict.

Although such a final settlement could be years away, the P-TOMS has provided the Government with an opportunity to rebuild and develop the most under-developed region in the country. This in itself will be a challenge to the business community, especially the construction sector.

The international community will be watching the rebuilding effort in the North-East and indeed, in other parts of the country devastated by the tsunami. They pledged US$ 3 billion, mostly in the form of grants, for the reconstruction endeavour at the Sri Lanka Development Forum in Kandy.

This actually exceeds the projected amount of funds needed for reconstruction and both the Government and the LTTE should waste no time in identifying projects that would benefit the tsunami victims.

The harsh reality is that we cannot depend solely on our own financial resources for development, despite claims to the contrary by some elements. Foreign aid is essential, especially at a time when we have faced the biggest-ever natural calamity.

The international community must be thought of as our partners in the rebuilding effort, in which the private sector has a major role to play.