A success story

Sri Lanka has attracted Rs.72 billion worth of foreign investments during the first six months of this year, according to Investment Promotion and Enterprise Development Minister Dr. Sarath Amunugama.

This has generated nearly 25,000 job opportunities. The 91 project agreements cover ICT, power generation, construction, apparel and telecommunications.

It may not represent a colossal amount but Rs.72 billion is not peanuts either particularly in the context of Sri Lanka’s situation vis-a-vis the protracted ethnic conflict.

The country has once again proved it could bank on a friendly economic climate despite the vagaries of the conflict and it could take heart from the fact that there are countries which are still willing to invest here despite the prognostications of sceptics who are of the mindset that no investors will set foot on Sri Lanka soil due the prevailing security situation.

It also goes to reinforce the resilience of the country to climb back from the abyss of diasters that have had tremendous economic repercussions as was seen in our re-emergence from the 2001 bomb attack on the country’s main airport and the cataclysmic tsunami of 2004.

Sri Lanka cannot wait indefinitely for the conflict to end to lure investors. On the contrary it is bound to exacerbate the problem because whatever one says the conflict has its some roots in economic disparities.

Hence no opportunity should be lost in attracting foreign stakeholders into the development sphere. Being a developing country Sri Lanka cannot stand on its own particulary at a time when defence expenditure is high.

Seen in this light Sri Lanka has done well for itself in the investment sphere. The vast development witnessed in the telecommunications sector is one of the success stories giving the lie to theories that foreign investment and armed conflict do not go hand in hand.

What is important is the judicious channelling of investment funds so that no section of society would feel left out. Now that the East has been liberated from the LTTE, the Government should not lose time in trying to forge foreign partnerships in developing this devastated region which has vast economic potential that can be a huge boon to the national economy.

One sector that has rich potential in the East is tourism and steps should be taken to draw up a master plan to tap this resource. However even tourism cannot flourish without the required infrastructure and it is here that the Government will need to focus its full attention.

Surely a colossal investment would be needed to get the Eastern Province back in shape.

While we expect donor funds to pour in for the development of the East what is paramount would be ensuring that the province is placed on par with the rest of the country in all spheres of activity such as employment, sports, recreation etc so that the disparities that gave rise to the ethnic conflict would be obviated.

It is here that joint-venture partnerships with foreign stake holders should come into play. In this context, a move by one of the country’s biggest automobile companies to commence an assembly plant in the East should be commended.

We hope that other investors of similar inclination too would follow suit. With elections in the offing the Government would do well to bare its development plans for the East to its populace and engage their participation. This would go a long way in healing the bitter wounds and misunderstandings of the past.