Policy to popularise businesses in the provinces

HIRAN H. SENEWIRATNE

Private Public Partnership (PPP) businesses are essential to balance regional development in the country, Central Bank Governor Nivard Cabraal said.

"Sri Lanka is on the right track to identify working towards measuring the economic prosperity in the country," Cabraal said at the launch of the Economic Governance Index (EGI) yesterday. This was organised by the Asia Foundation.

He said there is a disparity in the development of regions with the Western Province developing very rapidly in comparison to other regions in the country. The Western Province's contribution towards the GDP went beyond 50 per cent and other regions were developing at a very slow pace, Cabraal said.

He said the business sector is the engine of growth. Therefore creating a conducive environment for business people by the local government bodies will help to boost business activities in regions other than the Western Province.

He said that the domestic business sector, which includes micro, small and medium sectors is very important to the country as their contribution is 35 per cent of the country's GDP ratio.

The Governor said business is a voluntary effort and has to set the appropriate business environment for businessmen to invest in the area or region. Local government's such as Pradeshiya Sabhas, Urban Councils and Provincial Councils could play a pivotal role to encourage PPP businesses.

The Government has now taken a policy decision to popularise business entities to set up outside the Western Province. This paved the way to achieve the balance and sustainable regional development in the country. This has proved that certain regions have improved their business activities remarkably, he said.

Australian High Commissioner, Dr Greg French said local governments should work with the national government to improve small-scale businesses.

He said local governments are important to improve awareness on business relationships and to create a proper environment at regional level.

Despite several previous studies little is known about the business environment affecting private sector enterprises at the regions. The EGI 2007 is an initiative of the Asian Foundation.