Sri Lanka should have a pragmatic economic policy

Hiran H. Senewiratne

“Sri Lanka should have a pragmatic economic policy to improve the country’s infrastructure facilities to attract direct foreign investment like Malaysia,” Former Malaysian Finance Minister, Tun Diam Zainuddin said.

“Malaysia has achieved significant success in managing inter ethnic relationship largely due to its New Economic Policy, which adopted a twin-pronged approach of the poverty eradication regardless of race and more equitable distribution,” Zainuddin said at the Inauguration of the Sri Lanka Economic Summit 2008.

This event was organised by the Ceylon Chamber of Commerce on the theme of “Meeting Today’s Challenges for a Better Tomorrow Yesterday”.

Delivering the keynote address he said that unequal distribution of economic wealth and distribution of riches amongst Malaysians particularly through an affirmative policy will precipitate the feeling of animosity.

He said the Malaysian Government has implemented policies to minimise significant income disparities among ethnic lines to preserve social harmony through rural development schemes and the provisions of social and physical infrastructure.

“An important element of economic management in a multi ethnic society such as Sri Lanka and Malaysia must be for all to enjoy a fair distribution of economic wealth and opportunities,” he said.

However, theformer Minister said Malaysia is also blessed with vast natural resources such as oil and gas, which provides valuable export earnings. “Sri Lanka, with its relatively limited natural resources has fertile land where one third is arable.”

With rising food cost today and high commodity prices, agriculture may be an area to consider for export earnings and also to reduce its balance of payment burden.

Zainuddin said that Malaysia is no different from Sri Lanka in having to face global issues.

Just recently the Government of Malaysia has reduced subsidies and this way forward. “One of Malaysia’s key success factors is the allocation of almost 20 per cent of their budget to the education sector.

Minister of Enterprise Development Dr. Sarath Amunugama said that Sri Lanka is yet to harness its recourses especially in the sea.