Tea with Rienzie Wijetilleke

Think out of box to achieve economic development

Hiran H. SENEWIRATNE

The private/public partnerships development projects are absolutely necessary for Sri Lanka to achieve a rapid economic growth like other countries in the region, the Chairman Hatton National Bank, Rienzie Wijetilleke said.

He said Sri Lanka’s private sector faces a lot of constraints in this competitive world. “But as we see presently, the private sector has a successful track record of undertaking any form of an infrastructure project in the country, however its has not performed to its best to bring economic benefits to the country, he said.

“The political leadership should also allow private sector and the foreign investors to come and invest in Sri Lanka, which will not infringe our culture and the historical rights of the country. Countries like Singapore, South Korea and Philippines and even Middle East countries have obtained benefits out of foreign resources during the last decades,” Wijetilleke said.

“Unlike in few centuries ago now there is no danger or possibility of a foreign innovation and not a single country is prepared to invade even an inch of a land from countries. Therefore, the promotion of private public sector partnerships and foreign investments in to the country, it will not affect the national identity in the country,” he added.

Wijetilleke said Sri Lanka urgently needs a full reform of the public sector to make a constructive contribution to the economy especially in the public utility services in the country. Therefore, we have to move away from all slogans and isms like privatisation, marxismsm and have to get out of the box to achieve economic development.

Q:Last few years HNB went through certain setbacks in its performance. Has the bank come out from those setbacks?

Yes. Last few years we have heavily invested in the HNB tower building at Dr T.B Jaya Mawatha, which is the most valuable property of the Bank. It’s now worth more than Rs 15 billion. We had some setbacks with certain non-performing debt problem, which have been under controlled.

We also set up a sophisticated IT system in the Bank during the past few years. We have also broad based our network to outstations to suit the rural population through our Gami Pubuduwa programme. With these developments, we have now overcome setbacks and we are heading to a steady progress.

Q: What is the opinion about the newly formed joint venture, Investment Bank with DFCC and what was its sole objective?

We have commenced an investment plan with DFCC to set up a strong business entity by using strengths of both institutions. Today everybody have to accept the consolidation of financial institutions in the globalised world. The large-scale local banking presence is absolutely necessary to compete with large international financial institutions in the country.

Therefore, local banks have to get together for consolidation. This would enable local banks to be practicably and possibly contribute to the development of the economy.

Q: As you know that State Bank of India has lot of plans to strengthen the operations in Sri Lanka under CEPA.Do you think that it is a healthy situation for the local banking sector?

A bank is not just a building, but it’s contributing to the national development. Where there is a bank a lot of transactions are taking place. When President R Premadasa did his Gam Udawa programs I was the Managing Director of the Bank and I told him to set up banks in rural areas.

An efficient banking system creates economic activities and in turn creates wealth, generate income and employment opportunities, and increase savings in the area.

Entering any foreign or local bank to the business will create competition. But the most important thing is that monitory authorities should bring laws, sub laws and regulations for the well being of the sector.

Q: Today high inflation coupled with interest rates impact the economy. What do you think of current policies to manage the inflation?

Basically inflation is the worldwide trend due to the energy crisis and escalation of oil prices. Unfortunately, we see our inflation rates are more than three-folded compared to our neighbouring countries like India.

In the light of this, cutting down expenditure and creating new wealth through income generation will increase the income level of the people.

Today consumerism cannot be changed. Therefore, we have to discourage consumerism and increase productivity and create new opportunities for economic activities.

Q: What do you think about the Central Bank’s move on limiting the age period to be in the Director Board?

My personal feeling is that it is not a good move. On the one hand the Central Bank is insisting minimum capital requirement of Rs 2.5 billion which keeps increasing. Therefore, banks require high long-term capital investors to achieve sustainable growth.

When limiting the period of nine years to be in the Board, it will make investors to think twice before making a decision for investment. Hence, it is not correct, as it will drop revenue, the shareholder value ultimately hinder the institutional growth and employment generation in the sector.

Q: What is your opinion on the liberalisation of the service sector under the Indo-Lanka Comprehensive Economic Partnership Agreement (CEPA)?

Overall, we have to look at in a broader perspective. This agreement should not be lop-sided. We know that India is a huge country and have to maintain good will with India before everything else. We have to benefit out of the CEPA agreement. Therefore, we have to make adjustments in a more balanced way for the benefit of both countries.

Under this agreement, skilled and semi skilled labour in the service sector will be freely available in the country which is not available at present.

Q: What is the philosophy in your life?

I am a strong Buddhist and I start my day by chanting Karaniya Meththa Suthraya, which gives me a lot of strength to start the day. I also chant the same thing when I got to bed at night.

I started that habit, after listening to a preaching delivered by Rev Naradha Thera at my place way back in 1960s where he preached the importance of it. My philosophy in life is firstly I believe in myself and my family.

Second is my organisation, which I am working in, thirdly the industry I am involved in and then my country. Most important thing is that at all times you must be true to yourself and do the job honestly.

Q: What sort of a solution do you suggest to resolve the ethnic conflict in the country?

Let us understand the country’s present terrorist problem and other issues. These issues have come up due to the lack of opportunities that are available to younger people in the country. My solution is to increase economic opportunites in neglected areas to achieve economic growth that automatically it will stop.

Profile

Name - Rienzie Wijetilleke
School Attended - Wesley College Colombo
Education Qualification - Professional -

Fellow of the Chartered Institute of Bankers of London (UK)
Honorary Fellow of Institute of Bankers in Sri Lanka
Companion of the Institute of Management Institute (UK)

Civil Status - Married with three sons all of them are in the banking sector and have four grand children.

Current Positions - Chairman- HNB Assurance Plc

Chairman - Sithma Development (Pvt) Limited.

Chairman - Sunshine Holdings Plc

Chairman - Governing Board - Leighton Park International School.

Director - Nawaloka Hospitals Plc

Director Ceylon Biscuits

Former Director and Chairman - Colombo Stock Exchange.