Role of professionals in reconstruction process
Dr. Palitha T.B. KOHONA
Jeyaraj Feranandopulle Flyover: Professionals must be partners
in development
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We in Sri Lanka have a proud claim to possess a sound system of laws,
regulations and guidelines, providing for proper financial regulation
and management, in both the private and public sectors. We inherited
this from our colonial masters.
We may even have refined it in the ensuing years, guided by a
vigilant judiciary. However, the effective implementation of this
framework depends to a great extent on the integrity, dedication,
timeliness and efficiency of the professionals engaged in financial
management, accountancy and auditing.
The continued effectiveness of this structure as the country emerges
from its current challenges, will also depend on professionals like you.
The Institute of Chartered Accountants of Sri Lanka (ICASL) was
established in 1959, pursuant to the recommendations of L.M.D. Silva
Commission on Company Law in 1950, in an era that was relatively
unaffected by globalization and the open economic system introduced
several decades later.
Since then, the ICASL has emerged not just as a stakeholder but a
leader in Sri Lanka’s economy in its efforts to create a healthy and
competitive business environment.
Today, the world is in the midst of a global financial crisis, a
crisis that originated in the main financial centres of the world, which
is threatening to drag entire economies of the industrial as well as the
developing world to recession.
Some of the problems faced by multinational giants may have been
caused by deficiencies, in particular, in monitoring and control, in the
accounting processes.
The intricate and inter-connected nature of the economies of
countries threatens not just their own economies, but the very existence
of millions of people in terms of the loss of jobs and their means of
livelihood, nullifying the hard-won achievements in terms of human and
social development.
The impact of the financial crisis will impact on countries like us
at some point or other and we need to be prepared for this eventuality.
Your profession bears a key responsibility in anticipating and advising
your clients in this regard.
In the midst of the global financial turmoil, Sri Lanka is
experiencing one of the most daunting challenges in its history. Despite
the undoubted uncertainty in the financial sector, the government is
committed to pursuing its policy goals of achieving economic and social
progress, with special emphasis on bridging regional disparities through
rural livelihood and infrastructure development.
Rural development remains a priority for the government. The major
infrastructure development projects which are already underway, are
clearly demonstrative of this commitment to ensure that the fruits of
prosperity are shared equitably. The Budget proposals of 2009 that were
recently submitted to Parliament, are ample evidence of this policy
approach of the government.
The investment of large amounts of resources by successive
Governments of Sri Lanka since independence on social infrastructure
projects, to improve the health, education and agricultural sectors, has
borne fruit.
The problems of many developing countries, widespread poverty,
illiteracy and absolute deprivation, are no longer a challenge to us.
Sri Lanka is now categorized as a middle-income country and is well on
the way to achieving, or even surpassing, the millennium development
goals.
The Arugambay bridge |
Today, Sri Lanka stands proud among its South Asian neighbours in
terms of socio-economic achievements and maintains high social
development indicators on par with the developed world.
According to the Global Gender Gap Report 2008 published by the World
Economic Forum, Sri Lanka ranks 12th in the world in terms of closing
the gender gap between men and women based on four criteria, namely
economic participation and opportunity, educational attainment,
political empowerment and health and survival.
While this ranking gives us a justifiable sense of pride, I also note
that many accounting professionals are women. I only hope that more
women would also begin to get elected to Parliament.
The Negenahira Navodaya is in full swing to rehabilitate and develop
the Eastern Province, which was until recently, under the clutches of
the LTTE.
Vast sums and other resources have been allocated for this purpose.
The Government is already planning the development of the Northern
Province along similar lines following the elimination of terrorism and
the restoration of democracy.
The upsurge of development activities in Sri Lanka has increased the
demand for human resources in all spheres, particularly for highly
skilled professionals and experts. This demand is expected to grow
during the next decade.
It is in this context that the vital role played by professionals and
professional associations, like the ICASL, should be appreciated for the
enormous contribution that they have made and continue to make towards
economic and social stability and development in Sri Lanka.
While you ensure that private companies and government institutions
maintain financial discipline and accountability, the Government has the
unenviable task of ensuring financial stability for the entire country,
and continue with the development process, while at the same time,
confronting the most ruthless terrorist organization in the world in
order to maintain territorial integrity and consolidate democracy.
It has not been an easy challenge, but in my view, the Government of
President Rajapaksa has maintained its resolve and commitment, despite
the pressures being exerted from different directions.
Sri Lanka has not been affected to the same extent as many Western
countries by the global financial crisis. Not yet. Perhaps, it is the
result of good financial management or a dash of good luck. While the
markets are drying-out, and austerity is becoming a virtue again, we
still need to ensure that our exports continue to enjoy the type of
success that they have become used to in recent years.
The Government will make every effort to ensure that our exports are
assisted, consistent with our international obligations and
international interests. Exporters will continue to be encouraged, and
employment levels maintained, particularly given our acclaimed success
in keeping rural women gainfully employed in export-oriented industries.
Thousands have been able to stay in their home towns and seek
employment locally due to the proactive policy of locating industries
away from big towns.
I also note that State intervention in the economy is respectable
again, even among those who took such joy in deriding the State in the
heady 90s when the market place was given unbridled freedom.
In this context, I must say that while the Government has
categorically stated that it will not submit itself to an investigation
by the European Commission in the context of the extension of the GSP +
concessions, it will continue to engage with the Commission with a view
to establishing that Sri Lanka has more than adequately complied with
its obligations under the Rights of Children Convention, the Torture
Convention and the International Covenant on Civil and Political Rights.
It has been clearly stated in every UN report that Sri Lanka is
blessed with a caring Governmental structure, which ensures that this
country enjoys one of the lowest child and maternal mortality rates in
the world, one of the highest school enrolment rates, one of the highest
literacy rates and one of the highest access-to-healthcare rates in the
developing world.
In some areas, we stand shoulder-to-shoulder with the developed
world. I am at times bemused by those who point fingers at us. Their
recent history does not justify this holier-than-thou attitude. No
country is perfect. But what we have achieved since independence is
impressive and we will seek to reach a much higher goal.
Our record would have been much better if not for the threat of
violence and terrorism consistently foisted on us by the LTTE over the
last 25 years. Our tourism industry would have flourished and inward
investment levels would have been much more impressive.
Our prosperity level would have been much higher. The Government will
continue to deploy its military to counter the terrorist threat as long
as the LTTE does not lay down its weapons, renounce violence and
terrorism and return to the democratic fold.
The age when terrorism could have been justified to attain political
goals has long been condemned to history by humanity. No goal, however
sacred, justifies the massacre of children, women and non-combatants.
For its part, the Government has set in motion, a process which will
result in the extension and consolidation of democracy to all parts of
the country.
Within a few months of regaining the Eastern Province from the LTTE,
the Government conducted elections, and now, the Eastern Province is
governed by its own freely-elected representatives.
We are confident that with the passage of time, the process of
electing representatives will be further consolidated, not only in the
East, but elsewhere as well. The political evolution that is taking
place will in the fruition of time, address the concerns of our
minorities.
The Government has also allocated over Rs. 1.8 billion for the
revival of the Eastern Province. The private sector is being actively
encouraged to participate in the rebuilding process through extensive
tax concessions and other incentives, thereby generating private
employment opportunities in agriculture, fisheries, tourism and other
sectors.
The Eastern Province will offer rich rewards to those willing to
establish there. The political solution will emerge from this
consolidation of democracy, better representation, economic and social
advancement and greater tolerance.
Undoubtedly, while the military operations continue in the North,
some people will be displaced. Human beings tend to move away from
exploding ordinance. That is natural. They also tend to go back quickly
as they did in the Eastern Province - within a space of 12 months.
However, the Government has made a firm commitment to care for all
the displaced. This is nothing unusual, given that for over 25 years the
Government in Colombo has had experience in caring for the people who
were under LTTE domination.
Despite screaming headlines to the contrary, it was the Government
that provided a substantial proportion of the food, healthcare and
educational needs of the unfortunate people who were being dominated by
the LTTE. As the military operations reach a final conclusion, the
Government will continue to allocate resources for the care of the
displaced.
In this context, we are most appreciative of the 80,000 family packs
provided by India for distribution among the IDPs. It also must be
remembered that while a substantial amount of the relief is being
distributed by the Government Agents, Divisional Secretaries and over
500 volunteers engaged by them, observers from the ICRC, WHO, WFP and
OCHA have access to monitor such distribution.
There is no hint at all that there are shortages of any sort in the
small area that is still controlled by the LTTE which have been reported
by the United Nations or any other observer.
We believe that, if the LTTE relaxed its grip, many of the IDPs still
remaining in the Wanni, will stream-out to Government-controlled areas.
Despite the histrionic headlines, it is estimated that the number being
displaced by the current conflict is probably in the region of 100,000.
The UN itself estimates that only around 70 percent of the
Kilinochchi District is displaced. However, 80 per cent of the rice
fields of Kilinochchi and Mannar have been cultivated in the current
season and the season is proving to be quite successful.
This is an agricultural area and the people themselves will produce
much of their needs. The Government will continue to send adequate
supplies and to provide shelter for these IDPs, including the
traditional material that is used all over Sri Lanka, which is cadjan.
(Based on a speech delivered by Foreign Secretary
Dr. Palitha Kohona at the recent Chartered Accountants Annual Reports
Awards 2008 of the Institute of Chartered Accountants of Sri Lanka) |