Business opportunities in the North

The liberation of the North is almost complete, with the LTTE confined to a very limited area and civilians arriving daily in considerable numbers to cleared areas. One of the main consequences of LTTE domination of certain Northern areas was that the province remained the poorest in the country. The LTTE denied even the basic fundamental rights of the people, leave alone permit any physical development. There are people in these areas who had never known electricity and tap water.

The East, in contrast, has fared better in terms of development because the main cities and towns were under Government control through the years of conflict. Yet it too is not so prosperous even to the level of some of the lesser developed provinces in the South such as Uva.

The East, which was liberated earlier, is now undergoing rapid development under the Eastern Resurgence program. New bridges, schools, homes, roads, hospitals and other infrastructure facilities are being built under the supervision of an elected provincial council and local bodies. Most people have resettled, beginning a new phase in their lives.

It is our earnest hope that the same process would be repeated in the North. The eventual restoration of democracy in the North will be a landmark development. Priority should be given to resettlement and rehabilitation of residents and the reconstruction of damaged infrastructure facilities. The extension of the railway line, for example, is already under way.

The biggest gain from the process of liberation will be the economic linkage of the North and the South, mainly through the gradual opening of the A9 Road to civilian traffic. This is the first time in 24 years that goods are being transported on the A9 without LTTE interference - during the most recent ceasefire period transport operators and farmers had to pay huge amounts of ‘tax’ to the LTTE, eroding their income and profits. If the railway line too is restored to KKS, rail freight will be an even better option.

The first food convoy carrying 60,000 Kg of vegetables, fish and prawns from Jaffna reached Colombo last week. This is a momentous occasion that has far reaching consequences for the economy of the whole island, for it means the complete integration of Northern and Southern economies.

From the consumers’ point of view, it means cheaper vegetables and fish. The relaxation of fishing restrictions in the North has already given the fisherfolk a new lease of life. Northern farmers too are known for their perseverance under harsh conditions. They will benefit immensely through this linkage. Northern consumers will also benefit as they will have easy access to goods from the South.

Northern infrastructure will have to be rebuilt practically from scratch.

This presents an ideal opportunity for the private sector, especially construction firms as roads, hospitals, schools, homes have to be built anew. The electricity and (wireline) telecommunications network should also be restored. All these will cost millions of dollars, but local and foreign funding augmented by private sector participation will achieve the desired result.

One should also look at the long-term prospects of the North as an investment destination. The Northern Province should be marketed locally and internationally as such, because it already has functional ports and airports and the road, telecom and power networks can be improved in a few years. Moreover, factories and service industries can provide thousands of employment opportunities to Northern youth, including rehabilitated LTTE cadres.

The North and the East can potentially become two of the most prosperous provinces with the dawn of peace.

With peace and stability, the success of the East can certainly be replicated in a terrorism-free North.