Towards a new North

Sri Lanka has finally achieved what many thought was impossible: Defeating the most ruthless terrorist group in the world. The Liberation Tigers of Tamil Eelam (LTTE) was finally defeated and its leaders killed after almost 30 years.

The good news is already having an impact on the business climate, judging by events at the Colombo Stock Exchange yesterday. Shares surged by the largest amount in four months after the Government declared victory.

The benchmark Colombo All-Share Index jumped by 5.7 percent to 2,106.25, its biggest gain since January. The Rupee rose 2.3 percent to a one-month high of 115 against the US Dollar.

This sentiment should be viewed in the context of the impact the LTTE had on the economy over the last three decades. One of the main aims of the Tigers was economically destabilizing the country and they succeeded to some extent. They specifically targeted economic installations for attacks with this aim in mind.

Two of the biggest such attacks were on the Central Bank (1996) and the Bandaranaike International Airport (BIA) in 2001. Their nascent air wing also targeted the Kelanitissa Power Station and airports. The Tigers’ main aim was the economic fallout, even more than the physical damage.

It is no secret that such incidents, coupled with the Tigers’ adverse propaganda, did have an effect on especially on the tourism and investment sectors.

The conflict situation kept many investors away, but there were many who kept faith in Sri Lanka during even the darkest periods.

The defence expenditure kept increasing year by year, as the Government poured more resources into battling the LTTE.

This has been fully justified in the light of the troops’ decisive victory over the LTTE. However, the dawn of peace will enable the Government to prune down the defence expenditure and divert such funds for development.

Development will be a keyword for the North, which will finally emerge from decades of conflict. Such a process is already under way in the East, which was liberated earlier, through the Negenahira Navodaya (Eastern Resurgence).

A similar program has already been drawn up for the North, titled Uthuru Wasanthaya (Northern Spring). Fisheries and agriculture should be revived along with the other business activity.

There will be a huge demand for housing and infrastructure development in the North, as resettlement gradually takes place.

Most infrastructure facilities in the North (power, telecom, roads, health facilities and bridges) had been destroyed during the protracted conflict and they will have to be rebuilt from scratch. The North has become one of the poorest provinces in the country thanks to the LTTE. Developing the North will be a major challenge.

This will provide a golden opportunity for private sector companies engaged in this field.

The authorities should also invite local and foreign investors to set up operations in the North, which already has good port and airport facilities. The linkage of the North and the South through the A 9 has already proved to be a boon to the Northern economy.

The restoration of civilian administration and democracy, the gradual resumption of business activities in the North and its re-integration to the overall economy will have a positive impact.

The LTTE was responsible for the deaths of a large number of youth who were conscripted to their ranks.

The authorities must now ensure a bright future for the Northern youth rescued from the LTTE, including LTTE cadres who surrendered to the Forces. The resumption of education and employment generation are thus essential for the North.

If they are gainfully employed, there will be no room for anyone to lead them astray.

As we stated in these pages yesterday, the time is ripe to begin an economic war, now that the conflict has been ended. In this context, it is important that we seek the active contribution of sections of the Tamil Diaspora that previously morally and financially supported the LTTE. They now have a chance to contribute to the development of the North and help their brethren, including the Internally Displaced.

The Government should invite the views of political parties, civil society, business community and the public on plans for the post-conflict era and implement any viable proposals. Sri Lanka today stands on the threshold of a new era.

All Sri Lankans should fulfil their obligations to take Sri Lanka forward.