Arming the future with development

Finance Ministry Secretary Dr. P. B. Jayasundera was interviewed recently on the SLBC’s Subharathi program by SLBC Chairman Hudson Samarasinghe. Here are some excerpts from the interview.

Q: What is the duty of a leader of the State? Should he work with an eye on the next election or work for the benefit of the future generation?

A: A leader should have a clear understanding of the hopes and aspirations of his people. A foremost desire of the people is to uplift the social, moral and cultural values of the future generation. While being sensitive to short term problems of the people he should ensure the long term development and welfare of the nation without sacrificing it for short term gains. A leader should always think of his responsibilities towards the future generation.

Q: What role has the Mahinda Rajapaksa Government played for the future welfare of the nation?

A: The President as soon as he assumed office took over the responsibility of steering the future course of the nation. In his capacity as Finance Minister he paid attention to the large number of development projects which had failed to take off ground. Under the 10-year Mahinda Chinthana program development projects have been implemented in many fields including irrigation, highways, posts and airports. Large scale development projects are under way on a countrywide scale today without being restricted to Colombo only. Each village is getting at least a concreted road.

Most people talk of shortcomings today. They are able to talk of shortcomings because there is development work going apace. Today five new ports are being built in the country. The capacity of this Colombo Port is also being increased. All this work will strengthen our economy. It will also help improve our international relations enabling us to transact with the outside world more efficiently.

The first thing, investors coming here ask is about the availability of infrastructure facilities. There has been a great reawakening among local investors too. Even critics have admitted it.

Infrastructure development will benefit small scale investors and farmers as well. Roads alone will be insufficient unless ports are developed for trade. Investors know that the country will not face any electricity crisis in future because the country is producing electricity in excess of the demand.

Q: The GSP Plus facility has been a hot topic of discussion recently. When you and Basil Rajapaksa MP were assigned to tackle this problem the Opposition Leader made certain accusations. What is your opinion about this matter?

A: Our Government deals with many international institutions including the IMF, World Bank, ADB and other organizations. After the defeat of LTTE terrorism various programs have been launched to distort the country’s image. These programs are aimed to disrupt our economy. The Government has taken steps to clear those misconceptions through the Foreign Ministry at official level. I and Basil Rajapaksa too were enlisted with the task of clearing misconceptions and we have succeeded in doing it to a very great extent.

When explanations are given, decisions should be taken on such matters not according to political factors but according to international factors. A state of indecision has been created among commercial banks too when we go to obtain a commercial loan. We experienced this situation recently. Although the IMF loan was not decided on political grounds it was pressurised to a certain extent when it granted the stand-by facility. We as a nation should work in unison to correct these things. I think our last trip was a successful one.

Q: Politically there is a lot of interference on our country. How will it influence the country’s future?

A: It is largely political. But consideration should be given to economic factors. A majority of countries in the world practice democracy. Basil Rajapaksa MP participated in the opening of the country’s future path held in the European Union.

A member of the European Parliament made a very important speech regarding strengthening a trade relations with Sri Lanka and it was a great source of encouragement for us. Two others submitted a report on it but it was far too one-sided.

Sri Lanka did not submit itself for an investigation because we have done no wrong. We implemented humanitarian operations to defeat terrorism considering the trails and tabulations of the people in the North and East. The Security Forces acted in a responsible manner without causing problems to innocent civilians.

We implemented an immediate program to cater to the displaced people and normalise their life. That is why we opposed an investigation. Their Ambassadors are stationed in this country. The report will go to the next committee after which it will go to Heads of State level and it is at that level we hope to get this issue resolved.

A 180-day accelerated development program is being implemented by a task force set up in June. A large section of the 300,000 displaced persons have now been re-settled. It is to protect the displaced that a security fence has been erected around welfare villages. Every one visiting these camps have expressed satisfaction about the facilities provided.

Steps are underway to remove land mines in a 9,000 square km area. Machinery with Rs. 3,000 million have been imported for this job.

Areas in the North considered as terrorist strongholds have now returned to normal life. Trade, fishing, transport, banking, schools and hospitals are now in operation in these areas.

The Government has imported machinery and equipment worth Rs. 150 million for development activities in the North. Large scale Development projects will be seen in the North within the next two months. Arrangements are being made to cultivate thousands of acres under paddy next Maha utilising irrigation facilities from the Yodha Wewa.

Q: Do you hope to implement a program to help local entrepreneurs?

A: From 2006 the Mahinda Chinthana has envisaged to strengthen the indigenous economy by substituting the import economy with a production economy. The first step is to provide protection to local entrepreneurs from unnecessary foreign competition. That is why taxes were levied on certain imported items.

We should create a profitable environment for local farmers if not they will give up agriculture.

There has been a great reawakening in the agriculture sector during the last few years. We should carry this forward and give more protection to farmers as in India. Today rice production has improved resulting in a decrease in flour-imports. The Government imposed a 20 to 25 percent tax on imported wheat flour to induce local paddy production.

The President is of the view that we should produce our own requirements of food and other commodities. The Government had reduced interest on bank loans to encourage investment and local productions. Today the agriculture, industrial and service sectors have attained rapid progress. Today the local industrialists and businessmen have received a good social status. The fertilizer subsidy has been continued as an impetus to local food production.

Q: How do you take forward plans for assisting development programs?

A: Earlier Samurdhi assistance was granted to a large section of the population under the poverty alleviation program. But today all these people are rebuilding roads and other infrastructure with collective effort. A large number of rural electricity schemes and water supply projects are implemented under the program of taking development to the village. All this will benefit the future generation.

Q: As Secretary of the Finance Ministry what is your impression about the character called President Mahinda Rajapaksa?

A: I came to know President Rajapaksa in 1994. He acts according to a clear vision. He highly valued the public service and loved to work with local talent. As a man from the village he has a clear understanding about the village economy. He is also aware of the needs of the cities. He has held several ministerial portfolios and functioned as opposition leader. All this had not changed his simplicity. He is a person who thinks far ahead of the times and this has caused a major transformation in the country in all spheres.

We are a country in the Asian Region with a per capita income of over 2,000 US dollars. In 2004 the per capita income was only 1,000 US dollars. We also handled the war methodically although we did not have a large number of planes and helicopters and other armaments like other nations. President Mahinda Rajapaksa has been able to rebuild all sectors of the economy.