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| Sunday, 8 June 2003 |
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Minister stresses importance of political stability for economic development by Elmo Leonard Political stability is a must for Sri Lanka's economy to take wing, backed by an overflow of foreign investment into the country, Minister of Commerce and Consumer Affairs, Ravi Karunanayake said. If the country is to make meaningful progress, development work such as the building of airports, harbours and roadways has to be undertaken. An economic growth rate of seven to eight per cent is insufficient. Double digit economic growth of 10 per cent or more would be possible with foreign investment if there is political stability. It would only be in such a scenario that the ills of the nation could be remedied and the lot of the people improved, the Minister told the 25th Annual Conference of the Chartered Institute of Management Accountants (CIMA), Sri Lanka Division.The theme of this year's conference was 'Repositioning Sri Lanka globally' and in that context, Karunanayake, who was the chief guest at the event, looked back at the mistakes Sri Lanka had made in the past and what could be done to improve its economy and the life of its people. While the JVP said that money is the root of all evil, the Minister maintained that the lack of money is the root of all evil. He reminded the audience that in 1948 when Sri Lanka became independent, its per capita income was $99, and on par with Japan's. Today, Japan's per capita income is $45,000 and Singapore's $40,000, while Sri Lanka's per capita income is only $852 per annum. Sri Lanka has enjoyed 16 months of peace following 20 years of war; the present government taking the difficult path of peace. June 10 would be a day of reckoning for the country, when at the donor conference in Tokyo, the world would determine where Sri Lanka stands and what quantum of aid it deserves. Sri Lanka's legal system, dating back to 1856, is antiquated and in many instances, not conducive for development, he said. Minister Karunanayake was emphatic that a government has no business to be in business; enterprise has to be in the hands of the private sector.There had to be a move from dependence on an agro-based economy to one of value addition, he said. With 400,000 people involved in Sri Lanka's textile-based trade, there has to be a free trade agreement with the United States to supplement this industry when the Multi Fibre Arrangement ends in 2005. As Mexico is a trade hub for USA, and Hong Kong is for China, Sri Lanka has to be a hub for trade with India, the Commerce Minister said. CIMA President-elect, Claire Ighodaro, who would be the first woman and the first black person to lead CIMA, graced the conference. |
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