|
|
 |
 |
| Sunday, 11 January 2004 |
 |
|
 |
Business |  |
| News Business Features Editorial
|
Readers Forum : Re nationalise DFCC and NDB to meet development needs of North and East All indications are that with all the persuasion, coercion and arm twisting the LTTE and Government of Sri Lanka will soon be concluding a peace deal. The opportunities that will be opening up with a durable peace are truly enormous. Its success depends on the coordinated efforts of so many different parties - Government, Opposition, local authorities, NGOs, traders, industrialists, transporters, development and commercial banks and many such sectors. All sectors are important but one sector that stands out as most important is the development banking area. The massive task of reconstruction will demand new thinking. Fresh approaches to identifying, appraising and funding projects would be essential because we in Sri Lanka have not yet seen a parallel situation before. It is more akin to the devastation seen in Europe just after the 2nd World War. To meet the development challenges of the immediate post war period every European country created special development banks to channel the Marshall Plan aid to the priority sectors, with the International Bank for Reconstruction and Development (later named World Bank) acting as the apex body. Even with such high levels of aid and trade it took over a decade for the basic infrastructure to be put in place. Today in Sri Lanka, we cannot afford any delay as it might mean another uprising; this time, by the people genuinely affected by the war, whose hopes are running very high and cannot wait any longer. The need of this hour is a truly dedicated development lending institution that can fulfil this role of efficiently, mobilizing and applying proceeds of loans, grants and investments to the priority sectors in the areas ravaged by the war. And remember, while the war ravaged the North and East, in the South was ravaged by lack of investment with development funds being diverted towards the war. Therefore, development needs of the entire country have to be addressed. Sadly, both development banks in Sri Lanka, the NDB and DFCC have now been privatised and is seen drifting aimlessly without any focus on long term lending. With the privatisation, they have been doing more short term lending and the share trading because it is more lucrative and also requires very little monitoring. The need for a strong development bank acceptable to both, LTTE and the Government is very urgent. Setting one up with a totally new vision and a mission would be ideal but time does not permit it. The best alternative would be for the Government to renationalise the NDB and DFCC, replace their key officers who are mostly interested in short term profits with those passionate about development and social oriented banking having an intimate knowledge of the areas to be served. Between them, DFCC and NDB already have several branches in the key towns. Set up a few more in the areas needing reconstruction and the country can start moving forward rapidly and avoid another uprising. -D. L. C. Fernando |
|
News | Business | Features
| Editorial | Security Produced by Lake House |
