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| Sunday, 8 August 2004 |
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Restructuring, not privatization policy of government It is perfectly alright to try out new solutions to achieve higher economic growth Deputy Governor of the Central Bank W.A. Wijewardena said addressing a Power breakfast meeting organised by the HSBC on the theme Economic Challenges and Current Economic Conditions from a Sri Lankan Perspective. He said that the end result of privatisation is improving efficiency and the policy of the UPFA government is not privatisation but restructuring of State-owned entities to achieve efficiency. To this end the government has created the SMEA to achieve its objective. All governments elected to power since 1977 have adopted the free market based economic policy and the policies of the UPFA are no different, but as reiterated by Wijewardena there are several solutions to achieving a higher economic growth. According to the 2003 Annual Report of the Central Bank, Sri Lanka's economy is at the crossroads at the moment. Therefore if the country does not make the required changes it would move backward rather than forward the Deputy Governor said. Continuing the peace process and adopting to changes that are taking place globally are crucial if the country is to move forward. Countries that adapt to changes are winners while the others are losers, therefore integrating with the rest of the world is a must if we are to succeed as a country, he noted. He said that there is a misconception among most people that globalisation has been imposed on us by the Western world, but globalisation is the interdependence of each country on the other for wealth creation. According to the Deputy Governor, Sri Lanka has benefitted immensely from globalisation as far back as the fifth century BC. It is nothing new, therefore if anybody is reluctant to adopt it it is based on unfounded fears. Most people think that we are a resource -rich country, while this may be true in regard to labour and land we do not have the luxury of natural resources other than gems. Therfore we have to build connections and improve the economic fundamentals to increase the resource base. He said that the human resource base should also be developed to cater to the future needs of the country The Deputy Governor said that most people in the private sector are scared of competition but the world is such that people who adapt win while the future of the people or countries that don't adapt are bleak. For example dinosaurs though giants are extinct today as they could not adapt and it will be the same for people or countries who don't adapt, warned Wijewardena. |
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