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Sunday, 26 June 2005    
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Peace and poverty eradication

Ceylinco Group Chairman, Lalith Kotalawala speaking on 'Peace and Poverty Eradication' with Sunday Observer staffer JAYANTHA SRI NISSANKA emphasised the need to maintain peace in the country to achieve economic goals.

Q: Do you think the Post Tsunami Operational Management Structure (P-TOMS) is a very viable move?

A: I am giving my fullest support for it. I was the first businessman to appear on Rupavahini and speak in favour of it. We have to be realistic on problems. We have had the war during the last 20 years. The LTTE controlled those areas during the last 20 years. Tamil people have lived generations in those areas.

They have the right to govern themselves. There has to be a certain amount of freedom for them. That is why we have had this 20 year war. It is wrong if the Sinhala majority thinks that they should rule the minority. There should not be a domination of the minority.

Those days have gone. I remember once former President D. B. Wijetunga said that the Sinhalese are like a tall tree spreading branches to give shelter to the minorities. I do not think that philosophy applies any more. The time has come to build up the Sri Lankan image forgetting races because we are all equal. We cannot bring unity to the country in such a manner. We must give a chance for people to choose religion and not impose religions on others.

All races are considered equal and considered Sri Lankans. Therefore, why should someone think that P-TOMS is a betrayal. The P-TOMS is trying to give some aid to tsunami victims. It is wrong to say that P-TOMS is giving the LTTE the power to rule the North and East. Already they are ruling those areas whether we like it or not. We don't have the presence of the Sri Lankan Government in those areas.

Q: How do you look at the President's bold move on P-TOMS?

A: She is absolutely right. Governments come and go. What is important is principles. One must do in life what is right. Her courage and stand are admirable. She even risked the fall of her Government for PTOMS. She has never been a racist and always believes in freedom.

Q: Every political party is trying to get political mileage on any progressive proposal. What is your advice to political leaders?

A: The mark of a great political leader is to take decisions for the betterment of the country, not for the betterment of the party or personal gain. He should not be a rogue because wealth belongs to the people. People do not elect their representatives to rob the wealth of the country. Put the country first, and not the party. Party should not be an exclusive club. Certain decisions made by the opposition parties should be considered if it is correct.

That is how the country will benefit. Right decisions should be taken for the country at this time to ensure peace. Our economy will be in the doldrums if war breaks out. Every political party should support if P-TOMS is harmless.

Q: Our politicians are trying to take political advantages on issues. What is your advice to people when electing their representatives?

A: One cardinal principle in democracy is that the people get the leaders they deserve. If we get crazy leaders it is our fault. If we get wrong leaders we have to blame ourselves for electing such people. One of the greatest faults is that we are deeply racist. There is a continuous attempt for one race to dominate the other.

We are very envious if someone is progressing well. But on the other hand our people are very kind and intelligent. If properly motivated they can be very productive. Therefore, we must-elect leaders who will lead us with a vision but currently we are lacking such leaders in Sri Lanka.

Q: We have lost many opportunities in political and economic spheres in the past. Where is Sri Lanka heading now?

A: Countries never collapse but we will remain where we are. We will not be a super country. Other countries will over take us. We need a good leadership and get the support of all civil societies for the development of the country. We have to get our priorities right. Basically we can eradicate poverty if we can ensure peace.

Q: Every Government introduced poverty eradication programmes since independence but failed. Why is that?

A: It is very difficult for any Government to eradicate poverty because a Government is not the ideal structure to handle funds and administer funds. My poverty alleviation programmes have succeeded because I am not in politics. Every party needs someone to support elections, but after the elections, parties have to fulfil their needs.

That is why Government sponsored poverty alleviation programmes have failed. I have succeeded because I have no such obligations, since I am not campaigning for votes. Trust and honesty are the keys to success in poverty alleviation programmes.

Q: What are your rural credit programmes and how have they helped to reduce poverty?

A: Ceylinco Gramiya Credit Company, has assisted 93,000 families so far to start businesses of their own. Its a very successful project. Repayment of credit in our poverty alleviation programmes are 100% because we lend money specially for women. Rural women bear the burden of the entire family and nobody gives her money because she is not credit-worthy. But we give her money without any collateral or guarantors.

We first lend Rs. 5,000 to start a business and double it after repayment of the first loan. Now 450,000 persons are out of the poverty line. Recently I started the Agro Credit Company to assist farmers. The first Branch was opened in Mahiyangana. We released loans to 115 farmers who were in debt.

They had no access to credit and they were indebted by borrowing at very high interest rates. Another programme was also launched to fund graduates who are keen to own a business. We have lent money to 350 graduates so far. We closely monitor their progress.

Q: There is political instability in the country. How will it affect the private sector?

A: I can only talk of myself. Political instability will not affect my companies because we are rooted among the people. But we will be affected if war breaks out. I hope the political instability will not lead to war again.

Though the JVP left the Government, it will not affect the economy very much because we have the Executive Presidency. The President has tremendous powers. She can run the country without much hassle. The UNP is not going to be hostile. Even the JVP will not be hostile even though they left the Government. They will support the Government on a case by case basis.

Q: But foreign investors may be disturbed by the political development in the country. How will it affect the economy?

A: I don't agree with it. I always felt the other way. The economy will improve better by local investors than foreign investors, if we concentrate to develop local business.

Countries like Singapore and Malaysia have few poor people. I believe their economies are better than USA, because USA has more poor people than Singapore and Malaysia. There are slums almost like in Bangladesh, in the city of New York. Therefore, we can easily eliminate poverty with the support of our people if we can ensure peace. War is responsible for the poverty.


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