Lack of investor confidence failed us in the past - Dr. Amunugama

by Deepal Warnakulasuriya

Question: You finished a successful tour of Germany. How would you assess the tour and what kind of benefits would bring it to the country's economy?

Answer: Germany was one of the most important development partner for Sri Lanka. We have had bilateral negotiations for over 30 years. They have financially assisted us on major development projects like the Mahaweli accelerated project. And currently we receive about US$ 50 million as development assistance.

Germany is also the chairman of the European Union till the end of this month. Sri Lanka receives GSP+ status for our exports at the EU and it is a satisfactory issue. But, past years the dialogue between the countries had faded.

Q: How did this opportunity come about for you to go there?

A: Asian Development Bank's AGM was held in Kyoto, Japan a few months back. There I met the State Secretary for Development Assistance Mrs. Carron Kortmann and she invited me to come there.

Q: If we go back to the benefits of the tour?

A: Well, as I mentioned to you, the fading dialogue between two countries turned around. I got the opportunity to meet the ministers who are responsible for the economic affairs, representatives from the banking sector, the heads of a number of business foundations and many in Berlin and Frankfurt.

The Ministry of Corporation Development in Germany promised to provide more financial assistance to the country. There were some misunderstandings and my trip helped to clear those.

Q: What about the GTZ proceedings?

A: Yes, GTZ is the German Development Agency functioning here. When I discussed with them they promised to expand their development services into the Eastern Province too. That is a major achievement. And the tourism authorities in Germany also pledged to promote Sri Lanka as a safe place to travel and visit. I think, we have experienced a sharp drop in tourists from Germany and the situation would be changed now.

Q: If we go to the present political situation of the country. How do you see the recent changes in the government?

A: Yes. There were several changes in the political scenario which should be correctly explained to our investors. In this context, I want to stress that when something small takes place in the country. There are some NGOs and some media which highlighted those unnecessarily damaging the country's image. As a government, then we have to face difficulties in drawing foreign investors and tourists here.

Q: Yes, Minister that is right. But I asked about the recent changes in politics.

A: Yes, I am explaining to you. Those things happen, when someone thinks that the government is not stable. It happens specially when the government does not have a strong majority in the Parliament.

According to the present constitution which combines presidential system where members of Parliament are elected on a PR system. There is always the possibility of instability in the government. We have experienced what happened during former President Chandrika Bandaranaike's time. Taking all these issues as well as the vote system in the country, President Mahinda Rajapaksa's efforts to strengthen the government's party in Parliament is not a matter for surprise. In that context, the government had to induct Opposition members. In such a process changes are inevitable.

Q: You nicely tackled my question. Anyway, what do you think of the opposition parties cooperation for the government?

A: The UNP has not made a genuine effort to enter into an agreement with the governing party. This is contrasted with Germany where two biggest antagonists comparable to Sri Lanka (UNP and SLFP) mainly CDU and SPD in Germany have now come together into a coalition to govern the country. When Ranil Wickremesinghe failed to understand this, 18 outstanding personalities in the UNP like Karu Jayasuriya, Milinda Moragoda, G. L. Peiris, Rajitha Senaratne, Mahinda Wijesekera, Bandula Gunawardene who are not the traditional UNP card carrying members decided to assist the President.

Q: You are saying that it is not the general UNP. But its leader

A: Yes. if he failed to get on with those experienced politicians, it is a problem of inter-relationship. There is a doubt on the UNP leader's ability of judging the people. Now, the only option left is for the UNP to join hands with the JVP and try to defeat the Rajapaksa government.

Q: Is there a possibility to do it?

A: No, never. But they too should have something at least to try.

Q: Former Minister Mangala Samaraweera has said that the government has done nothing on highly increasing cost of living, corruptions, lack of social and rural development etc. How do you meet this allegation?

A: Increasing oil prices, then the increasing cost of living are not the problems which confined to our country. There were riots in India recently when the fuel prices were increased. The situation was same in China. Then all over the world, the situation is a phenomenon. Then accept some welfare measures should be taken place.

But, when there is not corresponding increases in production of goods and services, governments are compelled to increase the money supply. This is a classic scenario for galloping inflation. The only solution is to increase production and reduce consumption. On this process we have to give up the idea that is treasured by all the politicians that the government must do everything.

There is a major role to play by the private sector. But the fundamental problem is that our political culture strongly favours a type of socialism that is encouraging the subsidies to gain the votes and discouraging production. Making the people's mentality to receive everything free as well as using public sector to employ unproductive party loyalist have made enough disasters on the country. Therefore, we have to follow the other Asian countries which took rational decisions and controlled wasteful public enterprises.

The other thing, it is not needed to point out these problems by anyone. As a responsible government, we try to give concrete solutions instead of plasters. Instead of making allegations the best thing is working towards to gather all irrespective of race, caste, religion or political differences to increase productions in the country and expand the civil liberty. It will ensure a standard of living for our people.

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