President Rajapaksa a business friendly leader

By Surekha Galagoda

Two years ago when Mahinda Rajapaksa contested the presidential election the opposition said that he would not be a business friendly leader. The Mahinda Chintana policy statement was described as impractical. There was a fear among the majority that the SLFP who preferred a socialist or inward oriented model would go back to policies of the early 1970's. Rajapaksa was considered an SLFP hardliner. Pointing out the progressive parties aligned with Rajapaksa at the presidential election they said the private sector of the country would have to face a hard time.

When he completes his second year in office as the executive president of the country having presented the third budget as the Finance Minister the whole thinking has changed not only internally but the international community also supports the government . Today, the opposition, the maestros of the free open economic policies are perturbed about the way the Rajapaksa government handles the economic tools while maintaining social welfare measures, protecting the vulnerable sectors of the economy and building the national economy.

The most recent is the US$500 million sovereign bond issue. The Rajapaksa government confidently went to the international credit market to raise funds for development projects in the country, the first time in the history and were very successful.

Many infrastructure development projects were launched to solve all political and social problems. Some were delayed for many decades and the failure to implement these projects dragged the whole development process in the country.

The Norochcholai coal power plant is one of them. This project was delayed for decades despite all plans being prepared and donor funding made available. The social issues were resolved and construction work on the project was launched.

The Upper Kotmale hydropower project is another example. It was delayed due to environmental issues and protests of certain political parties. All these issues were solved convincing the public of the cost and real benefit, to the nation and the economic cost that the country has to bear due to the delay of these projects.

The Government is hoping to conclude the first phase of the Hambantota Port construction in three and a half years.

The financial agreement for the Hambantota Port Development project with the EXIM Bank of China was signed recently under the patronage of President Rajapaksa. Accordingly, China's EXIM Bank will provide an export buyer's credit of 360 million US dollars for the project. President Rajapaksa won support for three major development projects in Sri Lanka during his recent visit to China.

Among them are the Norochcholai Coal Power Plant, Hambantota Port and for the construction of a fully equipped cultural centre. Within six months of the visit, the Chinese President, Hu Jintao, took steps to grant US $ 400 million for construction work of the Norochcholai Coal Power Plant and the construction work of the cultural centre is also to be initiated in December with a grant of US $ 100 million.

These development projects will provide new career opportunities for 20 million Sri Lankans and would be a boost to the government's efforts to reach its economic targets. The initial work on the Weerawila airport considered to be one of the largest development projects in the southern province has also started under the guidance of President Rajapaksa.

Work on the US$125 million project is scheduled to be completed by 2010. The land extent is 400 hectares.

The port, airport and the southern expressway will help improve the living standards of the people in the southern region and correct the inbalance of the Colombo centric development which suffered at the hands of the previous regimes. Today people have hope of a better tomorrow under President Rajapaksa's stewardship.

President Rajapaksa has attracted several investments to the country which is a great achievement. Among them are the MAS Fabric Park (MFP), the world's first environmental sustainable apparel and Fabric park which accommodates the first warp knit project in South Asia and offers shared services such as plug and play which was opened at Thulhiriya recently.

Owned by preferred partner and supplier for the world's leading brands in intimates and sportswear MAS Holdings, the first project at the premises is Asia's first high quality warp knit operation. DOGIFA, a joint venture between global warp knit specialists Dogi International fabrics (brand owner of Dogi, Penn and EFA) of Spain and MAS holdings with a USD 30Mn investment.

The facility is the first high-quality warp knit operation in South Asia which will cater to the increased demand for warp knit fabric in the region driven by the growth in Intimate Apparel, Swimwear, and Sportswear markets.

The investment on this project was long overdue. As the Chairman MAS Holdings Mahesh Amalean said he was keen on getting DOGIFA to invest in Sri Lanka and he got it after five years of discussions. But the investors couldn't find a home to locate the factory.

They tried to locate the factory in Biyagama and Seethawaka but there was not sufficient water and effluent treatment facilities at those places.

When the situation was explained to President Rajapakse he offered the Thulhiriya premises which was earlier occupied by Kabool Lanka.

Apart from taking steps to solve these macro and micro issues President Rajapaksa put the business community of the country in top decision-making positions. The National Council for Economic development is the forum that policy decisions first discussed.

Professionals, business chambers and leading entrepreneurs are in the relevant clusters. The Budget proposals and all other key economic policies are first defined in these clusters.

As highlighted in most of the recent budget seminars, this method has reduced the issues in development proposals and enables the process to run smoothly. All chamber chiefs are very happy with the budget and as a high official said they have nothing to complain as the government officials listened to everybody prior to preparing the budget.

They held over 25 meetings with the private sector to seek their views on the budget.

The main areas highlighted in the budget are infrastructure development, relief to low-income groups, reawakening of local enterprises and improving local products which makes us feel that President Rajapaksa understands the pulse of the people.

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