President steers country to greater heights
by Surekha GALAGODA
Despite the country facing internal and external shocks President
Mahinda Rajapaksa has been able to steer the country to greater heights
due to his foresight. This has helped the country to maintain a growth
rate of 6.5 cent, despite many internal and external shocks which
includes floods, protracted war, escalating oil price and the global
financial crisis. The election manifesto of the UPFA Government Mahinda
Chintana is a medium term plan and the benefits can be reaped by
everybody in the medium term roads, railway or in rural development. It
laid much emphasis on the rural masses as there was a regional
imbalance.
The business friendly President Mahinda Rajapaksa has pledged US$
150mln in the event the apparel sector loses the GSP + concessions so
that the industry will be able to face the storms and march forward.
Among the recent infrastructure projects that were started are laying
the foundation stone to double the refinery capacity at Sapugaskanda,
Umaoya Project, Moragahakanda Project as well as many other projects
that will help the country increase the power generation capacity in the
coming years. The flyovers built will help ease traffic congestion and
increase productivity while the e-srilanka program will make the country
a tech savvy nation.
Relief measures
Budget 2009 has provided various relief measures to the masses. Three
years ago when President 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 third year in office as the Executive President
of the country having presented the fourth 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 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 in having raised the US $
500 million sovereign bond.
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 delayed the whole development
process in the country.
The Norochcholai coal power plant was 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 two-and-a-half years.
The financial agreement for the Hambantota Port Development project
with the EXIM Bank of China was signed under the patronage of President
Rajapaksa. Accordingly, China's EXIM Bank will provide an export buyers
credit of 360 million US dollars for the project. President Rajapaksa
won support for three major development projects in Sri Lanka during his
visit to China.
Among them are the Norochcholai Coal Power Plant, Hambantota Port and
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 was initiated in
December last year with a grant of US$100 million.
Economic targets
These development projects will provide 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
imbalance 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 with
accommodated the first warp knit project in South Asia and offers shared
services such as plug and play which was opened at Thulhiriya.
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
Fabric (brand owner of Dogi, Penn and EFA) of Spain and MAS holding with
a USD 30 Mn 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 in those
areas.
When the situation was explained to President Rajapaksa 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
decision-making positions. The National Council for Economic Development
is the forum where policy decisions are first discussed.
Professionals, business chambers and leading entrepreneurs get
proposals and all other key economic policies are first defined in these
clusters.
As highlighted in most of the budget seminars, the method has
corrected the issues and development proposals as it enables the process
to run smoothly. |