North - major stakeholder of new economic boom

Enterprise Development and Investment Promotions and Media Minister Anura Priyadarshana Yapa in an exclusive interview with the Sunday Observer stated that the terrorism-free North and East has opened up vast vistas for development. He outlined the government initiatives for restoration of the long-desired democracy with its important attributes such as participatory local government elections to be held soon in the North.

He also said that a Chinese Special Development Zone with an initial investment of US$ 28 million would be opened up at Mirigama, in the Gampaha district in near future.

Further Chinese companies would also be set up in such distant areas as Kilinochchi, Batticaloa, Ampara and Trincomalee. To supplement the development process administrative complexes, supermarkets, banks and office areas as well could be set up as a measure to boost the economy.

by Panchamee HEWAVISSENTI

Q: The Government, under the leadership of President Mahinda Rajapaksa was able to crush the world's most ruthless terror outfit, which was a burning national issue for over three decades. What is the next immediate target of the Government?

A: After defeating the LTTE terrorists militarily, the next most important post-war priority is to accelerate the rehabilitation process for the civilians who were badly affected by the LTTE's inhuman acts. There had not been any development activity taking place during the past 3 decades in those areas. The Government has laid the stepping stone for the reconstruction process which will be completed in a relatively short period of time.

Q: How successful is the resettlement process launched by the Government and what is the current situation at IDP camps?

A: As I mentioned earlier, the need of the hour is to resettle the civilians at its earliest with all infrastructure facilities provided. As you are aware, these areas have been battlefields and the de-mining process should be prioritised.

The Government does not merely resettle these people who had been bitterly experiencing the war for the sake of providing them shelters and other basic necessities. The Government has also understood that the psychological conditions of these people should be improved.

The Government has provided the necessary facilities for them to be trained in various trades so that when they move out of the rehabilitation centres they are equipped with the required skills for employment.

Government gives top priority for child welfare, there are more than 10,000 children at IDP centres. The resettlement process in the North is taking place at a rapid pace with projects being launched in Mannar and Vavuniya.

Q: Is the winning of `economic war' within the reach of the Government after gaining a historic victory over terrorism?

A: Yes, of course! Sri Lanka has acquired an impressive economic growth rate after the eradication of terrorism. I would say, earlier the world had a negative impression on Sri Lanka as a country which was stricken by terror, and was not healthy enough for foreign investment. Fortunately under the wise leadership of President Mahinda Rajapaksa, and the tremendous sacrifices of soldiers in the three forces and proper guidance of commanders, the country was liberated from terror. So now Sri Lanka has a great image as the only country which eradicated terrorism in its own way.

So, Sri Lanka is now at the centre of international attention and investors in many parts of the world are keen to invest in the country, which is now free from terrorism.

I have toured Thailand and Singapore on several occasions. Our promotional teams have already gone to China, and Japan to hold discussions on investing here. It is observed that there is a tremendous enthusiasm among investors to embark on investment projects especially in the North and East of Sri Lanka.

We are at the moment planning to go to USA and Canada to address investors' forums in those countries. Minister G. L. Peiris has already met the investors in Britain and India who are willing to invest in our country.

Despite the global economic turmoil, the eradication of terrorism has given Sri Lanka a distinct advantage to achieve a better growth rate.

The country is currently maintaining a favourable inflation ratio, which creates healthy atmosphere for economic development. Maintaining a low inflation rate will increase the investor confidence and will create a conducive environment to investments in the country.

The tourism industry was badly affected by the LTTE terrorism. With its elimination the Government expects to explore the potential for development of tourism which is a money spinner.

There has been many positive economic trends during past weeks. Sri Lanka's benchmark stock index, the Colombo All-Share Index has risen up to 20 per cent after eradication of terrorism.

Sri Lanka will be able to rebuild its economy and record a better growth rate in the years to come. Despite the global recession and adverse economic trends, the country's economy will blossom and is expected to achieve a growth rate of eight to nine percent.

It must be mentioned that the advantage Sri Lanka gained following the victory over terrorism is greater than the impact on the national economy due to global economic turmoil.

Within another three year's time there will be a developed and stabilised economy in the country. The Government will undoubtedly win the economic war as well with a new vision for the future. The fruits of a developed economy will be enjoyed and shared by everyone in the country.

Q: How long will it take for Sri Lanka to become a `developed country'?

A: It is beyond prediction. It is hoped that within five years time Sri Lanka will achieve a tremendous pace of development beating all odds. It may take decades for Sri Lanka to be ranked a developed country.

Q: Has the Government succeeded in its attempts to attract more direct foreign investors to the country with the dawn of peace?

A: Yes, of course! We have already embarked on a huge promotional campaign to highlight the better investment opportunities in the country. The Board of Investment of Sri Lanka (BOI) has already signed an agreement with a Chinese conglomerate, Huichen Investment Pvt. Ltd., to set up and operate a Chinese Special Economic Zone (CEZ) at Mirigama. The Company will invest US$ 28 million under phase I further and further investments are expected in Phase II.

We have discussed to setup Chinese companies in Kilinochchi, Batticaloa, Ampara and Trincomalee with the dawn of peace. Further, Administrative buildings, Supermarkets, banks and office areas will also be constructed.

I recently had a discussion with the Czech Ambassador to Sri Lanka and investor company representatives who are ready to launch huge investment projects in Sri Lanka.

Foreign direct investments play a vital role in a country's economy. It tremendously helps in the growth of gross domestic product (GDP) of the country.

This is a golden opportunity for Sri Lanka to attract more investors. Sri Lankan expatriates have shown a positive reaction to invest in their mother country individually or as partnerships.

The BOI of Sri Lanka expects foreign direct investment to quadruple to US$ 4 billion within the next three years via investments in ports, tourism, telecommunication and textiles.

The role of the local companies should not be disregarded. We extend our fullest support to uplift small and medium scale local industries.

So they will also collaborate with foreign investors and make a satisfactory contribution to the growth of the country's economy.

Q: What are your plans to provide employment back for those who were found redundant due to closing down of number of private sector factories?

A: According to BOI reports, I don't see that type of retrenchment crisis in the country. I admit that a number of companies were closed down, yet maintaining an equilibrium, some other companies were opened anew providing employment opportunities for the unemployed, including the retrenched.

Several discussions were held with the apparel sector executives. They emphasised that there will not be retrenchments. There is no such retrenchment crisis in the country as alleged by the opposition.

Q: How can the people in the North and East contribute to the country's GDP (Gross Domestic Product of the country)

A: Farmers in the North had made a significant contribution to the country's economy in the past by cultivating onions, chillies potatoes etc. It is hoped that the farmers will revive their means of living after they were liberated from terrorists. The Government will implement a good economic plan for the benefit of those who were displaced, once the resettlement is completed. People in the East have already begun their livelihood activities. The fisheries and dairy industries are seen to be fast growing areas. Under Eastern Reawakening (Neganahira Navodaya) concept, people in the East have been able to distribute their home-grown products to other parts of the country at highly reasonable prices. Therefore, money has started flowing into their hands, increasing their purchasing power.

The contribution by the farmers in the North and East would increase the GDP leading to upward trends in the country's economy.

Q: What should be the role of the Opposition at this stage in contributing to the development of the country?

A: It should be understood that this country belongs to everyone who lives in it. Rebuilding of the country is not the responsibility of the Government alone. It needs the collaboration by all. It may be the Opposition or the Government, or any other local bodies, but they all should come forward to contribute to rebuild the country with a sense of patriotism.

Q: What is the latest situation of the $1.9 billion loan Sri Lanka has requested from the IMF?

A: It is still under negotiation. However, our Central Bank is very optimistic that Sri Lanka will receive the loan.

Q: The 13th Amendment to the Constitution has been the talk of the town. What is government's position with regard to its implementation?

A: 13th Amendment is not an alien concept. It has already been implemented. It is all about set up of Provincial Councils.

We have already established a Provincial Council in the East and the Government is certain to establish a Provincial Council in the North as well.

Q: President Mahinda Rajapaksa has always stressed that a political solution would be implemented once the terrorism is defeated militarily. How soon would this be introduced?

A: President Mahinda Rajapaksa has appointed the APRC committee to find out if they need more devolution of powers. If they require more powers, it will be discussed. There perhaps may be something apart from the 13th Amendment.

After the dawn of peace, the reconciliation process followed by a political solution should be given high priority. The President has appointed the Reconstruction and Development Committee, apart from APRC under the concept of Mahinda Chinthanaya. The Government is open for any proposals for a political solution, a home-grown solution which is within the reach.

Q: The Government has not only liberated helpless civilians from the jaws of the LTTE, but also made arrangements to restore their democratic rights with the Local Government Elections in Jaffna and subsequent Provincial Council elections. How confident is the Government of winning the hearts of the people there?

A: These civilians who have been in the clutches of terrorists have only seen the negative side of life. They have experienced a huge devastation. They should be dealt with extreme care, showered with love, warmth and affection in abundance.

And also they should be exposed to opportunities and their skill levels need be sharpened. The Government has a huge role to play at this stage. The infrastructure facilities should be improved. I would say it is a long and a short term plan. The Government has embarked upon a 180 day and a 2 year program. It will not stop there. Development will be continued.

People should be made to understand that this is their motherland where they should live in harmony together. By doing so, the Government is trying to create a distinct Sri Lankan identity.

The Government has already taken the necessary steps to uplift the living standards of the civilians. So, why not the Government be confident of winning elections by winning over their hearts?

Q: There is a big hue and cry on the `Media Freedom' in the country. What are your observations on the `Media Freedom' in Sri Lanka?

A: `Media Freedom' is a subject which often comes to public attention. If Sri Lanka is a country which restricts media freedom, you just think how can more than 35 radio stations, 15 TV stations, 30 odd newspapers come into existence? `Media Freedom' is a relative term.

There were some media organisations which were funded by various anti-government movements. When those media organisations jokingly claimed that there is no media freedom in the country, money flowed wastefully into their pockets. Thus vainly protesting against Sri Lanka's `Media Freedom' became their means of living so they had no option but to continue it.

Our aim is to build a healthy and well-informed society. We respect the right of the public to know the truth. Therefore, we never intend to restrict media freedom, but it is highly important to convey the correct information in a responsible manner.

Q: It was alleged that some local media personnel were identified as being in the pay role of the LTTE. What actions will be taken against them?

A: Surrendees who were formerly attached to LTTE organisation have divulged the names of some local media personnel allegedly paid by the LTTE. I would refrain from commenting on that till the investigations are completed.