Govt has vigorous role in economic development - Prof. G.L. Peiris

“The government’s role is most important in the economic development of the country. We are not ready to leave everything for the market to decide and do not believe that business can solve all problems by itself”, said External Affairs Minister Prof. G.L. Peris. He was addressing a seminar organised by the Institute of Certified Professional Managers in Colombo last week.

Prof. Peiris said that transformation is taking place in the Sri Lankan economy.

Our external reserves have surpassed the US$ 7 billion mark, the highest in history. We have reached an 8 percent economic growth rate and have a target of $ 4,000 per capita income to reach.

These achievements are mainly based on two factors. Firstly, durable and lasting peace achieved after two decades. Secondly, the unprecedented degree of political stability. Today the country has the confidence that is essential for business and economic development.

“Role of the government in a transforming economy”, there are two schools of thoughts on this topic. According to the Chicago School of Economics which represents neo-liberal views, if the macroeconomic fundamentals are sound there is no role for the government in economic development.

The government does not accept this view. We believe that the government has a role. The government should intervene to ensure social equity while benefits of development reach the regions and the most vulnerable people of the country.

The government cannot leave this to natural forces and we want to ensure delivery of the benefits of economic development to all sectors of society. Therefore, the government has a vigorous role to play.

The government has a role in uplifting the standard of living of rural people. Urban development is not an issue because FDIs, investments into the stock market are flowing in. However, rural development is not happening and therefore the government has a coherent policy to go to the relatively neglected regions.

Two weeks back I was in Ambalantota to open a campus of the Open University of Sri Lanka. We opened a university in Badulla, The Uva Wellassa University, a new approach with a vice chancellor from the private sector. We started pragmatic and market oriented courses there. Today, those graduates have a demand from the private sector and they are not in the queue for jobs. Our objective is to improve the living standard of the rural people in these neglected regions.

The government intervention has improved business confidence and opened new opportunities. Free trade agreements signed with India and Pakistan have opened new markets and Sri Lanka has become a gateway to these huge markets.

There are 375 million Indian middle class people. The government invests in programs such as Nenasala to improve IT skills of rural people. We have a pragmatic program to increase our human capital, Prof. Peiris said. (GW)