Kilinochchi - the platform for growth

By Rohantha N.A. Athukorala

Sri Lanka was a US $40 billion economy around three years ago and today, it has reached around a $67 billion with the economy targeting seven percent GDP growth. The private sector must be commended for championing the growth agenda with a contribution of 75 percent of the GDP.

The latest report from the Department of Census and Statistics provides statistics of the North for the first time in 30 years.

The report said that Kilinochchi has registered the highest percentage of people below 15 years in the country at 33.1% which means that Kilinochchi the 'youngest' district could be used as a platform for growth if properly groomed given that the Central Bank 2014 road map revealed that the bank density in the North has also catapulted from 9% in 2009 to 23% in 2013 making it the number one district on this criteria.

Kilinochchi has the highest percentage of people below 15 years with dependency at 71.7%.

Kilinochchi is the coolest district in the dry zone and is the 25th district in the country.

Its name was derived from Giraa-Nikey or Giraa Nochchiya meaning the Nika (vitex Negundo) trees that formed the secondary Kilinochchi. Some called it the flock of parrots Girawaas.

Kilinochchi over the years became a strategic location in the country due to the political, socio-economic and cultural history in that part of the country.

The LTTE used Kilinochchi as their operations centre which made the district globally known. .

With a land area of 1,237 square miles and a population of around 150,000 in 1998, many people avoided living in the area due to the threat of malaria.

Incidentally, Kilinochchi is considered one of the coolest towns in the dry zone because of the Iranamdu tank which is in the heart of the district.

The tank is the third largest in the country. It has a geographical spread of four kilometres and the elevation of the district is about 150 metres above sea level. It is 60 km from Jaffna on the Jaffna-Kandy A9 road.

Economic development

While Kilinochchi registers the highest percentage of people below 15 years at 33.1%, the country average is 25.8%. This means that infrastructure that is related to education will play a key role in shaping the future generation. It also means that a new thinking wave can be instilled based on the ethos of economic development provided that the teacher-student ratio can be managed.

I remember visiting Vellanai where I witnessed real peace. Apparently during LTTE times when children were in school they were hauled up and taken for combat training by the LTTE and the teachers were asked to construct bunkers. But today, they are free with no hindrance to education. To me this was the real impact of peace.

However, a point to note is that the dependence ratio is 71.7% which means that livelihood development is key to the future stability of the district.

It may be worth pursuing the idea of changing the agriculture based economy of the district to an industrial one by setting up of apparel factories linked to vocational training. The setting up of an Industrial Zone is worth pursing given the young population in Kilinochchi.

Migrants

The recorded population in Kilinochchi as per the 2011 Census is around 112,875 people with almost 97% of them being Sri Lankan Tamils. A point to note is that the highest percentage of migrants is registered in this district at 96.9% which means that houses and land becomes the key issue for basic living purposes.

In my view, with the Indian housing project and many other national programs coming into play, companies in the fast moving consumer durables sector will be in demand provided the purchasing power issue is resolved. Most homes are made of cement blocks (49.2%) as against the national average of 33.5% which means that basic tilling will be in demand as and when purchasing power becomes stronger.

The report from the Department of Census and Statistics indicates that the number of homes stand at 61.1% while the percentage of people living in shanties and huts is 20.8%. This number may have dropped during the last six to nine months but the need for housing related products will be on the rise.

Water

Wells are the most popular source of water in the Kilinochchi district with almost 66.4% of the people having access to protected wells. But river and tank water consumption is also high at 6.1%.

The national average for household drinking water from protected wells is 46.4% while for pipe-borne water it is 30.5%. It is zero in Kilinochchi. This shows the market opportunity for companies which manufacture PVC pipes in the future. The availability of an attached toilet exclusively to a household at 62.1% is a strong indicator given that the national average is 86.4%.

But those not using a toilet at 22.3% is high. This needs to be corrected. In the past six to nine months these figures may have changed sharply given the development that has taken place. From a marketing point of view, it also captures the opportunities available.

Energy

A point to note is that only 10.2% have electricity while almost 78.8% use kerosene. The national average is 87.8% for electricity and only 11.5% being dependent on kerosene. But on a positive note, solar-powered lighting is at a high of 10.8% for households.

Road map

The progress made on each of the above fronts must be shared with FMCG and white goods companies so that lifestyle shaping will take place in a more homogeneous way.

The progress must be monitored, given that that there is a strong correlationship between terrorism and poverty. Sri Lanka must avoid this trap.

Education sector growth will be the key, given the young population in Kilinochchi and with this there should be industrialisation that must be introduced to manage the employment wave. Else this can also fuel aggressive and extreme behaviour.

Companies in Killinochchi will have to replicate the 'Pannala' model of community and skill development that was done by pioneering companies such as MAS Holdings.

Every organisation must conduct life skills training programs in Kilinochchi at least once a year in their CSR initiative.

The views expressed in this article are strictly the personal views of the author and not the views of the organisations he serves in Sri Lanka and globally. He can be contacted on [email protected]