From autocracy to parliamentary democracy:

Transition should be given a chance - Business leaders

by Lalin Fernandopulle

Professionals and corporate personalities stressed the need to give a chance to the transition from autocratic governance to parliamentary democratic form of governance that is taking place in the country.

They were vehemently opposed executive presidency which has ruined the country for over 35 years.

Gajma and Co. Partner and tax consultant, N.R. Gajendran said that the country must put an end to dictatorial governance under the executive presidency which is absolutely corrupt.

The country has had enough of autocratic rule since 1978 which brought about moral and social decadence.

He said a majority of the people have realised the need to change the current governing system since it is not the way forward for democratic rule and development.

Those who cling to the old form of governance are those who are desperate to remain in power and plunder the wealth of the country.

President Maithripala Sirisena has set an example by agreeing to part with some of the vital executive powers to a Prime Minister who will be answerable to parliament.

Political leaders of today should follow the President who is hailed for his honesty and integrity.

“The transition, as in the case of any change will bring volatility and uncertainty for some time until it matures.

There is uncertainty in the political arena which is unconducive for business, because the country is about to shift to a new form of governance”, Gajendran said.

The business community is disappointed over the lack of policy direction and political stability in the country, which are paramount to attract foreign investment and stimulate business.

The current regime has come under fire for excessive taxation with retroactive and retrospective effect that could have an adverse effect on corporates.

“The Government needs to find funds to finance welfare and development programs through taxes. However, retroactive and retrospective taxation should be avoided”, Gajendran said.

The Constitution permits retroactive laws to promote national interests.

The super gains tax, tax on distilleries and hybrid vehicles have been doubled is regarded as unwarranted by the business community.

Management Consultant and Trainer, Dr. Madhu Fernando said that it takes time for any change to take effect which is the same with the business sector and added that it is too early to state the impact of the current political situation.

The business community should give the Government some time before arriving at conclusions.

She said that she is optimistic that there would be a change for the better.

HVA Group Chairman and former National Chamber of Exporters, President Rohan Fernando said that the President should take control of the deteriorating situation where rouges are campaigning for rouges, inside and outside Parliament.

The UNP having been in the Opposition far too long is out of touch where governance is concered and is making too many mistakes. The first being antagonising China to please India.It should have acted diplomatically and maintained a good rapport with India and China as we have much to loose if China slows down development work.The appointments made to certain key positions such as the Central Bank should have been done in a proper manner. The pledges made to arrest corrupt politicians now appear to be only bogus threats at the polls to attract votes.

The biggest crooks as known to the public are still at large. At the end of the day, no one will be arrested except a few low level officials who may have signed the documents under duress.

The political instability and vague statements on economic policy is not good for the business community. The President must exert pressure corruption and instruct the Police to act according to the law. People are eager to see this happen and the transformation from an autocracy to a true democracy where Parliament will be the key decision-making institution with the setting up of independent commissions such as the Police, Public service, Judiciary and Elections Commission.

In the past, these institutions were under the control of the President and no one had faith in them.

“Some parliamentarians come from dubious backgrounds, and are now become billionaires.

They should be made to declare their assets and penalised severely for selling or transferring vehicle permits and misuse of State property for personal and family use. How can one expect good governance from these Parliamentarians?,” Fernando queried.

American Chamber of Commerce of Sri Lanka (AMCHAM) President, Asanka Ratnayake said that the Chamber is upbeat and confident about the present relationship between Sri Lanka and the USA.

The Chamber is encouraged by the steps taken by the Government to promote good governance and transparency which are key components for businesses to grow.

However this alone was not enough. There has to be clear policy direction for trade and investment. There is no predictability and consistency.

A spokesman for the Ceylon Chamber of Commerce said that building a robust export-led economy is essential to reach the country’s full economic potential and sustain growth in the long term.Diversifying the export basket and markets are key to develop a vibrant export sector. Export-oriented investment will help create productive and remunerative employment.

A focus on FDI will reduce dependence on foreign borrowings, enhance access to foreign markets and facilitate transfer of technology and management skills.

“A predictable and competitive exchange rate to provide confidence to exporters and the business community is crucial. Developing healthy economic ties with India beyond the FTA and completing the proposed FTA with China, exploring greater market access in Asia will have a positive impact on trade and investment,” he said.The spokesman said the investment climate is a key asset the country could leverage to attract foreign direct investment. Therefore, the business environment must be perceived as efficient, attractive and predictable than its competitors.

Such an investment climate will also encourage local investors including SMEs.

President, National Chamber of Commerce of Sri Lanka, Thilak Godamanna said that development activities in the country have come to a halt due to investigations and the political transition that is anticipated. “Despite all odds the food and clothing industry have performed well recording profits. Investors and businessmen are adopting a wait-and-see approach till there is stability in the country,” Godamanna said.