New economic model in the making

Focus on economic and political liberalization:

White paper to be presented soon:

by Sanjeevi Jayasuriya

Dr. Harsha de Silva

Sri Lanka will reach the next level of economic development through a new economic model that would focus on economic and political liberalisation.

It will address issues related to efficiency and competitiveness while political liberalisation will focus on justice and equality with a balance of the two factors leading to overall socio-economic development, Deputy Minister of Policy Planning and Economic Development, Dr. Harsha de Silva told Sunday Observer Business.

The new model which will usher in a social market economy will be based on the two pillars of competitiveness and justice.

We hope to become the most competitive economy in this part of the world while ensuring political, social and economic justice in a level playing field, he said.

The Deputy Minister said that it is important to identify assets, mainly human resources, to enable the country to reach the next phase of development.

“We should shift our focus from low productive employment generation to high-end job creation. The competitive economy largely depends on a skilled, active and productive labour force. Improving skill levels and the aptitude of employees are vital.

This will also help overcome the serious issue or the middle-income trap the country may face in the future,” he said. Sri Lanka should reach out to countries such as Malaysia with regard to labour productivity and skills as the type of jobs that are created at present will not necessarily take the country to the next level.

There is not enough attention on education and employment which will have far-reaching benefits if the correct strategies are implemented. The entire education system needs reform not only primary and secondary, but tertiary and other soft skills as well, Dr. de Silva said.

“We need to ascertain the efficiency of the process, how utilities are delivered and whether the expected output is received. Processes must be conducted competitively to enable the smooth run of the entire operation,” he said.

The new economic model is an attempt to find answers beyond the next elections. The fruits of development must not be served to a particular set of people.

All the people must have the opportunity to improve themselves.We will take a fresh look at the subsidy structure and measures will be taken to re-establish equality in society.

The efforts to take the country to the next level will be presented as A White Paper will be presented to Parliament to implement the new economic model within five years and will be fine-tuned once we receive broad public support, the Deputy Minister said.