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| Sunday, 30 November 2003 |
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Government should be applauded for starting public sector reforms -Ronnie Peiris Given the limited resources the government has addressed the issues the best possible way it can, but the extent to which the budget have succeeded in enhancing productivity and increasing investments is arguable. These views were expressed by the Group Finance Director John Keells Holdings Ltd clast week when he addressed the Post budget seminar organised by the Institute of Chartered Accountants of Sri Lanka(ICASL). Expressing his views on public sector reforms he said that it is slow but the government has started it and they have to be applauded, though it may not be the way we would have like the issue to be addressed. He said the government has plans on privatisation, establish revenue authority etc but even corporates have plans. "Some times it works and some times it does not but that does not mean that we don't plan." We are not a country like Singapore where the state coffers are overflowing. Therefore the government has to find the finances to implement the projects which are in the pipeline. The labour reforms are rather slow but it will have a catalytic effect on the long run he opined. He said that not many steps have been taken to enhance productivity while no encouragement has been given to attract further investments specially in the field of research and development. For example Tourism is easy money but the technology used at the hotels is old and there should have been some encouragement to invest in this area. Expressing his views on subsidiaries he said that it retards productivity. Peiris said investors have many more places to go and we don't even have a good technology basis to attract investors. In addition the tax basis too is complicated. "Bring about what ever tax you want but be consistent and reliable or else we will chase away the investors he warned. Managing Director HNB Rienzie Wijetilleke said that lack of consistency in government policy is effecting the economy and its people. Therefore it is high time we show the leaders that we also matter. He said the recent developments in the political scenario have put the donor funding to what extent I do not know and they don't have a special liking towards us as there are many other countries in the world that need funding. Therefore we have to get our act together before it is too late warned Wijetilleke. At present agriculture sector is doing well but a drought or flood can destroy it overnight therefore we have develop our infrastructure as well as the education and health which is our future. North East too needs more attention as people there are living in hope and expectation. We have to show them that there is more life and in my view Ministry of Rehabilitation is a complete failure. They should be given low interest loans to start self employment projects or else they should be provided with employment. Develop the road network this will help tap the resources in the villages. Even at present 70 percent of resources in the villages are untapped. He said that HNB has done much for the rural sector but fully focused development banks are needed to cater to the needs of the rural folks. At most times interest rates are not a problem in the rural sector but their major obstacle is administrative problems. Expressing his views on the agriculture sector he said that research institutes must do much more for the benefit of the sector as the benefits reaped by the sector are very little. We have been called a developing country for the last 59 years but why don't we try to move to the developed slot, he questioned. The others who addressed the seminar included Commissioner of Inland Revenue R.P.L. Weerasinghe, Partner KPMG Ford Rhodes Thornton and Co R.N. Asirwathan and Partner Gajma and Co N.R. Gajendran. (s.g) |
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