Land transactions most transparent :

Govt goes for best investor, not best buyer - Basil Rajapaksa

The Economic Development Ministry is changed with the basic responsibility of giving effect to policies and development strategies enshrined in the Mahinda Chintana. The essence of the Mahinda Chintana economic vision is to ensure that the dividends of economic development should reach out to the lowest strata of society, the policy should concentrate on upgrading the status of the individual, family at the village, region, country and international level in addition to develop agricultural, industrial and service sectors.

The government treats the private sector as the engine of growth while safeguarding the public sector. In the economic development process, emphasis has to be laid on spiritual development.

We believe that our development strategies should go hand in glove with the concept of a righteous society. This is the vision of the Economic Development Ministry is giving effect to policies such as investment, tourism, rural and regional development and elimination of poverty.

It is of vital importance to increase investment through prudent means so that development priorities could be realised.

Investment should be in the region of 33-35 percent of the gross national product so as to maintain a per capita income of $ 4,000. Currently it is between 24-28 percent.

Simultaneously the private sector investments have to be brought to 6 percent from its existing two percent. While opening new vistas for private sector investments we should ensure the inflow of foreign direct investment.

Foreign investors have shown a keen interest to invest in Sri Lanka after peace was restored. It is time for us to make hay while the sun shines!

People who are critical of government policies have turned a blind eye to the progress achieved by the tourist industry. There is a sharp increase in the number of tourist arrivals in the country. New tourist hotels are being built and the job market is expanding. The demand for indigenous products has increased. Traditional handicrafts and mask making industries are catching up fast. Tourism has become a key industry. It needs further inputs to reach its zenith.

We are happy that the world-class tourist conglomerates such as Shangri-la have chosen Sri Lanka for investment.

Investments in the tourist industry are governed by strict transparency in the larger interests of the country. Investors selected by a Cabinet-appointed sub-committee are reported to the Cabinet and Parliament prior to being published in the government gazette.

However, canards spread by the unpatriotic elements have been detrimental to the image of the country. When loans from foreign banks were negotiated the corporation created a wrong impression that repayment of such loans would be defaulted. Demonstrations were held in front of such banks which resulted in the government paying a higher interest rate on such loans.

Rural development is the government's top priority. The government's efforts to uplift the rural sector have no parallel in the post-independence history of the country.

The poverty level has dropped during the past five years. The government has implemented a large number of rural level development projects. The self-employment scheme under the Samurdhi Movement has ensured permanent livelihoods for its beneficiaries. The fertiliser subsidy has wrought a tremendous change in the agricultural sector.

President Mahinda Rajapaksa provided the fertiliser subsidy at a critical moment when the helpless farmers found it difficult to make both ends meet. The government will neither prune the subsidy nor withdrew it as it was primarily instrumental in increasing paddy production and making the country self-sufficient in rice.

Divi Neguma has produced commendable results. It is the biggest development project in which the largest number of people has harnessed these labour service independence. One prime reason for

malnutrition is the relatively low consumption of nutritious food such as vegetables, fruits and eggs. We should encourage people to increase the intake of such valuable food.

Q: There are allegations that the budget or any other government records bear no reference to Shangri-la or Cathie transactions.

A: The procedure for private investment is that the investment proposals are first studied by the Cabinet and presented to Parliament. Later objections, if any are examined and referred back to the Cabinet and, thereafter, to Parliament.

This has not been strictly complied with in the past. We would not hesitate to abide by it.

Funds for lands were received only after the presentation of the Budget but it has been duly accounted for by the Treasury in keeping with government financial regulations.

Q: Any more hotels being constructed within the Colombo City?

A: Under the Greater Colombo Urban Development blueprint during the J.R. Jayewardene regime, Colombo were to be the Commercial hub and Sri Jayewardenepura, the seat of administration. It was under this plan that the Sethsiripaya and Isurupaya administrative complexes were built. At present, there is a dearth of foreign investors willing to invest in new hotel projects despite the need to put up top-class hotels within the Colombo City. We would set up a chain of hotels which includes the Colombo Hilton and the Galle Face area.

Q: Army installations will be shifted to make room to put up new hotels?

A: The UNP government had set apart this particular area for the Sheraton Hotel project but there were no investors. That the Security Forces and the police were not housed under one roof posed a big problem during the humanitarian operation. As a solution, the Security Forces head-quarters and the defence ministry would be relocated with all modern facilities.

Q: Why weren't tenders called for when providing lands for hotels?

A: The tender procedure had not been followed when lands were provided in Free Trade Zones. So far no tenders have been called in the case of providing lands for hotels. When tenders are called for one could be sure of a good offer. What we need is the best investor and not the best buyer of lands. We have, however, not deviated from the investment policy.

Q: No hotels have been put in lands at Pasikudah?

A: Pasikudah had been designated as a tourist area during the UNP regime. The UNP had allocated the lands to their cronies-politicians and entrepreneurs to construct hotels. We have told the parties concerned to complete their hotel projects lest their lands would be re-vested in the State. In our blueprint, there is special provision to provide facilities for local tourists as well as for the people in the area.

Q: Will the wildlife protection laws be changed to construct hotels in wildlife areas?

A: No other government did ever comply with environmental laws fully than this government. In deference to environmental laws the Southern Airport was shifted from Weerawila to Mattala on a Presidential directive. All projects ought to be environmentally approved. Hotels are no exception.

Q: Some of the concreted roads constructed under Maga Neguma are in a dilapidated condition today?

A: The concrete road is highly successful, despite shortcoming. We learn lessons through experiment. We are at present experimenting with concrete bricks – a novel substitute for concreting.

Q: It is said that the fertiliser subsidy will be slashed by 20 percent?

A: The fertiliser subsidy is President Rajapaksa's brainchild which lifted the farmer community from an abysmal depth. This facility has since been extended to other crops and as such there are more rumours devoid of truth.

Q: There is no appreciable progress in the context of economic development despite the war against terrorism being concluded two years ago?

A: Post war reconstruction took about 20 years in countries such as Japan and Vietnam. It is a miracle that we have succeeded in achieving a higher rate of development, and ensuring the highest foreign reserves. Unemployment and inflation were curtailed. After the Second World War massive aid under the Marshal Plan were supplied to Europe and Japan for economic development. As far as we are concerned far from giving aid, certain foreign forces are on the prowl to strangle us. In such a backdrop, the progress we have achieved is tremendous, many sources said. With the implementation of new agricultural, industrial infra-structure and tourist policies, we could to propel our country to dizzy heights of economic progress.

Economic Development Minister Basil Rajapaksa said that 47 acres of Urban Development Authority (UDA) prime lands within the Colombo City have been identified for investment in addition to lands at Galle Face, released to three companies including Shangri-La.

The Minister was addressing a media conference at the Presidential Secretariat recently.

He said these lands will not be released totally for investment since its value is likely to drop.

In the case of mega investments by foreigners, the tender procedure cannot be resorted to.

Lands will, however be alleviated only after inspection by the Minister followed by an agreement reached with him. The 10-acre land at Galle Face was released to the Shangri-la in two instalments only after funds were deposited for the first five acres.

The Minister said that an interim committee of six secretaries including the Secretary to President, Secretary to the Prime Minister and Cabinet Secretary handles the allocation of lands. The monies released from the sale of lands to the Shangri-la have been deposited with the Treasury.

It is only with the concurrence of the Parliament that such funds will be utilised, he said.

The Minister said so in response to a question by a journalist.

Proceeds of the State lands released to Foreign investors such as Shangri-la would be deposited in a Treasury Account.

The Government has finalised all such transactions in the most transparent manner, said Economic Development Minister Basil Rajapaksa at a media conference at the Presidential Secretariat recently.

The Minister said, that the Shangri-la Company has already paid the value of these lands. There is a rapid development in the tourist sector and many foreign investors have elected to invest

in tourism. The tender procedure is not resorted to in these transactions but we always act in the larger interest of the country.

The sole objective of the Government is to pass the dividends of the flourishing Tourist Trade to the people.

Economic Development Minister Basil Rajapaksa said that the consumption of indigenous fruit and vegetables will increase by 25 percent this year under the 'Divi Neguma' national program.

He was addressing a media briefing at the Presidential Secretariat recently.

The people should be made aware of this prime need, Compared to other countries, the local consumption of vegetables and fruits is relatively low, he said.

Already 1,311,000 beneficiary families at the rate of 100 families for each Grama Seva Division representing 298 divisional secretariat divisions in 20 districts, have been selected for the Divi Neguma program.

The Minister said that his ministry is closely monitoring the progress of this program which is jointly sponsored by 23 ministries.

Additional Secretary, Economic Development Ministry, Nihal Somawira was also present.

Translated by K. D. Michael Kittanpahuwa