22 July 2019 12:01 am Views - 210
An influential minister in the current dispensation last week expressed displeasure over the inconsistent and selective advocacy of chambers led by the Ceylon Chamber of Commerce (CCC), instead of playing a crucial role in pushing forward the much needed economic policy reforms.
“You (CCC) have a valuable and strong voice. You can use it to advocate for important things – economic policy reforms, trade opening, and yes, national interest issues. It is important to be consistent, and not selective in the issues you advocate on,”Development Strategies and International Trade Minister Malik Samarawickrama said.
He made these remarks at the launch of ‘Sri Lanka-United Kingdom Bilateral Trade and Investment’ report held at the CCC auditorium last Friday.
On July 3, the CCC issuing a statement called for enhanced transparency regarding the Millennium Corporation Challenge (MCC) and Status of Forces Agreement (SOFA) and sought out more details from the government about their potential consequences and the current status of their negotiations between the Sri Lankan and United States governments.
The statement seemed to have touched a nerve, as a letter sent in response to CCC Chairman Dr. Hans Wijayasuriya by Prime Minister Ranil Wickremesinghe’s office—which was released to the media was a harshly-worded one, accusing the well-respected business leader of politicising the chamber.
While acknowledging the business chambers’ role in advocating on national issues and holding the government to account, Samarawickrama pointed out that the chambers have been less active in their advocacy in championing critical economic reforms, which matter most to businesses.
“In the matters of national interest, I would urge you to start with things closer to your domain and push those agendas forward and upward—like trade opening over protectionism, competition over favouritism, consumer welfare over oligopoly profits, and extremism that’s pitting one business community over another,” he advised.
He emphasised that the chamber had failed to engage with the public in promoting trade openness to fast track the reforms.
“Currently we have a protectionist trade regime that benefits a few hundred firms at the expense of millions of consumers and households. We haven’t seen the chamber being very vocal about that and advocating publicly to change this dynamic. National interest is also about ensuring prosperity for the many and not the few,” he stressed.
Samarawickrama also questioned the CCC’s silence on the proposed amendments to Monetary Law Act that are at risk of being scuttled now.
“If you care about national interest, you should care about the new Monetary Law Act (MLA) that is at risk of being scuttled. I haven’t heard the chambers say anything about it. The new Monetary Law Act brings greater independence to the Central Bank, reduces the chance for fiscal dominance of monetary policy, and helps build a more stable interest rate regime that will support businesses.
An independent Central Bank, better inflation management, these are also in the national interest. Stand up for it. Help to galvanize private sector support,” he stressed.
The proposed amendments to MLA were initially submitted to the Cabinet last year. Despite, being re-submitted at least three times to the Cabinet with changes in accordance with the observations made by Cabinet Ministers, it’s yet to be gazetted as a bill.
The President recently proposed to convene a committee of experts to study the provisions of the proposed MLA and submit a report to the Cabinet of Ministers for consideration.
Further delaying Cabinet approval, the proposed amendments to MLA are also scheduled to be discussed by the Public Finance Committee of the parliament.
Speaking further, Samarawickrama professed that the chambers need to aggressively combat extremism, which has targeted Muslim-owned businesses across the country.
“Today, hundreds of Muslim businesses are being targeted and they are facing bankruptcy. But I haven’t seen chambers—who represent the business community— aggressively fighting this.
“This is a commercial issue, where the apex bodies representing the commercial sector should do something about it. It’s not just about individual companies trying to fight it – Chambers must throw their full weight behind it and combat it all levels,” he said.
In conclusion, the minister reiterated that the government has always been open to private sector ideas and criticisms.
“Some may say we have been too open, and we should just ‘do dodo’ without consulting so much. We are not wired that way. And the way the world is moving – fast, complex, and disruptive – we cannot afford to be wired that way.
“We may not get it right 100 percent of the time, but at least you can be assured that we are genuine in our intent. And we ask the same of the chambers,” he said.
From left : BOI Chairman Mangala Yapa, British High Commissioner James Dauris, Minister of Development Strategies and International Trade Malik Samarawickrama, The Council for Business with Britain President Mark Prothero and EDB Chairperson Indira Malwatte with the ‘Sri Lanka-United Kingdom Bilateral Trade and Investment’ report
Pix by Waruna Wanniarachchi