A long-term development policy framework for Sri Lanka from Rienzie Wijetilleke

27 September 2022 12:05 am Views - 1494

At a gathering of business professionals at a CIMA Sri Lanka National Conference in 2006, Rienzie Wijetilleke (former Managing Director and Chief Executive at Hatton National Bank) presented a policy framework that would bring in his ideal of a Public-Private Partnership into a national development strategy for Sri Lanka, that is very much applicable today. His fellow speakers included Dr. Sarath Amunugama who spoke from the political perspective, MP Kabir Hashim from an economic perspective, banker Aravinda Perera focusing on the development finance perspective, and trade union activist Leslie Devendra bringing in the perspectives of the trade unions.  Rienzie’s candid options of the barricades the nation faces in terms of business growth, especially the inconsistency in policy, which he called ‘killing the private sector,’ and the need for decentralisation were two cases in point. He was also keen that policymakers consider the bottom-up approach for development, a strategy he had been practicing at HNB very successfully.

 The suggested policy framework for developing a national development strategy for Sri Lanka must include the following:

1 A stable, predictable, macro-economic environment, characterised by low budget deficits, tight inflation control and a competitive real exchange rate;

2 An outward-oriented, market-friendly trade and industrial regime emphasising the dismantling of import control and tariff, which sends strong signals to industry to restructure, as well as a strong export push;

3 A proactive foreign investment strategy which emphasises the targeting of a few realistic sectors, markets, host countries with overseas offices as Public/Private Partnerships, competitive environment incentives and a streamlined investment approval process;

4 Sustained investment in human capital at all levels (especially tertiary level scientific, IT and engineering education), increased enterprise training, tax breaks for training, information campaigns to educate firms on the benefits of training;

5 Comprehensive technological support for management, productivity improvements and technical services (i.e. grants for obtaining ISO 9000, creating productivity centres) and commercialization of technology institutes;

6 Access to ample industrial finance and competitive interest rates through prudent monetary policies, management, competition in the banking sector and special soft loans for SMEs;

7 An efficient and cost-competitive infrastructure-transport, telecom and electricity.

Therefore any national policy must have overall consensus at political level and be accepted unanimously in Parliament.