Sri Lanka must shift to rule-based system for investment: SOERU chief

Sri Lanka needs to transition from a system dominated by ministerial discretion to a rule-based administration, to create an investment-friendly climate and promote a thriving private sector, Sri Lanka’s State-Owned Enterprises Restructuring Unit (SOERU) Head Suresh Shah said.

Pointing out that the ministers in this country hold considerable discretion, Shah noted that when the private sector needs to accomplish something, it often bypasses a rule-based system and approaches politicians. This practice fosters corruption.

“The way to break this is to move away from having this system of discretion to a system of rule-based administration,” he said addressing a panel discussion at the CMA conference held last week. 

Meanwhile, Shah stressed that a vibrant private sector, driven by entrepreneurship and investments, is essential to build an economy that creates employment, instead of generating employment out of thin air by the state. 

“We have provided employment, not created it. If we had created employment, it would be in the private sector and the private sector employment numbers would be much higher than they are now. We need an environment conducive to investment and ease of doing business,” he said.

To build a vibrant and sustainable economy, he stressed the need to significantly strengthen investments in education, to create economic opportunities for the youth, instead of depriving them.

Under the current system, only 40,000, out of 150,000 to 160,000 qualified students, can enter public universities. 
“How is this possible? How can we take people out of poverty? How do we give them hope?” he questioned. 

Instead of exhausting the limited state funds on the SOEs, by falsely categorising them as national treasures, Shah advocated diverting these funds to higher education for the youth, the future of the nation.

He noted that lack of physical infrastructure and shortages in academics, resulting from decades of low investment in this sector, the youth are deprived of economic opportunities in the country. (NF)