Embracing hub concept best chance for SL development

• Ranawaka says plan with 47 goals to achieve before next elections submitted to Cabinet

By AshwinHemmathagama

The geographical positioning of Sri Lanka in the Indian Ocean was highlighted on Thursday(10 May) in the Parliament as the last chance available for the country to achieve much-anticipated economic development. 

According to the Minister of Megapolis and Western Development Patali Champika Ranawaka, by correctly identifying the comparative advantage the country could develop itself to be the upcoming economic zone between Singapore and Dubai.

Commending the Government’s plan for the next 18 months, tabled this week in Parliament, the Minister urged lawmakers to forget their differences and join forces to support a scientific or democratic governing system rather moving forward with a political agenda that takes the nation nowhere.

“This Government came into power with the key theme of widening the democratic space. Establishing diverse commissions and several other changes helped to change society. But in terms of the economy there is uncertainty where problems have surfaced. Just after the local government elections I have submitted to the Cabinet of Ministers a plan which has 47 goals we need to reach in the days to come,” he said.

“We need to understand that we are capable of preparing policy documents vibrant from the outside. But the execution and the results of such plans are more important. So the way we need to concentrate on the outcome of these plans. Adam Smith was the first to explain modern-day economics. He highlighted the importance of capital, labour and technology in terms of economic development. But the world has changed where the education, healthcare and population strongly influence the economy. So the Government has focused more on these three areas as a policy,” added Minister Ranawaka.

During the Rajapakse era Government investments have led the nation to invest in less important matters at the cost of its future generation. The heavy debt burden has compromised development according to Minister Ranawaka.

“The Government incurred a capital expenditure of Rs.2.4 trillion during 2004-2014. We are to repay the debt till 2035 incurred from this state spending on capital expenditure. Out of the entire spending we have spent over Rs.1 trillion to build express ways. However, spending on healthcare was 6% and education was 4%. We have seen that health and education investments have a direct impact on economic development. The World Bank reports highlighted that spending on education was far better than investing in expressways. If you look at the rate of return, the investment on education during 1993-2005 has increased the number of units to 12.7. But the rate of returns from the expressways remains negative,” he said.

According to the Minister, the rate of return from the Southern Highway is one-sixth the investment and the taxpayers’ money is used to settle the debt. 

“We have many achievements in the healthcare sector. We have increased our life expectancy to the level of a first world country. It contributes 1.5% of the GDP if we can increase the life expectancy by 10 years. Sothe Government in the days to come should also take the demographic dividend into consideration,” he said.

“There was a big discussion about a scientific governing. Actually, there are three different types of governing methods in the world. In the first type we could scientifically identify different sectors and how the respective investments on them increase development. So it helps to identify the areas and the type of investment required for each sector. Democratic governing is another type where priorities are identified and invested on them. 

“Last but not the least is the fake governing system where leaders give different promises and delivers based on political benefits. In Sri Lanka we have had fake governance during most of the last 70 years other than on two occasions - the period from 1972-75 under the leadership of Prime Minister Sirimavo Bandaranaike and 1978-82 the government under President J.R. Jayawardane. The protectionism of US President Donald Trump is nothing more than what Prime Minister Sirimavo Bandaranaike had in Sri Lanka. Under President Jayawardane state involvement was less and the economy was aimed at exports. We were the first in the region to have such experience. Guangzhou and Shenzhen of China took the blueprint to establish a free trade zone from the Katunayake Free Trade Zone. We never opted for scientific or democratic governance,” added Minister Ranawaka.