A phoenix rising from the ashes: Country needs strong leadership not an intern

A leader’s job is to create a culture and condition where all its citizens thrive and feel proud to be a part of this great nation and to create jobs, wealth and to make sure everyone contributes to the society

I sincerely request all our political leaders to please stop your infighting and look after the interest of our great nation and the people of this wonderful country. Building a nation requires patience, persistence, and cooperation from all stakeholders. Ultimately, a successful nation is one that meets the needs and aspirations of its citizens and contributes to the well-being of humanity as a whole

Let’s move forward together with Sri Lanka. Leo Tolstoy once remarked, “Everyone thinks of changing the world, but no one thinks of changing himself.” Any candidate who is willing to endorse given facts in this article should be given a chance. The difficult question is how many of these steps we have taken on our way to building a strong and successful nation?      

Sri Lanka is a blessed country whoever is trying to undermine, we are a very resilient country. The phrase “rise like a phoenix” refers to the mythical creature known as the Phoenix, which was said to cyclically burn itself to death and then be reborn from its own ashes. The phrase is used to describe a person or thing that has undergone a major transformation or rebirth, emerging stronger and more powerful than before, like the Phoenix rising anew from the flames. It represents the idea of overcoming adversity, destruction, or a setback to experience a renaissance or revival. Our country has gone through several setbacks the last four decades; 30-year civil war, Tsunami, 1983 Black July riots, 1988-89 insurgency, pandemic, constitutional crisis, financial crisis, social unrest, etc. 

Leadership is all about creating the best out of any situation for the greater good of the society. Mahatma Gandhi, Nelson Mandela, Martin Luther King Jr. were all great leaders and even today remembered by many for their amazing leadership skills, success, and sacrifices they made and they have left their legacy behind. Our nation is divided and it is the leader’s job to bring all of us together. We can be a great nation again provided we have great leaders. A leader’s job is to create a culture and condition where all its citizens thrive and feel proud to be a part of this great nation and to create jobs, wealth and to make sure everyone contributes to the society. 

For people of this great nation, I simply request to remember what John F. Kennedy said: “Don’t just ask what the nation can do for me but ask what I can do for my nation”! Let us together build our great nation and make it one of the best nations in the world and together we can do it and together we will do it. This is our nation and we need a strong and united nation.

A major disconnect remains

Coming back to the current context, the public has made significant sacrifices to support the system, often going beyond what they could afford. However, a major disconnect remains. The Ministry of Finance insists on slimmer expenses for Government offices in line with its ambitious cost-cutting and restructuring plan. It is the paramount duty of the public and legislators to adhere to this plan. In these critical conditions, Parliamentarians have an opportunity—and a constitutional responsibility—to play a significant role in supporting and demonstrating exemplary sacrifice to rebuild the lost confidence in them. 

Members of Parliament (MPs) are uniquely positioned to act as an interface between the people and State institutions and promote and adopt people-centred policies and legislation to ensure no one is left behind. The public does not expect much; MPs can start with basic actions to show their commitment and sincerity. There are so many currently, ministers are provided with official houses in Colombo. Instead, consider acquiring two or three luxury apartments close to Colombo and assigning each apartment to ministers, rather than providing individual houses in Colombo 7. As public servants, it is important to use public money efficiently. 

Evaluate whether it is necessary to provide a large mansion to the Speaker; such properties could be repurposed for the President’s Secretariat or other Government institutions. Most members of Parliament likely have their residences near Colombo, so valuable locations could be utilised for productive work or rented out for commercial purposes. One way to demonstrate this commitment is by implementing an electric vehicle (EV) shuttle service to transport parliamentarians from the main gate to the chamber. Currently, 60% of MPs and Ministers use luxury vehicles with high fuel consumption. Why not have an EV vehicle shuttle service for commuting from the main car park to the Parliament premises? As public servants, it is crucial to avoid spending colossal amounts of money. 

Additionally, Parliament sessions should be planned more systematically to avoid unnecessary travel costs for outstation MPs. The cost of printing documents is high, and it is questionable whether MPs thoroughly read all the documents on their tables. We should consider providing MPs with laptops or desktops and encourage them to use an e-library. Penalising members who do not attend important sessions and maximising the use of Parliament sessions could also contribute to cost savings. A comprehensive security assessment for each minister, MP, and ex-president is needed to reduce backup and additional security. If additional security personnel are required, they should be requested to pay for these services. Parliament should not provide free lunches; instead, members should bring their meals or purchase them from the canteen.

Addressing public concerns

There are other ways to address public concerns and ease their burden. For example, reducing payee tax rates and releasing part of EPF funds could have significant positive effects. High tax rates have adversely impacted household spending, individual savings, and overall economic activity. It has also contributed to brain drain and unable to retain high-skilled workers such as doctors, engineers, and entrepreneurs. Lowering tax rates could improve Sri Lanka’s tax competitiveness and better incentivise entrepreneurship, investment, and other productive activities that promote economic growth and generate tax revenue.

Moreover, many public and private employees are struggling with high levels of debt due to inflationary taxes and other financial pressures. Their disposable income has decreased by approximately 70%, making it nearly impossible to overcome financial hardships before retirement. This situation could lead to social unrest, family issues, and psychological problems, including increased suicide rates. To address these challenges, a more innovative approach is needed for the next 1-2 years. Employees are currently paying exorbitant interest on credit cards and personal loans. It would be beneficial to set up a separate section within the EPF to handle these financial issues. Releasing at least 10% of EPF funds to directly settle bank obligations could provide relief. 

Financial institutions should be informed not to issue any new loans or credit cards under the NIC numbers of affected employees for at least 1-2 years. During this period, employees could focus on rebuilding their EPF balances. Additionally, the EPF Board could advise or require financial institutions to refrain from offering new credit facilities for the specified duration.

Enhancing foreign remittances

Enhancing foreign remittances and well-being of foreign employees is another key responsibility of legislators and officials. Decentralise Foreign Employment Bureau Operations: Analyse statistics to determine which provinces or districts most foreign employees come from and the number of job agencies operating in these areas. Establish regional offices in these areas to handle employees’ issues and processes. These offices should include relationship managers to address various problems faced by employees. Implement a strict and transparent monitoring system for employment agencies. Introduce proper grading and blacklist errant agencies. Track success rates, failure rates, rejections, and call for progress reports from each agency regarding the employees they have sent abroad. 

Introduce a retention amount to be held for at least 6-9 months. If an employee returns, provide financial support. Set up a mandatory statutory contribution similar to EPF or ETF, building a fund for each employee. Provide clear directions from SLFEB (Sri Lanka Foreign Employment Bureau) for opening both LKE (Local Knowledge Export) and foreign currency accounts as mandatory requirements. Foreign job agents should conduct awareness programs and inform job agencies or principals in foreign countries about the mandatory EPF contributions. They should also negotiate minimum salaries accounting for EPF contributions. This will foster a sense of ownership and encourage the exploration of quality employment opportunities.

Banks or CBSL (Central Bank of Sri Lanka) could contribute at least $ 20-25, while employees should contribute $ 50-75. Employees would have the option to contribute more than the minimum if they wish. This process could be implemented after six to 12 months of employment and regular remittances through banks. Partner with the Insurance Corporation (SLIC) to explore the possibility of expanding insurance options—such as retirement plans, health insurance, and family insurance. This will create a positive perception that SLFEB is taking care of its employees.

Deploy competent personnel in each embassy to handle employee-related matters, initially focusing on Middle Eastern countries. This will address the general perception that trust in embassy officials has been lost, which negatively affects perceptions of SLFEB. Encourage foreign employees to route their remittances through legitimate sources, mainly through banks. Many employees currently use alternative methods, such as “Undial” systems. Arrange for low-interest or preferential exchange rates to encourage more transactions through banks. Discuss with banks to set up a concessionary loan scheme for representatives, their relatives, or spouses, as well as startup business support. Implement a proper evaluation and follow-up mechanism in collaboration with banks.

Form cluster businesses, self-help groups (SHGs), or microfinance schemes under the direct supervision of SLFEB. Establish a finance unit to monitor the progress and end-use of funds. Provide a scheme to buy commercial vehicles (such as lorries, small cars, or buses) under duty-free arrangements. This would allow returning employees to generate additional income and support their business endeavours. SLFEB could act as a guarantor or co-lessee to mitigate risks and repossess if necessary. Tie up with banks to promote these schemes and discuss with national airlines to offer discounted airfares or budget flights. This will enable employees to visit their families more frequently and maintain good relationships, monitor local business progress, and manage children’s education, especially during festive times like April. This will motivate employees and create a positive perception of SLFEB and the Government. Establish dedicated channels at the airport to support and facilitate easy exits for employees, considering them as a highly important group.

Addressing environmental risks

Set up a sustainable and renewable energy fund and climate risk task force: All stakeholders should adopt a strategic, forward-looking, and comprehensive approach to addressing climate-related and environmental risks. The Ministry of Finance should explore the possibility of obtaining green funding support from donor agencies and establish a dedicated fund. Private banks could also explore avenues such as issuing green bonds or negotiating refinance schemes. All funds should be managed by a central funding agency overseen by experts in the banking and sustainable/renewable industries. The Government could impose compulsory environmental risk contingency funds on all entities. 

Additionally, CBSL (Central Bank of Sri Lanka) could reduce the Statutory Reserve Ratio (SRR) or provide low-cost or zero-cost funding to this fund. This fund should be used exclusively to support renewable energy projects and industrial and domestic solar electricity generation. Focus efforts on fast-tracking projects within the next 6-12 months under the direction of CBSL and the Ministry of Finance. This should be undertaken as a major project with the involvement of all stakeholders, including the media. The Government should establish a climate risk task force in collaboration with both public and private sectors. This task force will help manage future contingencies and develop Climate Risk Contingency Planning (CRCP) for every institution.

National development bank and green bank: The cessation of development banks in Sri Lanka has resulted in a focus on profit-oriented commercial operations rather than supporting national development. Development banks were originally established to identify feasible projects and provide financial support through refinance schemes, low-cost lending products, and technical assistance. There is currently a significant gap in the development banking sector. Therefore, the Government and the public should work together to reintroduce development banking. The concept of green banks is not yet widespread in the Asian region. Green banks are alternative institutions that prioritise finance and sustainability. They invest in clean energy, climate action, and eco-conscious projects, ensuring that funds are sustainable for both clients and the environment.

Take India, they are very aggressive in grabbing opportunities. Apple began manufacturing iPhones in India in 2017, and initially made only older or lower-budget phones. Apple started manufacturing the new iPhone 15 at a plant in India in August 2023, as part of the company’s effort to diversify its global production away from China. Sri Lanka has golden opportunity to think differently and approach Chinese and US companies who strategically relocate manufacturing considering geo-politics and trade wars US, EU and China. 

Foreign Direct Investment (FDI): To facilitate Foreign Direct Investment (FDI), Sri Lanka should adopt an innovative approach. To retain and increase FDI flows, Sri Lanka needs to address existing gaps and leverage its strengths. Establish a one-stop shop (under one roof) to handle all aspects of the process, with a dedicated person managing the entire procedure. The Board of Investment (BOI) or a relevant authority can charge a fee for this service. Revise trade policies, improve logistics and trade facilitation, promote investments, and create enabling regulations while avoiding policy uncertainty. Enhance innovation through competitive product and financial markets, address labour-related issues, encourage female workforce participation, and improve infrastructure and logistics. Reduce bureaucratic red tape and bottlenecks. Organise an international tourism and investment forum in Sri Lanka. 

Invite major investors

The Government should directly invite major investors such as Google, Apple, and Tesla to explore investment opportunities. Sri Lanka can position itself as a new investment hub in the region, considering recent issues like COVID-19 and public unrest in Hong Kong. The Government could also invite Chinese companies to set up manufacturing plants in Sri Lanka as a backup plan, ensuring an uninterrupted supply chain during contingencies. Appoint a relationship management (CRM) team at the BOI to oversee existing and new clients, grow business relationships, and address operational issues. 

At the Tourism Ministry level, approach high-net-worth individuals and prominent figures to invite them to Sri Lanka. For example, inviting individuals such as Bill Gates, Elon Musk (CEO of Tesla), Jeff Bezos (Amazon), and Tim Cook (CEO of Apple) could help position Sri Lanka as a top tourism destination and provide investment opportunities. Consider inviting Apple to invest in Sri Lanka for a factory, offering concessions to attract such investments. Additionally, the Government could collaborate with the Maldives Tourism Authority or travel agencies to offer high-end tourist packages that include travel to Sri Lanka. I could keep on writing so many but for time being I stop from this.

I sincerely request all our political leaders to please stop your infighting and look after the interest of our great nation and the people of this wonderful country. Building a nation requires patience, persistence, and cooperation from all stakeholders. Ultimately, a successful nation is one that meets the needs and aspirations of its citizens and contributes to the well-being of humanity as a whole.

(The writer is a well-experienced professional banker and independent researcher in many areas and subjects – current affairs, economics, socio economics, banking, and risk management. He holds a Phd – MSU Malaysia, MBA, FIB, FCPM, MCIM-UK, PGDp, SLIM, Certify Lending IFS UK.)