SL economy needs to restructure administrative systems

The whole world recognises the success story Sri Lanka has achieved through its military campaign and now the same strategy needs to be deployed in the economy – Pic by Shehan Gunasekara

• Have can-do attitude, executive civil servants’ offices

With the outset of the coronavirus pandemic affecting the whole world, it’s becoming ever more difficult to raise capital through the traditional markets of issuing government bonds. There are roughly about 200 countries around the world thinking that they can raise capital through the capital market place, resulting in the market becoming overwhelmed with too many opportunities and not enough investors to invest in your bond issue. 

Currently, Sri Lanka is missing the moral compass to make executive decisions. There is no way a government can be run by one or two persons who hold-up all executive decisions leading to  frustrate international investors! These investors will flock to countries where it’s much easier and straightforward to conduct business, thus reducing Sri Lanka’s competitive edge to gain new investments.

The new Sri Lankan administration really must be able to react and respond swiftly to any changes of circumstances within the economy. At the present time, it’s not fit for purpose. All decisions have to be made by one or two persons who are politicians rather than practitioners, such as executive office of the civil servants, to make sure efficient and quick decisions to attract any prospective international investor.

To illustrate this point vividly, I had a business proposal I wanted to execute in collaboration with the government. The whole process of approaching the decision makers became a challenge and very time consuming – I was sent from one department to another. I soon realised that the current system didn’t have the vision or the aptitude to do what the country needed and the individuals lacked the ability to think on their feet and instead involved a process of gaining approval involving a wait for an indeterminate amount of time! This process of decision making is unproductive and irritating!

Due to the lack of proper governance in relation to executive decision-making process where everything has to follow the protocol of going to one or two persons, which is unacceptable and is representative of a totalitarian mindset rather than a democratic one! You need to be in a position to swiftly take advantage of any opportunities to ensure investment and growth. Rather it becomes a noose around the necks of individuals and this stifles creativity, productivity and becomes impossible for international investors to invest and put Sri Lanka on the radar due to these impediments.

I would like to draw the following parallel example which will illustrate my point.

During the height of the terrorist problem in Sri Lanka, I remember that most of the Sri Lankan officers who were trained in the ’50s, ’60s and the ’70s at Royal Military Academy Sandhurst in England didn’t have a clue on how to deal with the Tamil Tiger episode. Literally thousands of soldiers perished due to lack of proper man-management and command structures involving in reporting back to get instructions on what they needed to do rather than relying on local commanders to make on-the-spot decisions. 

The only reason Sri Lanka became the first country in the whole world to defeat terrorism outright was because the command control was handed to local commanders who were able to make immediate executive decisions, whilst at the same time, training at the higher level with an effective design model of skills and knowledge gained after 30 years of combat experience they managed to design a model which worked universally.

The whole world recognises the success story Sri Lanka has achieved through its military campaign and now the same strategy needs to be deployed in the economy whereby executive decision can be given to the executive arms of the civil service to carry out this very important task of raising capital and awareness in the global financial sphere of activity.

What Sri Lanka needs right now are entrepreneurs to generate revenue in a business context of driving capital and productivity within the economy. The country needs to look at alternative ways of raising capital. Sri Lanka needs to get its act together sooner rather than later. The countries in the Western hemisphere, when they wake up from the Corona pandemic, they will attract all the investments and attention to their economy. It’s like being on the beauty parade and how is Sri Lanka going to stand out from the rest of the contestants?

Now Sri Lanka needs to develop a can-do attitude rather than wait for handouts from the Chinese or the Indians. We must be self-sufficient – both in mind body and spirit because the current situation is not self-sustainable.

One resource that Sri Lanka has in abundance which is precious compared to anything else is its human capital the diaspora internationally. Only if it’s cultivated properly. The island is not tapping into the diaspora that they have access to and does not value it. It needs to change its mindset because most of the people in the diaspora will have access to opportunities that Sri Lanka needs and also access to international influential decision-makers as Sri Lanka lacks the connectivity. 

If I can attract $ 5 billion of business to Sri Lanka surely there will be other individuals in the diaspora with similar skillsets who could do far bigger and bolder things to propel Sri Lanka forward. Internationally we have to be united with one voice. It has to be a bit like the Jewish community; they help their own kind around the world as they’re rooted in Europe, North America and elsewhere to support their own agenda.

It’s high time that Sri Lanka sets up a task force to attract international investment to its economy using its diaspora network spanning the globe, appointing seasoned individuals rather than politically appointees who might not have the skillset, aptitude and the commercial experience and the gravitas.

The corona plague should be seen as an opportunity rather than a setback, the mindset has to change. If the new administration can get things right it won’t be like the previous administration with the blind leading the blind, literally speaking. Sri Lanka has a chance with the right administration with an executive office empowered to make executive decisions to become the Switzerland of Asia.

(The writer is Chairman of International Consultants.)