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Galle Face bears abundant evidence of the rich diversity of Sri Lanka’s populace
The buzz in recent times has been about changes to the Constitution. Hopefully after the political chess games we will a have a Constitution that will remove the scope for any abuse of power.
All this is good, and must be done, but these Constitutional changes will not automatically lead to faster economic growth. The creation of strategies that foster economic growth has slipped below the radar. There are many things that facilitate economic growth, and I would like to focus on one important facilitator
Key requirement
One important scenario that fosters economic growth in a country is a society where there is no racial or minority discrimination in the world of business. This w
ill encourage everyone in all parts of the country to enter into and engage in economic activities without any fear or concern that their race or religion will be a hindrance to their ventures.
When there is economic growth everybody benefits. May be some sectors more than others, but if there is a large cake, it is always possible to look for ways and means to make it more equitable inclusive growth. Arguably what is most important for any country is strong economic growth. What society must foster are all those inputs that facilitate strong economic growth.
The business world
We have a society free of discrimination in the world of business. We have had, and continue to have, this much desired optimum scenario in Sri Lanka. A close analysis of the business scene will reveal this clearly.
However, before delving into the world of business, the observation must be made in passing that in every society there will be some mumbling about discrimination for a variety of reasons. It is good to get this into a proper perspective, so as to ensure that these petty concerns do not raise a dust that will obscure the picture of a society free of discrimination in the business world.
Everybody has in their psyche a bit of a jealousy gene and cuddled up close to it a gene that looks for discrimination. So we have the cries of “Thathi likes Nangi more than me,” and “I did not get the promotion I deserved as he has something against me”. People like strumming the two strings of jealousy and discrimination. In a curious way this gives them something of a mix of comfort and pleasure. Nothing like a good moan.
Politicians
On a bigger plane some politicians who will otherwise be lost in the mists of obscurity try to create a little place in the sun for themselves, playing the discrimination game. So it will be we the whatever (Tamils, Muslims, Catholics, Karawa, etc.) are not treated equally, and sort of they get the bridges and the roads and we have to manage with footpaths. When the ‘we’ and the ‘they’ are racial groups, the whole thing gets a fizz and often can a heat up to a sizzle that will easily catch fire.
The big company sector
In the big company sector (both quoted and private) there are companies where the controlling interests are with Sinhalese, Tamils, Borahs, Sindis, Muslims and Bur
ghers and we also have in terms of religions companies where the major shareholders are Buddhist, Hindu, Islam, Catholic, Anglican.
The leaders of well-known business groups include all facets of this mix. For example, Harry Jayawardene (Aitken Spence),Mickey Wickremasinge (Munchee), Ratnapala Samaraweera (Maliban), Selvanathans (Carsons), Gnanams (Tokyo Cement), Raja Mahendran (Maharajas), Omar (Brandix), Amalean (MAS), Hirdramani, Esufally (Hemas), Ondaatjie (Tangerine hotels). This is just a sample. The entire sector is a mix of all the racial, caste, and religious groups, in the country.
I have been a part of the corporate sector for a very long time. I know it, and many of the leading players, well. Before, during my seven years with the Government sector in various roles, or after, I have no recollection of any of them moaning that they are being discriminated against because of their race or religion or caste.
Business needs opportunity, capital, and people
Opportunity: The business opportunities are open and available to all. If one looks around with eyes wide open, the proof of this is evident. There are businesses operated by every race, caste and religion. A more structured test of equal opportunity is to look at Board of Investment approvals. The BOI is the institution empowered to give tax holidays and other concessions to business. If all their approvals over time are analysed, it will demonstrate that there is no evidence of discrimination.
Capital: Business requires capital to run current businesses and to expand. One source of funds is from banks. Every business has access to funds from banks. There has been no complaint of discrimination. If some are more loved than others, it is due to political connections (more about this later). Business groups have been able to raise funds through public share issues. They have also been able to issue redeemable debentures. So there is no evidence about an inability to raise capital due to race or religion.
People: In the big company sector the best people are being recruited regardless of their ethnic or religious backgrounds. It is the same with company boards. I, a Sinhalese Catholic, was Chairman of a public company where the controlling interest was held by Muslim shareholders. I was also Chairman of another public company where the main shareholders were Tamils. This is typical of the scenario that prevails at employee and board level. The most appropriate people are appointed.
Why this happy state of no discrimination?
Sri Lanka is a highly-fragmented society. If you go to Galle Face Green on a Sunday and throw 10 stones in the air, it is highly unlikely that three stones will fall on people who consider themselves to be a part of some homogenous group.
The Sinhalese are first split into upcountry and low 
country. Then there are three main Sinhalese castes and many other minor castes. There are Northern/Jaffna Tamils and the estate area Tamils. Like the Sinhalese, the Tamils also have their caste groups. The Muslims segment by region, so you have Galle Muslims, Batticaloa Muslims, etc. Then there are Malays, Burghers, and some smaller ethnic groups of Indian origin. Add to this mix religion; Muslim, of which there are various sects, Hindus, Christians of a number of different sects, and Buddhists.
Sri Lankans for generations have been used to living in this multi-racial, multi-religious, and multi-cultural society. There is therefore a natural propensity to be comfortable living alongside others, whoever they maybe. This then translates easily to the world of business.
A hypothetical example
A man goes to that sort of place to get what he wants. Before pulling his trousers down, he does not enquire about the person’s race, caste and religion. He does not do this because it is totally irrelevant in relation to the service he wants. It is the same in the world of business.
Small businesses and the retail trade
This phenomena of ignoring what is irrelevant is very evident in the smaller business world. This sector is a mix of all segments of our society. People quite simply go and get the service or product they want without being concerned about the race or religion of the provider (because that is not at all relevant in relation to the service they require).
It is same with the small artisan sector and the retail network. There is no selection of artisans or outlets based on race or religion. The best proof of this was during the war. Even after incidents that caused pain to the Sinhalese, they did not stop patronising Tamil outlets.
The blot on the copy book
Happily for us, our society does not manifest any discrimination in the full 360 degrees of the world of business. There is no discrimination by owners in selecting employees or services, no discrimination by people seeking employment, there is no discrimination by consumers of goods or services.
Sadly, we cannot say we live in a society where there is no discrimination at all because there is political discrimination. The tentacles of political discrimination spread in all directions. The most obvious and apparent to all is in the appointment of people to enterprises or departments under the control of the Government. Some people appointed during one government are removed by the next government. In recent times there have been many such examples in the news.
I have ringside experience and know this scenario well. I was Chairman of SLT and the Board of Investment when Ranil Wickremesinghe won the election. I was removed. Guess who was appointed to the BOI? It was none other than Arjuna Mahendran! When Mahinda Rajapaksa became President, I was removed from my roles in the Finance Ministry, SEMA, People’s Bank and SLT. That was not a change of government, but a change of captain of the UPFA. The new captain did not like to keep on those appointed by his predecessor Chandrika Kumaratunga Bandaranaike.
Bad eggs
A minister was reported to have said that this removal of people was to remove bad eggs. Aha, now I know at last why I was removed!
[Lalith de Mel, M.A (Cambridge University) AMP (Harvard), is a former Main Board Director of Reckitt Benckiser Plc UK and CDC Plc UK, former Chairman of Sri Lanka Telecom Plc and Board of Investment, Senior Advisor to the Ministry of Finance and Chairman and Director of many companies both in Sri Lanka and abroad.]
