Crisis? Use it as an opportunity without succumbing to austerity, says Rohitha

Former Minister Rohitha Bogollagama this week urged the Government and the private sector to use difficult times as an opportunity to optimise abundant local resources and dynamics, rather than resorting to austerity.

“It can be tempting during crisis times to shift to a mode of austerity. However, that might make things worse or prolong a quicker recovery. Ideally the best strategy is to use tough times as an opportunity to optimise local dynamics as well as effectively harness underutilised resources and unleash growth,” Bogollagama explained.

“This however must be done under a public-private partnership,” Bogollagama added.

Citing an example which offered two options vis-à-vis austerity versus opportunity, Bogollagama noted that recent policy measures which applied breaks on import of vehicles as an austerity measure would have an impact on the transportation and vehicle industry’s overall value addition in terms of livelihoods and new job creation. “Austerity shouldn’t be at the cost of economic development opportunity,” he emphasised.

Having previously handled Ministries of External Affairs and Industries as well as Investments, Bogollagama opined that crises were regular; hence countries as well as corporates need to build capacities to weather shocks.

When big economies are crashing or in distress, the smaller countries can be conditioned to sustain themselves as well as optimise growth even though it may be in a constrained environment.

“This could be done if we as a country optimise the effective use of local resources such as land for agriculture and dairy,” he said, adding that the country runs the risk of sleeping over its inherent resource base.

According to him, maximising from marine resources, aggressively enhancing value addition in exports, re-energising the manufacturing and services sector via rapid infrastructure and Sri Lanka’s strategic hub location are urgent priorities both in terms of consistent policy and effective action. 

“We need to promote professionalism in both the public and private sector as this will boost overall confidence in governance,” he added.

In all key economic sectors, according to Bogollagama, the SMEs are critical and they must be empowered and facilitated to generate income and jobs at community level.

Bogollagama is also a strong proponent of deregulation, a path which he says the Government must relentlessly pursue. He said the recent removal of the requirement of permits to transport timber was welcome as it enhances the ease of doing legitimate business and economic activity.

“You must only regulate if a sector is bad, but over regulation can hinder optimum growth and investments in a particular economic sector,” he added.

Though emphasising continuous improvements in the way we create economic development, the former Minister expressed confidence that with the right and consistent policies and professional dynamism in public and private sector, Sri Lanka can weather external shocks as the country is blessed with immense opportunity and resilience following the end of the war.