Expert views on key issues

The second day of the Sri Lanka Economic Summit 2012 brought to the forefront several key issues facing the country, forcing both the public and private sectors to take a far closer look at many sectors and through much critical and sometimes controversial analysis.

“It strikes me that Sri Lankan policies are kind of cockeyed,” stated Lee Kuan Yew School of Public Policy Association Professor Dr. Razeen Sally frankly. “Sri Lanka should build up good relations with the West and India rather than starting with China.

Some commentators talked about Sri Lanka’s weak and stagnating trade and FDI performance and this has a lot to do with Government policy going in the wrong direction under this Government.” He further called the Government’s strategy towards imports and exports “economic nonsense,” noting that the heavy taxation on imports would inevitably have an adverse effect on exports.

“The climate for investment has arguably got worse rather than better. What will work is some liberalisation. Sri Lanka has too little economic freedom. Sri Lanka seems to be trending back to its wartime rate of growth,” were some of the other sentiments he expressed.

 

“If these are Sri Lanka’s prospects, I see that while a handful of companies will continue to be world class in a few narrow industries, the vast potential that is out there will continue to be unexploited.”

Discussing the sudden push for entering emerging markets, Brandix Lanka Chairman Ashroff Omar dismissed the trend in terms of the apparel sector and several other industries. “I would rather focus on the EU, US and Japan in terms of apparel. My advice is that it’s a waste of time to focus on emerging markets where apparel is concerned. Even in plastics, the biggest markets again are the West. All the emerging markets are our competitors.”

Speaking on the topic of nation branding, Brand Finance CEO/Founder David Haigh criticised Sri Lanka for ‘brand clutter’ in terms of Ceylon versus Sri Lanka and called for more effort to be put into nation branding. “You need a corporate marketing policy – look at macro issues and engage with stakeholders,” he added.

On the reconciliation and rehabilitation front, International Centre for Political Violence and Terrorism Research Head Dr. Rohan Guneratne called for the building of an economic bridge between the north and south.

“The economic bridge between the north and south has not been created yet and this needs to be done urgently. The Government faces many challenges in the area of political stability. The TNA is still a sectarian party. It is important to groom a new set of young Tamil leaders and I believe that this is one of biggest challenges that the country faces.”