Thursday, 21 August 2014 00:00
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By Shabiya Ali Ahlam
The role of private sector in the Government’s five-hub strategy came under the spotlight last week at a top forum with some wanting more clarity and action whilst others questioning what the business community is waiting for and why.
Hosted by the American Chamber of Commerce of Sri Lanka (AMCHAM) in partnership with the Shippers’ Academy, the discussion at the Forum implied much has to be done by both the Government and the private sector if the recent development efforts are to be utilised to an optimum level.
Throwing open the challenge to the private sector was Stax Managing Director Arj Wignaraja, who noted: “The Government has already put some hard infrastructure in place and they have laid out the overall vision. From the private sector side you need to ask ‘what are we waiting for?’ We expect the Government could do more and invite us more, possibly by thinking that the industry sector can do more.”
“So people are waiting for industry bodies to come together to move the hub strategy forward. Again, to me, you (the private sector) are creating a set of excuses or coming up with delaying tactics. As individual companies, you need have your own vision and take the plunge,” Wignaraja added.
He opined that the private sector shouldn’t waste time, nor can it afford to wait for more clarity and direction from the Government. “There are clear five areas plus one and within that there are plenty of opportunities for companies to make some significant impact,” he said.
This was in response to Shippers Academy CEO Rohan Masakorala, who noted Sri Lanka was quite behind where it should be as far as the realisation of the hub strategy is concerned, whilst Joint Apparel Association Secretary General Tuli Cooray emphasised the next level of the policy implementation is yet to take place.
“What I see is that basic strategy for policy framework has been put in place by the Government but the next level of converting that policy into action is yet to take place, despite certain elements that are essentially required already being established. In my understanding, the two elements lacking are creative awareness and the willingness of the private sector to take up opportunities in the conducive environment they are provided with. If these two are addressed, then the implementation of the five-hub strategy will open up,” observed Cooray.
Acknowledging that the “local” hub strategy is essentially the next level of export orientation, Cooray pointed out the post-conflict era has created enormous challenges in the private sector.
“These are for two reasons; one is because emerging economies are demanding more and more resources, both human and other, whereas secondly, the available skills are not good enough for us to go to the next level. All of us have to get together to make use of this strategy, else no matter what we do, the middle income trap will still be there. I think the responsibility is not just the Government’s but also that of other stakeholders,” he elaborated.
Noting that the post-conflict era has not just created many challenges but has also provided immense opportunities, National Chamber of Exporters President Mangala Yapa pointed out no opportunity will arise without a challenge and that is the reality.
“It is up to the people in the country, the public sector and everyone else to overcome those challenges. If we don’t do so, the opportunities will be lost. We know in the private sector we are losing opportunities on a daily basis and if we don’t grab them, someone else will do so. There is no point in blaming each other or finding fault, it is necessary for the problem to be tackled by everyone concerned by finding solutions and outcomes. Now the attention is coming on to R&D, but what I don’t see is public and private sector engagement,” asserted Yapa.
Opining there is nothing to implement but only to imitate, Expolanka Holdings Group CEO Hanif Yusoof asserted he is a firm believer that the doors are open for the private sector and Sri Lanka is clearly an evolving nation.
“There are a number of criticisms but I did not look at that, I just wanted a door open for me to get in and I invested in the commercial and ports hub knowing well there is an absence of a proper framework and lack of proper engagement between the public and private sector. We have to reach out to the global players for our nation’s vision to materialise. If Sri Lanka is to be taken into this hub concept, we have got to bring in the human capital and the international companies. What we need to do is look at what Malaysia and Singapore have done. I strongly urge the private sector to use the opportunity even though the return of investment is not going to come in soon. The private sector has to look at this from a very positive angle.”
He added: “From the Government side they have to get the public and the private sector to talk to each other. Also, since in the hub concept we have Government team members on committees, I am sure the private sector can be invited too.”
