Govt. needs to do more to boost biz environment, political reconciliation: US

Saturday, 1 October 2011 01:55 - - {{hitsCtrl.values.hits}}

By Uditha Jayasinghe

Sri Lanka needs to continue developing its business environment with heavy emphasis on good governance and transparency as well as actively seeking political reconciliation, the US said on Thursday.

American Ambassador Patricia Butenis in a strongly-worded address at the American Chamber of Commerce (AMCHAM) Annual General Meeting called on the Government to pay attention to creating a better business environment and forging ties with minority communities both within and outside the country.

“Why hasn’t there been more domestic and foreign investment from the private sector? In my opinion, there are a couple of reasons. One is time. It takes time for Sri Lanka’s image to change and attract investors. The second is more difficult. According to international surveys, Sri Lanka needs to improve the climate for investment and business. Attracting international investment is a tough game and investors don’t put money in a country because they are nice or because that country is emerging from a war,” she said.

Butenis pointed out that Sri Lanka was still ranked behind regional countries in its Ease of Doing Business and Transparency rankings. She admitted that progress was being made but urged for more to be done in these areas by the Government and other stakeholders.

She then turned to the issue of political reconciliation, saying that economic growth and political integration “must go hand in hand”. Resettlement and reconstruction measures were praised by her, but she emphasised on the need for greater reconciliation.

“I think about what more could be achieved with full political reconciliation, where every Sri Lankan feels that he has a full stake in the country and where potential foreign investors have confidence in the continued political stability of the country.”

Economic growth would be faster with the resources and talent of the Diaspora community that has the capacity to give back to Sri Lanka, she opined, adding that the Government’s efforts to engage with the Tamil community abroad was commendable.

AMCHAM members were also given confidence by the Ambassador to air their views clearly and freely to the Government so that a better business environment could be created. Lobbying on issues that can affect business across the country including land titles, complicated rules and lengthy licensing processes were recommended by her.