President invites SLEA to join Government in policy making

From left: SLEA General Secretary Dr. Maringa Sumanadasa, State Enterprise Development Deputy Minister Eran Wickramaratne, President Maithripala Sirisena, SLEA President Prof. A.D.V. De S. Indraratna

SLEA President Prof. A.D.V. De S. Indraratna handing over a token of appreciation to President Maithripala Sirisena

Noting that Sri Lanka had the capability and the knowledge, President Maithripala Sirisena urged the Sri Lanka Economic Association to actively participate and build a close relationship with the Government for policy development. 

“We need the guidance and the expertise of the economists to make better policies. Favourable proposals to build sustainable economic development from you all are highly appreciated by the Government,” President noted.

The Sri Lanka Economic Association (SLEA) held its Annual Sessions of 2015 in conjunction with its 30th anniversary on 30-31 October at the Centre for Banking Studies of Central Bank of Sri Lanka (CBSL) at Rajagiriya. The Sessional Theme was ‘Policy Reforms for Sustained High Growth’. Deputy Minister of State Enterprise Development Eran Wickramaratne delivered the keynote address. 

Sound economic policies

The President emphasised the importance of sound economic policies in order to build the country’s pride again as a self-sufficient nation. “We should adopt practical theories and policies, especially considering the facts of sustainable development, green economy, and knowledge-based economy and innovations,” he added. 

Emphasising local industry development, he asserted that it was timely for Sri Lanka to look at reforms to develop the local enterprises as well as the export sector. He specifically focused on exports decreasing as a percentage of global trade over the last few years as well as the need to swiftly diversify exports to meet with changing international consumer demands. 

Delivering the key note address Deputy Minister of State Enterprise Development, Wickramaratne stated that State-owned enterprises must be reformed to add value to the economy, and to contribute to higher levels of socio-economic growth.

“To achieve this, the Government must create and sustain strong market structures. However, the socio-economic success of Sri Lanka depends greatly on the quality and independence of its institutional and governance structures. The domain of good governance is the responsibility of both the public and the private sector,” he said. 

Deputy Minister Wickramaratne stated that “we have been tasked with managing the reform of public enterprises in Sri Lanka”. He added: “The institutionalisation of management accountability, competition policy, and regulatory quality will drive this process. This would require both substantive and procedural policy interventions.”

Minster invited the economists to become a part of this process, in order to enable sustainable levels of high socio-economic growth.

Living beyond our means

SLEA President Prof. A.D.V. de S. Indraratna delivered the Presidential Address and stated that Sri Lanka has got a situation that can be called as “ living beyond means” which is of unduly high consumption  with relatively low saving, and infrastructure investment being financed  largely with foreign debt or borrowing, in the absence of large  of FDI inflows.

“Sri Lanka has been unable to sustain high growth levels. Instead, she has lagged behind her neighbours of South East and East Asia who have forged ahead to become upper middle income and high income countries now,” he said.

Prof. Indraratna stated that a country needs investment for its development drive. He further stated that investment that is required for economic growth needs to be supported by savings. If domestic savings are not sufficient to finance the investment, the country borrows from external sources.

“The way out obviously lies in addressing the root cause of how and why Sri Lanka has got in to the present impasse. In other words, the remedy lies in building her own domestic resources without having to resort to increased borrowing,” he said. 

SLEA General Secretary Dr. Maringa Sumanadasa delivered the vote of thanks.

Policy reforms for sustained high growth

The 2015 Annual Sessions coincided with the unprecedented events unfolding in the country today, in particular the formation of a National Government sans differences. For this year’s Annual Sessions, SLEA has once again chosen a theme of topical interest – Policy Reforms for Sustained High Growth. The theme provided a prelude to, and fit well within, the economic agenda of the National Government. The developing scenario has opened a window of opportunity for SLEA to transform itself as an independent economic think-tank in the country. 

The proceedings of the Annual Sessions were of immense importance and interest to policymakers, as much as to the economists, administrators and the general public in the context of its explicit aspirations and the concerted efforts in achieving sustained high economic growth laid down in the economic agenda of the new National Government.

Technical sessions

Four technical sessions were held on 31 October: on Domestic Resources and Increasing Debt, Productivity and Competitiveness, Enabling Environment and Foreign Direct Investment and Institutional & Regulatory Framework. 

At the technical sessions eminent economists and important stakeholders will examine each sub theme systematically. Dr. Saman Kelegama made a presentation on debt financed investments and focused on how debt financed investment has contributed to sustainable growth. He cautioned that there was a trade-off between debt and growth.

Dr. Harsha Athurupana spoke on education reforms for development and stressed the importance of human capital to support economically sound and practical development education policies and promoting socio-economic and agriculture skills. He said country needed to sharply increase accessibility to good quality vocational and technical skills to meet to needs of industry and this would improve the job prospects for the youth.  Prof. Sunil Chandrasiri chaired this session and discussant was Prof. H.D. Karunaratne.

Prof. Ajith de Alwis and Dr. Ganeshamoorthy presented papers on Innovation and Technology and Policy Reforms and Incentives for Trade. Prof. Siri Hettige and W.A. Wijewardena spoke on Political Stability and Social Integration, and Good Governance and Political Leadership respectively. Effective Public Institutions and Regulatory Framework under the broad sub theme of Institutional and Regulatory Framework was respectively addressed by Damitha Kumarasinghe and Dr. Bandula Perera. 

A special feature this year was three presentations by Prof. Yoshitaka Kawagoshi, Prof. Shiro Takeda and Prof. Hitoshi Osaka representing three universities in Japan, presenting Japan’s experience relating to the key sub themes of the Sessions. 

Annual General Meeting 

The Annual General Meeting of the Sri Lanka Economics Association (SLEA) was held on 25 October at the Centre for Banking Studies, Central Bank of Sri Lanka. The new Executive Council of SLEA for 2014/15 was elected unanimously at the AGM. Prof. A.D.V.de S. was Indraratne re-elected as the President. C. Maliyadde, Dr. Locana Gunaratne and R.M.B. Senanayake were re-elected as Vice Presidents of SLEA while Prof. H.D. Karunaratne, Dr. S.S. Colombage and Malraj B. Kiriella were elected as new Vice Presidents. Dr. M. Sumanadasa was re-elected as General Secretary while P.T. Sirisena was reappointed as the new Treasurer. Sarath Vidanagama and D.G. Dayaratne were re-elected as Editor and Business Editor respectively. 

The other office bearers elected at this meeting were Saliya Balasooriya (Assistant General Secretary), Dr. M. Ganeshmoorthy (Assistant Treasurer) and Dr. Priyanga Dunusignhe (Assistant Editor). Rev Prof. W. Wimalaratana, Dr. Upananda Vidanapathirana, Anushka Wijesinha, Raja Korale, Nimal Breckenridge and M.N. Nuwan Medonza.

Re-elected President Prof. Indraratna thanked the members for electing him as President for another year and he thanked the former Council of Management for their cooperation during the year and to conclude the Annual Sessions successfully.  He said the next year will be a difficult one for the Association due to its plans to have a building on the land obtained under a long lease and planning to raise funds. 

The Sri Lanka Economic Association (SLEA) is a volunteer association, which was set up in the year 1985 and incorporated in 2011 by Act of Parliament. SLEA is a member of International Economic Association and having over 700 members at present. New applicants seeking SLEA membership could obtain information from its web slea.lk.

Pix by Shehan Gunasekara

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