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Ideas galore at Economic Association’s annual sessions

By Yohan Perera

Speedy infrastructure development, effective implementations of projects, foreign participation and public sector reforms were stressed as urgent requirements if Sri Lanka were to achieve sustained rapid growth, at the annual sessions of the Sri Lanka Economic Association (SLEA) held last week.

With the theme being “Reviving the Sri Lankan Economy” the sessions brought together key international and local speakers who expressed their views on the issues connected with it.

World Bank Country Director Peter Harold who spoke of foreign aid in economic development called for a change in the pattern of using foreign aid. He pointed out that there is bureaucracy in utilizing aid and it should be removed. While explaining that a long period of over 12 to 18 months is taken to approve a project after bidding he called for streamlining of procedures. He also called for a review of the project portfolio and cancellation of unimportant projects, giving priority to important ones. In this context he called for quick implementation of important projects. “Projects such as the Southern highway should not take 5 years to be implemented” he added. In addition he also called for a simplified decision making process.

IMF Senior Resident Representative Jeremy Carter said that Sri Lanka should reduce the number of civil servants to improve public sector efficiency. Mr. Carter stressed the importance of getting effective advice to speed up implementation. The biggest issue that the country is facing today according to him is the uncertainty. He explained that the country should go ahead with development projects without talking of uncertainties.

BOI Director General and Chairman Arjuna Mahendran called for greater participation of multinationals in the economy if it is to grow. He explained that it would not be possible to make the economy grow without foreign direct investment. Mr. Mahendran also pointed out that Sri Lanka also needed to improve its total annual exports of $ 5 billion. He stressed that there should be speedy infrastructure development. In this context he said that the current program should be completed within 5 years. In addition he stressed the need of reducing the cost of power.

Several other experts also shared their views as to how the Sri Lankan economy could be revived. Chief guest at the annual sessions was Minister of Human Resource Development Education and Cultural Affairs Karunasena Kodituwakku. SLEA President Dr. Saman Kelegama chaired the inaugural Sessions.

The session on infrastructure development was chaired by Dr. H N S Karunatilake and ADB Country Director John Cooney presented his views on impediments to infrastructure development projects and Sri Jayawardenapura University, Senior Lecturer Department of Economics Dr. Upali Wickremasinghe spoke of reviving the energy sector.

The final session on accelerating industrialisation was chaired by Prof. B. Hewavitharana and Professor of Economics, Australian National University, Canberra Prof. Premachandra spoke on the role of foreign direct investment in the expansion of manufacturing exports from developing countries while Colombo University Senior Lecturer Department of Economics Dr. Sunil Chandrasiri focused on reviving the small and medium enterprises.

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