Last few days saw improvement in Sri Lanka’s rule of law scenario
January 8 was a great day for Sri Lankan democracy, a keenly contested election, high voter participation, no election irregularities and a smooth transition of power at the end.
An enthusiastic Murtaza Jafferjee, CEO JB Securities and a well-known stockbroker, believes that the next thing to look forward to is how much of the 100 day programme can and/or will be implemented.
“I am most looking forward to strengthening the rule of law, strengthening institutions, implementation of the right to information act and more steps towards reconciliation and social harmony. If most of what has been promised is implemented life in Sri Lanka should change for the better,” he added.
President Maithripala Sirisena at his swearing in ceremony
Dealing with the economy, Mr. Jafferjee said that the economy is going through a sweet spot benefiting from low inflation, heavy rain that has filled up the reservoirs.
Furthermore Brent crude oil that was US$110 per barrel is now at around $50 and if prices hold the country’s energy bill will reduce by about $1.5 billion per year.
He argued a strong dollar may dampen some of the benefit for the LK Rupee which will come under pressure to keep up with the Yen, Euro, INR, etc.
“In the past few years growth was mainly on the back of very high investments in infrastructure, going forward one can expect that growth will probably be more balanced. Further, a new government is in a better position to enact much needed structural reform that is more doable due to the favourable macro-economic tail winds,” he noted.
He said the reduction in corruption is not a given and for this to happen, Sri Lanka needs to ensure that institutions are strengthened, power is dispersed, the Right to Information Act enacted and a free media permitted. Further, a key motive for major corruption is rent-seeking that is possible in a more closed and protected economy. If the new ideology is towards a market economy rent seeking behaviour would be more difficult. “Finally, a major factor in this election was the role smartphones and social media played in forming public opinion and exposing wrong deeds; this trend can only get stronger with higher smartphone penetration,” he added.
The stockbroker said that as for the rule of law the first signs are extremely encouraging – the police, the election commission, lower courts did their job during the election and ensured there were no irregularities. This shows that they are capable of implementing the ‘rule of law’, he added.
“Going forward if the constitutional changes are implemented including the re-enactment of the 17th amendment and the role of the constitutional council we can look forward to the ‘rule of law rather than be totally dependent on the rule of man’,” he added.
Abolish presidency, maintain rule of law, trade union leader says
The newly elected President Maithripala Sirisena has given an assurance that he will look into the grievances of 2.25 million private sector workers including their minimum wages.
Anton Marcus, convener and General Secretary of the Free Trade Zones & General Services Employees’ Union (FTZ&GSEU), told the Business Times that the new regime should improve the living standard of a large majority of workers in BOI approved export industries and in the plantation sector who earn much needed foreign income to the country.
It should ensure the decent worker agenda of the International Labour Organization (ILO), a tripartite agreement as Sri Lanka is one of its signatories.
He said the newly elected president should abolish the executive presidency and maintain the rule of law in accordance with the pledge given in his election manifesto. Mr. Marcus noted that the new regime has a major task of tackling issues such as a price hike in essential commodities, indirect taxes, dispossession of land and unemployment.
Sri Lankan voters have rejected racism and the new president will have to protect the rights of all communities, he said, adding that it is essential to abolish the 18th amendment and implement the 17th amendment by appointing independent commissions.
He said that Sri Lanka had ratified eight core labour laws under the ILO, but even today implementation remained an issue. This matter should also be addressed by the new president, he added
Freedom of Association now a reality
The recent presidential election was seen by many as the beginning of a new social order in Sri Lanka and a measure of strengthening democracy, says T. Rusiripala, a retired banker.
He says:
“The Presidential race has come to a halt with the election of the common opposition candidate as the new President of Sri Lanka.
This event is viewed by many as the beginning of a new era for the social order of the country which stood molested over a very long period beyond tolerance on several common issues such as unbearable cost of living, corruption, callous disregards to the rule of law and nepotism.
The rallying of the divergent forces coming together for the first time in the political history of Sri Lanka offers a formidable challenge to MAITHREE rule, demanding an end to this sordid state of affairs.
The international community is commending the people of Sri Lanka for laying aside divisive politics which engulfed the society authored under a pervasive regime.
Voters standing in line
This unity itself would no doubt be the strength of a new government and as an enlightenment gained to move away from the fear psychosis created by the rhetoric of the campaigners alleging a division of this country.
Among the several changes required for a new social order anticipated by the people is the fundamental process of giving effect to the Freedom of Association now standing tainted to a limit due to interference with the free trade union movement and freedom of expression.
The opportunity before us should be considered as an opening for a new start to give an effective leverage to this aspect following the example of the strength generated by the polarisation of the forces associated with this victory. May we witness the dawn of this era!”
Message to Maithri & Co: Use people with integrity only
From far-away Canada, Sri Lankan-born investment strategic Upul Arunajith, who has often written articles for the Business Times, writes:
Will the change in our political leadership alone bring about a change in the system? Yes, historically we have seen a change in political leadership bring economic change and improvement, but short-lived. Change brought about by any new leadership has not been sustainable. As I have always been writing in my columns, these changes were politically driven and lack Innovation.
The new political leadership should introduce a mechanism where a “Ministerial System” works effectively. Development of a firm policy framework is imperative. Political cronies marred these policies in the past: perpetual problem. Instead, people with integrity, and clarity of purpose should be put in charge of implementation which would also add stature. What is advocated is a policy framework where economic development extends beyond the questionable convoluted statistical tables but develop an economy as if people mattered.
It is a mistaken belief that a political leader alone can bring about economic success. A leader’s mandate is policy development, have the right people manage and be held accountable.
Let us take a balance view of post war progress, squash political cronyism and build upon what has been achieved thus far.
The citizenry must be the change agent; they will collectively work towards achieving ‘Economic Progress’.
Call for steady improvement in rule of law
The need for a steady improvement in the rule of law and a reduction in corruption which are fundamentally important for a take-off, was strongly suggested by Dr. Sirimal Abeyratne, Professor in Economics at the University of Colombo
The eminent economist said that the economic take-off for Sri Lanka is not without challenges, but rather it is a choice of political leadership.
His view:
“I hold on to my pre-election forecast over the Sri Lankan economy that Sri Lanka is at the doorstep of take-off. Given both the global and internal conditions, the country is set to grow fast achieving prosperity within next 10-20 years. Global conditions have turned around in favour of sustaining a rapid growth momentum in economies in our part of the world. Internal conditions are in favour of a turnaround, because in the case of many economic fundamentals the country is at the brink of going astray, and needs to be put on track. The policies chosen and the reforms undertaken, supported by the selection of people for key positions would be the key to prosperity.
Enthusiasm of Sri Lankan voter surprised many
The enthusiasm of the Sri Lankan voter surprised many including N.R. Gajendran, senior partner at Gajma and Co and Sri Lanka’s foremost tax specialists.
He told the Business Times that he has not seen such a great enthusiasm of voters to exercise their franchise with the aim of changing the government.
Hundreds of voters went to the polls early on Thursday to elect a new president.
The new administration has to fulfill aspirations of the whole country irrespective of cast creed, racial or religious differences, he said.
Sri Lanka is moving towards a middle income country and the people will obviously have many desires and the task of the new regime is to create a condusive environment to improve their buying power towards this end avoiding middle income trap, he added.
The tax specialist noted that people should be given their due share by maintaining honest, intelligent and a democratic process of administration with accountability.
He said the new regime has a great responsibility in fulfilling their pledges. Sri Lankans expressed overwhelming confidence on the opposition candidate vesting power with him and the new leader will have to take prompt action towards improving their lives.
Referring to corruption, he pointed out that this could be prevented by implementing procedures to the letter with proper checks and balances, strengthening the rule of law and punishing the wrongdoers. It is a challenging exercise and not so easy, he added.
Mahinda lost control on many fronts
While the quality of life of Sri Lankans improved over the years under President Mahinda Raja[aksa particularly after the war, the latter lost control on many fronts and led to an imbalance in decision-making.
Raising this point, Gihan Pilapitiya, Chairman of the Ceylon Motor Traders Association, said although there might not be an immediate improvement in the quality of life, “there could be more transparent policies leading to an improvement of the economic front and moral qualities of the general public and quality of life therefore”.
On the economy, he said an improvement would depend on the economic policies adopted by the new president, and how they manage the economy with a balance of mid to long term policies.
Discussing corruption, he said the first step would be to trace the areas of corruption. The new president has to then draw out a code of conduct for the future handling of all projects, tenders, etc.
“In my view if there is corruption in the present system it will reduce under the new government. It is a good thing to keep changing the governments every 10 years but there has to be national policies fixed that will not change irrespective of who governs the country.
Tourism industry welcomes new President
The Tourist Hotels Association of Sri Lanka (THASL) said on Friday that it is heartening to see the end of a well conducted presidential election and a smooth transfer of power.
“Both candidates have shown to the world that we are a true democracy. We welcome our new President Maithripala Sirisena and wish him and his team the best, while looking forward to working together towards taking Sri Lanka Tourism to even greater heights,” said. Hiran Cooray, THASL Chairman.
“We see our country continuing to prosper. The stage is set for us to move forward and we look forward to improving the economy with confidence.”
Poll demonstrated how people can cast aside their differences
Sri Lanka latest election has demonstrated the potential for people to put aside their differences and come together for a common cause, says Neela Marikkar, an ad industry veteran.
The head of the Grants Advertising group says that minority communities in particular will feel less vulnerable (after the poll) creating a strong unifying platform to build on for the future security for all our people. It is a God given opportunity not to be missed, she said. Sri Lanka, Ms Marikkar noted, is on an upward economic growth path.
The indicators are good and the country will benefit in the long term if the new regime was to establish social growth goals alongside the proposed 100-point plan which will boost the confidence further, encouraging FDI’s and investment by the local business community.
On reducing corruption, she said this could happen if the new president and his team stay committed to good governance, transparency, accountability and a level playing field where it could effect change.
On the rule of law, she said the election demonstrated that “we the Sri Lankan voters have come of age”. If the conduct of the elections yesterday was a sign of the change that is possible then it is certainly encouraging, she said.
“With the proposed repeal of the 18th amendment a significant impact will be made. However every citizen has to recognize that the responsibility to be law abiding also rests with each of us,” she added.
Private sector most corrupt in Sri Lanka and overseas
The wider participation of Sri Lanka’s private sector in policy making has been suggested by Rohantha Athukorala, a management and public sector specialist.
Mr. Athukorala, Country Director of Turner Investments, USA, said that the reduction of the President’s power as per the 100-day manifesto of the new government will help take this process forward.
Among the crucial changes needed is an end to preferential treatment by a few businesses as happened in the past and less involvement of the Government in the private sector space. This, he added, is a key strategy planned by the new government which would also bring some consistency in policy.
Asked to comment on whether the life of Sri Lankans would improve with a new President in office, he said: “Yes. The logic being that the pulse of the people has been understood. The new Government will now have to change the strategy from ‘Sri Lanka’s global ratings’ to a common man’s livelihood development with an increase in day-to-day income.”
This, he added, includes the public sector voice that was very clear in the postal voting results. Global research shows that the first year of any government improves people’s well-being and the popularity of the government in power is strong. On corruption, he asserted that this was a key issue leading to the downfall of the earlier regime. “Given that awareness is high in this area, the new government will have to ensure that there is no repeat of this in the new term”.
The reduction in the term of office will increase personal accountability too. “The fact of the matter is that it is the private sector that is most corrupt in Sri Lanka and globally. Thus unless we change our behaviour we cannot support the policy makers to make this change and attract top investors who have avoided coming to Sri Lanka in the last five years,” Mr. Athukorala noted.
The falling rule of law was a nother issue that saw voters exercise their displeasure. “At the end of the day the majority of the people in Sri Lanka are law abiding people. If the urban focus comes to play together with a new political culture, naturally the law and order will improve in Sri Lanka,” he said, adding that “we will be evaluated globally on the way we behave and not by attractive advertisements and power-point presentations in nation brand building”.
Crony capitalism fading in Sri Lanka
The hopes of many Sri Lankans rest to on the new administration as the doors will be open now most people unlike a few cronies of the previous government.
“Therefore under the new regime the doors will be open to everyone to be real stakeholders in the economy,” said Tilak Gunasekera, Executive Director, Sathosa Motors and a former president of a powerful motor vehicle association.
He said the economy will improve and get better under a new regime. “The reason is that more people will be given an equal opportunity to do their business comfortably and in a fair manner,” he said.
The election and its result would also create a climate where all Sri Lankans will have an equal opportunity in their chosen field.
On corruption, he noted that as the new government will be composed of many parties and there is a pledge to shift executive presidential powers to the parliament, the chances of making arbitrary decisions is minimal.
In countries like India, Japan, Malaysia, etc. good governance prevails due to all state affairs being transparent. During the previous regime good governance was never practised under President Mahinda Rajapaksa, he added.
On corruption, he said that there was nothing transparent about state projects worth billions of dollars which were given out sans tenders.
“These were all given to their cronies who gave them bribes in return. All mega projects were corrupt deals involving massive bribes running into billions of dollars. This created more poverty in Sri Lanka especially in rural areas where even the farmers commit suicide, unable to continue their life due to the heavy debts,” he added.
Dealing with the rule of law, he said people will now have freedom to information, freedom to express their views or offer their public opinion under the new government.
He said it was the law of the jungle that prevailed earlier.
Parliamentary polls in April the real test
While lots of hope have been pinned on the new President, the parliamentary polls due in April will be the real test, says Murtaza Esufally, Chairman Hemas Hospitals.
“The general elections are around the corner and it will take time for this country to adjust after they are concluded. Let’s hope a firmer government is in place thereafter,” he told the Business Times.
He said that there seems to be an orderly transformation of power which is a refreshing sentiment. However, he added that the clarity of direction in this multi-faceted political coalition needs to be established, while acknowledging that the new government may need sometime for this.
He added that tourism has clearly improved and now the conditions are right for its future development. “I hope this environment will prevail and that there won’t be a major deviation. The only issue is that economic growth hasn’t translated to (benefit) the commonman and hopefully that will change now.”
He also said that he hopes that the image of Sri Lanka in the West will also change and that more markets in the West will be opened. “Hopefully extremist forces will be contained,” he added.
Life of Sri Lankans seen improving (in next few years)
The life of Sri Lankans in the future will definitely be better with the election of a new president, said Arjuna Mahendran, a Sri Lankan-born investment banker based in Singapore
He was confident that gradually there’ll be a reduction in corruption and also an improvement in the rule of law.
“The country voted to end corruption and restore law and order. Now with the eradication of corruption investors will want to bring in projects as law and order will be restored and investors will be more comfortable with their investments. The rule of law is also important to instill business confidence,” he said.
When laws are applied, then businesses will do better.
He also said that with a proper governance structure it’ll be easier to attract businesses. He added that there has to be an improvement in the rule of law as that is the main plank in the new president’s manifesto.
| Sri Lanka: On the tip of a new economic beginning From trade unionists, stockbrokers, ad industry executives to investment bankers, bankers and motor car dealers, a sense of optimism began taking root in Colombo on Friday morning. While President Mahinda Rajapaksa, who lost Thursday’s presidential poll to his former cabinet colleague Maithripala Sirisena, was seen as the architect of the destruction of the LTTE and the development that took place thereafter, he failed to tackle growing corruption or ensure that the law was equal to all beings. At the end, the breakdown in the rule of law, rising corruption and the cost of living led to his downfall. In a comprehensive analysis of the election, focusing on economic, social and business issues, the Business Times launched a 3-pronged approach to the topic – seeking the views of the people through an email opinion poll and secondly, sought comments from professionals representing different groups. In a third and more comprehensive effort, the Business Times organized a panel discussion using new technology –Skype – with three eminent personalities representing civil society, economists and business. This detailed report is on page 2 also. All the reports from these three initiatives pointed to one conclusion: That Sri Lanka is on the cusp of a new era of development built on the effective implementation of the rule of law and the creation of a core set of values that will instill investor confidence and sustainability. |