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The private sector and the markets have to initiate change if the government is to tackle economic and financial reforms to see this country grow, said Milinda Moragoda MP, Minister for Economic Reform, Science and Technology last week.
"The government cannot drive reform on its own. We need the support of people like you. Not just to support our efforts but to drive us into making the changes," the minister said in a thought-provoking address at last week's three-day brainstorming on financial reforms
Moragoda, lambasting the many conferences that this country has seen over the years on any subject which have rarely come up with results or practical solutions, said: "If you look over the years the meeting rooms of similar hotels have been filled with conferences offering hope and good intentions. At each one many valiant words are spoken, many things resolved. But as the final words echo and the people depart the atmosphere of determination evaporates."
"People go back to their businesses and carry on just as before. A few try to make a change but become snarled up in petty self-interest, closed minds and a deadening inertia. And I am not just talking about politicians. Our financial institutions both in the public and private sector have much to answer for."
He said for too long the business community has been passive in front of politicians, seeking to achieve what they want by agreeing with politicians instead of stating their case openly and persuasively and then demanding action.
"Inevitably politicians must take the greatest blame. They have allowed themselves to be flattered and their egos to be built up. They have broken the backs of the bureaucrats demeaning the very people who could have helped them most."
He said there were some people in the private sector itself who don't want change. "For them the pie is large enough. The last thing they want is for our financial institutions to be opened up to the world and available to others to have a slice of the pie. For them the suggestion that the pie would get larger and therefore there would be the opportunity of a larger slice is irrelevant. Better to be part of the local cartel than be exposed to competition."
Moragoda said if reforms are to succeed then this process should be a partnership.
He said there were many Sri Lankans who had a low regard for the business community.
"They have no faith in the private sector and they see businessmen as serving only their own interests. We have to convince them otherwise. We have to show them that thriving businesses are not just good for the owners and executives but good for everyone. That it generates the wealth that stimulates our economy and that new jobs come from successful enterprise."
"People have to be able to feel and touch the benefits of free enterprise and understand the role of businessmen if our reforms are to work," he told the audience.
Referring to debate over Sri Lanka becoming the next Singapore, Moragoda said there were many questions to be asked like how are we to achieve this.
"In recent times we have lost a number of international banks. Many of them could no longer take our restrictive practices, our burgeoning regulations and the resultant lack of economic growth. So if we want to be the Singapore or Dubai of South Asia, how are we going to achieve that from a very unfavourable position? For until we do tackle these issues we will not be in a position to attract new financial institutions from overseas and become that financial hub we all want."
Amana Takaful Ltd, the pioneer service provider of takaful services in Sri Lanka, says it provides marine insurance covering all imports and exports.
The unique feature in Takaful is that participants (insured) are entitled to receive surplus premiums back from the Takaful funds. This scheme enables policy-holders to reduce their cost in the event they do not make a claim from the Takaful fund.
The Takaful system of insurance is growing rapidly and in countries like it Malaysia outstrips the growth of conventional insurance.
Amana as the operator of the funds has made re-takaful arrangements with internationally reputed companies specialising in re-takaful. This is the company's third year of operation, the statement said.
The third exporters' forum will be held on Tuesday at the DHPL auditorium with Prof: G. L. Peiris, Minister of Enterprise Development, Industrial Policy and Constitutional Affairs and Ravi Karunanayake, Minister of Trade and Commerce, jointly chairing the session.
Several problems taken up at the first and second forums have been settled. "The Sri Lanka Ports Authority will provide a 24-hour service from April. The Central Bank is expected to allow the payment of freight charges in foreign currency while the request made by Hayleys Exports to remove Terminal Handling charges was accepted as a policy and is moving effectively," an Export Development Board (EDB) press release said.
Among the matters to be taken up are the refund of excessive cess collection on exports of shrimps and removal of the freight security charge.
Ceylinco Leasing Corporation Ltd last week unveiled its latest innovative offering- the CLC Sthaana Vaasi Lease Purchase Plan- which is designed to help commercial organisations to buy office premises at remarkably easy terms.
Companies can now do away with the irksome process of constant relocation and dealing with quirky landlords. They can own commercial property in areas of their choice by entering into a lease agreement with CLC, a company statement said.
CLC will buy the premises selected by a customer or build a brand new office on a plot of land selected by him. Payment can be made in easy monthly installments over a period of 15 years. This instalment amount will be fixed to suit the cash flow of the company. The property will be owned by the client at the end of the stipulated period.
Launching the new scheme, Ceylinco group chairman Lalith Kotelawala said, "Shifting offices is not only a tedious process but an extremely expensive one too. Rent advances, refurbishment costs - along with monthly rents - lead to a heavy financial drain. Further, loans taken to purchase new premises require substantial down payments."
Ceylinco Leasing Corporation Ltd (CLC) was launched in 1997 to meet the growing demand for leasing finance in Sri Lanka and has its headquarters in Colombo with branches in Kandy, Kurunegala, Gampaha, Galle and Anuradhapura.
Citibank N.A. Colombo, in a move to be in step with the latest international data security standards using higher data speeds, has implemented one of the latest solutions from Cylink network security systems.
"This will help Citibank to be in line with latest technology standards to ensure the best levels of protection to their customer data. This wide area network security system includes, as a part of the total solution, an implementation of Triple DES standards, which is the latest development in the industry," said Udaya de Silva, head of the business unit of Bartleet Electronics.
Pramuka Merchant Corporation completed five years on March 6 and the management says it plans to concentrate on consolidation and prepare to play a meaningful role in the growth impetus expected by the new government.
A company statement said Pramuka Merchant Corp has expanded to many parts of the country and now has branches in nine districts. It is an important member of the Pramuka Group which is engaged in banking, engineering and construction, security and manpower, information technology, property development and money transfer.
"Pramuka Corp has offered attractive investment opportunities to the public and provided a range of services such as trade financing, leasing of machinery and motor vehicles, corporate secretarial services, logistics and custodial services, insurance advisory services and management consultancy work," the statement said.
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