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Peace and business - no crystal ball to forecast future
Two leaders of Sri Lanka's business community were upbeat last week about business prospects if and when the war ends under the ongoing peace process but jointly agreed the private sector had a long way to go in reaping the benefits of the peace dividend.

Club Secretary Devi helps Patrick Amarasinghe to pick a panellist from the list of members.

Chandra Jayaratne, former chairman of the Chamber of Commerce and currently Managing Director of Eagle Insurance (Pvt) Ltd, was of the view that the private sector should not waste any time in investing in the north.

Raaj de Silva, Managing Director of Lanka Orix Leasing Company (LOLC), said local businesses' need to change their culture under any 'post-peace' situation in the country.

They were speaking at a well-attended monthly meeting of the Sunday Times Business Club meeting last week at the Trans Asia Hotel, the sponsors of the club. The two speakers were part of a panel discussion on "Peace and the Private Sector".

In a unique departure from traditional norms, an attempt was made to pick, lottery-style, a third panellist from among the members.

Patrick Amarasinghe, veteran businessman and chamber personality, helped to pick a panellist but the three names picked were not present. Club member Janaka Jayasuriya then volunteered to serve on the panel.

Jayaratne said it was the duty of the private sector to create new paradigms in all the key sectors of the economy if Sri Lanka is to remain competitive in the world market. He referred to eight new paradigms that the business community should think about seriously.

"Peace is a dividend, which we must earn rather than expect. So far the private sector has been satisfied in playing it safe, by making minimum risk investments and paying low wages.

However, if we do not make a new paradigm, foreign investors may take over our industries and run away with our economy".

He highlighted the plight of the plantation sector, which has declined from an export front liner to a virtual small-scale industry. With the number of exporters in the world market increasing over the years it is only a matter of time before the quality of Sri Lankan tea is surpassed by its Asian competitors, the former chamber chief, who has spearheaded a reforms agenda at the chamber, said.

Jayaratne referred to rising labour costs and said the industry may be forced to import cheaper labour once again from South India which provided tea and rubber labour during colonial times.

LOLC's De Silva said the opening out of the north and the east was unlikely to raise any new sectors and noted that in a peace scenario, companies that "often blamed the war for losses in their accounts" would now run out of such options.

"We survived the war because we were cost-effective. But we were more inward-looking and during this period of self-absorption our neighbouring countries moved forward."

De Silva was also of the view that it is necessary to use Tamil language in business dealings and in this context suggested that consumer advertisements should reflect a feeling of oneness.

Nalin Attygalle, a marketing expert, showed a couple of creative advertisements on a TV screen on the importance of peace and said: "Many companies in the private sector wait for the government to do all the hard work in establishing a lasting peace - without lending a hand. Later they reap the benefits. The private sector too has a social responsibility towards restoring peace in this country."

During a vibrant discussion that followed some members were of the view that no regular investment is possible in the north-east until an interim administration is in place because of taxes levied by the LTTE.

But Jayaratne believed the private sector should use the opportunity to "invest for tomorrow" while being prepared to take risks in the hope that an interim administration would be set up."

Answering a question from a member on whether the LTTE is justified in taxing the people, Jayaratne was of the view that the war was a source of livelihood to many of the LTTE cadres - like many low-income members of the armed forces - and they needed money to support their families.

Club President Romesha Wijesuriya, who moderated the discussion, said the club was planning an outing for its members, launching a monthly newsletter, having a new data base and a social services project to coincide with the Country Road music children's charity concert in collaboration with The Sunday Times newspaper. She also urged members to be punctual and attend meetings regularly with a gentle warning that "those who are absent on two or three consecutive occasions are likely to have their membership cancelled."

(Reported by Thushara Matthias, Rajika Chelvaratnam and Suren Gnanaraj).

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