Financial Times

Peace would be good for business
The regular flow of foreign diplomats and assorted dignitaries who have been passing through this island, saying good things about the peace process, could be taken as an indication of the earnest desire of the governments they represent to end the bloodshed here and restore the economic health of a country devastated by nearly two decades of war. But there are growing fears that the nation's welfare might not be the only concern these powers have in resolving this conflict and that behind the façade of peace talks lie hard-nosed economic interests.

Western powers are known to be keen to end the war so that the island economy could be revived, foreign aid better utilised, and the economic migrants who have sought refuge in their capitals and are involved in crime and gang warfare could be send back, while further flows of refugees could be stopped.

There are signs that these same powers might be getting ready to cash in on any potential peace dividend that the Norwegian-brokered exercise delivers. All the industrialised countries helping in the peace process, with the exception of Norway, are former colonial powers - the US, the UK, the Dutch and Japan.

Although Sri Lanka has some mineral deposits that are of high quality it has no known deposits of significant volume or of strategic value. But there are indications of significant hydrocarbon deposits being found offshore such as off Hambantota. Western powers such as the US have fleets of sophisticated oceanographic research vessels in their navies that roam the world's oceans searching for mineral and hydrocarbon deposits.

Norway, for instance, is involved in helping Sri Lanka push for her claim under the United Nations Law of the Sea convention to an extended area of the ocean in the southern part of the Bay of Bengal, in what's known as the Bengal Fan, where there is believed to be potential for deposits of minerals and other resources.

It is in this context that there is concern that the peace dividend could come with strings attached and that the pay back for support in the peace effort could be in the form of business favours granted to companies from the US, the UK, Norway and Japan. Some of the powers involved in the peace effort might even now be manoeuvring to clinch deals for their companies. Those who manage to secure an early foothold here could reap commercial benefits and influence later on.

Already, the Americans may be pushing their interests in securing business deals for their companies. As our story elsewhere shows the US ambassador himself is supposed to have interfered with a power project tender and is accused of trying to use his influence to swing the deal in favour of an American firm. In a disarmingly frank and characteristically forthright admission, a US embassy spokesman has acknowledged that it is American policy to use diplomacy to promote their business interests around the world.

In another deal, the US aerospace giant Lockheed Martin has proposed a new air traffic control system while the Japanese, who have jumped on the peace bandwagon, have long been involved in the economy, especially in the Colombo port. Norway is involved in organising a seminar on renewable energy.

Rehabilitation could also provide good business opportunities in the form of contracts to build roads, harbours, airports, and power plants. The lack of transparency in awarding government contracts makes behind-the-scenes deals to win lucrative tenders that much easier.

The peace-makers might not be as virtuous as they would appear or would like us to believe. No one is opposed to the peace process and economic development but as a US trade union lawyer in Colombo last week pointed out, Sri Lanka should take its time, pick an economic solution that is suited for this country, instead of being pushed around.

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