Financial Times

Fast-track to development, jobs
By Feizal Samath
The government’s development process is to be fast-tracked through the speedy construction, repair and maintenance of new and old roads in Sri Lanka that would provide access to markets, cut down transport time and help children go to school.
This new phase which includes proposed expressways like the Colombo-Galle and Colombo-Kandy highways is aimed at maximum utilization of nearly $5 billion in donor funds.

The infrastructure process – for the moment - would be outside the north and east where there is a dispute between the government and the LTTE over development issues. Authoritative government sources said a high-powered committee set up under the direction of Prime Minister Ranil Wickremesinghe is mapping a plan of action and setting targets for completion within a three to six-year goal.

Roads have been picked as the lead project since more than 50 percent of donor support has been pledged to this sector, apart from funds for power, irrigation and water. The decision to pick one of the main sectors and fast track its development follows a long debate in the government over the need to speed up development, cut through red tape and the bureaucracy, and ensure there is a dividend to the people from the peace process.

The sources said the construction of new roads and the repair and maintenance of the existing network are expected to stimulate growth in the power sector, irrigation and water-related projects. The private sector, under pressure from the government to deliver on its promise of investment and jobs in a peaceful environment, says infrastructure – particularly good roads – is vital for investment.

For example the CEO of a top private sector firm said if there were efficient highways to Matara or Kandy, they would seriously consider putting up hotels at two of their unused sites in these two districts. “We would put up some investment venture if the roads are good and provides better access,” he told The Sunday Times FT. “The private sector is prepared to invest but the infrastructure should be in place for this.”

Apart from a private sector that says it is keen to invest, the government is also flushed with funds totalling some $4.5 billion from the Tokyo donor meeting, another $200-300 million from the World Bank and $400-500 million in the pipeline.

The sources said the committee charged with proper disbursement of foreign funds that includes Economic Reforms Minister Milinda Moragoda, Treasury secretary Charitha Ratwatte, Central Bank governor A.S. Jayawardene and retired John Keells chairman, Ken Balendra, now a top government official, is preparing a plan on what must be done in the first three to six months and separately in the next few years. The committee - which has decided on roads as the priority - wants to cut through unnecessary red tape - often cited as the cause of delays in development projects - by using mechanisms embodied in a new Economic Management Act (EMA) to be presented to parliament later this year.

The government will resort to structures set up under this act aimed at speeding up decision-making and tenders. Separately, a committee headed by Bradman Weerakoon, secretary to the Prime Minister, and including senior civil servants like Dharmasiri Peiris, now retired, is reviewing the archaic AR’s and FR’s in the public sector and devising a more efficient set of rules and regulations.

Premier Wickremesinghe is expected to present the EMA in parliament giving him emergency-like powers to fast track development particularly on sensitive issues like land acquisition, which often stalls projects. The EMA will come up with a new set of regulations governing tenders and other needs. Government agencies involved in land would be given the power to offer competitive, market rates when acquiring land for development.

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