Financial Times

J-Biz denies charges of bias, rejects extreme action
Joint Business Forum chairman Mahendra Amarasuriya last week rejected allegations that the organisation favoured the UNP government and was biased against President Chandrika Kumaratunga.

J-Biz, which groups key chambers of commerce and trade associations, would continue its efforts to bring President Kumaratunga and Prime Minister Ranil Wickremesinghe together because the co-habitation crisis between them could seriously jeopardise the island's economic recovery, he told a news conference at which leaders of member organisations were present.

All the business leaders who spoke said the crisis triggered by the president's action in taking over three ministries was bound to affect the economy and corporate sector but did not give details when asked to explain how it affects their individual businesses.

Recent accusations that J-Biz leaders were pro-UNP and that the organisation had "suddenly woken up to support the government in a crisis" were "unwarranted and uncalled for," Amarasuriya said.

"J-Biz is not a political organisation," he said. "As businessmen we are aware of the future implications of the political situation - we don't believe in waiting for things to happen and then trying to put the fire out."

J-Biz had been set up long before the present crisis erupted and had had talks with different political parties such as the PA, UNP and JVP. Amarasuriya admitted that J-Biz had failed in its endeavour to meet the president and prime minister on a common platform before January 31 but said they would continue their efforts.

"True, we failed up to now but we have not given up," Amarasuriya said. J-Biz had rejected certain radical suggestions made by members at its previous meeting but was planning other action such as a demonstration to put pressure on political leaders to compromise and end the constitutional crisis.

Suggestions that the business community take drastic action such as going on strike and not pay taxes had been rejected as not practical, Amarasuriya said. But the organisation was considering a demonstration and planned to hold a round table between important civil society groups and religious leaders to plan its future course of action.

Amarasuriya said the crisis was delaying the resumption of peace talks and that that would have a serious affect on the economy and business.
"Some people might say there's no crisis but we are aware of the symptoms and signs," he said.

The rupee had begun to depreciate against the dollar, which meant that imports such as petroleum will go up in price, increasing costs for businesses and resulting in cost-push inflation. "The entire country will suffer," Amarasuriya said.

There was upward pressure on interest rates and investors were adopting a wait-and-see attitude to see how the political situation will stabilise.
"The stock market has gone up and down - this is an indication of foreign and local investor perception of stability or otherwise."

While the crisis has had no immediate impact, if it drags on the economy would slow down, Amarasuriya said, expressing his personal opinion. "My personal view is that there'll be a financial problem soon if this goes on. Unless we get aid and investment there'll be a cash crisis - with not enough money to run the country. Our's is a very fragile economy - dependent on foreign aid and investment."

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