Financial Times

Dhanapala calls for investment in north-east
By K. Kenthiran
The post-tsunami era has created a way forward for businesses to develop investment promotion strategies specific for the conflict affected areas of north and east, according to Jayantha Dhanapala, head of the government's peace secretariat.

Commenting on the peace process and the continued ceasefire agreement between the government and the LTTE at the forum for fund managers organized by HNB Stock Brokers, he said the development and continuation of peace process can be grouped into two eras.

First, the pre-tsunami era, where it was a period of hardship with serious set backs in the peace process together with uncertainty. This era was mainly focused on the controversial interim self-governing authority proposal submitted by the LTTE.

The second is the post-tsunami era where the LTTE and government forces joined hands in relief work and the A9 highway was opened 24 hours a day, Dhanapala said.

This natural disaster opened the way for fresh dialogue between the two sides and created the common impulse to begin talks on post-tsunami working arrangements.

"This has brought both the government and the LTTE to make a determined effort to succeed in the peace process," Dhanapala said. "There is a common desire. We hope to reach a successful conclusion for a joint mechanism within the next few weeks. This will definitely boost the private sector's sense of confidence."

He further said that the peace process is continuing rigorously. "We see the peace process as a continuum. We are half way through the peace effort. We have taken constructive steps towards permanent peace. The task is to make absence of conflict into permanent peace."

During the three-year truce period, the CSE's performance has been remarkable with an increase in foreign buyer participation. "This is an opportunity to investors," Dhanapala said. "Investment promotion strategies in conflict affected areas need to be developed. The private sector should go to the north and east. There is a risk factor but businesses need to take risks." He said the government is working with the World Bank to look into investment opportunities in the north-east.

"We are hopeful of reaching an agreement with the Multilateral Investment Guarantee Agency, a World Bank backed agency, to promote investment in the north-east, thus increasing private sector confidence," Dhanapala said. Innovative and non-economic incentives will ensure private sector participation in investments in the conflict-affected area in the future, he added.

"We need to realize the economic causes of the conflict - not only the political causes of the conflict. The sooner we realize that, the better it is for us to ensure the economic underpinnings of peace are put in place so that the ceasefire agreement can mature into a permanent peace process."

Dhanapala said he was happy with the way in which the private sector helped in the peace effort and mentioned the work done by Sri Lanka First as an example. "Bringing peace in Sri Lanka is a part of CSR (Corporate Social Responsibility) of the private sector. We appeal to the private sector to contribute more while closely working with civil society and all other parties to turn this natural disaster into an opportunity to rebuild this country and the economy."

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