Financial Times

A top government official urged the corporate sector to put the country on a production drive regardless of the peace situation, while encouraging major donors to concentrate and consolidate short term mega infrastructure projects.

“The private sector, together with the public sector, must undertake developments in the country and peace will follow,” said Dr. P. B. Jayasundera, Secretary, Ministry of Finance, who was the chief guest at the annual general meeting of the Ceylon Chamber of Commerce (CCC) last week.

He called on the development partners to concentrate and consolidate mega-infrastructure projects and stop talking “new loans”, but re-profile the balance sheet for Sri Lanka and re-engineer the whole process of existing loans to facilitate such projects.

“We have asked the donors to utilise their pledged portfolio and complete the roads and the highways,” he said, adding that the government has also requested the construction industry association to come up with a proposal to build 12 flyovers.

“Our country’s terrorists are unique in a sense, because they do not damage projects that have been completed with direct foreign funding. Therefore, we can bring international pressure onto the terrorists not to harm such projects,” he said.

He said that the government has recognised addressing the power crisis as top priority.

‘The government is planning a medium-term strategy to address the power crisis, where within the next few weeks the local power plants will be fired up again. We are restarting the Kerawalapitiya power plant,” he added. Dr. Jayasundera stressed that there will be a massive road building initiative within the next three years.

He said that it is unnecessary to approach donors for every project. “The private sector can form a consortium or float a debenture and raise money for infrastructure projects in road development.”

“Next month the country’s second airport construction will begin. Katunayake expressway has to happen. The country’s entry point cannot be its only exit point.

It is not only the Southern expressway, we must also look at the Northern expressway and encourage the people in the north to become part of the economic fold, which can help change their lifestyle,” Dr. Jayasundera said, adding that economic emancipation of all peoples will follow peace.

While most of corporate leaders praised Dr. Jayasundera for his dynamic and thought providing speech, some were skeptical.

A top corporate leader said the speech was highly optimistic, but there is no way that the private sector can work with the public sector without a public/private sector partnership mechanism.

“The private sector, even under such a partnership, will say that the said projects will not work because the economic reforms have not taken place,” a top corporate leader told The Sunday Times FT.

“Dr. Jayasundera did not touch on the GDP deficit, the port strike or the current petroleum situation,” another top CEO remarked.