Lankan Economic Council on lines of Indian Planning Commission

The new Economic Council launched by President Mahinda Rajapaksa will operate on the lines of the Indian Planning Commission and deal with medium to long-term policy issues.

Council sources said it would also be like the Security Council which meets twice a month. Rajapaksa will chair the Economic Council with its first working meeting due in second week January.

They said the council is expected to develop planning strategies aimed at giving signals to the private sector as well as on overall policy. The private sector has repeatedly complained about ad hoc and ill-conceived policies without proper planning which doesn’t permit the expected growth in the economy.

It wouldn’t handle firefighting the economy or day-to-day management issues which is the role of the National Council for Economic Development.

The starting point of its work would be the 10-year development plan presented by the President in the budget and how to get this process moving.

The sources said that ever since the free economy was initiated in 1977 by then UNP leader J.R. Jayewardene, economic planning has taken a back seat with the market allowed to dictate terms.

Rajapaksa was quoted as saying at the council’s inaugural meeting this week that he wanted to consult experts and intellectuals for implementing short, medium and long term policies while streamlining the development process, instead of making temporary approaches to solve problems arising on a daily basis.

Among those who took part were Treasury Secretary Dr. P.B. Jayasundera, veteran economist Prof. W.D. Lakshman, Chairman of the Institute of Policy Studies Prof. Buddhadasa Hewavitarana and its Executive Director Dr. Saman Kelegama, World View Institute’s Managing Director Lloyd Fernando, Colombo University Lecturer S. Gunaruwan, Central Bank Governor Nivard Cabraal, lawyer and JHU politician Udaya Gammanpila and Secretary to the Highways Ministry S. Amarasekara