Get real or get out. According to the Minister of Public Administration and Home Affairs Sarath Amunugama, it is time for the government of Sri Lanka to take a realistic look at the massive investments it is making in areas such as education and find out if the investment is yielding dividends or get out. Speaking at a technical session at the Sri Lanka Economic Summit this week, organized by the Ceylon Chamber of Commerce, Mr. Amunugama said the government is getting very little from over 70 years of investment in the country’s education system and should ask for better performance. He said the entire education system has to be reformed in order for the country to develop economically or any talk otherwise is nonsense.
Mr. Amunugama said any investment programme for the country requires funds from domestic savings, borrowing or foreign direct investment. He said it is difficult for a small country like Sri Lanka to totally finance the required investment for growth from domestic sources and suggested that private enterprises make contributions to the state, as had been earlier suggested by former Minister of Finance N.M. Perera. Mr. Amunugama said the government has to be tough on corporations and recoup some funds to the Treasury to prevent large amounts of money being frittered away.
Mr. Amunugama added that the way in which the next few years are managed will be a crucial factor in determining if Sri Lanka reaches a 10% growth rate. He also said a technical team from the International Monetary Fund (IMF) through which Sri Lanka has requested a loan for US$1.9 billion, has expressed satisfaction. He said the government will await a response over the next four to five weeks on the IMF loan.
At a panel discussion during a technical session at the Summit, Singer Sri Lanka Chairman Hemaka Amarasuriya said he believes the world is heading towards an agrarian age for several reasons, one being the expected increase in the global population which will create pressure on food and water supplies. He said the economy must move towards an agricultural economy. Given the necessary encouragement by the government, the North and East can revive agriculture. Mr. Amarasuriya said the government has already encouraged agriculture by making it a tax free sector but should take bold steps by even forcing production or taking land away.
Mr. Amarasuriya said there has to be a level playing field throughout the business community. He feels there is a patronage extended to certain sectors of the economy but that the government should take it upon itself to clearly announce its views and intentions. He said Sri Lanka is an import dependent economy, not an export driven economy. The government has to take steps to give confidence to the private sector and the public so people start spending.
A panel discussion
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