Removing obstacles to development

Six months into the term of office of the new government, the main positive achievements continue to remain economic and political stability and the reduction of waste and corruption. The absence of these in the past contributed to a significant degree to the lack of development of the country. The fact that the government is making a serious bid to ensure them is the best prognosis for a better future for the country. There is still a distance to go. The promised improvements that would directly benefit those who are at the bottom of the economic pyramid, and the quarter of the population who live below the poverty line, have yet to materialise. Prices of essential goods have not come down and some have seen sharp increases such as rice and coconuts. There are no mega projects in the pipeline that would give people the hope that rapid development is around the corner.

There were times in the past when governments succeeded in giving the people big hopes for the future as soon as they came to power. Perhaps the biggest hope came with the government’s move towards the liberalisation of the economy that took place after the election of 1977. President J R Jayewardene and his team succeeded in raising generous international assistance, most of it coming in the form of grants, that helped to accelerate the envisaged 30 year Mahaweli Development project to just six years. In 1992 President Ranasinghe Premadasa thought on a macro scale when his government established 200 garment factories throughout the country to develop the rural economy and to help alleviate poverty. These large scale projects brought immediate hope to the lives of people.

More recently the Hambantota Port project, Mattala Airport and the Colombo Port City project promised mega development that excited the popular imagination at the time they commenced, though neither of them has lived up to their envisaged potential. These projects were driven by political interests and commission agents rather than economic viability leading to debt burden and underutilisation. The NPP government would need to be cautious about bringing in similar mega projects that could offer the people the hope of rapid economic growth. During his visits to India and China, President Anura Kumara Dissanayake signed a large number of agreements with the governments of those countries but the results remain unclear. The USD 1 billion Adani project to generate wind power with Indian collaboration appears to be stalled. The USD 3.7 billion Chinese proposal to build an oil refinery also appears to be stalled.

RENEWED GROWTH

The absence of high profile investments or projects to generate income and thereby take the country to a higher level of development is a lacuna in the development plans of the government. It has opened the door to invidious comparisons to be drawn between the new government’s ability to effect change and develop the economy in relation to those in the opposition political parties who have traditionally been in the seats of power. However, recently published statistics of the economic growth during the past year indicates that the economy is doing better than anticipated under the NPP government. Sri Lanka’s economy grew by 5 percent in the year 2024, reversing two years of contraction with the growth rate for the year of 2023 being estimated at negative 2.3 percent. What was particularly creditable was the growth rate for the fourth quarter of 2024 (after the new government took over) being 5.4 percent. The growth figures for the present quarter are also likely to see a continuation of the present trend.

Sri Lanka’s failure in the past has been to sustain its economic growth rates. Even though the country started with high growth rates under different governments, it soon ran into problems of waste and corruption that eroded those gains. During the initial period of President J R Jayawardene’s government in the late 1970s, the economy registered near 8 percent growth with the support of its mega projects, but this could not be sustained. Violent conflict, waste and corruption came to the centre stage which led to the economy getting undermined. With more and more money being spent on the security forces to battle those who had become insurgents against the state, and with waste and corruption skyrocketing there was not much left over for economic development.

The government’s commitment to cut down on waste and corruption so that resources can be saved and added to enable economic growth can be seen in the strict discipline it has been following where expenditures on its members are concerned. The government has restricted the cabinet to 25 ministers, when in the past the figure was often double. The government has also made provision to reduce the perks of office, including medical insurance to parliamentarians. The value of this latter measure is that the parliamentarians will now have an incentive to upgrade the health system that serves the general public, instead of running it down as previous governments did. With their reduced levels of insurance coverage they will need to utilise the public health facilities rather than go to the private ones.

COMMITTED GOVERNMENT

The most positive feature of the present time is that the government is making a serious effort to root out corruption. This is to be seen in the invigoration of previously dormant institutions of accountability, such as the Bribery and Corruption Commission, and the willingness of the Attorney General’s Department to pursue those who were previously regarded as being beyond the reach of the law due to their connections to those in the seats of power. The fact that the Inspector General of Police, who heads the police force, is behind bars on a judicial order is an indication that the rule of law is beginning to be taken seriously. By cost cutting, eliminating corruption and abiding by the rule of law the government is removing the obstacles to development. In the past, the mega development projects failed to deliver their full benefits because they got lost in corrupt and wasteful practices including violent conflict.

There is a need, however, for new and innovative development projects that require knowledge and expertise that is not necessarily within the government. So far it appears that the government is restricting its selection of key decision makers to those it knows, has worked with and trusts due to long association. Two of the committees that the government has recently appointed, the Clean Lanka task force and the Tourism advisory committee are composed of nearly all men from the majority community. If Sri Lanka is to leverage its full potential, the government must embrace a more inclusive approach that incorporates women and diverse perspectives from across the country’s multiethnic and multireligious population, including representation from the north and east. For development that includes all, and is accepted by all, it needs to tap into the larger resources that lie outside itself.

By ensuring that women and ethnic minorities have representation in decision making bodies of the government, the government can harness a broader range of skills, experiences, and perspectives, ultimately leading to more effective and sustainable development policies. Sustainable development is not merely about economic growth; it is about inclusivity and partnership. A government that prioritises diversity in its leadership will be better equipped to address the challenges that can arise unexpectedly. By widening its advisory base and integrating a broader array of voices, the government can create policies that are not only effective but also equitable. Through inclusive governance, responsible economic management, and innovative development strategies the government will surely lead the country towards a future that benefits all its people.

by Jehan Perera