Power sharing key to economic development

Minister of Export Development and International Trade G. L. Peiris said that power sharing will be a practical solution if the country is serious about economic development. He said it made more sense for each area to make their own decisions politically without having to depend on Colombo to make all the decisions for them. "This will bring governance closer to the people and reduce the distance between the people and the administration. This will ensure that real needs will be catered for in the formulation of government policy. This will be a more democratic, beneficial and timely thing to do," Peiris said. Peiris said that through decentralisation of power, economic policy decisions will take into consideration the particular aspects of each part of the country. The crux of our country’s failure, a failure because more than half the county’s wealth is in one single district, is not providing equal opportunities which would have developed more districts, if not the whole country. "The focus on social equity is very important when formulating and implementing national policy," Peiris said. Sri Lanka is no longer classified as a low income country but as a middle income country with a per capita income of US$1370. The country’s exports grew by 15 per cent in 2007 but, "the real problem is in the redistribution of the country’s wealth," Peiris pointed out. After the JVP insurrection in the 80s, Peiris worked for the Presidential Youth Commission which brought him into contact with youth from the length and breadth of the country when this commission set out to find out practical ways and means of avoiding a repeat of that bloody insurrection. "We listened to these young people and this was the central theme of what they told us then: ‘We can put up with adversity, but not injustice.’ They told us that they were constantly being denied the opportunities and access to the means of development. They were indignant that nothing was done to uplift economic conditions in rural areas." Peiris said that government is focusing on establishing export promotion villages around the country with several already off the ground. Peiris was the Chief Guest at the occasion of the 49th Annual General Meeting of the National Chamber of Commerce of Sri Lanka on Thursday. The Chamber through its Business Promotion Fund, sponsored by the Royal Netherlands Embassy, disbursed Rs.68 million to 260 SME entrepreneurs island wide with only one of them from Colombo. The Chamber will also organise an agriculture exhibition in Buttala later this year. "We will take farming machinery and tools, fertiliser and everything farmers will need right to their doorsteps. We will also conduct seminars on the latest farming methods and update them on the latest research. We are also talking to financial institutions to join us in this endeavour and assist farmers by granting credit without guarantors and documentation," the Chamber’s President D. Eassuwaren said.

Engineering services sector not in CEPA

Department of Commerce Director General assured engineers that the sector will not be on the agenda when the Comprehensive Economic Partnership Agreement (CEPA) with India comes up for further negotiations in March. "I assure that the engineering services sector will not be open for discussion when negotiations resume with India on CEPA until such time a regulatory framework is implemented to register and monitor engineers in Sri Lanka," Director General Manel de Silva said. de Silva said this at a panel discussion on CEPA and the ‘Export and Import of Professional Services-Opportunities for Sri Lankan Engineers’, organised by the Institution of Engineers Sri Lanka recently. "We will not open up the sector without regulations in place, and we will only do so when you ask us to do so," de Silva said allaying the engineers' fear that engineers from India will swarm over them if the sector was opened up through CEPA. "We are not against opening up the sector, but we have to be cautious because without proper monitoring the floodgates will be open and engineers could lose their jobs to Indians," the institution's President Ranjith Gunawardana said. Minister of Export Development and International Trade G. L. Peiris said that the government was taking a broad approach based on the priority of the people and with consultation with professional bodies. "Government will consult fully with professionals before decisions are taken. Government will never impose anything," he said. Peiris said that when the FTA was implemented there were strong fears and apprehensions but the experience proved otherwise. He said that trade with India grew from US$ 500 million in 1998 when the FTA was implemented to US$ 2.5 billion in 2007. "CEPA is a logical extension of the Free Trade Agreement currently in place with India," he said. Ravi Karunanayake MP said that the Services sector should take up the challenge to be globally competitive. He was for opening up the Services sector, but believed the government needed to take more precautions. He said that even without CEPA, Sri Lankan engineers are not getting an opportunity to work in the infrastructure projects handled by the Chinese, which could be an ideal opportunity for knowledge and technological transfers. "Government needs to be consistent and coherent in their policy. Once the trade agreements are signed there can be no turnaround. CEPA will not have a 13 amendment to fall back on," he remarked wryly.

MAS to provide education to Apparel, BPO and ICT sectors

MAS Holdings inaugurated the MAS Institute of Management and Technology (MIMT), located in its Fabric Park in Thulhiriya, yesterday. MIMT will focus on the textile, apparel, IT and BPO sectors, providing basic courses which will pave the way for rural youth to be employable in these sectors. "MIMT will give rural youth the opportunity to overcome the barriers, which are knowledge- and skills-based, to gain employment in these sectors," Chandan de Silva, CEO, MIMT, said. MIMT will offer IT courses from diploma level to degree level in conjunction with Informatics Institute of Technology. Also, courses in English and social etiquette will bridge the gap between the rural youth and the private sector, where all the best jobs are. English will be the first hurdle rural youth will have to clear. MIMT has a basic skills course in English which will be held over a period of three months. The fee is Rs.3500 + VAT and can be paid in instalments. "MIMT hopes to be financially self-sustaining from the second year. Our course fees will be reasonable and affordable so as to enable rural youth to participate. Perhaps, the industry could provide scholarships in time to come," de Silva said. Dulindra Fernando, CEO, Mass Investments, said that MIMT was in touch with the Information and Communication Technology Agency of Sri Lanka (ICTA)discussing ways and means by which MIMT can help meet the demand for staff for the BPO and IT sectors. "MIMT will not only facilitate the apparel and textile industry in Sri Lanka, but also the BPO industry as well," he said. "MIMT will also function as an outsourced recruitment centre for the MAS Fabric Park in Thulhiriya, which will have 5,000 vacancies in three to four years time," Deepthi de Silva, Director, Group Human Resources, MAS Holdings said. MIMT will also provide corporate training programmes targeting workers, supervisors and executives which will include experiential learning. The MIMT facilities include an auditorium large enough for 300 persons, 17 training rooms with labs for English language, IT, Textile Processing and Sewing Machine mechanics. Up to 250 persons can be accommodated in the residential facilities provided by MIMT. MAS will launch the MAS Business School for senior executives later this year which will focus on leadership excellence and innovation. MIMT is BOI approved and has an obligation to educate 2,000 rural youth. "MIMT is not only empowering youth to be employable in jobs of today, but they can fill the vacancies emerging in the industries of tomorrow, like the BPO sector." Deepthi de Silva added.