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Development
Bank for East a must
To
assist economic resurgence in the Eastern Province
The
need for an Eastern Development Bank has been further
stressed recently at a gathering of chambers of commerce
and industry in the province.
The indigenous business, industrial and agricultural
communities in the micro, small and medium strata are
showing their keenness to come into the mainstay of
the economic activities that are going to be reviewed
by the government along with the private sector in the
liberated East.
The Federation of Chambers of Commerce and Industry
of Sri Lanka (FCCISL) along with their affiliated district
Chambers have come forward to push hard the cause of
entrepreneurial dexterity of the indigenous communities
in the East and get them their right place.
Samantha Abeywickrama, Secretary General, FCCISL said
that the government is to rush assistance on an
economic development strategy as the East is now militarily
cleared and the Cabinet expected big investors and foreign
investors to move into East to make large investments.
In fact the BOI wants to convene a meeting of the BOI
investors and explain about the facilities and resources
available in the East for large scale investments.He
said that while the private sector appreciate the government’s
intentions to attract large scale investors,
FCCISL feels, greater emphasis should be placed on small
and medium scale investors and local investors from
the East.
Abeywickrama said that they felt that the government
has not really extended an opportunity to attract the
small scale category of investors. He said that
the government agencies should also create a greater
awareness among small and medium entrepreneurial community
in the East about the economic revival that is to take
place and the opportunities that will be available for
them.
A
major hindrance for these micro small and medium scale
entrepreneurs has been the lack of borrowing facilities
and private banks normally charge the usual interest
rate and also call for collaterals.
The regional and district chambers and others who are
keen to develop East insist that the Eastern Development
Bank should be set up forthwith so that the financial
backing could be afforded with concessions, specifically
for the SMEs.
Entrepreneurs from the East have pointed out that the
Development Banking process has been in force elsewhere
in the country and if the government is so keen to develop
East, the Eastern Development Bank is a must.
They have pointed out that government would not have
any problem in setting up of the Eastern Development
Bank as the funds to establish this bank would be lying
with the government, as the funds to set up the Eastern
Development Bank which were in the Central Bank was
transferred to the government in 2002.
An official from the Central Bank confirmed that the
share capital that was with them to set up the Eastern
Development Bank was transferred to the government and
they do not have any hold in the setting up of the Eastern
Development Bank.
Ram Rajarammohan, Chairman, Chamber of Commerce and
Industries of Trincomalee District said that the setting
up of the Eastern Development Bank was put on hold due
to the conflict situation prevailed in the area and
now that the area has been cleared of conflict and as
funds are available with the Government, the government
should take the initiative immediately to set up this
Eastern Development Bank.
He said that the Development Bank concept was passed
in Parliament in 1997 and with the signing of the MOU
with the LTTE these regional development banks were
to be set up not only in the East, but also in the Wanni.
He said that in Jaffna, the bank was to be named as
Yalpanam Development Bank, in the East it would be called
Kilakki Development Bank
N
Sunthareasan, Chairman, Batticaloa District Chamber
of Commerce, Industry and Agriculture said that the
indigenous entrepreneurs should have a place in shaping
up the economy in their respective areas and pointed
out that even since British Colonial era, East has been
neglected and there was no development work.
He said that both internationally and nationally there
is a food crisis where there is fish and milk scarcity
among other things. He said that Batticaloa district
has a great potential in fish, dairy farming and agriculture
and once they are developed not only local needs could
be met, but the excess production could be exported.
S M A Kareem, Chairman, Kalmunai Traders Association
said that Kalmunai is the business hub of Batticaloa
and Ampare Districts. He said that small businessmen
are eager to develop their businesses and at the same
time facilities to develop their businesses and trades
have not been provided. He said that in the area
of fishing adequate facilities were not provided.
Maradamunai in Kalmunai could develop handloom industry
which could be developed to export and could be a great
tourist attraction to the area.
In the Ampare district there is heavy construction industry
taking place and the district needs assistance.
Daya Gamage, Chairman, Ampare District Chamber of Commerce
and Industry said that in all development activities
in the East, private sector must be given the pride
of the place and the government should channel all facilities
and assistance through private sector, which has proved
to be efficient, less corrupt and transparent. He said
that as the assistance to the small scale indigenous
entrepreneurs are urgent, the concessionary financial
assistance could either be channeled through the existing
State Banks or through private commercial banks.
Rohantha Athukorala, Director, Economic Affairs, Secretariat
for Coordinating the Peace Process said that the Eastern
Province presently contribute around four percent to
the GDP of the country and the focused development that
is taking place now after the liberation of the East
could double this emerging economic resurgence.
The government and other interested groups and agencies
that are keen to revive the economy of the Eastern provinces,
should focus their attention at the great potential
that lies in this area, in agriculture – paddy
and other agricultural produce; fisheries, indigenous
industries like handloom textile industry, dairy farming,
mineral sands and paper industry. Sugar industry is
also another area of industry.
It has been noted that prior to the conflict sparked
in the North and East, 40 percent of the fish was provided
from those areas. There were such items as chillies,
red onions, grapes and mangoes that were flowing into
the mainland Sri Lanka, prior to the conflict sparked,
in addition to rice and other grains.
The most important bridge that could be built to achieve
lasting peace would be the economic link between the
mainland Sri Lanka and the conflict stricken areas.
It will eventually ensure peace, and most importantly
goodwill and above all great economic prosperity as
one Nation.
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