Privatisation, ‘radical’ reforms needed — CCC

A delegation led by Germany’s Head of South Asia Division, Economic Co-operation and Development Ministry, Jochen Kenneweg, met with the Ceylon Chamber of Commerce (CCC) recently. Kenneweg was on a fact finding mission regarding upcoming development and the present economic and political state in Sri Lanka.

CCC deputy chairman Deva Rodrigo, briefing Kenneweg said that the recent oil shock, drought, crop failure, power crisis and the attack on the airport led to the projected GDP growth rate of 2 1/2 % turn into a negative growth. However, he was of the view that the remedy to overcome the situation would be vigorous privatisation and radical reforms to scale down government expenditure - fiscal discipline.

He further said that the public should realise that in the long term they have to forego luxuries. The main crisis at the moment is unemployment. Touching on the peace process, Rodrigo said that more than overly depending on peace, his personal view is the eventual cessation of hostilities.Speaking on the role played by the CCC towards economic reforms, Rodrigo said that the Chamber has identified the following six critical areas and with these improvements the climate will improve.

Those ares being War, Law and Order, Educational Reforms, Infrastructure, Labour Reforms and Good Governance.

Kenneweg said that the co-operation and support extended by Germany to Sri Lanka will continue and they will assist not only in infrastructure, but would consider community development, regional concentration and nationwide activities.