The government will have to engage the business community of the North and also outsource some of its development activities so as to encourage economic activity in the region, especially in the construction sector.

"The private sector in the North is feeble and is not in a position to engage the government this is why it is all the more important for the government to take the initiative. It is the responsibility of the state," said M. Ramathasan, a member of the Jaffna Managers’ Association and CEO of Euroville.

He said the business community of the North had not yet been invited to discuss their issues nor are they consulted on what should be the next steps, now that the war is over.

"The state should also out source some of its activities to the private sector of the North so as to promote economic activity which will help build the private sector and make it much more stronger," he said addressing a seminar organised by the Pathfinder Foundation last week.

Ramathasan said the North lacked basic support services, especially finance related.

"We need to come to Colombo for almost everything and this is not an easy thing to continue to be doing. It will also be of much help if the Stock Exchange of Colombo, Board of Investments, Export Development Board and other such institutions set up offices and branches in the North," he said.

He called for a Private Sector Secretariat to be setup in the North, with the assistance of other well established chambers particularly those based in Colombo, so that interaction with the government would be much easier.

"Government policies should look beyond restoring livelihoods and try to restore the kind of environment that will enable the private sector to stand on its own feet," he said.

Sri Lanka’s private sector is known for its reliance and despite hard times has driven economic growth, contributing more than 85 percent to GDP.

Ramathasan said the government should also establish strong controls to prevent labour exploitations and environment degradation which could easily crop up once development activities kick in and the region becomes more engaged in economic activities.

He criticized the education system for being job-oriented and not productivity-oriented calling for reforms and more private sector participation.