Peace is key to economic boom:

Infrastructure vital for IDP resettlement

Address by Disaster Management and Human Rights Minister Mahinda Samarasinghe at the Leopard Capital Investor Forum in Colombo on November 20 Part I was published yesterday

Housing units needing reconstruction/repair was nearly 19,000 in the East while in the North the number is estimated at over 230,000. Social overheads like schools, hospitals and dispensaries are other facilities that also need attention. You could see the scale of the problem that we face in regard to settlement of IDPs in the North.

The work completed to date consists of the return and release of over 135,000 IDPs in their own villages, demining of key locations such as the Mannar ‘rice bowl’ was deemed necessary as a matter of priority to enable resumption of livelihoods.

National economy

The opening of the A9 the main trunk route linking Colombo and Jaffna will lead to closer integration of the economy of this region with the national economy. The work on the restoration of the railway track between Vavuniya and Jaffna has also commenced and we expect to complete it within the shortest possible space of time. This will further strengthen the economic integration of this region into the national economy. However, I would hasten to add that there is still a great deal of work to be undertaken.

The Government will make every effort in the next few years to complete the process of economic integration of this region to ensure that goods and services flow freely into and out of this region. When all the development work is completed, the economies of the two regions can be expected to increase significantly in their contribution to boosting the overall growth figure for the entire economy. According to estimates of the Central Bank of Sri Lanka, the per capita income that is now around US $ 2,100 will increase to over US$ 4,000 in the next five years.

With such ambitious targets, why should anyone in their right senses hold back the process of resettlement? There have been many criticisms levelled at the Government that it is slow in resettling the affected IDPs in their own villages. Whilst I am fully aware of the undesirability of keeping IDPs in welfare centres unnecessarily for long periods, the Government is not convinced that it is a good policy to rush them into areas that have not been fully cleared and opened up for civilian settlements and had basic infrastructure in place to enable the resumption of livelihoods and normality. Every citizen of this country needs to have reasonable access to basic facilities wherever they live. Resettling and returning them without adequate preparation will be counterproductive.

We must also provide these persons with social infrastructure like schools, hospitals, dispensaries, access to civil administration, security law and order as well as ensure conditions in which they could establish themselves in remunerative economic activity. From the perspective of restoration and development of livelihoods, it is important that markets for the produce of villages must be able to function and linkages that existed with regional and national markets must open up.

This is absolutely critical to making resettlement viable. We, as a Government, are addressing these issues. Chair of the Presidential Task Force for Resettlement, Development and Security in the Northern Province Basil Rajapaksa MP, is leading this effort with the support of my ministerial colleagues.

Integration strategy

We are conscious that without a concerted effort based on an integration strategy for provision of safety and security, durable resettlement and sustained development, a precipitate rush to resettle IDPs may engender disillusionment and frustration, which we must avoid at all costs.

There is great deal of investor interest in the East particularly in the tourist industry. With its scenic beaches, easy access to places of historical interest in the country and wildlife parks, the East offers the investor extensive opportunities for investment in the tourism sector.

The Trincomalee harbour which is considered one of the best in South Asia also beckons the investors in industry. Access to world markets through this port, the availability of land as well as an educated labour at competitive rates will combine to make the East an attractive location for wide variety of industries.

The North will not be far behind. The Government has plans to pursue similar development program in the North focusing on infrastructure development. We expect agriculture and fisheries, two of the traditional activities in the region to recover from its present downturn. The North has traditionally offered a well-educated labour force. There is, therefore, the likelihood that the North may come to rival other provinces in the development of a vibrant services industry.

Access to capital whether it be debt or equity is an integral requirement to nurture and resuscitate Northern entrepreneurship. Within two months the banking system has extended Rs 260 million in funding to 1,875 small and medium enterprises.

A further 6,000 loan applications are under review for disbursement. Around 50 percent of the loans are for agricultural purposes. We expect to disburse loans in excess US$ 25 million to support and rebuild Northern entrepreneurship over the next year. Over the past months many of the local banks have opened branches in the North including a foreign bank.

I would like to touch on reconciliation including political accommodation and integration. The LTTE eliminated democratic voices to such an extent that over the years nearly 50 senior Tamil politicians were assassinated. Institutions of democratic governance have fallen into decline and they need to be restored.

Military victory

One of the significant contributions made by the military victory is that moderate voices reflecting all shades of the socio-ethnic spectrum are now being heard. The President has himself taken on the mantle of leadership in addressing these issues and achieving homegrown resolutions to the outstanding issues.

Through his reconciliation initiative, a meeting of minds on crucial areas that proved elusive in the past and appeared to divide and polarize us into opposing camps is becoming possible. I am confident that if we achieve our manifold objectives, terrorism will never darken the shores of our Motherland ever again.

What is needed is the creation of a unifying and overarching Sri Lankan identity which acknowledges, celebrates and nurtures the wonderful diversity of our multi-ethnic, multi-religious, multi-lingual and multi-cultural society. It is this common identity that will guide Sri Lanka to a peaceful and prosperous future and with rapid economic development and improvement of living standards, the peace and prosperity achieved will be made sustainable.

Concluded