The debt relief received through the International Monetary Fund is an indisputable breather for the Sri Lankan economy. Economists hope that this loan repayment and debt restructuring program will pave the way to elevating the country’s economy to a developed level. Soon, the country will receive the next tranche under this program. Given this backdrop, with the country overcoming past difficulties, what direction should we take to progress on the path of development? We will now talk to Professor Nalin Abeysekera, Dean of the Faculty of Management at the Open University.
Q: What happened to us as a country?
A: We need to look beyond the period after independence and consider our broader history, including the colonial era. Despite gaining independence long ago, we still lack a clear economic vision. Even marketing initiatives seem to have been poorly studied and evaluated, exemplified by naming Colombo the last city.
As an agricultural country, we have not fully explored alternative perspectives on our economy. Reflecting on our past is crucial: where did we go after independence, and did we achieve true economic freedom? These questions highlight that our journey has largely been driven by a subsistence economy. Programmes like Janasaviya and Samurdhiya are often seen as tools for garnering votes rather than genuinely alleviating poverty. This lack of genuine economic empowerment has resulted in a scarcity of entrepreneurs in our country.
Moreover, institutions under the same Ministry often do not operate within a unified framework. Despite having about 1.5 million government employees, only about 400,000 are effectively managed. Implementing performance indicators for all employees is essential to address this issue. Without such measures, our crisis will persist, fluctuating without resolution. Hence, we advocate for setting exemplary standards.
In 2019, we anticipated welcoming about 2.5 million tourists, but a terrorist attack thwarted this expectation. Subsequently, the Covid-19 pandemic inflicted further setbacks for about two years. Inefficiency, fraud, and corruption compounded our challenges, making it difficult to secure $50 million for an oil shipment. Ultimately, seeking assistance from the International Monetary Fund was our only viable option.
Q: But how without a government subsidies?
A: It’s not that concessions shouldn’t be given; rather, they should be targeted to those who truly deserve them. This highlights the need for an entrepreneurial mindset. Even the International Monetary Fund (IMF) points out inefficiency and fraud in Sri Lanka, leading to significant national debt. Many citizens are also deeply in debt, heavily relying on credit cards. How can economic development occur in such a scenario?
Buddhist philosophy emphasizes happiness, yet as a country, we’ve faced the consequences of neglecting this principle. For example, individuals who buy a three-wheeler for hire are encouraged by marketing to sell it and buy a small car instead. With monthly payments of sixty thousand rupees and daily payments of two thousand rupees, people are driven to take on loans. This leads to a cycle where individuals exhaust themselves working long hours to meet their installments, ignoring health issues like high blood pressure, cholesterol, and blood sugar. Life becomes a relentless chase, dominated by financial stress and selfish pursuits on the highway. This situation underscores a significant lack of financial literacy.
This isn’t the first time we’ve sought IMF support; our relationship began in 1950, and we took our first loan in 1965. We are now expecting another loan installment. However, there’s no widespread discussion or debate about breaking free from global debt dependency. Economists warn that we are trapped in a vicious cycle of poverty, but we can no longer afford to continue this way. We need a clear goal and vision for 2050, focusing on financial literacy as a priority for all.
Q: In the years to come, will the country be working according to the terms and agreements of the International Monetary Fund?
A: Yes. Moving forward, financial discipline and sound economic policies will be crucial for our country. Accordingly, there are positive aspects to adhering to IMF terms. However, it is essential for all members of parliament to work together with a common vision and policy, setting aside political agendas. Implementing a unified programme with input from scholars and professionals is necessary.
Fulfilling past and future promises is also vital. The media and journalists have a shared responsibility in this regard. Beyond chasing ‘ratings,’ the media must fulfil its duty to the country. By dedicating more airtime to programmes that promote development and entrepreneurship, and by reaching a common agreement for a one-year period, mass media, social media, and other platforms can contribute significantly to this task. The need for such unified effort is strong at this time.
Q: Are we now talking about entrepreneurship development?
A: In developed countries, entrepreneurs receive substantial recognition and guidance, encouraging others to follow in their footsteps. However, we don’t see this level of support in our country. In developed nations, it’s common to see signs saying “Entrepreneurs Welcome” upon arrival, highlighting the respect given to entrepreneurs. We need to cultivate a similar environment here.
Recently, I witnessed an incident in a bank where a young man, about 28-years -old, approached a bank officer for a loan to start a business. The first question he was asked was, “Do you have a degree?” Disheartened, he left the bank. This attitude is not conducive to fostering entrepreneurship.
Scholars have suggested starting a television channel dedicated to entrepreneurship, and this initiative should extend to every significant place in our country. We also have a responsibility to teach entrepreneurship from the school level, integrating it into the classroom curriculum. This comprehensive approach can create a more supportive environment for entrepreneurs and drive our economic development.
Q: Is this a time when more attention is being paid to the tourism industry?
A: Currently, the tourism industry in our country faces no significant issues. However, there is a pressing need to formalize the operations of tourism management institutions. Securing support from relevant external stakeholders is crucial. Enhancing the effectiveness of advertising through modifications is also paramount. Despite the abundance of tourist destinations nationwide, many lack dedicated websites. Creative advertising strategies, such as storytelling and animation inspired by popular models like Disney, could effectively promote iconic sites like Sigiriya.
Drawing lessons from Nigeria’s Nollywood could significantly enhance our tourism sector, potentially surpassing traditional export avenues to embrace formats like music videos and games. This evolution hinges on cultivating and refining our approach, necessitating educational reforms and unity across all political factions.
Moreover, it’s imperative to shift attention towards China in tourism efforts, akin to the focus on Western nations. Countries such as Britain and America have initiated targeted initiatives to attract Chinese tourists, a strategy we too should adopt. Simplifying access for Chinese travelers, who often seek modest accommodations and Mandarin-speaking guides, could notably boost our economic prospects. Cultural affinities between our nations further underscore the potential benefits of this approach, much like Vietnam’s alignment with its cultural roots has bolstered its rapid development.
Q: Does development mean only economic development?
A: No, the concept of development has evolved beyond mere economic growth and GDP figures. This global discourse has been acknowledged even by world leaders and tycoons, who emphasise that true wealth lies in happiness and well-being at the end of life. The happiness of people worldwide forms the core of this perspective, encompassing friendships and spiritual fulfillment.
Theravada Buddhism plays a supportive role in the tourism industry’s development in our country, with many foreigners embracing ordination here. However, as a nation, we have not fully tapped into this potential. The decline in spiritual values among our populace has been a contributing factor. Conversely, the Tamil community exhibits a strong connection to their culture and entrepreneurial spirit, as evidenced by my recent experience at Jaffna University. They not only warmly received my book ‘Marketing Sinhalen’, the first ever translated from Sinhala to Tamil, but also encouraged shop workers in Jaffna to familiarise its contents.
Nuwan Mahesh Jayawickrama
