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SRI LANKA2003

Donor pledges hinge on peace progress

Prime Minister, Ranil Wickremesinghe
Photo by James Overly

Prime Minister Ranil Wickremesinghe remains confident that his government’s strategy will win the peace and launch a new phase of economic development throughout the territory of Sri Lanka.

“I’m hopeful,” he says. “We have been talking for one year now. There are going to be bumps in the road, but I am hopeful of a settlement.” The “bumps” refer to recent serious ceasefire violations by the Tamil Tigers (Liberation Tigers of Tamil Eelam, or LTTE). Indeed, many Sri Lankans do not yet see a peace settlement as a sure thing.

If the peace process is to succeed, the Sinhalese majority must have a degree of trust that the LTTE has abandoned its quest for a separate state and will live up to the terms of an eventual accord.

“The ceasefire has had partial compliance,” the prime minister acknowledges, but he maintains that public confidence in the peace process continues to build. “The day-to-day pressure on the people is gone; they haven’t got to worry about being shot. The country is functioning normally, compared to what it was. The people are satisfied with the progress we have made. They are also looking at where we were, when they had no hope for the future,” he says.

The ceasefire violations feed the fractious nature of politics among the majority Sinhalese themselves. A loud minority maintains hard line opposition to peace, making it easy for the opposition parties – whose ranks include President Kumaratunga — to pressure the government on aspects of the peace process.

Wickremesinghe appears unmoved by the clamor. “The South (referring to the southern part of the country where the Sinhalese are the dominant population group) wants peace,” he insists. “The president has played a leading role in the peace process. When the president called for peace, I supported her. She and I supported the 1987 provision by India of a peacekeeping force. And we both supported the intervention of the Norwegian government in the peace process.”

Political observers are not so sure. If Wickremesinghe succeeds in his quest for an agreement, observers predict a windfall political gain for his party. When this possibility is juxtaposed against the country’s history of confrontational and antagonistic politics, rumors abound that the president may see a likely gain for the prime minister’s party as reason to sabotage the peace process by calling snap elections.

Wickremesinghe dismisses the threat. “I don’t think she will (call for elections), but even if snap elections are called, we will win. If there are snap elections, we will have a larger majority in parliament.”

The prime minister sees the peace process inextricably connected to the country’s economic development. “Without peace,” he says, “there will be no development, but in order for peace to take hold, development must take place.”

A significant number of interested countries and the international financial institutions are prepared to pledge large amounts for the reconstruction and development of the war-torn country’s infrastructure. From the beginning, Wickremesinghe has called for donor countries to begin development projects immediately, rather than using donor funds as sweeteners for a peace settlement.

Regaining Sri Lanka

The prime minister and his party have developed an ambitious economic reform strategy to bring together international aid donors and private investors in a targeted reconstruction of the country. The program is tagged, “Regaining Sri Lanka.”

Beginning with this month’s round in Japan, the negotiations will begin to tackle the political and fiscal arrangements for a new federal state that will be formed as a part of the peace settlement.

These development funds are expected to attract a large number of private sector investors from around the world. Wickremesinghe talks of a ‘public-private partnership” that he hopes will lead eventually to the creation of some two million new jobs.

The prime minister’s initiative seeks to take advantage of Sri Lanka’s geographic location to make the country an air-sea hub and financial center as well as a center for “competitive value addition.”

Sri Lanka already has the reputation of being one of the easier countries in South Asia in which to do business, but Wickremesinghe has a program underway to make government procedures simpler, reduce waiting and red tape, take advantage of new technology, and make government more responsive to business needs.

In several ministries, joint task forces of government and private sector business leaders have begun to tackle nuts-and-bolts bureaucratic arrangements that stifle the fast action that modern business needs.

Wickremesinghe, citing excellent bilateral relations with the United States, said he wished American investors to know that “Sri Lanka is a good bet.”

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