Financial Times

Tigers no barrier to business
By Ruwanthi de Silva
Companies trying to re-establish business ties with Jaffna have had no difficulties with the Tamil Tiger rebels, according to agricultural products distributor, Jinasena Engineering Holdings (PVT) Ltd. "The LTTE is not hostile towards businesses," said an official of the company, who are trying to re-enter its markets in the north. "They are courteous and efficient and we have not experienced any difficulties thus far," he added. Prior to the war, Jaffna was a booming market for all trades. With the onset

of war, Jinasena's lost more than 30 percent of its agricultural product market, including engine driven pumps. The rest of the country has yet to fill this void.
The potential markets in the Wanni and the north give an ideal opportunity for the company to recoup lost business. "Re-establishing business ties with our distributor required us to send a senior delegation to meet with potential distributors and once an agreement was reached, matters have proceeded smoothly," the company official said, explaining the transaction process. Jinasena Engineering has started distribution in Killinochchi in an attempt to re-establish business ties with the north and east.

The Wanni which consists of 125,000 acres of paddy offers great potential for the development of paddy and related businesses. Similarly in Jaffna, the onion cultivation is in full swing and this has opened up a huge market for agricultural inputs, cultivating machinery and agro-chemical fertilizer, he added. However, businesses still face problems in transporting their products to northern markets. The major trading items with the north are agricultural machinery such as two-wheeled tractors, tractor driven paddy reapers and engine driven rotary cultivators.
According to the rules of the Ministry of Defence , which are strictly enforced by the army, every single vehicle, which is not registered with the Registrar of Motor Vehicles (RMV), requires a special permit from the ministry.

"We understand that this rule is applied to prevent stolen vehicles being taken to Jaffna," the Jinasena official said. "However, in the case of agricultural machinery such as two-wheeled tractors, this is an absurd requirement. "We do not see any reason why anybody would want to steal an agricultural two-wheeled tractor in the south and take it to the north. It is time for this government to make an enlightened reassessment of the rules and regulations that were applied during the war period and remove constraints, whichonly act as a hindrance. In addition the permit system creates additional expenditure and delays."

One way of achieving the same objective is to consider wheeled vehicles as either imported vehicles, or in the case of this company, those manufactured. In the case of imported vehicles, every single imported vehicle will have a corresponding Customs duty paid document clearly stating the engine number and the chassis number. So, if an importer wishes to send these for retail in the north, the Customs document should suffice. In the case of a recognized manufacturer, a certificate from this manufacturer should be sufficient to prove that the item being sent is new, and not stolen.

By this method it would be possible to reduce a lot of unnecessary paper work and make the movement of goods much easier, the Jinasena official said. While the LTTE imposes a tax on all goods taken to Killinochchi, this doesn't pose any problems to the business transactions; the tax ultimately is recovered from consumers. Prices charged for the goods are slightly higher than that charged in the other parts of the country mainly due to the tax, he said.

The future prospects look good and the official said he is confidant that sustained peace will bring about better business opportunities. "It would be a long time before we go and set up our own organization. At the moment we are happy with the progress our distributor has made," he said. The foundation for re-establishing business ties must be on mutual trust, honesty, integrity and simplicity.

The people of the north and east are cultured and refined. It is important that we see eye to eye and acknowledge the fact that we are one and the same, he added. Integration has taken place in Trincomalee and the east, and businesses are doing well. The same approach must be used for the setting up of businesses in Jaffna, he said.

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