Financial Times

"Even the LTTE tax was systematic"-Ramadasan
By Ruwanthi de Silva
The head of Jaffna's biggest trade chamber said he felt the political crisis was unlikely to trigger a return to hostilities but said it would slow down development in the north.

Markandu Ramadasan, president of Jaffna's Yarlpanam Chamber of Commerce, told The Sunday Times FT that people in the north were disturbed over the current crisis and the President's actions were seen as an unwanted disturbance in the peace process.

"This has affected business. We were getting used to a certain system, even the LTTE tax was becoming systematic. Now it seems like there is going to be slight changes. The uncertainty among the business community will slow down development in this area. I don't think this will hamper the entire peace process and I don't think anyone will go for military activity, but naturally there is a set back," he said by telephone from Jaffna.

He said economic activities will slow down while funds promised at the Tokyo summit may not come in for a while. Foreign investors will also be a little reluctant to come in. "We have been trying very hard to bring capital into the area. Now it's going to be a slow process."

Ramadasan said he wasn't sure whether Sri Lankan politicians are mature enough to work together but "hopefully the gap between the two parties will not widen further."

The business community may not be able to unite the two parties as the two parties appear to be divided in their attitude towards business, he added.

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