ISSN: 1391 - 0531
Sunday, June 03, 2007
Vol. 42 - No 01
Financial Times  

Never-ending crises for Lankans

All of a sudden there is a plethora of issues faced by Sri Lankans on all fronts. On the war front, there is a humanitarian crisis evolving and fears of full scale war breaking out in the Wanni and Jaffna peninsula.

Traffic snarls are angering motorists and bus passengers not because of security checks but due to VVIPs taking over the road when they move around. Wasting valuable time on the roads – most people now leave 10 to 15 minutes earlier than planned to reach their destination and keep that appointment. You never know when you would get stuck in traffic for at least 10-15 minutes because of a VVIP. Time and usage of more fuel also costs the economy dearly.

Corruption is rampant though the results of a recent poll by a respected research agency, as reported by our columnist WOO today, shows otherwise. The study says many businessmen have no problems with greasing the palm and believe it’s part of business – at least if a reasonable sum is being requested.

That of course won’t take into consideration the one-billion rupee reward for some government high-ups if the NTT-Maxis deal goes through. From all accounts and despite the public outcry for transparency, the deal is going through if Defence Ministry clearance is given.

COPE Chairman Wijedasa Rajapaksa had some strong words this week to say on corruption, transparency and accountability. He said ministers should be asked to respond to corruption issues in areas under their purview and slammed both the main political parties for using corruption as a political football. Crossovers, he noted, were now resorted to as a protective mechanism against MPs facing corruption charges.

The economy itself is facing a crisis. Despite bold denials from government officials including the Treasury Secretary of a cash crisis, how does one explain the shortage of funds to pay off government contractors in totals reaching billions of rupees? Contractors’ bills are not paid resulting in the supply chain not being paid in return.

Interest rates are high but the Central Bank says inflation is decelerating. Ask any small-town Punchi Singho and he will tell you that it’s costing him more and more to buy his basic needs. If that isn’t rising inflation, then what is? The fact is that the middle class in particular are being squeezed out day after day, month after month as costs rise. Salary hikes of course move at snails pace compared to inflation. Fuel prices are like a pendulum – this way and that way. You don’t know when you wake up in the morning whether prices have gone up.

The urge to migrate is growing and the number of advertisements on opportunities in Australia is a reflection of the trends.
Then the suave advertising fraternity is also in turmoil – all because of what they call ‘scams’. To the public at large, a scam is a con, a rip-off, cheating, etc. However in the advertising lingo, in most parts of the world we are told, scam is a decent thing, a work of art. Doesn’t make sense!

Beyond this the biggest headache confronting business is the abductions-for-ransoms.

This has completely got out of hand with all kinds of gangs getting into the game under an easy-money-easy exit exercise. Victims are too scared to inform the police out of fear since even some policemen and security forces personnel are involved.
This is a reminder of the July 1983 era when rioting against the Tamils were sparked by some pro-government goons only to find elements on the street taking over. It was then that the late President J.R. Jayewardene sought to put a stop to it; five days after the riots broke out.

Muslim businessmen are the targets after Tamil entrepreneurs and traders were the initial victims. Sinhalese businessmen are also being targeted. Millions are being doled out as ransom money and many Muslim businessmen fear they would be next on the list. The government’s “inform us and we’ll investigate” response is pathetic given that some ruling party politicians and their henchmen are involved. Some big time corporates are running training programmes on risk management essentially on protection of senior staff and their families. There is hidden terror across sections of the business community which the government chooses to ignore purely because no one has come forward. Big business – the chambers – have also chosen to be silent, a sad state of play in this country.


 

Top to the page
E-mail


Copyright 2007 Wijeya Newspapers Ltd.Colombo. Sri Lanka.