Foreign loans or foreign investment is the way forward to develop Sri Lanka where the income generated locally is barely enough to meet the salaries of a 1-million strong public sector and pensions for 600,000 state workers, a senior minister said.

Speaking at the launch of the second phase of the Mirigama Investment Promotion Zone, Dr Sarath Amunugama, Minister of Enterprises Development and Investment Promotion, said last week that the local situation today is more dangerous as world prices of oil, food items and industrial products have increased and the society expects the government to extend more and more subsidies. Recently the government removed VAT from 20 items to ease the burden, he said.

He said that there are no philanthropists in the economic world and for all the loans they have to pay interest and capital sum installments. The best way he said is the foreign investments as it brings in new industries, employment, income for the government and part of the profits would be shared in the country.
At Mirigama, the existing Investment Zone A of around 100 acres are used by 10 enterprises in commercial operation which were started by investors from several countries. The new developments are Block B with 116 acres and Block 3 with 42 acres. The BOI Special Economic Zone at Mirigama has a 33 KW power and water supply. It also has a good road network and a waste water treatment plant.
Dr Amunugama said that Sri Lanka needs to develop modern zonal infrastructure geared to meet the requirements of high technology sector industries.

He said that Sri Lanka is a strategic location for shipping to Middle East and Far East and the country should enter the international market in a big way as in India itself there would be a large market of 50 million middle class income earners at which United States, Europe and a lot of other countries are trying enter.

He said that China is being developed under strict conditions and it never thought of industrial zones 50 years ago. Today there are no trade union activities in China, but every industrial corporation that is in operation has to pay 30 percent of their income annually and if not they have to close down or change the management. Those who try to propagate trade unionism would be caught and sent to asylums as lunatics.

He said that in Sri Lanka those who grow beards, shout slogans and involve in pure cultural activities could not develop the country. If they continue to do so, they should be prepared to eat less.
He said that the way forward is to develop technical education and people in short should work with their brains.

At the zone, other than the unveiling of a plaque indicating the launching of the new phase there appeared to be no tangible activity other than awarding statement of ownership of 15 perches of land each to 15 villagers who lost their land when the zone was set up 10 years ago. (QP).