Long read
Asiri Fernando
Colombo, Sri Lanka, August 23, 2024
Sri Lanka needs a mindset overhaul to motivate the nation and its workforce with an entrepreneurial drive and to recover and grow to become a nation where the citizens feel happy and that they are equal citizens of this land, asserted Sarvajana Balaya presidential candidate and Mawbima Janatha Party (MJP) Leader Dilith Jayaweera, in an interview with The Daily Morning.
Jayaweera, an entrepreneur turned politician, said that a future government of his leadership, if elected, would not deviate from the Extended Fund Facility (EFF) agreement with the International Monetary Fund (IMF) but would carry out future negotiations based on a strategic plan his party had developed, with the wellbeing of the public at the forefront.
Jayaweera advocates for Sri Lanka to urgently digitalise its State agencies, national processes, and trade, utilising a unique digital ID for every citizen and business as a tool to streamline Sri Lanka’s governance and business landscape to a more effective and transparent one.
Following are excerpts from the interview:
Given the current economic crisis Sri Lanka is in at present, what are key policies and national strategies which you plan to enact to steer Sri Lanka towards a sustainable recovery if elected?
Our 75 years of post-independence political history clearly shows that each leader has taken decisions based on that leader’s understanding for that particular moment in time. Sri Lanka has never worked based on a strategic plan. This is why our party has developed one with input from subject matter experts, and the public themselves. Sri Lanka must work to a long-term strategy.
An important example is that the Sri Lankan civilisation had made all its major investments into agriculture. Given that, if you see our approach post-independence, how many times have we diverted our economic policy from agriculture to other areas. Our predominant focus should have been, due to geography and our historical value base, on agriculture. I believe our competitive advantage should have been the agricultural sector. We have all the right conditions for it. Our civilisation has built the irrigation system to support it. For any country, they must have a focus area which is the predominant industry. There are other industries, yes, given our workforce, agriculture can be the focus area. At present, other industries can be supporting industries, they can be good revenue streams, but agriculture is our predominant industry at this stage. So, we have a national strategy for this.
So, as a country, we need a strategic plan, and it cannot be that of one individual. It has to be a long-term plan and have bipartisan support, and one that is well crafted. If not, we are an ad hoc state, with short-term plans that get us nowhere. That is why the Sarvajana Balaya has developed a robust national strategy which is a comprehensive document. I think everyone should study it. To power this nation and move forward with such a strategic plan, we suggest that our communities, our people must be infused with the entrepreneurial mindset. Without a paradigm shift in mindset this country cannot move forward.
Will a presidency or a government of your leadership continue the EFF agreement that Sri Lanka has reached with the IMF or do you plan to deviate from or change the agreement?
No, we will not deviate. It is the law of agency. When we have entered into an agreement as a sovereign nation, we must honour it. If we deviate, it will jeopardise our credibility. These multilateral funding agencies deal with sovereign nations. Such agencies lend and they too want to recover what they have lent.
We have got into trouble because as a country we have been irresponsible. We have been irresponsible in governance, so as a country we must work with such agencies, but how we work with them and with what kind of attitude we work with them makes a difference. When you are negotiating on behalf of a nation, keeping the welfare of the people as the priority is a different approach. But what is happening now, in my opinion, is that we have not followed such an approach in our negotiations thus far. I feel that the current Government looked at the negotiation as an ad hoc measure for its short-term political survival.
Sajith Premadasa, Anura Kumara Dissanayake, and Ranil Wickremesinghe are saying that we have to cross the vine-bridge, which means that all these parties are going to take the safest route. What makes us different is that, while respecting the agreements we have entered into, any negotiations from a government of ours will be part of a strategic plan. It will also be with the wellbeing of the people at the forefront of our negotiations. Our negotiations will be strategic, not short-term or ad hoc.
Sri Lanka has entered into agreements with bilateral creditors after much negotiating through a specialised platform, the Official Creditor Committee (OCC). If elected, will you honour the agreement or seek to change it? If changes are made, would not it affect Sri Lanka’s credibility internationally?
Yes. However, on that, I think we should explore if Sri Lanka can bring forward the settlements. I believe we should because these repayment agreements are all heavy interest-incurring frameworks. This country cannot bear this high interest. We need to find ways of managing our gap in terms of our foreign currency and start repaying our capital because our nation cannot sustain repaying such heavy interest.
How do you and the Sarvajana Balaya alliance plan to improve State revenue in the next five years and maintain State fiscal discipline, which Sri Lanka needs?
This is one of the key reasons why the Sarvajana Balaya alliance proposes to introduce a fundamental tool. We need to start by introducing a unique ID for every citizen and digitise every activity of this nation, including trade. We need to completely digitalise our economy. We should not leave any area left out of digitalisation. Once the full system of our country is digitalised, State revenue collection and compliance become much easier.
We must ask those who were in power up to now why Sri Lanka did not digitalise before. The world entered this structure nearly 20 years ago and is doing well, far ahead of us. Other economies have been digitised, from fiscal matters to defence. Of course, with such digitisation, we need to significantly improve our cyber security systems and enhance protection for our digital infrastructure too.
This is one of the key tools in our strategic proposal – immediately introducing the unique digital ID system, making everyone aware of it, getting everyone onboard, and formalising all transactions in Sri Lanka. That way we remove the room there is for a black economy and corruption. As a result, our fiscal deficit will be improved and bridged quickly.
Above all else, the unreasonable burden of taxation placed on our people can be eased. When wealth gets better distributed and the right people are taxed at the right rate, the unfair tax burden on the broader segments of our population can be reduced.
Will you change the current taxation system?
With 2% of our population consuming close to about 60% of the wealth of the nation, the poor are being taxed for the lifestyle of someone who may have about 20 vehicles at home. How fair is that? Our proposal to bring in a unique digital ID will enable restructuring of the taxation system, streamlining revenue collection, and better managing the trade system in the country. It will revolutionise the way in which we do business and run the country. It will also help to improve equality. In fact, I think this is the most socialist way of taxation and governance.
Sri Lanka is desperately in need of State sector reforms. Will you continue the governance reforms, including public enterprise reforms, that are ongoing? If not, why and what would you do differently?
The entrepreneurial state that we are talking about will look at this situation differently. If a state runs on an entrepreneurial mindset and policy, it is well placed to run entrepreneurships. If a state has law making and regulations in hand, if it has the capital, and if it needs to increase revenue, it can be part of some business and industry. How you are in business is a technical matter; you can be a 100% owner, a 50% owner, a landlord, or have part of the management. Or as the state you can be part of the management through Public-Private Partnerships (PPPs).
I think the Government should invest in businesses. The Government should have a hand in business, like in Singapore where Temasek Holdings Ltd. is a Singaporean State-owned multinational investment firm which runs many of the profitable businesses. The Government has the advantage and it can be in business if it is done in a proper manner. The State sector needs reforms. However, some State-Owned Enterprises (SOEs) may have to look at changing the business model.
An entrepreneurial state looks at such things from an entrepreneurial mindset. Take for example SriLankan Airlines. It has become a burden to the public because the State has not looked at it from an entrepreneurial mindset. It has become a white elephant not only because of Government ownership but because of how it has been managed. What we say is that an entrepreneurial state would look at the composition of the SriLankan Board, the strategic plan for SriLankan Airlines, and what agencies are taking part in the process.
We also need to look at branding. I believe that SriLankan Airlines is an integral part of our national branding; it is up there with Ceylon Tea, Ceylon Cinnamon, and brand Sri Lanka as a destination. SriLankan Airlines brings a lot of brand value and national recognition and also brings in equity to brand Sri Lanka. If Sri Lanka does not have a national carrier, that will have an impact on Sri Lanka as a brand.
I think Sri Lanka as a brand should invest some money in SriLankan Airlines. My argument is that we cannot look at it purely on a profitable basis; there are other aspects to consider. A national carrier is also a matter of national pride and motivating our people, so there is that consideration to be calculated about such matters as well.
How do you plan to address the long-standing issue of corruption and malpractice in the state sector?
I believe digitalisation of the Sri Lankan State apparatus and system will go a long way to curb corruption and malpractice. It will limit opportunity and access that enable corruption. This is how it has happened elsewhere. At the same time, our value base has eroded; over the last two decades or so, we have become more materialistic. I think that needs to change, which is why our end goal is ‘a happy nation’.
It does not mean you are going to be happy with the material comforts that you think you need. We do not want a culture where you are appreciated in society simply because you are rich. We had a better culture than that. Our civilisation is based on values, on right and wrong, on being noble and humble, so we need to change our way of thinking and our culture to ensure that corruption and malpractice are looked down upon and viewed as being unacceptable by the community. This is a change we plan to make.
What do you mean by your political philosophy of creating an ‘entrepreneurial state’? What does it entail?
When we say entrepreneurial state, some misunderstand what we mean by it. The entrepreneurial state we are talking about does not mean we want to be fixed on propagating entrepreneurships in the country. The entrepreneurial state is a holistic approach, a change in mindset and how we approach policies.
This is a diverse approach, it is about introducing creativity, management skills, and risk management to our young people. We have to teach our next generation these critical skills. If we infuse our workforce with an entrepreneurial mindset, we can increase their productivity significantly and make them more market-oriented. We can change this country. We can change our productivity if our workforce, our human capital, is enriched in such a manner. We can take Sri Lanka to higher levels. Our youth would not be scrambling to find greener pastures, because Sri Lanka will be the one for them.’t
Is it realistically possible to change Sri Lanka’s State apparatus, bureaucracy, and work culture to sync with the ‘entrepreneurial state’ concept? Or is it more of a long-term plan?
Yes, we have to accept that it is a tough thing to make this change towards becoming an entrepreneurial state. We will need a national approach. We will have to begin with childhood education at one end. We need to introduce creativity, management and risk management skills, financial literacy, and a sound grounding in our national value base from an early age.
As that generation grows up and moves into the decision-making category, they will bring with them a wave of change, so we can have a nation full of the entrepreneurial mindset, which will address issues and take on challenges in a very different manner from you and me. They will be driven as a generation to move Sri Lanka to a better future.
Technically a full rollout should take about a decade or slightly more, but what I say is that if you want to fast-track this change, we need to do a nationwide campaign. This has to be a whole island approach. This nation will be inspired by an overall change in mindset.
What is your plan to attract investors to Sri Lanka and improve the ease of doing business?
Investors seek several key indicators to invest in. Firstly, what protection can you give me for my investment? When we begin with the digital ID as a key tool of change and nationwide digitalisation, it will streamline everything in Sri Lanka – all the processes, and systems. It gives them confidence. Even the laws and regulations will be clear and transparent and they will also see that they are enforced on every investor in a fair manner. Our process will be transparent; they will know that with such transparency and a streamlined process, no one can ask them for bribes and favours or exploit them.
We also have to review our archaic legal system. We need to update our legal framework. We have a lot of red tape in Sri Lanka that makes doing business hard; such areas will have to be revisited, with the national interest in mind. We also need to show that we are serious about countering corruption; such cases must be fast-tracked and follow a transparent process and justice must be delivered soon. Investors must know that they will get justice in a timely manner.
How do you plan to address key issues such as ethnic issues?
I believe we should move away from this mindset of classifying ourselves as a majority and minority. We are Sri Lankans, period. This is what we mean by inclusive nationalism. My proposition is that we first need a change in mindset. No constitutional change or physical demarcation of the land will solve this problem; the problem is in our mind and it is through changing mindsets that we can address it.
We need every Sri Lankan to feel that they are equal citizens of the land. We cannot leave room for anyone to be treated differently. A country should work towards achieving such a frame of mind. However, the moment you move towards bringing in these other conventional tools, it begins to divide our people. As a country, we need to work towards a nation where we all feel that we are a part of Sri Lanka and that we belong there.
As Sri Lankans, I believe we cannot have a minority or majority, we are all Sri Lankan.
Given the increasing geopolitical pressures in the Indian Ocean Region, how will you shape Sri Lanka’s foreign policy if elected?
Sri Lanka should be multi-aligned, but strategically oriented for the benefit of our country. We should finetune our foreign policy to meet our national interests, our national goals, and objectives. It needs to be calibrated for the benefit of our people in the short, medium and long term.
Non-aligned is a loose term. You should be aligned for a purpose. What are we trying to achieve as a country according to our strategic plan? We should ask ourselves and decide which country is the best country for what we want to achieve. We can have our cultural links and security relations and have traditional friends. But we have to look at where our markets are as well. We need to be multi-aligned and strategically driven, with robust diplomatic and trade apparatus. We must also be part of regional architecture which suits our requirements.
Asiri Fernando is the editor of The Morning based in Colombo, Sri Lanka. The above article has been published here with the permission of the newspaper.
