No one can oppose this Bill
Prof. Sirimal Abeyratne, Department of Economics, University of Colombo
The Economic Transformation Act clarifies medium and long-term economic trajectory. Policies that apply to economic stability and credit sustainability are vital. These are very important for the people. When we say we have recovered, we do not mean that we have dodged our next economic crisis. But there is hope.
We need to take measures to become a developed country in the next 25 years. The basic course related to these matters is included in the Economic Transformation Bill. Its basic components are: economic growth, employment, export promotion, investment and poverty. I don’t think anyone can oppose this Bill. In today’s political climate, it is necessary to see a clear economic path and not pursue various political ideologies.
Agreements are seen in a positive light by the international community. Currently, we are not getting any foreign investments because our country is very weak from their point of view. Our neighbours see us as very backward. Investors have lost confidence in terms of economic growth and export promotion. The reason why there is no investor confidence is because we are divided. There is a general consensus that investor confidence is very important to win the economy. However, we are seeing a positive trend, in which the Sri Lankan economy will move to a very good place in the n ext 20 years.
These should be implemented properly
Prof. Priyanga Dunusinghe, Department of Economics, University of Colombo
One thing that is basically talked about in the Economic Transformation Act is the establishment of economic goals that are very important for macroeconomic stabilisation. Maintaining long-term conditions established with the IMF, maintaining debt burden at 95 percent of the GDP, maintaining balance of payments deficit at one percent of the GDP, and maintaining the economic growth at a level of not less than five percent.
This includes, in addition to macroeconomic stabilisation, three primary goals have been established. In terms of those goals, the goals related to achieving three basic characteristics that can be seen in developed countries during the period of the last six to seven decades have been set. Goods and services should be brought as a percentage of GDP. Sri Lanka’s current GDP has exceeded 21.5 percent. Here are the goals set to achieve that.
Efforts have been made to increase women’s labour participation. About 34 percent of the total women of working age contribute to the economy. It is very important that the Government aims to increase this amount to 50 percent. The only way to achieve economic growth through increasing labour force participation is through women’s labour force participation.
Total labour participation is 55 percent and bringing this to 75 percent is very important. Broadening investment supply is important for economic growth. Investments in Sri Lanka are 32 percent of the GDP. Government investment is about five percent of GDP. The rest is private investment. This quantity is not enough. As a developed country, we have gone into crisis by taking loans.
The only solution is that the Government has primarily set targets related to the promotion of credit investments. Foreign investment should be brought up to five percent as a target of GDP. Some goals should be set for that. Indicators for ease of doing business are in the world. For that we have to set some goals. Fraud, corruption and bribery are serious problems. To make a real economic transformation, along with this Economic Transformation Act, the Anti-Corruption Act should also be implemented properly.
A historic Bill in terms of economy
Sujeewa Rajapakse, Chartered Accountant, Chairman of People’s Bank
As a professional I see this as one of the most important Bills passed recently. Something that we hoped for as professionals has happened through this Bill. This Bill has clearly stated in which direction that the country’s economy will move. I see this as a historic Bill. Every five years, our political path, political opinions and vision are presented.
Whenever a new Government comes to power, we see them make a total turnaround. But thanks to this Bill, the sustainable development of the country will carry on. Also, the country’s prosperity and productivity have been discussed. Increasing the social role will give everyone an opportunity. It also mentions that the Gross Domestic Product should be five percent. It is very important. Regarding keeping unemployment rate at five we also have to discuss the brain drain. We believe that leaving this country can reduce all these things.
Increasing representation of women is very important. There are criteria that foreign investors look at when they come to Sri Lanka. Accordingly, attention has been focused on the percentage of women in the workforce. It is stated that women’s representation should exceed 40 percent in 2030. But this needs to be implemented by every Government. How do we boost women’s representation? Likewise, goods and services are also discussed.
This country needs an export economy, but what matters is how it is done. I believe that this is a very important Bill in recent history. These are good measures related to the economy. I also believe that it is very important that no Government can change it. Regarding the banking sector, we are working with 900 banks in the world. We are negotiating with investors. They too have undergone a great transformation; and are confident that Sri Lanka is headed in a good direction. I see this as a very constructive Bill that covers all areas. Officials in particular should understand that they must fulfil their roles.
Laws related to economy must change
Saranga Alahapperuma, Chairman Industrial Development Board
In fact, there should be a transformative change in our country through this Bill. Simply put, it requires a framework of rules and policies. A legal and policy framework is needed to make economic transformational change. The purpose of the President is to prepare for it. We have to change according to the new rules and global policies and move forward.
It is imperative that officials and politicians work to make this transformative change. It is the President’s aim to do that. Therefore, the rules related to this economy should be changed. It is a one-time requirement to create a legal framework. We should focus on foreign investment.
Especially, most investments can be brought from countries like China, Singapore and India. We currently have laws and barriers to bringing in investments from other countries. Also, the labour force of our country should increase. Women’s labour contribution is at 34 percent and that amount should increase. Normally it should be 50 percent. It is very important to pay attention to these aspects regarding the economic transformation of the country. Even if there are ordinances, they should be properly implemented by the departments.
A non-partisan Bill that puts Sri Lanka first
Prof. Prathibha Mahanama
There are many factors that led to the introduction of the Economic Transformation Act. We have come to an agreement with the International Monetary Fund (IMF) and are acting according to that agreement; but that alone is not enough.
The reason is that Governments can renege on contracts. Therefore, with the IMF’s vision in mind, we must prepare a strong structure to develop a future economy suitable for Sri Lanka. Although Sri Lanka has signed the 1966 Convention on Economic, Social and Cultural Rights, economic rights are still not enshrined in the Constitution. This is an act that brought together the private sector, the public sector and small and medium scale businesses. It is now spoken about internationally because the United Nations Human Rights Council drew attention to it last September.
Everyone agreed on one thing after a long time. This Bill brought all parties together for the country’s welfare. But passing the Bill is not enough; it should be made into a process. I say that entrepreneurship should be developed through this act and we should move forward through international relations. Political promises come from time to time and disappear. This has been made a law of the land; we must show that we are moving forward with the State. It has the potential to unify all economic plans to a centralised position.
It is important to create investment zones identified in this Bill
Prof. Prasanna Premadasa, Dean of the Faculty of Technology, General Sir John Kotalawala Defence University
This Bill must be approved by all patriotic parties. Foreign investment is very important in the development of countries like Sri Lanka. Institutions like investment boards should be more active. Foreign investment, women’s labour contribution, foreign entrepreneurship are things that need to be improved. To fulfil the hopes of achieving sustainable development of the country, all parties should support this.
Inefficiency and productivity should be increased and the export sector should be developed from the technical aspect. A large amount of foreign investment can be achieved from it. The relevant parties have a great responsibility to expand the subject of technology. Likewise, the necessary legal procedure for a foreign investor to invest is very complicated. Not being able to get them quickly is a problem. Therefore, the creation of an Economic Commission through this Act is a very timely step.
It is very important to recognise the need to increase women’s labour participation in this Act. Women’s labour contribution can also be obtained through increasing women’s entrepreneurship.
According to the Global Entrepreneurship Monitoring Report 2023, it has been observed that more women are self-employed than men globally. One in three entrepreneurs running established businesses is a woman.
Singapore has thrived by maintaining an open and heavily trade-dependent economy. Therefore, it is important to create investment zones identified through this Act. By creating such proposed zones in areas like Trincomalee and Hambantota, we can achieve great economic benefits. Open investment policies and free market economic policies are important for this. It is very important for the country to get projects in areas like digital innovation, pharmaceutical manufacturing, artificial intelligence and cyber security.
