federalidea.com

Full Text of Speech by Ambassador Robert Blake to the University of Moratuwa’s Closing Ceremony of Mentoring Program, Conference Hall of HNB Towers, Friday, May 9, 5:30 pm:

It’s a pleasure to attend this event today on behalf of my government. I am honored to participate in the closing ceremony of the mentoring program in the Department of Computer Science and Engineering. I also am pleased to help acknowledge the winners of the programming and drama competitions.

[Ambassador Robert Blake, file pic]

Today we celebrate two important themes in academic life: excellence and mentoring. The programming and drama award winners deserve our respect for their intellectual excellence, while the mentors deserve our admiration for their generosity and dedication.

While I occasionally get asked to do things that do not fall under the banner of normal diplomatic duties-like race down Galle Face with full champagne glasses-I certainly never won a programming or drama award. But I have had the benefit of great mentors throughout my educational and professional life, who taught me as much or more practical advice than I could ever have learned in a textbook. I commend today’s award winners for their achievements and applaud today’s mentors for sharing their knowledge, experience, and time.

The Knowledge Economy

I would like to focus my remarks today on what the World Bank and others often call the knowledge economy.

The World Bank defines knowledge economies as those that create, disseminate, and use knowledge to enhance growth and development. The Bank recently published a report describing how Sri Lanka could benefit by becoming a knowledge economy. It explains that a knowledge economy requires that the government focus on investing in education, innovation, and information and communications technology.

In a knowledge economy, knowledge products are traded and are more highly valued than traditional resources. A quick look at the statistics shows that Sri Lanka is moving away from industry and agriculture towards a service-based economy, as services now contribute 56% to the country’s GDP. So Sri Lanka is already headed in the direction of becoming a knowledge economy.

But this is not just about services being more important than industry or agriculture domestically. For Sri Lanka to truly prosper, it has to become a knowledge economy that is regionally and globally competitive.

What is necessary for this to happen?

To answer that, let’s look at a specific knowledge-intensive sector: business process outsourcing. The BPO industry involves providing business services that are less expensive, but as good or better in quality, than those previously based in more developed higher wage economies. Such services can range from call centers to accounting to software development.

Sri Lanka already hosts a number of impressive BPO operations. But as you all know, it is India that is widely regarded as the world leader in this sector. That is because, for the last decade or more, India has invested in its educational system, rewarded innovation, engaged the private sector in this area, and encouraged research and development.

India’s rise as a knowledge economy creates an opportunity for Sri Lanka to ride the same wave, as investors become more familiar and comfortable with South Asia. However, Sri Lanka will need to hurry in its implementation of knowledge economy reforms, because there are many other South and Southeast Asian countries also are eager to replicate India’s success.

To get ahead of this pack, Sri Lanka will have to do three things: expand and improve higher education, reward innovation, and invest in information infrastructure.

These have to be national goals. But the trick is that they cannot be easily achieved through government action alone. Instead, they are best realized when the government coordinates its efforts and pools its resources with the private sector-in other words, through public-private partnerships.

Here are three ways I believe public-private partnerships can set Sri Lanka on a course to become a truly world-class knowledge economy:

Expand Access to and Quality of Science Education

First, Sri Lanka needs to increase both the quantity and quality of higher education and vocational training. Sri Lanka’s public expenditure on education has remained at between 2-3% of GDP during the past decade and a half, compared to a 3.5% average in the rest of South Asia. The result is clear in Sri Lanka’s educational statistics. Around 150,000 Sri Lankan students pass their A levels to qualify for entrance into university. However, the 16 public universities in Sri Lanka can only accept 18,000 students. Of these, only a few thousand are able to study Information Technology, due to the limited size of IT faculties and facilities in the university system.

Because of these limitations, many bright Sri Lankan students are forced to attend university abroad or to stay here but study subjects other than science or IT. According to the Central Bank, about 32 percent of students at local universities study social science and humanities though these fields are less likely to lead to productive employment after graduation. This is a major lost opportunity, as there are many IT jobs in Sri Lanka going unfilled because firms cannot find workers with the required IT skills.

To address this, the government should encourage formation of more private universities in the country. Indeed, I was encouraged that the Central Bank recently called for laws to be changed to allow private universities to be established to bridge the skills gap in the country.

Of course university education may not be for everyone. In fact, 75% of those employed in India’s BPO sector have only an O or A level education – that is no university degree. While those employees don’t have degrees, they do have skills. To rapidly meet the demand for skilled workers here in Sri Lanka’s BPO sector, the government should set up vocational IT training centers to help meet the growing labor demand by local BPOs.

An excellent example of how public-private partnerships can cooperate to develop a skilled workforce is USAID’s state-art-of-the-art Samanturai Vocational Training Center in Ampara district. This center will train specialists for the apparel industry. While the center will be operated by the Vocational Training Authority, a partnership with the Joint Apparel Forum Association will ensure that graduates have the skills industry needs. The IT industry should consider similar public private partnerships.

Sri Lanka also needs to improve the relevance of what its educational system teaches. I have already mentioned the importance of IT programs. Another critical skill is English language training. Whenever I talk to companies about their hiring needs, they tell me that they will hire virtually anyone with good English skills. The US Agency for International Development has collaborated with the Ministry of Education to create a center at the University of Peradeniya to train English teachers who can then be deployed to schools around he country.

I was pleased to see recently that Sri Lanka and India recently agreed to collaborate with private investors from both countries to create a Job-Oriented English Language Program called “English as a Life Skill” that will teach communicative skills in IT related BPO industries.

The lesson here is that, whether through university or vocational training, public-private partnerships can ensure that real skills are taught in fields that truly reflect the needs of the marketplace.

Reward Innovation and Boost Research and Development

The second way public private partnerships can help Sri Lanka become a knowledge economy is by encouraging and rewarding innovation. According to the World Bank, Sri Lanka’s output of research papers, patents, and innovative new products is lagging. In 2004, the government spent only 0.14% of its GDP on research and development. This is far short of the Mahinda Chintana goal of 1.5% by 2016, six times less than what India spent, and ten times less than what China spent, in terms of percentage of GDP.

As a bridge between academia and the world market, private sector firms know what research is relevant and in demand. They can help universities improve academic curricula and assist researchers in marketing their findings. The private sector can also infuse money into a university to help finance research to develop innovative, commercially viable products. In turn, universities will produce qualified graduates that private companies need.

The University of Moratuwa understands the significance of these private-public partnerships – this is a major reason why the university is producing many of the country’s top scientists, businessmen, and policymakers.

As is often the case around the world, American companies are leading the way in forming these partnerships with the University of Moratuwa. For example, Microsoft Sri Lanka partners with the university to equip its computer labs with the latest Microsoft developer tools, operating systems, and server software.

Virtusa, another American IT company with offices here in Sri Lanka, has also collaborated closely with the university. Virtusa invites university staff to attend its in-house IT and management course, while also sending some of its best technical experts to teach courses at the universities. And Zone 24/7, an American technology development company, recently established an R&D laboratory here at the University of Moratuwa.

But the government should not just wait for private sector firms to initiate partnerships like these. Again, the role for the government is both direct and indirect: it can stimulate the knowledge economy directly by increasing public resources devoted to R&D and indirectly by offering tax and other incentives that make it less risky and more attractive for companies and universities themselves to invest in research and development.

Invest in Information Infrastructure

The final way public-private partnerships can boost Sri Lanka’s transition towards becoming a knowledge economy is by improving basic information infrastructure. According to the World Bank, an increase of 10 mobile phone users per 100 people can boost GDP growth by almost 1%. And a 1% increase in the number of internet users can boost GDP growth by 4.3%. In its report, the Bank states that the best way to encourage a high quality and low cost information network is by establishing a liberal regulatory structure that allows for competition and private sector participation.

The Bank notes that Sri Lanka made real progress by liberalizing the telecom sector in the late 1990s. But there is more to do in this respect, as the market is still not as competitive as it could and should be.

And where competition alone doesn’t provide the needed information infrastructure, private public partnerships can again fill the gap. One I am very proud of is our own U.S. Agency for International Development’s Last Mile Initiative. In this, USAID is partnering with Dialog Telecom, Microsoft, Qualcomm, the National Development Bank and Lanka Oryx Leasing Company to create 50 rural internet and communication centers island-wide. We have heard from various local and international private sector firms that they expect to finance-on their own-an additional 450 new high speed internet centers in the next two years, now that we have demonstrated that the model is successful and viably profitable. That is the power of public-private partnership!

Conclusion

I began by noting that today we are honoring academic excellence and mentoring. I think it fitting that these are in fact both important components of a healthy knowledge economy. In this sense, the University of Moratuwa is, as always, leading the way to a prosperous and competitive future for Sri Lanka. And you, the students and faculty, are the human dimension-the most important dimension-of the knowledge economy. So, whether your future lies in research, teaching, or business, I urge you to maintain your commitment to academic excellence, and to give back by mentoring those who come after you.

I congratulate you and wish you continued success.

[Source: US Embassy. Colombo, Sri Lanka]

by C.V.Wigneswaran

Akanda Mandalaakaaram Viyaaptham Yena Charaacharam Tatpatham Dharshitham Yena Tasmai Shree Gurave Namaha.

Madam Chairman, my dear brothers and sisters!

Closing in on the psalmist’s three scores and ten years, age wise many of us are legacies from the past. As a student and then even as a young legal practitioner at the time Senator Tiruchelvam was a Minister, I remember myself firmly believing that the future of this Country was going to be all rosy and happy. The tomorrow was going to be better than the today of those yesteryears, I thought. But alas! It had got worse and worse so much so, from a political perspective those few years of Dudley Senanayake’s stewardship as Prime Minister appears as an oasis in the midst of a long stretch of barren desert soil.

[Justice CV Wigneswaran speaking at the book launch]

The release of “Senator Tiruchelvam’s Legacy” is timely. It reflects the staid sobriety of a by-gone age during our own mundane human existence, quite out of step with the belligerent,blithering,bullying,barbaric and boorish outfit of today boastfully though beguilingly referring to itself as benignant and beneficient,benevolent and even blessed. Those of us bred in the Western public school traditions yet having also imbibed the perennial virtues of our Eastern values find it difficult to classify the negative norms and superficial standards of the present era into anything worthwhile Eastern or Western, traditional or modern, national or international. A hybrid new culture alien to Western and traditional Eastern culture though possibly borrowed from the seedier sides of those two cultures, seems to be taking root in this country. Naked selfishness, rank self interest and the spirit of self aggrandizement, conceit and egotistic imperatives seem to motivate today’s possessors of power and authority. Holding on to the reins of government at any cost has become the principal dogma and doctrine to be pursued. Destroying one’s opponents using any means or modes has become a cult. Dead men do not talk has become the principal motto of their outlook.

Just forty years ago it was not so. Democracy had a meaning. You could discuss your differences without despising your opponent. Today even the heads of organs of State carry venom and vituperation in their veins however much they camouflage their nakedness with high sounding patriotic and religious epithetic garbs.

It is amazing to see the change of values, norms and standards since forty years ago. May be we who were born during British times and bred after Independence are considered today as anachronisms to be tolerated since we will be no more in a few years’ time.

I like to show the difference in perspectives between the time of Senator Tiruchelvam and the present era. If you take today’s Parliament none seem to be interested in what is taking place there except to the extent as to what benefits, attendance in Parliament, could bring upon them. Arguments in Parliament in comparison to the earlier period are puerile and often borders on personal vituperation.

The by gone era of Senator Tiruchelvam discussed in a dignified way the most distressing political problem that beset them at that time. No white vans took valued relatives of Parliamentarians as hostages to manipulate voting pattern in Parliament. Crossing the floor for Ministerial benefits was minimal.

I like to quote late Mr.J.R.Jayewardene,who later became the first Executive President of this country, when he paid tribute to Senator Tiruchelvam on his demise.JRJ was a contemporary of Mr.Tiruchelvam at the Ceylon Law College and a colleague of his in Dudley Senanayake’s cabinet. Having said that Mr.Tiruchelvam was a Minister of great acceptance, he continued thus-(I quote) “He never obtruded in our discussions .When he intervened it was acceptable and civilized”.(unquote) This civility is missing today amidst our Parliamentarians. Each appears to be a bull in his own China Shop.

I sometimes wonder whether we could ever visit the earlier intellectually stimulating period of Parliamentary debates, our Parliamentarians in recent times having tainted themselves with brutal prejudices and boorish pretensions.

Dr.Colvin R. de Silva had this to say about Senator Tiruchelvam.(I quote) ‘He had of course even in political discussion, a certain tenacity in respect of decisions to which he had already come in that field and which decisions he was seeking to pursue. But he did even that in an extremely agreeable and pleasant manner so that one could after a discussion that might have turned heated, terminate the discussion as good friends who had had a discussion on a matter of utmost difficulty” (unquote).

Such a quality was of utmost necessity in the field of Parliamentary activity where members had to face each other daily. However agitated the generation of Tiruchelvam and Dr.Colvin R.de Silva were,they hardly ever transgressed acceptable behavioural patterns of dignified Parliamentarians. One wonders whether in today’s Parliament the atrocious behavioural practices are staged for the consumption of their TV watching constituencies. After their unacceptable boorish behaviour we find Parliamentarians showing a rare camaraderie outside the Chamber. May be birds of the same feather but of different political hues are cahoots in deals which give them each personal benefits. The show in Chambers may be a cover for their nefarious activities.

Another quality of Senator Tiruchelvam portrayed in the publication under review today was his conviction that this country belongs to all its citizens. He was individualistic when wanting to uphold the rights and privileges of a particular ethnic group among the denizens of this Island of ours. But he was at the same time nationalistic and viewed the country’s citizenry as one composite whole and therefore willing to co-operate and inter- act at the public and national level. In fact he was resolutely in favour of a united and plural Sri Lanka and therefore opposed the 1976 Vaddukottai Resolution that demanded a separate State of Thamileelam and advised Mr.Chelvanayagam against it. Obviously he still had faith in the humaneness of those politicians among the Sinhalese who drove the Tamils to pass that Resolution as a last resort much against their innate wishes.

There is an unfortunate tendency today among many of our Sinhala Buddhist brethren to view and consider those who speak up for the rights of the Tamil speaking people as traitors and terrorists. What is amazing in this perspective is that many of them believe in such trash. When I made my acceptance speech, on being elevated to the Supreme Court in the year 2001, in all three languages including Sinhala, referring candidly to the problems of the Tamils of Sri Lanka there were many of my colleagues who were otherwise well disposed towards me who were shocked and looked upon me like a visitor from an alien planet. It took some time for them to realize it was the same old Wigneswaran because I showed no difference in my day to day behavioural pattern. If my right to express my views about the community to which I belong to, is considered traitorous and terroristic, I used to wonder how justice could be expected from some of these colleagues in cases in which minorities were before Courts. Did it not mean that these gentlemen had fallen prey to prejudices and predilections? They simply could not take the trouble to understand what I said and if necessary vehemently argue with me rather than being at once prejudiced.

Mr.Tiruchelvam refers to a similar incident with regret in his maiden speech in the Senate on the 30th of April,1965.Speaking about the introduction of the Language of the Courts’ Bill in Parliament he said unfortunately Mrs.Bandaranaike was out of the Island on that date and it fell upon the then Minister of Justice to introduce the document.Mr.Tiruchelvam then went on to say as follows-(I quote from the publication under review)-”I regret to say this but I have to say it for the purpose of record-Although he was the Minister in charge of the subject ,that is the official language,(he) had not read the Bandaranaike-Chelvanayagam Pact. He did not know the principles enunciated by Mr. Bandaranaike on this matter. Indeed, even at a later stage during the Satyagraha movement, when we had negotiations for the purpose of settling matters, to my utter consternation and horror I found that he had not read the Bandaranaike Chelvanayagam Pact. I thought to myself that the destinies of this country, the destinies of hundreds of thousands, nay, of millions of people are entrusted to people of this type who did not have even the elementary responsibility of familiarizing themselves with that important document or at least one section of it “.(unquote).

May be the then Minister of Justice was an exception at that time. But today his types are the order of the day. Prejudices, predilections, apathy and indifference affect most of our politicians today. A craving for power and money drives them. Make hay while the Sun shines they seem to be saying. What happens tomorrow is not our business they seem to be thinking.

How stupid would it be to think that militarily overcoming the LTTE or killing its head would solve the ethnic problem of Sri Lanka.The LTTE is the offspring of the ethnic problem itself created by the successive mono ethnic parliamentary majority in Sri Lanka. It was State terrorism on their part which created the Liberation Tigers. The ethnic problem concerns the denizens of the Northern and Eastern Provinces who had lived in their areas for centuries from pre historic times. True there were influxes of Tamils at various stages of our history. But the fact that right throughout history the Dravidians had occupied the present Northern and Eastern Provinces and even more lands surrounding them cannot be disputed. The Buddhist remains in the North are the remnants left by the Demala Bauddhayo not any body else. Buddhism flourished in South India too at that period of history. Even though students join a College like say Royal College from Royal Primary or after passing the Scholarship exam or at the level of GCE Ordinary Level or even at some other class they are all called Royalists. You don’t call them by any other name. Similarly whatever may have been the period at which Tamils may have arrived in Sri Lanka we cannot dispute the fact that always the Northern and Eastern Provinces were occupied by Tamil speaking people including the Muslims.Whether the East came under the suzerainty of the Kandyan King was irrelevant.If it is relevant then the fact that the Tamil King Elara wielded power over the entire Island would also become relevant.I hope you understand the connection.

From the time of Independence large majority of the people of these two provinces have shown their preference for a live and let live policy by supporting parties which declared a federal form of government as the best for this Island. When federalism was jettisoned by the so-called National Parties then only the Vaddukoddai Resolution was passed in 1976 despite opposition by Tamils like Mr.Tiruchelvam . From that time emerged the military arm of the Tamils however imperfect or perfect they may be. By destroying the military arm you don’t destroy the aspirations of the people who had been deprived of their legitimate rights. And you are dealing with Tamils whose literature and culture are as old as or older than the oldest civilization in this world. Once the civilization of the Lemurian Continent comes to light much of the information about the antiquity of the Tamils now shrouded in mystery would be brought to light. I say this only to point out that you cannot trifle with people who are heirs to civilization and culture of such antiquity. Let us not forget despite China annexing by force the land of the Tibetans their problem is still kept alive by Dalai Lama and others .Killing Pararajasingham,Raviraj or Maheswran or any other Tamil Politician or political agitator or even Prabakaran will not silence the Tamil people whose whole existence as an ethnic and linguistic unit from ancient times is being jeopardized by successive insensitive Central Governments.

There are no terrorists who are born into this world. They are made. Mostly by persons in power and authority ,the mighty and the powerful, due to their selfishness and insensitiveness which give rise to resistance and reaction. Such mighty conveniently call those unable to accept their dictatorial dictates by names. Earlier they were called Communists, then Fundamentalists and now Terrorists. It is the terror tactics of those in power and authority which creates such antagonistic opposition and hostility. Those in authority who lack humanism or who have personal and selfish agendas of their own take cover behind such loaded terms such as Terrorism and Terrorists. The period of Tiruchelvam fortunately was devoid of such persons though not too later the 1971 JVP insurrection took place. There again it was the insensitiveness of successive governments towards the needs and aspirations of the poor and downtrodden people of the South which gave rise to such insurrection. It needs to be said in favour of Dudley Senanayake that he was prepared to discuss and adjust matters with those having opposite views instead of taking cover behind such terms as Naxalites and terrorists.

Yet Mr.Tiruchelvam could not continue to be in the cabinet on account of certain disputes that cropped up with regard to the Koneswaram Temple in Trinco and also due to the chauvinistic attitudes of many in Dudley’s party in power who prevented the implementation of the Senanayake-Chelvanayagam Pact. Mr.Tiruchelvam resigned in September 1968.

His last months were spent in successfully defending Mr.A.Amirthalingam and three others charged with sedition for peacefully defying the 1972 constitution. Two seniors led him in Court-S.J.V.Chelvanayagam, K.C. and G.G.Ponnambalam, K.C. the leaders of two opposing Tamil political parties. For a wonder Tamil birds of different feathers joined together. As expected they were successful. God made the Tamils disunited for the same reason that he denied horns to horses. They could be invincible if united. But I doubt their ever uniting. The verdict at the Trial at Bar was a triumph for the rule of law as stated by Mr. Ram Balasubramaniam in his introduction to the book under consideration.

Even before the 1972 constitution was enacted Mr.Tiruchelvam had warned with regard to its legality. In the course of his speech on the 30th of June 1970 after the new United Front Government under Mrs.Sirimavo Bandaranaike was sworn in he pointed out that the Constituent Assembly which was due to be set up by the newly elected Government was illegal. He said as follows-”There was not one single speech, not one single talk indulged in the election campaign that there was going to be a Constitutional Assembly. How can there be a constituent assembly when the Government Parliamentary Group does not have a single Tamil elected representative to represent them and carve out a constitution?” Continuing he asked “How can you talk of a constituent assembly formed by a mere Resolution of the House? By a mere Resolution how can you make it a constituent assembly?” At page 281 later on he pointed out that sovereignty was vested with the people. Therefore unless those elected were people who were elected or selected ad hoc for that purpose such constituent assemblies would lack the necessary legal authority. The Constituent Assembly in India was an ad hoc body, he pointed out. He said it was specifically elected to exercise the sovereignty of the people and to create a constitution. But here what they are seeking to do, he said, is rather an amusing piece of effrontery- that is for the other House to arrogate to itself the power to frame a constitution and to make that constitution to work. He pointed out as per page 285 of the publication under review that we cannot adopt and operate a constitution unless you have it as a legal document, unless we are vested with the legal power. That legal power he said can only be vested in us by an Act of Parliament may be with a two thirds majority.

I was in Court when the late inimitable C.Suntharalingam brought an action before the Supreme Court stating that Section 29 of the then Constitution was in danger of being done away with. Chief Justice H.N.G.Fernando said it may or may not happen.Mr.Suntharalingam said it would be too late to come into Court if the entrenched Section 29 was arbitrarily done away with. The Chief Justice was impassive. The section was done away with. Again Mr.C.S was before Court. The Chief Justice said we are working now under the new Constitution. We cannot under it question the legality or otherwise of any provision. That was the end of the journey for Mr.C.S.The 1972 Constitution lacked legality.

Similar dramas are being effected in the North and East today. Without the consent of the people affected, without the consent of persons lawfully elected by the people, certain institutions are being set up. State thuggery seems to be the name of the game. Men and institutions remain free only when freedom is founded upon respect for the Rule of Law and if grievances are redressed by constitutional methods. But if all constitutional methods fail to redress grievances of sections of society who have been subjected to innumerable hardships due to callousness and indifference and may be even partiality of successive Governments in power, how are they to redress their grievances by constitutional methods? Let us not forget that East Pakistan became Bangladesh on account of the indifference of the then West Pakistan to the real grievances of the people of East Pakistan.

It is to be said in favour of Mr.Murugeyson Tiruchelvam that until he breathed his last he believed in the goodness of all men. I wonder whether the pendulum would have swung to the other extreme if he was living today. I thank you for your patient hearing.

[Full Text of speeech made by Justice C.V.Wigneswaran, Retired Supreme Court Judge-at the Book Release: "Senator Tiruchelvam's Legacy"-a Vijitha Yapa Publication On 1st February 2008 at the New Kathiresan Hall, Colombo, Sri Lanka]

January 23, 2007: Ambassador Robert O. Blakes Remarks at the Opening of Marvell Sarvodya Vocational Training Center, Batticaloa:

Dr. A.T.Ariyaratne, Mr. Arumainayaham, Mr. Careem, Ms. Sharadha de Saram, Ms. Shelagh Savage, Distinguished Guests, Ladies and Gentleman, I am so pleased to be here to help open this school which will help many Sri Lankans build a better future that they desire and most certainly deserve. I sincerely thank you for inviting me to be the Guest of Honor; it is a great honor indeed.

I would like to begin my remarks with a quote from a wise former President of my own country, John F. Kennedy. He once said that, “our progress as a nation can be no swifter than our progress in education.” President Kennedy’s words apply not only to the U.S. but also to Sri Lanka and every other country in today’s competitive, globalized world.

Important investments in education and training, such as the one we are celebrating here today, will help the young people of Sri Lanka, your country’s most important asset, to assure a bright future for this nation and themselves.

There are many people I would like to acknowledge. First, it is always an honor to share a platform with Dr. Ariyaratne, the Founder of the Sarvodya Movement which has done so much to benefit Sri Lanka.

I also want to acknowledge and thank the two American partners in this project. The Marvell Charitable Fund of the United States and Give2Asia, a US-based nonprofit established by The Asia Foundation to promote philanthropy to Asia, both provided generous funding for this project.

Most of you know that the U.S. is the largest donor of development assistance around the world. Perhaps less well known is that assistance from private sources in America, including nongovernmental organizations and businesses are more than for times what the Government provides. Marvell and Give 2 Asia are two important and wonderful examples.

Ladies and gentlemen, the US Agency for International Development has been working in the east for many years. Of all the important things we are doing, there is perhaps none more crucial than vocational training. USAID is now building nine vocational training centers in the east and south through our Tsunami Reconstruction Project, and we have contributed significant resources to help work on two additional centers through our Transition Initiatives program.

In partnership with the Sri Lankan Vocational Training Authority, these vocational training centers will deliver quality training, job counseling and placement assistance and school-to-work services that promise to improve employment possibilities for 20,000 young people between the ages of 15 and 25.

These institutions of learning will help young people become productive members of society by teaching skills in trades that lead to well-paying jobs, helping Sri Lanka grow into a more prosperous country.

One of the most impressive aspects of this new Centre is not only the building itself, and what is inside it, but also the process that has led to this event here today.

Prospective students were encouraged to participate in the construction work. The hands-on training in areas such as masonry and brick work, carpentry and plumbing, they received will improve their future employment prospects as well as giving the community and beneficiaries a sense of pride in the new facilities. You should all be proud of what you have accomplished.

Another unique and promising feature of this center will be the language skills training. Sinhala speakers can learn Tamil, Tamils can learn Sinhala, and both can learn English. These language skills will create new opportunities for cooperation, mutual understanding, as well as employment.

Ladies and gentlemen, the United States is committed to working with the Government of Sri Lanka, our friends in the private sector, and the NGO and donor communities, to stabilize and reconstruct Batticaloa and the rest of the East.

We are working to ensure that this process takes place in a manner that enhances relations between the Tamil, Sinhalese and Muslim communities, and gradually puts authority for local administration into the hands of elected representatives from each of these communities.

The Batticaloa district elections office is now accepting nominations from political parties to contest for seats on nine local councils in Batticaloa.

These elections mark an important opportunity to give citizens in areas formerly controlled by the LTTE their first elected representatives in years.

But free and fair elections cannot be held if one party is allowed to bear arms and intimidate and threaten voters and other contestants. Unchecked paramilitary activity also discourages the private sector investment that will be crucial to the future of the east.

That’s why the United States believes that paramilitaries including the TMVP must not be allowed to carry arms, but should instead compete with the strength of their words rather than the threat of a bullet.

Free and fair elections without violence or intimidation will help stabilize this region give its inhabitants new promise and hope for a secure and prosperous future.

Let me again thank you and congratulate Sarvodya and our partners on your completion of this new beginning. My Embassy colleagues and I stand ready to help in any way we can to advance this worthy endeavor.

Let me conclude by quoting an Old Persian proverb that says “when it is dark, you can see the stars”

Batticaloa has experienced many dark days.

But thanks to efforts such as the one we are celebrating today, the young people of Batticaloa can begin to see the stars again, and a brighter future for themselves and their country.
_________________________________

[Sunrise in Batticaloa Lagoon-Pic: HumanityAshore]

By Robert. O. Blake. Jr

Professor Fernando, Professor Orlin, Dr. Ismail, distinguished guests, ladies, and gentlemen,

I would like to commend Professor Ravindra Fernando, the Centre for the Study of Human Rights, the Justice and Peace Commission (India), the Human Rights Education Consortium International (New York), and the Institute for Community Organization Research (India) for organizing this event, for your kind invitation to be your chief guest, and for the opportunity to speak on a subject of great importance to us all.

The friendly relations between the United States and Sri Lanka go back almost six decades. As Sri Lanka approaches the 60th anniversary of its independence, we want to build upon those ties to help Sri Lanka achieve peace, strengthen its democracy and promote economic prosperity so that this beautiful country can realize the hopes and dreams we share for it.

The United States has been a steadfast supporter of Sri Lanka’s efforts to stop the flow of arms and financing to the LTTE, by providing law enforcement assistance, and by providing training and equipment to help the Sri Lankan military defend itself against the terrorist actions of the LTTE. The ruthless murder of Minister of Nation Building Dassanayake on January 8 was the most recent in a string of assassinations by the LTTE.

While every sovereign nation must defend its people, history has shown that it is very difficult to defeat a terrorist insurgency by military means alone. Only a peaceful political solution, not a military one, offers a way out of the current cycle of escalating violence. An effective military strategy will only work if it is combined with a well-articulated political strategy to address the grievances that give rise to terrorism.

This is why the United States was troubled by the Sri Lankan Government’s decision to terminate the 2002 cease-fire agreement. The cease-fire agreement, although often violated, nonetheless provided a framework for negotiation and committed the parties to seeking a negotiated settlement. The termination of the agreement will make it more difficult to achieve that negotiated settlement that can produce a lasting, peaceful solution to Sri Lanka’s conflict.

An equally important part of national reconciliation is respect for human rights, the subject of today’s timely conference. The United States has been a strong advocate for human rights in Sri Lanka. We have seen that there is a strong correlation between levels of conflict and human rights abuses. Because of our concerns about the escalating conflict and significant human rights problems such as forced disappearances, extra-judicial killings and challenges to media freedom, the Millennium Challenge Corporation’s Board of Directors decided in December not to select Sri Lanka as a country eligible for a Millennium Challenge Account compact in fiscal year 2008.

Similarly, President Bush signed into law last week the Foreign Appropriations Act for the State Department that included a new prohibition on defense export licenses for Sri Lanka, with the exception of licenses for air and maritime surveillance and communications equipment to help stop LTTE arms imports. This too reflected Congressional and Administration concerns about Sri Lanka’s continuing serious human rights problems and the lack of progress in investigating and bringing to justice the perpetrators of the most high profile human rights cases of recent years.

An additional concern is that the abrogation of the Ceasefire Agreement and imminent withdrawal of the Sri Lanka Monitoring Mission may cause a further deterioration in the human rights situation in Sri Lanka. With the departure of the SLMM and the inability of indigenous Sri Lankan human rights institutions such as the Human Rights Commission to address human rights challenges in Sri Lanka, the U.S. has expressed its public support for the efforts of the UN High Commissioner for Human Rights Louise Arbour to expand the Office of the High Commissioner for Human Rights in Sri Lanka.

The United States is already working to assist Sri Lanka in improving the human rights situation within the country. For example, in 2007, military law professionals from the U.S. Pacific Command, in partnership with the American Embassy in Colombo, hosted a military law exchange program with the Sri Lanka Ministry of Defense to exchange ideas on ways to improve transparency, accountability, and human rights in military justice. We are now developing follow-on activities which will allow us to continue working together to strengthen Sri Lanka’s military justice institutions and further improve accountability in the military.

In conclusion let me reiterate the high priority that the United States hopes the Government of Sri Lanka will accord to reducing significantly human rights violations in 2008 and our commitment to work with the Government and civil society to achieve that goal. Such progress not only could help the Administration make a case for renewed Sri Lankan eligibility for funding from the Millennium Challenge Corporation, but would also mark a major step in the process of national reconciliation and peace-building.

Let me again commend the organizers of today’s event. Conferences such as this provide valuable opportunities for sharing ideas, information, and best practices that can help all of us achieve our shared goal.

Thank you again for your invitation. I hope your discussions over the next few days are fruitful and productive.

Thank you.

[Ambassador Blake's Remarks at the International Seminar on Human Rights in Conflict Situations.11 January 2008, Hotel Renuka Colombo.]

Robert Blake Jr, the US ambassador to Sri Lanka stated in Colombo that genuine devolution from the national level to the province,district and local levels would provide all of Sri Lanka’s communities with a greater say . He also emphasised the importance of the on going APRC process.

Ambassador Blake made these remarks at a book launch ceremony of Sri Lanka Economic Association’ held on Dec 18th . The text of the US envooy’s address is reproduced below

Professor Indraratna, Members of SLEA, Authors, Ladies and Gentleman

It is an honor for me to join you today for your annual book launch, and to congratulate both the authors and the Association for their work in bringing greater focus to these important subjects. I am certain that both of these books are well worth a detailed read, and that they maintain the high standards that we have come to expect from SLEA publications.

I’m also particularly happy to see them issued in hard copy. Despite living in a digital age, publishing books in printed form is, and will continue to be, an important way to share facts, opinions, and ideas. By that I mean that there are still a few vital topics that cannot be handled by text message or Blackberry!

[Ambassodor Robert Blake Jr - File Photo, By Dushiyanthini Kanagasabapathipillai]

Speaking of Blackberries, I was perusing the internet last night for something erudite to say about economists. The best I saw was a remark that economics is the only profession where two people can win Nobel prizes for saying exactly the opposite things. I think that gives me sufficient cover to proceed with my speech.

Since I am no economist and any attempt to comment on price theory would quickly expose my deep ignorance, I’d like to focus my remarks on the book Inequity, Poverty, and Development, which grew out of SLEA’s August 2007 conference of the same name at the BMICH. I know that the editors, Professor Indraratna and Dilani Hirimuthugodage, the SLEA staff, and all the contributors worked very hard to produce this book as both a record of that event and as a continuation of the discussion that occurred at the conference. This is a timely book containing many fine essays.

The book provides a detailed look at how inequity and poverty affect development, and how the links between the three are clear and obvious. As Governor Cabraal highlights in his chapter, the distribution of global gains is extraordinarily unequal. Although there has been some improvement throughout the past century in the conditions in which mankind lives, inequalities continue.

These inequalities affect people living in the developing world far more seriously than they affect residents of developed countries. They exist at a macro-economic level, but are felt and best understood on a micro scale. For example, it is unfortunately the poorest of the poor within Sri Lankan society who continue to suffer the most from poverty, inequity, and inequality. Development will continue to be hindered until greater efforts are made to combat these issues.

In Sri Lanka, perhaps more so than in some other countries within Asia, the links between poverty, inequity, and development-whether stemming from the consequences of history or the ethnic conflict-are readily apparent.

For example, residents of the Western Province have experienced a decline in poverty and a dramatic increase in growth and development-at a rate double that of other provinces-within the past 10 years. That progress was not matched in other regions, where development was comparatively low and poverty remained high.

In her essay, World Bank Country Director Naoko Ishii highlights the phenomenon of “inequality traps.” This phenomenon, if I may quote from Ms. Ishii’s paper, occurs when “an unequal distribution of wealth and power in a society..leads to the creation of institutions that systematically favor the interest of those with more influence,” thereby perpetuating inequalities. She goes on to highlight three ways in which Sri Lanka can combat inequality traps: by investing in human capacities, expanding access to infrastructure, and by focusing on institutions that support a higher growth trajectory.

Her comments, combined with the detailed research of Swarna Jayaweera & Chandra Gunawardena, Raja Korale, and others in this book not only help explain the relationships between inequity, poverty, and development, but also give a partial roadmap for improving the current situation.

I’d also like to note a related hindrance to development which several of the contributors touched upon: corruption. The cost of corruption is difficult to quantify, but there is little doubt that it has dramatically negative economic as well as political consequences.

Corruption damages economic development and reform, impedes the ability of countries to attract foreign investment, hinders the growth of democratic institutions, undermines rule of law, concentrates power in the hands of a few, and erodes public confidence in its leaders. Many polls have shown that the Sri Lankan public feels that corruption is one of the highest priorities the Government should address.

Of course, corruption is not a uniquely Sri Lankan or American phenomenon. It is a worldwide phenomenon that affects all of us. The United States experiences its share of corruption, just like others do. But my country also has strong, independent institutions that work to improve legal, administrative, and societal mechanisms needed to prevent and prosecute corruption. I invite all of you to look at the website of the famous FBI. It does not just focus on terrorism, drug smuggling, and violent crime, as you might expect. It also lists anti-corruption as a major priority, and cites many investigations and busts that prove the FBI is serious about this mission.

Sri Lanka has taken several important steps in the struggle against corruption. Your country enacted a bribery and corruption law. You have established a Commission to Investigate Allegations of Bribery or Corruption. You have also enacted an Assets and Liabilities Declaration Law, put in place a law to control money laundering, and signed the U.N. Convention Against Corruption. Following the example of India and others, Sri Lanka also would benefit from the passage of a Right to Information Law to give its citizens the right to know how their taxes are being spent by government agencies.

Properly implemented, and with the true will of the government and parliament, these initiatives can make a difference in the rate of corruption, and ultimately in the development of Sri Lanka and the alleviation of poverty.

The last month in Sri Lanka has seen a period of political drama. With the budget now passed, the government has an important opportunity to focus its attention on addressing poverty and inequity. One of the best ways it can do so would be to complete the APRC process and thereby lay the basis for a negotiated solution to Sri Lanka’s conflict. The All Parties process offers a significant chance not only to effect meaningful power-sharing with the regions as an essential component of constitutional reform, but also to build peace through development and by reducing regional poverty inequities. Genuine devolution of power from the national level to the provinces, districts, and localities will give all of Sri Lanka’s communities a greater say in how resources they are allocated should be spent and the issues they want their elected representatives to give greater focus to.

One region that must be an early priority is the East. Sri Lanka has a significant opportunity to stabilize and develop the East in a manner that would demonstrate to all Sri Lankans, but particularly Tamils and Muslims, that they have a bright future within a united Sri Lanka and that the Government is serious about ensuring their rights and providing opportunities equitably within a pluralistic state. In short, a successful transition in the East can be an important confidence builder and a building block for a future negotiation process.

Conversely, the government faces significant risks if it fails to seize its opportunity in the East. Specifically, a failure to effect an orderly transition from military to civilian control, a failure to consult elected representatives of the Tamil, Muslim and Sinhalese communities on the development and other programs now being devised for the East, and a failure to rein in paramilitaries are all likely to destabilize the East and harden minority attitudes and even spark violence.

The government wisely has pledged to promote development in the East as one of its priorities in the budget that just passed. The United States is already elping in this respect, and is ready to do more.

The U.S. Agency for International Development (USAID) will implement two major new projects over the next five years: the Sri Lanka Conflict Response Program and the Connecting Regional Economies program.

The Sri Lanka Conflict Response Program will implement governance and communication programs that support a resumption of the peace process to resolve Sri Lanka’s long standing conflict. The Connecting Regional Economies program will address the disparity in economic development between the North and East and the rest of Sri Lanka. This disparity is a major driver of Sri Lanka’s ongoing ethnic conflict. The program also offers a major opportunity for us to engage the private sector as a partner in our efforts through establishing public private partnerships.

In conclusion, there is no doubt that a peaceful solution to the conflict will enhance and encourage development for all Sri Lankans-be they Sinhalese, Tamil, Muslims, or others-living in this wonderful country.

This book positively focuses attention on the current roadblocks to greater equitable development. I personally look forward to reading it in-depth, and recommend it to policy makers here in Sri Lanka.

I congratulate you once again on this momentous occasion, and I wish you all a healthy, prosperous, and safe 2008.

by P.Chidambaram

I am deeply grateful to the Lakshman Kadirgamar Institute of International Relations and Strategic Studies for inviting me to deliver this lecture. In particular, I thank Mrs. Kadirgamar who prevailed upon me to find a date for this lecture amidst my rather chaotic schedule. Her persuasion, persistence and patience, I am told, are well known. I am sure that many of you who know her better will agree with me when I say that her qualities can move mountains.

[Lakshman Kadirgamar]

As a fitting tribute to Mr Lakshman Kadirgamar, the Sri Lanka Institute of Strategic Studies was re-christened in August 2006 as the Lakshman Kadirgamar Institute of International Relations and Strategic Studies and given a broader mandate. The objectives of the Institute encompass the vision of Mr Kadirgamar, the most important feature of which is that Sri Lanka should regain its historic internal harmony by embracing its multi-cultural and multi-ethnic character. Mr Kadirgamar himself was a product of Sri Lanka’s unique character. He was a Tamil; he was born in the Jaffna region; he was a Christian; he celebrated Vesak, the full moon day on which Lord Buddha was born; he read literature at Oxford; he was called to the Bar from the Inner Temple in the United Kingdom; and he practised law at the Judicial Committee of the Privy Council. From international civil servant to foreign minister, he held many offices with great distinction.’

India regarded Mr Kadirgamar as a statesman who devoted many years of his life – especially his years as foreign minister – to bring peace to this tortured nation. Under the most adverse conditions, he carried out his duties as a public servant in the manner that he played cricket. And how did he play cricket? To recall his words “I played without helmet and thigh guards, on matting wickets that were full of holes and stones, and I had my share of broken bones to show for it.” None could break his spirit as a cricketer -and none could break his spirit as a public servant imbued with the high ideals of a statesman.

It is a little over two years since Mr Kadirgamar was assassinated. I pay my tribute to this great Tamil and great son of Sri Lanka, and I am honoured to deliver this lecture instituted in his memory.

[P. Chidambaram, Finance Minister of India]

The Asian Resurgence

The Asian continent is the cynosure of all eyes. The countries of Asia – except a few – emerged in the middle of the 20th century from long periods of colonial rule. In the initial years they struggled to find their feet and establish suitable models of governance. It was only a matter of time before one or more countries of Asia would burst on the economic scene and capture the attention of the world. And it happened in the 1980s when Singapore, South Korea, Malaysia and Thailand emerged as tiger economies. At the end of the 80s, the question on everyone’s lips was whether and when the countries of South Asia would accept the challenge of growth.

South Asia is home to 1470 million people living in eight .countries. India is the largest in terms of population and size. The smallest population is in the Maldives and the smallest in size is also the Maldives. The people of the sub continent speak 415 languages, belong to several races and faiths, and have many identities that they cherish. The countries of South Asia also follow different models of governance: without being judgemental, I would simply recall the fact that some of these models have failed. Such failure has consequences for the growth and prosperity of South Asia.

According to the Asian Development Outlook 2007, growth in South Asia since’ 2003 has averaged 7.5 per cent a year. In 2006, South Asia’s GDP grew by 8.7 per cent, with India recording the highest growth among the large economies and the Maldives recording the highest growth among the small economies. On practically every measure, 2006 was a good year for South Asia. The current account deficit was 2.1 percent of GDP, thanks largely to workers” remittances; exports grew at 18.8 per cent and imports, even more impressively, at 24.9 percent. Foreign exchange reserves increased and real effective exchange rates were stable. The Outlook rated the region’s prospects in 2007 as “‘bright due to strong domestic demand and investment.”

The growth story has continued in 2007, ‘although one forecast made by the Outlook has turned out to be wrong. It was predicted that world prices of oil and other commodities were likely to fall. What has happened is the exact opposite. However, another prediction has proved to be more than correct, and that is the prediction that the region will attract large capital flows. I am not fond of predictions but I would not mind if I could find some one who could predict which of the predictions will, turn out to be true!

Growth is an Imperative

The lesson we should draw from our past history is that nothing can be taken for granted, including, growth. We must work hard for growth, we must do the right things and we must avoid doing the wrong things. Even when we do the right things, it is not always that the right consequences will follow because we are a part of the global economy and we will be affected by the ups and downs in the global’ economy.

For South Asia, growth is an imperative. It is the best antidote to poverty – and I refer to not only income poverty but also poverty as measured by many human development indicators.. According to the UNDP’s Human Development Report 2004, 31.4 per cent of all South Asians were below the poverty line which was defined as having an income of less than US$ 1 a day.

The human development index for South Asia in 2003 stood at 0.587. Life expectancy at birth was 63; female literacy rate was 45 per cent; and the gross enrolment ratio was 57 per cent. The infant mortality rate was 63 per 1000 live births. 46 per cent of children under the age of 5 years were underweight and, by inference, undernourished. Of the total population, 14.8 per cent did not have access to safe water and 64.8 per cent did not have access to sanitation.

South Asia remains a region where there is still an unacceptably high level of poverty and deprivation. Despite its impressive rate of growth in recent years there are, in India, nearly 250 million people who, are below the, poverty line. Pakistan struggles with a high fertility rate, a low gross enrolment ratio and a low gender- related development index. Nearly one half of the- population of Bangladesh is below the income poverty line and it has the lowest rank among South Asian countries on the human development index. Nepal has the lowest GDP per capita and the lowest ratio of population with access to sanitation. Sri Lanka has the lowest public expenditure on education as a proportion of GDP but the highest defence expenditure per capita. Bhutan has the largest proportion of the population without access to safe water and the highest proportion of children, aged 10 to 14 years, in the labour force. The Maldives has the highest fertility rate and the highest rate of growth of population but produces no cereals and is heavily dependent on food imports. We do not yet have reliable data on Afghanistan.

Thus, the challenges that face South Asia are enormous. The answer to these challenges is faster and more inclusive growth.

Governance is the Key

What compounds these challenges is the shadow of political uncertainty that has fallen over most of the sub-continent. It appears to me that the countries of South Asia, barring India, have still not resolved the fundamental question of the model of governance that is suited to each of them; consequently, the political institutions in these countries have not yet taken firm roots. While change is unavoidable and there can be no quarrel with occasional experimentation, a state of constant flux or political turbulence is hardly conducive to rapid economic growth. In fact, absent democracy, whatever growth that may be achieved in short spells may turn out to be iniquitous growth and may exacerbate the social and economic disparities in the society.

In multi-cultural and plural societies, there is no model of governance better suited to reflect and respond to the needs and aspirations of the people than democracy. Furthermore,- it is not democracy at one level alone that -will assure social and political stability. While there should be a strong central or federal government for the country as a whole, it is equally important that the political system recognises the geographical or linguistic or ethnic divisions among the people and creates political institutions that will accommodate these differences and give voice and representation to all sections of the people.

India – a Connecting Thread

India is conscious of its role and responsibility in South Asia. India is the largest country in the sub-continent. In recent years, it has recorded the fastest rate of growth among the large economies. Given its size, location and rate of growth, India is at the very centre – in many senses of the word – of the region. According to one view, India is a connecting thread. India’s desire is that all its neighbours – well as India – should seize the opportunity of becoming prosperous countries in a prosperous region.

India is aware of the asymmetry between India and each of its South Asian neighbours and has addressed the issue with candour and boldness. It has done so through bilateral agreements as well as through the South Asian Association for Regional Cooperation (SAARC). Some examples are the grant of MFN status to Pakistan despite the fact that this has not been reciprocated by Pakistan so-far; the open trade borders with Nepal and Bhutan; the special tariff concessions offered to Bangladesh; and the India Sri Lanka Free Trade Agreement. India has also taken a forward- looking position on SAFTA.

Regional Integration

Regional integration has many advantages as other regions such as Europe, East Asia and Latin America have discovered. It enables the countries of the region to pool their resources and act in concert to address common problems. It multiplies the attractiveness of the region to other countries as well as enhances the capacity of the region to enter new markets. Regional trading arrangements are often described as building blocks for a rule- based world trade order; in practice, however, regional blocs are driven by their self -interest and adopt tough bargaining positions with countries that trade with them. A regional bloc, rather than an individual country try, has a greater chance of securing better deals with another regional bloc.

It is an irony of the development trajectories pursued by South Asian countries that while each one of them has made significant progress in integrating its economy with the world’s, integration within the South Asian region remains stunted. The tariff and non-tariff barriers between the countries of the region are still too high. Trade facilitation between the countries is still poor. There is insufficient coordinated action to prevent smuggling, especially of fake currency, drugs and arms. There is no concerted effort so far to stamp out money laundering. SAARC does not act as a regional bloc in dealing with other countries or other regional blocs, and each member country has pursued an independent line in its bilateral and multilateral dealings. For instance, SAARC does not have a SAARC position in the WTO or the IMF. In the negotiations in the Doha Round, there is no SAARC negotiating stance as compared to the stance of the European Union or NAFTA or the CAIRNS Group.

Intra-regional trade among the South Asian countries is barely 5 per cent, which is the lowest rate among practically all regional groups in the world. NAFTA’s intra-regional trade amounts to 52 per cent of the group’s total trade. In the case of the European Union, the proportion is higher at 55 per cent. Even in nearby ASEAN, intra-regional trade accounts for 21.4 per cent of all trade. Low proportion of intra- regional trade, limited cross border investments, restricted cross border movement of people and low levels of connectivity make the region not a forward-looking regional bloc but a cluster of inward looking member-countries.

Growth-enhancing Opportunities

It is a matter of some concern that -South Asia is unwilling to address even non-controversial growth-enhancing issues such as telephone connectivity and travel. Telephone tariffs between the countries of the region are still high. Travel costs are also high.

Instead of being a more- connected region, the story so far has revealed a South Asia that is perhaps the least integrated region in the world. If South Asia should become a dynamic regional bloc in the larger process of globalization, the region, cannot remain disconnected within itself.

The 14th SAARC Summit earlier this year took note of the significant step of the ratification of the SAFTA agreement by all member-countries. SAFTA is important not only to promote intra-regional trade but also to usher in new areas of cooperation in services and investments. There are a number of common problems which are beyond the purview of trade. These include issues such as the constraints of land-locked countries, high transaction costs, inadequate investments, visa restrictions and lack of many professional services.

There are also other emerging issues such as energy shortages, disaster management, diseases and epidemics, and climate change. These and other issues can be more effectively addressed if the countries of South Asia showed greater political will and the determination to act as a regional group rather than as discrete countries taking separate roads.

The Theme of Connectivity

Ladies and Gentlemen! You will recall that at the 14th SAARC Summit the Prime Minister of India, Dr Manmohan Singh, unfolded his vision by placing before the Summit the theme of connectivity. He said, and I quote,

“Connectivity – physical, economic and of the mind, enabling us to use fully our geographical and resource endowments, has historically been the key to our region’s peace and prosperity. South Asia has flourished most when connected to itself and the rest of the world.”‘

In other regions of the world, member-countries are pressing ahead with- bold projects such as trans-regional highways, trade corridors and energy pipelines. Despite the fact that the countries of South Asia have greater commonality, it is unfortunate that they have not made a beginning in the direction of greater connectivity. Consider the power and impact of a trans-regional highway or an energy pipeline upon the economies and the lives of the people of the region. Consider also the fact that the region is home to many places of antiquity, historicity and heritage, including Buddhist sites: a culturally sensitive and socially inclusive tourism can catalyse economic growth. In my view, the theme of connectivity needs to be taken up with utmost seriousness The countries of South Asia should immediately explore the possibilities of establishing more air links, telecom corridors, tourism circuits and energy grids.

The countries of South Asia also need to pool their resources through collaboration in regional projects, including in areas such as infrastructure, poverty alleviation, public health and disaster management. At the 14th SAARC Summit, member-countries brought into operation the SAARC Development Fund. India has also launched the SAARC tele-medicine project. We should, as early as possible, establish a South Asian University to bring high quality education to all countries in the region. The abundant human resources in South Asia are the most valuable resource base of this region and its expansion as well as enhancement will act as a powerful trigger for rapid economic development.

Development Cooperation between India and Sri Lanka

Let me conclude this lecture with a special reference to the development cooperation between India and Sri Lanka. I may again recall the Free Trade Agreement between the two countries. The economic partnership between India and Sri Lanka could serve as a benchmark for similar partnerships between India and the other countries of South Asia.

Sri Lanka is India’s largest trading partner in South Asia. Bilateral trade between the two countries, at the end of March 2007, stood at US$ 2726 million. I may point out that trade turn over has quadrupled in the last six years. In fact, during the period of six years, Sri Lanka’s exports to India have increased ten-fold.

There is also a surge in bilateral investments. Businesses from India have invested in Sri Lanka in sectors such as petroleum, cement, hospitality and transport. We hear every day of growing interest among Indian investors in emerging sectors such as telecom, energy and infrastructure. Equally, it is a cause of great satisfaction that efforts are being made by Sri Lankan business persons to invest in India. There have been significant beginnings in biscuits, beverages and garments. India welcomes the new model of partnership emerging between India and Sri Lanka that is based on a healthy two way movement of goods, services and capital.

We have also witnessed strong growth in service industries such as shipping, tourism, logistics, banking and insurance. 70 per cent of the calls at Colombo port are from India. Four Indian banks and one Indian insurance company are operating in Sri Lanka. Four airlines from India operate services to Sri Lanka, even while Sri Lankan Airlines remains the dominant player operating about 95 flights a week to India and earning nearly 50 per cent of its profits from its Indian operations. It is not a matter of surprise that 21 per cent of all tourist arrivals in Sri Lanka are from India.

Sri Lanka and India are working together towards greater development cooperation especially in the area of infrastructure. Indian companies have undertaken several projects in Sri Lanka including refurbishment of the Southern Railway corridor. Nearly 50 per cent of the development assistance ‘to the SAARC region provided by India flows to Sri Lanka. There are also small projects for capacity building in education, health and agriculture.

The success of the Free Trade Agreement has encouraged the two countries to begin negotiations on a Comprehensive Economic Partnership Agreement that will expand cooperation beyond trade and goods. I am happy to note that the negotiations are at an advanced stage and it is likely that a draft agreement could be reached very soon.

Peace and Stability

In order to make full use of these opportunities, it is necessary that there is an environment of peace, stability and security in Sri Lanka.. India is committed to the unity, sovereignty and territorial integrity of Sri Lanka. India has made this clear on every occasion; at the same time India has emphasised that the ethnic conflict in Sri Lanka, arising out of a sense of discrimination and a sense of negation of cultural, linguistic and human rights, should be resolved through a negotiated political settlement that includes a credible devolution of powers. Senseless acts of terror on the one side or planned operations by the armed forces on the other side will only result in more death and destruction. Neither side can finally prevail over the other through conflict. Peace must be forged at the negotiating- table and the peace agreement must win a vote of confidence from the people. Witness the happy conclusion reached in Northern Ireland after years of strife. The continuation of the armed conflict in Sri Lanka will deepen the divisions in Sri Lankan society and will make a negotiated settlement more difficult. It will also have an adverse impact on the economy, evidence of which is already noticed.

South Asia must seize the Opportunity

It is now generally acknowledged that South Asia, given its recent economic performance, can match East Asia’s growth rates. Sound macroeconomic policies can attract huge investments to the region. Capital, joining hands with the abundant and talented human resources of the region, can turn the ‘region into a veritable economic powerhouse.

I shall leave you with a question: will South Asia, inspired by the broad and humanising vision of leaders like Mr Lakshman Kadirgamar, keep its tryst with destiny?

Thank you for your courtesy and patience.

The Lakshman Kadirgamar Memorial Lecture 2007 delivered by P. Chidambaram Finance Minister, the Republic of India on November 11, 2007 at BMICH Colombo.