Liberals firmly believe that economic prosperity leads to social and moral development, While stagnation leads to conflicts of all types, including racial, in the struggle for shares of the available resources. Where there is economic prosperity, there are fewer great upheavals. Economically developed countries are examples of this while many 3rd world countries are examples of the contrary.

Resources for Economic Development in Sri Lanka

Physical and human resources are the major features essential for economic development, supported by financial resources. Our main physical resources can be identified as favourable climate conditions (a tropical climate throughout the year), fertile soils and water resources with much rain in the hill country brought down to the plains on all sides during their dry seasons. The sea round our island, within a 200 km zone, is not only rich in fish but the west to east sea route runs through the southern bounds of the island, which suggests we should develop Sri Lanka as a trading centre with the construction of a free international harbour at Hambantota. This will give an impetus to foreign entrepreneurs, at least to begin with investment for transhipment of their industrial products. The economy, and in particular the economy of a long neglected area, will begin to boom with such a project.

Industrial Development

Industries in Sri Lanka have generally been concentrated in the area around Colombo, except during three periods when government tried to encourage development at the periphery. Just after after independence a number of industries were developed in the North and East but these are largely moribund now because of the conflict. In the 60s many industries were established under the Gal Oya scheme but, without a comprehensive continued commitment on the part of government, most of these are now in decline. Finally, under Mr Premadasa there was a concerted attempt to induce the private sector to decentralize, and despite several problems this has by and large continued successful. Taking a cue from this, we recommend that government concentrate on encouraging the private sector to invest in the regions. However to do this infrastructural development is essential, and should take the form of targeting particular areas for the establishment of free trade zones.

It should also be noted however that Sri Lanka lacks most of the raw material essential for industries other than those arising from the soil, such as the raw material essential for cement, and agricultural by-products. Therefore Sri Lanka cannot really compete with other industrial countries until such time as technology develops. Technical know how, transferred to the people in the regions systematically, is essential. It is for this reason that, as indicated above, we propose the establishment of technical universities in the regions, where training in skills will be accompanied by academic input that will enable our people to compete for jobs internationally at higher levels than at present.

Fisheries

Though fishing is an essential industry, the greatest resources are in the continental shelf which cannot be reached by ordinary fishermen. They should be given the technical knowledge and assisted with obtaining deep sea fishing vessels so that the scope of our fishing industry can be developed, otherwise the hand to mouth existence of our fishermen cannot be uplifted. Though after a gap of some years there has recently been an attempt to revive the inland fishing industry, this can be encouraged further, with a concerted plan as to transportation. We also welcome the current move to develop technical skills at all levels, and suggest this be tied in with management and other skills that will increase employability.

Agriculture

The tropical climate and fertile soil coupled with the experience the rural people have achieved over generations, and the colossal investment in irrigation, testify to the physical and human resources available for agricultural development. The foundation of the economies of many industrially developed countries is agriculture, as in the USA, Germany and France. Australia and New Zealand too depend to a considerable extent on agriculture. Such dependence is acknowledged, because food security is important for a country, and there is no reason for us too not to benefit from this.

Though agriculture should be the foundation of our economy, the sudden explosion in imports has ruined the agricultural sector in the case of Red Onions, Bombay Onions, Potatoes and other highland cultivation. Again, due to all sorts of shifts and reverses in policy, paddy farmers are unable to sell their paddy at even a price below cost, a trial they have never faced in the past.

2.4 million people are engaged in agriculture and fisheries. Among them 1.8 million are paddy farmers. With the collapse of the agricultural sector, which was 21% of the GDP, more than ½ of the entire population will experience social upheavals and economic disaster. Therefore the agricultural sector will be given assistance not only to increase production but also to protect prices by way of legislation and tariffs so that the farmer can get the maximum profit in the local market. Though Liberals generally believe in free trade, we have always accepted the need for protection provided it is for a fixed period to deal with particular conditions. It must be accompanied by a comprehensive strategy based on the interests of consumers, and should not be changed at will or for political expediency, as happened with the subsidy for bread that began the crisis in the paddy market.

Training is also an important aspect of agriculture in the modern world, and to maximize production capacity new technologies will be transferred to the producer. This strategy will not only assist with food security, but also the younger generation will be attracted to the agriculture sector which is now almost taboo to them. The farmer, in all our communities, must be given a suitable status, not through platitudes as in the past, but through economic success.