Mon, 29 Apr 2024 Today's Paper

Harin Fernando is right Sri Lanka is part of civilizational India and should aspire to be part of economic India

9 March 2024 12:00 am - 13     - {{hitsCtrl.values.hits}}

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Every attempt by successive Sri Lankan governments to open up the local economy to the world has been obstructed by a minority of individuals and groups with vested interests. The picture shows Colombo Port City, a project funded by China, and these groups have been skeptical of such foreign investments

  • Those days, I noted, when the queues get shortened, the country would revert to the old habits
  • How much of a window to India that Sri Lanka could now aspire to be is open to question

Eighteen months back, when the people languished long hours in lengthy queues to buy that elusive gas cylinder and regular blackouts punctured the day and night amidst economic hardship, there was an unusual unity. Hundreds of thousands people who gathered at the Galle Face Green protest site and took part in many demonstrations across the country came from all walks of life. Petty ethnic politics that pitted people against each other was relegated. That was not just because the Rajapaksas- who resorted to ultra-nationalism to prop up their familial regime- were finally revealed to what they truly had been for all that time: a corrupt kleptocratic familiocracy.
That was also because traditional Tamil politics that equally thrived in pitting Tamils and Sinhalese to appear more nationalistic than their peers were forced to scale back. You did not have Sritharan, Vigneswaran and Elilan’s wife, Ananthi, at the ‘Go Gota Gama’.
Those days, I noted, when the queues get shortened, the country would revert to the old habits.


Now, the usual culprits who thrived in conspiracy theories and echo chambers of insular nationalism have crawled back from their hiding places, and they have a smaller, but probably growing receptive audience. This could even be a measure of economic recovery in the country, which had recovered from the nadir of troubles, though not out of the woods.
In the North, the main Tamil party, ITAK, had elected an unabashed terrorist apologist as their new leader. In the South, nationalist rabble-rousers and so-called civil society activists, most of whom are card-carrying members of the JVP or the Peratugamis (frontline socialists), and the rest, self-seeking money grabbers, are back in action.
A few weeks back, Tourism Minister Harin Fernando caused outrage in those circles and clickbait television news, owned by the wheeler-dealers, when he referred to Sri Lanka as part of India.
This article is not in defence of Harin Fernando; that is not my intention, but this is a defence of his commonsense observation. Sri Lanka, by any account, is an integrate part of the social, cultural and civilizational landscape of the Indian subcontinent.Those who choose to deny this historical inheritance, amplify differences and seek similarities elsewhere have groomed their own monsters. Pakistan is a case in point. 
Harin Fernando was addressing an Indian audience. What better thing could he say to curry favour, the largest tourist market, potentially the largest source of inbound FDI, andthe world’s fastest-growing large economy?  Minister Fernando’s comment should be better understood in terms of its desire to be part of the evolving India-centric supply chains that could provide the best shot at prosperity for Sri Lanka.  
 At a time an increasing number of Dravidian activists in South India who like their Sri Lankan sidekicks have not grown up beyond the Dravidian social cultural ecochamber; amplify the differences with the North, the  Sri Lankan minister’s desire to pride himself in that large Indian civilizational heritage should strike a chord in Indian observers.
But, the local jokers were up in arms with a feigned outrage. Some fellas, civil society activists whose full membership travel in two three-wheelers, went to see Buddhist high priests. Other con artists like Wimal Weerawansa tried to cook up a conspiracy theory, but failed.
Smaller nations seeking to leapfrog in economic growth do not have the luxury of economics of scale or large markets that make the larger countries an appetizing destination for foreign capital. They have to rely on their  intrinsic advantages, of their geography or unique domestic advantages, be it advanced human capital, business-friendly investment law, superior infrastructure and connectivity with the rest of the world, etc., 


Successful smaller states have presented themselves as a window to a large economic area, for instance, Hong Kong to Mainland China and Singapore to South East Asia.  
Sri Lanka could have become the window to India in the 80s and probably in the early 90s when New Delhi underwent liberalization. Instead, we were forced to fight a nihilistic terrorist war, which had enjoyed Indian support at its early phase, because J.R. Jayewardene thought he could be cocky with the powerful yet insecure larger neighbour, whose prime minister Indira he likened to a sacred old cow, and Tamil elites in the North, as usual, undercut the country for their petty nationalist goals.
How much of a window to India that Sri Lanka could now aspire to be is open to question, considering that New Delhi is more open, connected and welcoming than Sri Lanka to the rest of the world. 


This brings us to the second option, which is to bind ourselves to the India-centric supply chains. Many local pundits have recently grown an interest in Vietnam, which is now one of the largest exporters of merchandise. But, the vast majority of the export volume of Vietnam as well as Hong Kong consists of products of the China-centric supply chains; others are finished goods by Chinese firms that had relocated to avoid American tariffs on Chinese exports.
Once the ecosystem infrastructure is established, global chip makers and advanced electronics are moving there, partly owing to America-led ‘friendshoring’ of critical supplies.
This is something that Sri Lanka could aspire to be, linking itself with India-centric supply chains, which, among others, would provide a reason for Chinese firms to invest in Sri Lanka.
However, a gas pipeline linking Trincomalee with India saw the usual naysayers and conspiracy theorists up in arms. The same folks, who decry the high electricity tariff, owning to high generation cost, are also opposing large-scale investment on renewable energy projects by Adani Group. Local tech grads who recently claimed the dwindling workforce owning to the migration of local talent suddenly changed their tune when the negotiations on the Economic and Technology Cooperation Agreement (ETCA) with India were renewed.
 Sri Lanka’s much-hyped ICT exports of a little over $ 1 billion could be expanded manyfold by linking itself up with India, with exports of nearly $ 200 billion in ICT and related services a year.
Sri Lanka has lagged behind the rest of the world, though we have invested heavily in human capital because every attempt by successive governments to open up the local economy to the world has been obstructed by a minority of individuals and groups with vested interests.
As the country is rising from the ashes of the economic apocalypse, these usual culprits are back to their old form. Unlike Vietnam or even Singapore, Sri Lanka does not have laws or political latitude to put them in their place. Therefore,we are trapped in a cycle of low growth,an eternal contest between selfish insularity and enlightened openness, which the former has prevailed throughout our independent history. It would not be different this time if the usual culprits were given free reign yet again. 


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  Comments - 13

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  • Bandu Saturday, 09 March 2024 06:55 AM

    Very poor analysis of economy. Don't seem to understand how economy works. We don't need to be part of the India economic sphere. There is a much bigger prosperous market in Asia pac and in Western countries. Sri lanka labour cost is higher than in India on top of that business funding cost ease of doing business is higher. Get a journalist who has some economic understanding. Hiring an idiot does a disservice to readers.

    Sanath Saturday, 09 March 2024 02:03 PM

    Bandu. I think Rangas assessment is spot on. There are cocky politicians and the racists who always find some excuse to pick holes in any development initiatives with India. Sri Lanka remains backward due this tribal thinking.

    Gates Saturday, 09 March 2024 07:51 AM

    Ranga, As a side note- Fernando's explanation on India urinating and we getting wet is not a good way of building a relationship with anyone let alone another country. This begs the question as to whether we have sent the right people to the parliament. NM Perera, Lakshman Kadiragama, Carlo Fonseka, Colvin R De Silva, Peter Kenneman to the above discussed - what a distance from north to the south pole. We should not build links with one country. There are many others. India would want us to be a customer of their supply chain and total dependency. Anyone who understands supply chain (SCM) will know that it is not a good idea. -Why would India even attempt to create a port city here in SL when they are able to do the same in own country, given the proximity? -Why would they open factories here when they are able to perform the same in own country? According to what you are saying our people will continue to toil elsewhere as unskilled labor (maids, general labor etc etc.)

    Sokrates Saturday, 09 March 2024 09:25 AM

    Another report that perfectly analyzes the problem and comes to convincing results. The excellent expression and choice of words alone shows that the report was written by a qualified and capable journalist. However, I have a different opinion on one thesis. I don't see any economic recovery in the country. This is only apparently to keep the population calm. The apparent thing is that there are no longer any queues in front of LPG depots or petrol sheds, which the people would immediately notice, but instead people die every day in hospitals and at home because there is a lack of important medicines and medical equipment, which the people hardly recognize. The so-called successes such as the reducing the inflation rate and the appreciation of the rupee are only manipulated, but are not economically tenable.

    When Sri Lankan Expatriates Are on the Top of the World, Why should their country has to be Second class to India Saturday, 09 March 2024 10:21 AM

    Your failure in of dropping Taiwan from your list of examples says lot about your social background. Look , Taiwan is not sucking up to China , in fact Taiwan leads the world in microchip technology which even America is dependent on. Thus small countries not necessarily need to become subservient states to bigger neighbours. Maldives has bravely liberated itself from the Indian control with Chinese help. The ambitious new Maldivian leader does not want Maldives to continue being powerless country depending on rich white tourists for its income , it has plans to become industrialised and important in the world. That kind of thinking which is badly needed in Sri Lanka.

    Punchi Saturday, 09 March 2024 01:40 PM

    Maldives is opening itself up to failure, the Chinese have no altruistic intentions

    Ascot Dexter Saturday, 09 March 2024 09:24 PM

    This man is in need of brain surgery or he is paid by Indians to do the dirty work for them. Shame on this man for not having self-esteem and only motivated by money - another crook. Sovereignty and economics are two things. I ask him to live under Indians for 1 year and tell his story.

    Gunadasa Sunday, 10 March 2024 02:07 PM

    Whether we like it or not India is going to become second biggest economy in the world bypassing Germany, Japan and US within next 25 years and as India is located near our door step we can immensely benefit by having economic cooperation with India. A lot of developed countries are depending on Indian ICT expertise and we would also gain a lot from India's world class ICT education should we seek their cooperation.

    Sokrates Sunday, 10 March 2024 05:25 PM

    Why the hatred of many of the commentators here towards India. It probably results from inferiority complexes towards India or from absurd Sri Lankan national pride that cannot be understood. You should finally understand that Sri Lanka is a fly shit on the map and an economic dwarf. A neighboring superpower on which Sri Lanka depends should not be continually offended by some selfish and corrupt politicians. Sri Lanka can only survive by tying itself to India or do some fools still believe that China is Sri Lanka's savior? Sri Lanka lost its chance to have an independent and prosperous economy 76 years ago.

    Cecil Hedwige Monday, 11 March 2024 08:03 AM

    Minister Harin is doing a fantastic job by trying to promote more tourist from India which would be a fully devoloped country like China in a few more years.SL will also deveelop in turn.

    FredSnR Monday, 11 March 2024 12:16 PM

    India is not the solution it is the problem With over a billion people it needs more land more resources. And SL seems ready to provide it There is much to be admired in the country but preferably from a distance.They have some of the worlds richest people living in some of the poorest areasAnd they like to flaunt their wealth The Indians also like to dominate, don't respect boundaries, but they network well, end up controlling partly due to the sheer numbers But plenty of things we can learn from them, need the right people as leaders for that And invite SL expatriates back, a better solution

    Sri Lankan expetriates Monday, 11 March 2024 05:32 PM

    @When Sri Lankan expatriates are on top of the world. The majority of Sri Lankan expariates are working as Housemaids in Middle East countries lt doesn't mean it is something to be proud of. According to a recent survey taken pre-covid 19 in 2021 there were an estimated two hundred thousand Sri Lankan housemaids working in the Middle East countries

    Ceylon Tuesday, 12 March 2024 04:03 PM

    Utter stupidity


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