{"id":59483,"date":"2016-10-08T08:07:38","date_gmt":"2016-10-08T15:07:38","guid":{"rendered":"http:\/\/www.lankaweb.com\/news\/items\/?p=59483"},"modified":"2016-10-08T08:07:39","modified_gmt":"2016-10-08T15:07:39","slug":"public-proposals-for-budget-2017-and-plans-beyond-2017","status":"publish","type":"post","link":"https:\/\/www.lankaweb.com\/news\/items\/2016\/10\/08\/public-proposals-for-budget-2017-and-plans-beyond-2017\/","title":{"rendered":"Public proposals for Budget 2017 and Plans beyond 2017"},"content":{"rendered":"

DR.C. ANTON BALASURIYA<\/em><\/span><\/h2>\n

Prior to providing my thoughts, I need to define the parameters within which these recommendations are made.<\/p>\n

    \n
  1. The proposals target the anticipated government revenues and expenditure for the financial year 2017 and planned programs beyond 2017.<\/li>\n
  2. Government revenues derived would normally be from personal income taxes, corporate taxes, sales taxes, value added taxes, capital gains taxes, exercise taxes, license taxes, inheritance taxes and government borrowings among others.<\/li>\n<\/ol>\n

    3.The expenses would include government expenditures on current goods and services (consumption) and investment expenditures (infrastructure) and transfer payments(unemployment and retirement benefits) and debt servicing among others.<\/p>\n

      \n
    1. The type of budget to be a deficit budget (anticipated expenditures being greater than revenue)<\/li>\n
    2. Some of the proposals and areas identified cannot be included in the 2017 budget due to the time needed for feasibility study and evaluation and development of an activity plan. However if they are worthy of consideration they can be included as policy initiatives of the future.<\/li>\n<\/ol>\n

      Contents Page<\/p>\n

      Foreword \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 1<\/p>\n

      Principles of the Budgeting Process \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 1<\/p>\n

      (1) How do you raise Finance and use it intelligently\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 3<\/p>\n

      (2) Other Policy Avenues to raise income and reduce spending\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 6<\/p>\n

      (3) Policy on Small and Medium Business \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 9<\/p>\n

      (4)\u00a0 Social Welfare Policies\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 17<\/p>\n

      (5) Health Sector Policies\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 17<\/p>\n

      (6) Education Sector Policies\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 18<\/p>\n

      (7) Management of the Public Sector\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 21<\/p>\n

      (8) Infrastructure Development\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 23<\/p>\n

      (9) Policy Improvements in Trade and Industry\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 27<\/p>\n

      (10) Food security & Environment Friendly Initiatives\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 28<\/p>\n

      (11) Housing\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 29<\/p>\n

      (12) Foreign Exchange inputs\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a034<\/p>\n

       <\/p>\n

      Foreword<\/p>\n

      Prior to providing my thoughts, I need to define the parameters within which these recommendations are made.<\/p>\n

        \n
      1. The proposals target the anticipated government revenues and expenditure for the financial year 2017 and planned programs beyond 2017.<\/li>\n
      2. Government revenues derived would normally be from personal income taxes, corporate taxes, sales taxes, value added taxes, capital gains taxes, exercise taxes, license taxes, inheritance taxes and government borrowings among others.<\/li>\n<\/ol>\n

        3.The expenses would include government expenditures on current goods and services (consumption) and investment expenditures (infrastructure) and transfer payments(unemployment and retirement benefits) and debt servicing among others.<\/p>\n

          \n
        1. The type of budget to be a deficit budget (anticipated expenditures being greater than revenue)<\/li>\n
        2. Some of the proposals and areas identified cannot be included in the 2017 budget due to the time needed for feasibility study and evaluation and development of an activity plan. However if they are worthy of consideration they can be included as policy initiatives of the future.<\/li>\n<\/ol>\n

          The principles of the budgeting process<\/strong>(I presume present budget planners are using a similar framework)<\/p>\n

          (a)\u00a0 Need to identify broad goals of development strategy for the country. For this to take place it is imperative that all parties in government, especially the two premier parties (UNP and \u00a0SLFP) agree on a common policy platform, on programs\u00a0 and strategies for the core areas, notwithstanding which party \u00a0is in control at any one time .<\/p>\n

          These sectors are Health, Education, Social Services, Agriculture, Industry, infrastructure and State and Private business. No matter what party comes into power the core areas need to be the same to avoid all the failures and disasters of the last 60 years<\/p>\n

          (b At the outset, in developing a free budget estimate devoid of financial limitations, the principle Rule of three<\/strong> need to be followed i.e., Essential, Desirable and Dispensable<\/strong>(EDD).<\/p>\n

          (c) Thereafter, initially develop a free budget estimate encompassing all the development goals of the Government\u00a0 under\u00a0 each ministry including those already in progress, following the rule of three(EDD).<\/p>\n

          (d) Once the free budget estimates are made, identify the monies available and trim the activities to meet with expected income using EDD.<\/p>\n

          (e) Under each heading specify activities to achieve the required goals<\/p>\n

          (f)\u00a0 Establish a time line in weeks, months and years to complete each activity.<\/p>\n

          (g) Identify the manpower and man days needed to each activity area and costs of same<\/p>\n

          (h) Estimate total costs of each activity area<\/p>\n

          (i) Identify final outputs, goals and ripple effect of each activity<\/p>\n

          (j) Identify the linkages between Ministries on each activity to prevent repetition and similarity so as\u00a0 not to waste resources<\/p>\n

          (k) Identify against each activity the finances needed and how they are to be met i.e.,\u00a0 finances already available from previous funds, the portion the government will provide, loans and grants which could be garnered, aid money etc., among others.<\/p>\n

          (l) Prepare a performance appraisal grid for each activity (bar charts), showing level of completion, financial resources used, manpower and raw material usage to show weekly, monthly and quarterly progress as per original estimates \u00a0based on above, adjustments could be made to keep the projects on track<\/p>\n

          NOTE: I am sure all of these planning tools may already be in use or something similar. However I encourage the professionals who are involved in the budgetary process to refer a manual termed “A framework for improved state and local budgeting” written by the National Advisory Council on State and Local budgeting of USA (available on the internet)<\/strong><\/p>\n

          (1) How do you find the finance and spend \u00a0it?<\/strong><\/p>\n

          There are three \u00a0aspects to this question \u00a0(a) the methods of finding the finances (b) control of the expenditure (especially waste and leakages) and (c)cost benefit analysis of existing structure so as to either eliminate or reduce waste and inefficiency<\/p>\n

          (a) The method of finding the finances<\/strong><\/p>\n

          One main source that all governments resort to is the tax avenue<\/strong><\/p>\n

          Tax revenue in a country serves as life blood for the government. For example, in developing countries the tax revenue ratio (the ratio between average revenue and gross domestic product)\u00a0 fall far below\u00a0\u00a0 that of\u00a0 developed countries.\u00a0 While currently, that ratio in developed countries is over 35%.\u00a0 In developing countries,\u00a0 this ratio is below\u00a0 15% and in Sri Lanka below 12%.<\/p>\n

          Development aid and tax income provides financial resources to a country to finance the Public Sector expenditure. \u00a0However, plans based on tax income are undermined due to tax avoidance and tax evasion.<\/p>\n

          Tax avoidance which is a tax reduction by legal means can be defined as the activity of tax payers<\/p>\n

          who find different ways to lessen or eliminate their tax liability so as to reduce their actual\u00a0 legal income,\u00a0 without violating the law.<\/p>\n

           <\/p>\n

          Tax evasion on the other hand is the nonpayment of tax liabilities. This \u00a0is the activity of taxpayers, a premeditated infringement of law for the purpose of escaping tax payments that has been introduced legally by the tax authority. This is criminal in nature. Tax evasion is present in Sri Lanka on a large scale by individuals, corporations and trusts and by those <\/strong>in the informal economy of small and medium businesses, trade establishments, tourist trade, professionals, individual income earners, as well as, thousands of suppliers of professional services. The problem is further compounded by the absence of tax files among the majority of citizens in Sri\u00a0 Lanka.<\/p>\n

           <\/p>\n

          Every citizen in Sri Lanka s should strive to strengthen one’s society. It is their public duty to make tax payment,\u00a0 as taxes are the major source of income for government and the\u00a0 government uses this money to provide services to\u00a0 the general public, in areas, such as, defense and security\u00a0 services, public utilities, healthcare, education, social welfare, poor relief,\u00a0 transportation, roads etc.<\/p>\n

          According to official records less than 2 % of the population\u00a0 are tax payers out of a total population of 22 million people.\u00a0 Obviously, there must be several reasons for non-payment of tax. The main issue is not alone tax avoidance but the inability to bring all citizens under a tax umbrella.<\/p>\n

          (b)Recommendations on ways to increase tax revenue<\/strong><\/p>\n

          Issues<\/p>\n

            \n
          • Every citizen must have a tax file notwithstanding whether they presently pay tax ( single or as a family unit)<\/strong><\/li>\n
          • All companies from limited liability, partnerships, to proprietorships must have a tax file<\/strong><\/li>\n<\/ul>\n

            Target groups<\/p>\n

              \n
            1. All members of the national Government<\/li>\n
            2. All provincial Government elected members<\/li>\n
            3. All companies from limited liability to proprietorships<\/li>\n
            4. All employed citizens in government sector* \u00a0and the private sector<\/li>\n
            5. All professional consultants in the fields of medicine and health care, engineering, architecture, accountants, tax advisors, advertising, shipping, medical specialists, lecturers, tuition teachers dance teachers, economists all consultants in every field, among others<\/li>\n
            6. All citizens of voting age (18) to 70 years<\/li>\n<\/ol>\n

              ( * though government sector salaries are tax exempt their private wealth which include lands, houses, rents and other income such as, gifts, dowries, windfall wins need to be taxed.<\/p>\n

              It does not matter whether they are presently non tax payers but like the national Identity Card they need to have a tax number and as they increase their income will qualify for taxes.<\/strong><\/p>\n

              The fact that they have to declare every year on a computerized tax return or by mail makes them answerable in a legal sense as well as in a psychological sense to refrain from\u00a0 tax \u00a0avoidance. If proved contrary, to their non taxable income answer, they will have to face legal strictures.<\/p>\n

              How can you bring individuals under the tax umbrella?<\/strong><\/p>\n

              1.Obtain from the Registrar of Companies\u00a0 \u00a0all company registrations and make it obligatory for all new companies registered to obtain a tax file.<\/p>\n

                \n
              1. Keep tab of all the weddings, receptions, birthday galas at hotels and wedding halls in Colombo and the suburbs to identify the spenders.<\/li>\n<\/ol>\n

                3.Keep a tab on the political parties and their spending on processions, meetings, transport\u00a0 for protests and meetings etc.<\/p>\n

                  \n
                1. Get all hospitals and other medical establishments and private consulting places to report back on consultants\u2019 charges*<\/li>\n<\/ol>\n

                  (* at present many consultants \/specialists\/GPs demand cash and give no valid\u00a0 receipts. Make it obligatory for all specialists, consultants to give a valid receipt that can be filed by the customer as a valid tax off every year)<\/p>\n

                    \n
                  1. Repeat the above exercise with all other consultants, such as, engineers, private tax consultants, accountants, architects, surveyors, occult readers, masseurs, tuition establishments,\u00a0 private education institutes, \u00a0economists, lawyers, attorneys,\u00a0 investment analysts, service agents, ship chandlers etc., among others. *<\/li>\n<\/ol>\n

                    ( make them give valid receipts which can be filed by individuals for percentage exemption* from their individual tax returns. which will necessitate all individuals or corporate entities who pay for services from these professionals to provide receipts. This will create an instant back up check to tax authorities)<\/p>\n

                      \n
                    1. Get all other supplier of services, such as funeral parlors, musical bands , tent suppliers , caterers, food suppliers for almsgivings, funerals, birthday parties, weddings and other ‘tamashas’ to give valid receipts which can be produced as\u00a0 expenses to tax \u00a0authorities to qualify for relief on individual incomes<\/li>\n<\/ol>\n

                      (* Possible future tax exemptions are a possible double edged sword as this will pressurize all service suppliers to give a valid receipt for receiving income and for all those who pay for such service to insist on a receipt as they would get a tax benefit)<\/p>\n

                        \n
                      1. All organizers of political meetings, sports festivals, musical extravaganzas, for cost of platforms, tents, music, dancers, and electronic equipment , transport .refreshments etc.\u00a0 etc.,<\/li>\n
                      2. Organizers of training programs, management, sports, religious festivals among others<\/li>\n<\/ol>\n

                        I am certain that this scenario will increase the tax base by circa 500%. Today with computerization creating 20 million tax files is no big deal nor is it a big deal to have software to monitor same. I am not aware how the tax department is organized countrywide but recommend that that tax offices should be established in every district if it is not the case now.<\/p>\n

                        (2)Other policy avenues that will create income\/reduce expenditure to the government and\/ or save wasteful expenditure<\/strong><\/p>\n

                        (a)Import Restrictions.<\/strong><\/p>\n

                        \u00a0A<\/strong>ll these suggestions cannot be done in the 2017 budget but mention\u00a0 could be made based on a time frame as \u00a0plans for the future.<\/p>\n

                        Import restrictions \u00a0\u00a0and import substitution\u00a0 would be key factors. At present considerable amount of non-essential items are imported \u00a0to the country. First the need is there to identify goods into three\u00a0 categories, \u00a0i.e. essential , partly essential and non- essential (<\/strong>the definitions are time bound)<\/p>\n

                          \n
                        • ( a survey needs to be done\u00a0 on all current imports\u00a0 based on the three factors above)<\/strong><\/li>\n<\/ul>\n

                          (b) Repositioning\u00a0 Industrial and Agricultural Base<\/strong><\/p>\n

                          (i)Heavy industry<\/strong>\u00a0 : At present not much of heavy industry remain ( Companies such as Colombo Commercial company,\u00a0 Walker and Sons, Walker and Grieg, Bonars, \u00a0Browns group, \u00a0comes to mind)<\/p>\n

                          An example<\/strong> of utter waste in heavy industry area is the vehicle import policy. The administration does not consider the long term repercussions\u00a0 of bringing in various models of vehicles for which they have to import millions of items\u00a0 as spare parts.<\/p>\n

                          Solution is in the long term, e.g.,\u00a0 identifying like\u00a0 India did, to assemble one make and model of\u00a0 a small car ( already being done), a medium size car and a larger saloon. \u00a0Two long and short wheel base\u00a0 Vans\u00a0 Strive\u00a0 for \u00a0joint investment with foreign participation to establish\u00a0 assembling factories. \u00a0Excess over the Sri Lanka market can be exported to other third world countries. Several novel permutations and combinations could make the vehicles look different so as to satisfy customer choice, though the basic structure such as the chassis frame, differential, engine block etc would be the same,<\/p>\n

                          The upshot of such a decision would be that you could over period trim imports of spares\u00a0 for older cars and the locally assembled cars would function with a much lesser stock \u00a0holding of spares ( A project proposal can be submitted)and considerable amount of spares for \u00a0the locally assembled vehicles could be manufactured locally. The ripple effect is that feeder industries will be set up by \u00a0small firms to supply components over time (such a model can be seen in South Korea with Hyundai and other car manufactures)<\/p>\n

                          Initially a moratorium on new\u00a0 and old car imports for 10 years to be introduced in the budget to initiate above proposal. Savings will be in millions while income generation among local assemblers and component manufacturers will create income redistribution in the country.<\/p>\n

                          (ii) Light Engineering :<\/strong><\/p>\n

                          Our country needs\u00a0 a light engineering base from basic tools and machines to sophisticated\u00a0 technology. Basic would be for example, carpenter\/mason \u00a0tools, locks etc., a sophisticated would be for example medical and dental instruments .\u00a0 A survey and evaluations to be carried out on likely areas<\/p>\n

                          Initial entry would be technology transfer of total industrial units based on relocation from foreign countries together with buy back guarantees of manufactured items, like China has done over the last two decades( see also section on foreign investment ).<\/p>\n

                            \n
                          • To be mentioned as a sign post of the future in the budget.<\/li>\n<\/ul>\n

                            This would eliminate the need to import selected goods and the benefit would be finding new markets\u00a0 after feeding the local demand. New markets will open \u00a0with the establishment of new trade pacts with India ,Singapore, Pakistan, New Zealand and other selected countries<\/p>\n

                            (iii)Intelligence industry<\/strong><\/p>\n

                            Both electronics and information technology industry is the need of the hour. Initially it would be for example, assembly of\u00a0 selected\u00a0 electronic goods such as computers \u00a0with\u00a0 buy back arrangements of supply\u00a0 over Lankan needs. In case of information technology a whole gamut of possibilities are open. Initially systems to cater to generation Z* Scientific knowledge, technology knowhow\u00a0 and innovation\u00a0 need to be the key drivers in the new education system which will cater to the new generation\u00a0 and bring in \u00a0an\u00a0 educated work force.<\/p>\n

                            The result here would be import substitution of many items that are imported presently and the distinct possibility of exporting\u00a0 goods to other third world countries and export of software ( presently done in a small scale).<\/p>\n

                              \n
                            • It is important for the government to show the way forward in the budget<\/strong>.<\/li>\n<\/ul>\n

                              Such industrial expansion with core industrial complexes in the South, East, North and West will \u00a0create an economic expansion, income redistribution,\u00a0 employment creation,\u00a0 export oriented economy, an intelligent work force and political and economic stability in all parts of the country.<\/p>\n

                              (* please refer to Dr Chandra \u00a0Embuldeniya “Fourth Industrial Revolution, Sunday\u00a0 Business Times\u00a0 September 18th 2016)<\/p>\n

                              (iv)Value added Agriculture<\/strong><\/p>\n

                              Background:<\/strong> \u00a0At present the there is considerable waste in the field of Agriculture both in absence of planned agricultural pursuits, not utilizing examples from other counties . not having a solid comprehensive plan for agriculture, paucity of directed education facilities, and the absence of awareness supported by intensive encouragement by the government . One such case is in paddy farming. Hence the example given below:-<\/p>\n

                                \n
                              • Paddy lands: Paddy farming has not changed much over the years. The concept of inheritance and decimation of land into minute blocks is totally uneconomical, leading to waste in land, labor, water ,fertilizer, apart from poor methodology of land use.<\/li>\n<\/ul>\n

                                A possible way forward is Block farming<\/strong>. Basically amalgamating paddy lands into 100 acre blocks. With a large stakeholder providing the management and administration and having a certain portion of shares in the company for their financial\u00a0 investment, while every small holder farmer\/ owner who subscribes,\u00a0 pledging their land to the company to be issued \u00a0shares on land value. The benefit to the farmer is many fold, (i) holds ownership of land as shareholder of the company (ii) receives share of the\u00a0 profit(iii)obtains permanent employment in the paddy estate with a daily wage for their r labor.<\/p>\n

                                The overall benefits \u00a0will be, (i) intelligent use of mechanized agriculture,(ii)water conservation,(iii) efficient harvesting ( iv) intelligent use and control of\u00a0 fertilizer and pest control (v) prevention of vermin attack and spoilage\u00a0 (vi) efficient\u00a0 storage,(vii)the up gradation of farmer livelihoods(viii)improved scientific agriculture, (ix)\u00a0 income generating short crops \u00a0during the two \u00a0off season),\u00a0\u00a0\u00a0\u00a0\u00a0 (x) benefit to the farmer through elimination \u00a0of lost time due to ill health, paucity of cash\u00a0 in finding funds for seed paddy, fertilizer, storage, water and farm implements etc., (xi) growing of better varieties for export, among others<\/p>\n

                                  \n
                                • study to be carried through a pilot project.<\/li>\n<\/ul>\n

                                  Refer also to\u00a0 existing \u00a0studies\u00a0 available at the Central Bank and other Agriculture Research units \u00a0and the Department of Agriculture on wastage in harvesting and transport, vermin\/rodent attacks on harvested paddy etc. The perennial loss of cultivable best paddy lands .According to Dr A. Tennekoon’s research ( Central Bank),\u00a0 around 33% of the best\u00a0 land \u00a0is not cultivated due to the ‘Thatumaru’ system which waste cultivable land on ownership\u00a0 boundaries (Niyaras)<\/p>\n

                                  In addition numerous studies are available on other added value agriculture such as fruits, lentils, \u00a0vegetable and flower seeds for export, cut flowers, spices \u00a0among others, \u00a0Refer especially a study carried out by Arthur D little of USA and the Sri\u00a0 Lanka Government in 1984.<\/p>\n

                                    \n
                                  • Another related subject to agriculture is import of fertilizer. We are importing triple super phosphate (TSP) when we have phosphate deposits at \u00a0Eppawela that will meet our agricultural needs for the next 100 years, Our phosphate deposits \u00a0are superior \u00a0\u00a0in quality to that \u00a0\u00a0available in Jordan.<\/li>\n
                                  • we need to establish a joint venture with a foreign firm to convert same into tsp. This will provide our local needs as well as<\/li>\n<\/ul>\n

                                    (3<\/strong>) Small and Medium Business strategy model<\/strong>*<\/strong><\/p>\n

                                    There is no definitive policy and plan for small and medium industry development in the country. a comprehensive policy\u00a0 has never been designed and \u00a0implemented . A policy with legal teeth should be introduced after a evaluation of the following needs areas. They are, Access to:\u00a0 Physical Infrastructure, Financial services, Technology and Technical services, Raw materials, Business information and advice, Markets \u00a0and \u00a0a Solid legal base<\/p>\n

                                    The following concept presented is applicable\u00a0 to all would be entrepreneurs in any district in Sri Lanka . It can also be specially directed to displaced youth in the North and the east<\/p>\n

                                    Background<\/strong><\/p>\n

                                    Assumptions (applicable to the North and East only<\/em><\/strong>)<\/p>\n

                                    The target group we are considering at present, probably,<\/strong><\/p>\n

                                      \n
                                    • Feel alienated from the rest of society<\/li>\n
                                    • Have low self esteem due to the vacuum created on their ideological goals of a separate state, loss of power and authority<\/li>\n
                                    • suffer from loss of loved ones such as parents, relatives, siblings and friends<\/li>\n
                                    • are depressed due to loss of career goals, disruption of education, etc<\/li>\n
                                    • feel the absence of social and cultural cohesion<\/li>\n
                                    • feel left behind in comparison to their peers who did not participate as active members of the LTTE fighting cadres<\/li>\n<\/ul>\n

                                      Options available to uplift the target group to become useful and contributory citizens to society<\/p>\n

                                        \n
                                      • Provide government employment<\/li>\n
                                      • Create avenues for private sector to absorb them<\/li>\n
                                      • Formulate a program\/s to create self employment and participate in income generating activities<\/li>\n<\/ul>\n

                                        Where (a) is concerned the process will be slow and no acceleration is possible as it concerns the whole country where there is considerable under employment and un-employment. Therefore job vacancies will occur only when development of the North and East progresses. However we need to conduct career training before they become employable<\/p>\n

                                        In the case of option (b) there may perhaps be more acceleration of job prospects for some as the private sector opens up more manufacturing and sales areas in these regions. This again will take considerable time as target group members require basic training before being employed<\/p>\n

                                        The most viable option therefore is, (c) as most of the target group have low levels of skills training, low levels of basic education, low exposure into the world of business.<\/p>\n

                                        However, the\u00a0 above deficiencies could be overcome as there are successful programs from Asia and rest of the world in the fields of motivation, awareness creation and exposure to rapid learning methods in skills training and entrepreneurship.<\/p>\n

                                        Such programs need to be well integrated with all the stakeholders playing symmetrical roles.\u00a0\u00a0\u00a0\u00a0 That is the\u00a0 government sector( GS), the private sector( PS) and\u00a0 the local and international establishments\u00a0\u00a0 (L &I), They in unison need to work together to\u00a0 create a stable\u00a0 environment by sharing roles that are necessary to make the ongoing program\u00a0 a part of a national effort of reintegration, reconstruction and development . This would consist of, for example ,\u00a0\u00a0 creating a level playing field ( GS) , access to,\u00a0 business services( PS)),\u00a0 information networks(GS,PS, L&I) , industrial and agricultural extension,( GS, PS L&I)\u00a0 establishment of manufacturing and production demonstration centers, ( GS<PS<L&I) hands on training and instruction centers (GS,PS,L&I), raw material banks (GS,PS) marketing , distribution and sales\u00a0 outlets( GS,PS, L&I)\u00a0 and of course funding to undertake these programs<\/p>\n

                                        It is necessary to reiterate before we go further that such a program needs<\/p>\n

                                          \n
                                        • Hands on experienced experts who can guide and direct the various inputs.<\/li>\n
                                        • Careful selection of\u00a0 the different target groups of beneficiaries<\/li>\n
                                        • A pilot program to test the waters<\/li>\n
                                        • A well documented monitoring and evaluation procedure in place.<\/li>\n<\/ul>\n

                                          Items C and D are self explanatory<\/p>\n

                                          With regard to (a) there are Sri Lankan experts available with both local and international experience.<\/p>\n

                                          In the case of (b) a glance at the following view of target participants may be pertinent so as to select aspirants from the group into specific training programmers.<\/p>\n

                                          It must be borne in mind that humans have different capabilities and therefore there need to be programs to cater to different types. A few examples are given here for clarification of types of humans and suitable programs<\/p>\n

                                          Types of Humans<\/strong> (categorization done based on my own observations and therefore not exclusive)<\/em><\/p>\n

                                            \n
                                          1. Safety seekers<\/strong> are those that obtain a skill and sell this skill practically for 8 hours a day or more to some establishment either in the government or the private sector.<\/li>\n<\/ol>\n

                                            For them the program needs to offer skills trainings in specific fields such as administration, clerical and technical fields etc. For this group Entrepreneur development could be offered in the future <\/em><\/p>\n

                                              \n
                                            1. Risk Takers<\/strong> are those who identify a prospective business and establish an income generating activity like small manufacturing unit, or an agriculture processing unit, trading, distribution or other service, employs others and manages the venture. These belong to our target group and entrepreneur development should be a must for this group.<\/em><\/li>\n
                                            2. Lone rangers<\/strong> are those who acquire a skill or knowledge .Do not like to work for others and ply his\/her trade e.gs. are masons, welders, electricians, plumbers ,surveyors, architects, musicians medical practitioners, lawyers etc. They too fall into our target group as they could move into a business venture at a later date. Entrepreneur development after skills training is a must<\/em><\/li>\n<\/ol>\n

                                              4, Survival artistes <\/strong>are those who are less educated and less endowed in skills and knowledge and find no choice other than to employ themselves in some micro business to survive.egs are street vendors, street entertainers, and micro food processors. They too fall into our target group and entrepreneur training is a must and will make them ply their micro businesses more efficiently.<\/em><\/p>\n

                                                \n
                                              1. Family<\/strong> Inheritors <\/strong>are those whose parents are engaged in a trade, business or service and are already tuned into the world of business and will either join their parents or branch out to a new business or do neither. They too fall into our target group and will benefit from entrepreneur training.<\/em><\/li>\n<\/ol>\n

                                                FACETS OF ENTREPRENEURSHIP<\/strong><\/p>\n

                                                Entrepreneur training programs create, awareness among the aspirants about themselves, the external world they operate their business, their internal strengths through self analysis, enthusiasm build up, task orientation, knowledge building and self motivation.<\/p>\n

                                                It is pertinent to note at the beginning that Entrepreneurship is not a fallback position when no other job prospects are available but it is a career by itself, second to none<\/strong><\/p>\n

                                                The reason why there is a high failure rate is due to the false assumption of development personal\u00a0 who assumed that if a person is trained for 15 to 20 days in all aspects of management, production, finance and marketing and selling that they will venture into successful enterprise. This is far from the truth and is a menu for disaster<\/em> . <\/strong><\/p>\n

                                                The training really provides a sense of direction and creates awareness provides guidelines on every aspect of business. The real test comes when they try to commence their business and thereafter.\u00a0 Therefore the critical factor for success is to sustain their initial enthusiasm through a process of continuous support services, this is called industrial and agricultural and service extension.<\/p>\n

                                                These support services comprise of<\/p>\n

                                                (a) Access to physical infrastructure:<\/strong> such as, access to land, buildings, warehousing, roads, sales outlets, utilities etc through the form of industrial estates, business hives, business cocoons etc.<\/p>\n

                                                (b) Access to financial services:<\/strong> such as advice, financial feasibility studies, cash flow management, tax benefits, bridging loans, leasing finance, hire purchase finance, short and long term loans etc<\/p>\n

                                                \u00a9 Access to technology and technical services: <\/strong>such as, processing techniques, environment friendly production, appropriate machinery, production processors, quality manufacture, design, shape and color, etc<\/p>\n

                                                (d) Access to raw materials<\/strong>, such as raw material banks, special imports, reservations, bulk buying etc.,<\/p>\n

                                                (e)\u00a0\u00a0 Access to business information and advice:<\/strong> such as, information on markets, pricing, raw materials, design, packaging, quality, government rules and regulations, business laws, taxes etc<\/p>\n

                                                (f) Access to Markets:<\/strong> such as, schemes of twining big business with micro and small business, foster parenting, easy entry into government supply, entry to government tenders, subcontracting exchanges etc<\/p>\n

                                                (g) Access to<\/strong> Training<\/strong>: such as, financial management, production management, sales, quality control, packaging ,product design, market research , reverse engineering, stores management, among others<\/p>\n

                                                (h) Access to a solid Legal base:<\/strong> such as, special law\u00a0 that define Micro,\u00a0 Small, Medium and Large companies, laws on tender break up so that small firms can compete, laws on special purchase of small business products by the Government, Laws on location ,special tax benefits, pay back periods on loans, special interest rates among others<\/p>\n

                                                Selection of trainees<\/strong><\/p>\n

                                                They are tested selection methodologies based on ones\u2019 orientation and entrepreneur ability<\/p>\n

                                                Some examples of selection parameters:\u00a0\u00a0 select groups from similar backgrounds, knowledge levels, age groups, educational levels, skill levels. These are done through one to one and group interviews, observation and visit to family backgrounds and environment, intelligent and skills tests etc.<\/p>\n

                                                Examples of group orientations for selection are,<\/p>\n

                                                  \n
                                                • Graduates, technical diploma holders, agricultural diploma holders, those with business experience and specific skills experience<\/li>\n
                                                • Family backgrounds like farming, trading, technical, Industrial etc<\/li>\n
                                                • Skilled, e.gs. are electricians, welders, plumbers, carpenters, hair dresses, dental mechanics, animal husbandry, apiary, among others<\/li>\n
                                                • Service orientation such as repairers of bicycles, tractors, motor cycles, cars and vans, wedding entertainers, funeral organizers, electric and electronic item repairers, music suppliers, among others<\/li>\n
                                                • Food processors such as pastry makers, bread \/bakery trade, sweet meats, beverages, fast food suppliers, among others<\/li>\n<\/ul>\n

                                                  Training models<\/strong><\/p>\n

                                                  There are many training models to choose from. Most of them have been pilot tested in Sri Lanka and abroad.\u00a0 Whatever the model, a key factor to look for is that the training is done using andragogical or adult teaching methods<\/em> which comprise of, role play, interactive group work, simulation methods, competitive groups, case study etc which simulate real life situations.<\/p>\n

                                                  The process of training itself is well documented. It begins with expectation indexes, leveling, brain storms, micro and macro screening, interactive games on\u00a0 market research, production, financial management ,costing ,raw material sourcing, reverse engineering, packaging, negotiating, setting prices, market research, marketing , advertising, development of\u00a0 project\u00a0 profiles\u00a0 and presentation of business plans to a final panel, using the techniques learned through this sequential training program and requesting the financial intermediary\u00a0 for seed capital based on this business plan.<\/p>\n

                                                  Post training support<\/strong>.<\/p>\n

                                                  Already discussed above such as government policy support in the form of incentives, simplified legal and regulatory frameworks, and others mentioned above<\/p>\n

                                                  The Future<\/strong><\/p>\n

                                                  Provided a decision is made that what is described is a probable path to follow, a project proposal will have to be developed for Government, private sector and donor funding<\/strong><\/p>\n

                                                  Funding could be sourced from<\/strong><\/p>\n

                                                    \n
                                                  • International donors who have funded such programs around the world are<\/li>\n<\/ul>\n

                                                    The world bank, USAID (USA) GTZ,\u00a0 (Germany) , British aid (UK) ,SIDA\u00a0 ( Sweden) DANIDA ,(Denmark) NORAD\u00a0 (Norway)\u00a0 Dutch Aid, CIDA,IDRC {Canada)and many foundations, among others<\/p>\n

                                                      \n
                                                    • At National level<\/li>\n<\/ul>\n

                                                      Government rehabilitation and development funds, Commercial and development banks who deals with small business and micro finance<\/p>\n

                                                      Large private sector corporations<\/p>\n

                                                      Chambers and Associations<\/p>\n

                                                      Foundations and trusts<\/p>\n

                                                      Individual benefactors<\/p>\n

                                                      Sample Project proposal<\/strong><\/p>\n

                                                      The Objective:<\/strong><\/p>\n

                                                      \u00a0<\/strong>Creating income generation and employment opportunities for youth, unemployed and under employed, retirees form employment\u00a0 and returnees from the middle east,\u00a0 displaced people around the country rehabilitated EX LTTE cadres<\/p>\n

                                                      Activities to achieve objective<\/strong><\/p>\n

                                                        \n
                                                      1. selection of training groups in batches of 25<\/li>\n
                                                      2. Training programs for specific target groups<\/li>\n<\/ol>\n
                                                          \n
                                                        • Setting up extension services<\/li>\n<\/ul>\n
                                                            \n
                                                          1. Setting up business hives and cocoons<\/li>\n
                                                          2. Establishing demonstration centers<\/li>\n
                                                          3. Developing a data bank of expert cadres for mentoring in specific fields.<\/li>\n<\/ol>\n
                                                              \n
                                                            • Establishing a central information centre with a nodal network around the country<\/li>\n
                                                            • Establishing financial intermediaries<\/li>\n<\/ul>\n
                                                                \n
                                                              1. Establishing raw material and tool banks<\/li>\n
                                                              2. Creating distribution networks, sales and marketing centers<\/li>\n
                                                              3. Setting up a monitoring and evaluation process<\/li>\n<\/ol>\n

                                                                Costs <\/strong><\/p>\n

                                                                To be calculated based on detail needs for activities including manpower needs<\/p>\n

                                                                Manpower requirements<\/strong><\/p>\n

                                                                To be calculated depending on the sequence of activities<\/p>\n

                                                                Time frames<\/strong><\/p>\n

                                                                To be decided upon<\/p>\n

                                                                Outputs:<\/strong><\/p>\n

                                                                Creation of new business units, self employed people, group production and processing, creation of wealth in the countryside and redistribution of income.<\/p>\n

                                                                OUTCOMES<\/strong><\/p>\n

                                                                Ripple effect of new income generation in depressed areas resulting in<\/p>\n

                                                                  \n
                                                                • Better housing<\/strong> and living conditions in the villages.<\/li>\n
                                                                • Growing of market<\/strong> demand for other goods.<\/li>\n
                                                                • Lesser burden on government<\/strong> funds and facilities and administration.<\/li>\n
                                                                • Better living<\/strong> conditions for entrepreneur families.<\/li>\n
                                                                • Successful demonstration<\/strong> by the Government on handling of IDPs and rehabilitation.<\/li>\n
                                                                • Prevention<\/strong>e., weaning away displaced youth from drug and alcoholic abuse and petty thievery.<\/li>\n
                                                                • Reduction in migration<\/strong> to cities for work and fringe living (slums).<\/li>\n
                                                                • Elimination of frustration<\/strong> of youth and preventing them going back to militant ways<\/li>\n
                                                                • Creation of micro capitalists<\/strong> (successful entrepreneurs) who will not join reactionary or revolutionary politics nor undertake protests or create destabilization<\/li>\n
                                                                • Increase in goods and services<\/strong> to the general economy.<\/li>\n
                                                                • Increase in income generation<\/strong> and redistribution of income in depressed and less developed areas<\/li>\n
                                                                • Increased in market demand<\/strong> and purchasing power for goods and services produced by others in the country.<\/li>\n
                                                                • Better index of loan recovery<\/strong> by the banks and other financial intermediaries<\/li>\n
                                                                • Less burden for the government<\/strong> in food aid, health facilities, samurdhi, etc<\/li>\n
                                                                • More income for the government<\/strong> by reduction of handouts and new taxes\u00a0 if any,\u00a0 and the saved funds to be used in other needy areas.<\/li>\n<\/ul>\n

                                                                  Monitoring and evaluation<\/strong><\/p>\n

                                                                  Objectively verifiable indicators to be established with time sequences for verification and control<\/p>\n

                                                                  ————————————————————————————————————————–<\/p>\n

                                                                  ,\u00a0\u00a0\u00a0 <\/strong>*The writer as Chief Advisor with a team of multi skilled South African specialists developed the model for Small and Medium Industry development\u00a0 \u00a0for South Africa under The Mandela Government.\u00a0 \u00a0The findings were given a legal base through Parliament, institutionalized and activated on the ground. It became a model to be followed in other African countries \u00a0as well as some other countries in Asia. The report, findings and activities are available with the author<\/p>\n

                                                                  (4) <\/strong>Social Welfare<\/strong><\/p>\n

                                                                  (i)Free Education<\/strong> See\u00a0\u00a0 under assisted education (Page 9 )<\/p>\n

                                                                  (ii)Free\u00a0 Health<\/strong> see under\u00a0 Health care initiatives( Page 9)<\/p>\n

                                                                  (iii)Samurdhi.<\/strong><\/p>\n

                                                                  This program as presently run\u00a0 needs improvement. The selection of the beneficiaries by Samurdhi officers (both men and women) nominated from the area alone is bound to cause favoritism. The need is to devise a system where the real needy benefits. Perhaps appointing religious leaders in the districts to select the beneficiaries may reduce corruption.<\/p>\n

                                                                    \n
                                                                  • It is also important that the beneficiaries provide some benefit \/ return, \u00a0to the society and government.\u00a0 For example, \u00a0\u00a0a number of hours of their\u00a0 labor to be given to the government in the areas where they live, such as, helping at schools, hospices ,environment cleaning, \u00a0helping at cr\u00e8ches and child care centers, among others<\/li>\n<\/ul>\n

                                                                    (iv) Free transport<\/strong>\u00a0 see under infrastructure initiatives( Page 16)<\/p>\n

                                                                     <\/p>\n

                                                                    (5) Health Care \u00a0Policy<\/strong><\/p>\n

                                                                    (a) <\/strong>\u00a0Healthcare vs. Assisted health care<\/p>\n

                                                                    Comparative costs:\u00a0 Today a pound of bread is Rs.54, a cigaretteRs.35,Malupaan’ is Rs.40, yoghurt Rs.30 ice-cream tub Rs.40,\u00a0 apple is Rs.50, orange is Rs. 45, a packet of rice from \u00a0Rs.100 to \u00a0Rs.150.(all consumed by lower and middle income earners)<\/p>\n

                                                                      \n
                                                                    • So is it preposterous? if\u00a0 a proposal is made that in every\u00a0 government hospital\u00a0 outpatients pay for example \u00a0a minimum fee of RS 50.for consultations , Rs 100 to 300 for \u00a0usage of any machine such as an x-ray , ECG ultra sound scan , CT scan MRI scan etc. Rs 25 for any intravenous\u00a0 injection and \u00a0Rs 25 for medicines etc ..<\/li>\n<\/ul>\n

                                                                      With such a payments structure, \u00a0\u00a0the health budget\u00a0 to the State\u00a0 will be reduced considerably . The\u00a0 practice of making patients pay for\u00a0 medication in Government Hospitals \u00a0\u00a0\u00a0is already\u00a0 in existent, though informally done at present,\u00a0 where patients are requested \u00a0to bring injection syringes, antiseptic creams and lotions\u00a0 etc from outside pharmacies.<\/strong><\/p>\n

                                                                      (b) Private medical schools to be endorsed as long as all regulations are met. This will ease government spending on medical education and additional spending on free medical education<\/p>\n

                                                                      (6)Education\u00a0 Policy<\/strong><\/p>\n

                                                                      (a)Free Education vs. Assisted Education.<\/strong><\/p>\n

                                                                      Free education has been in existent over\u00a0 the last 70 years. Let us take a serious view on this issue. \u00a0University education( degree)\u00a0 in humanities costs on average around \u00a0Rs.400,000 and medicine over Rs. 600,000.<\/p>\n

                                                                      One initiative is to provide free education up to A level. All university entrants to qualify for assisted education<\/strong> where a graduate in any discipline is \u00a0made to pay 50% of the cost of education over a 15 year period. Payment only to commence \u00a0once they are gainfully\u00a0 employed<\/strong>. This is practiced in most countries. Payment to be staggered over a 15 year period. \u00a0Another option \u00a0Initially is that \u00a0the first 25% of students who scores highest will have bursaries to cover 50% of the cost.<\/p>\n

                                                                      Part of the savings will be for university upkeep, upgrades \u00a0and as higher salaries to university professors and Lecturers.<\/p>\n

                                                                      (b) A concept to change the whole educational infrastructure<\/strong><\/p>\n

                                                                      Background<\/strong>: The total educational structure needs to be reviewed. The school and university locations have been over the years established on an ad hoc basis. It is time now to develop a national comprehensive plan to reorganize and upgrade the system, based on population( student) patterns. For example, \u00a0when Singapore \u00a0re planned the\u00a0 system in 1991,\u00a0\u00a0 they carried out a comprehensive survey on systems elsewhere\u00a0 in 12 leading countries .<\/p>\n

                                                                      Proposal<\/p>\n

                                                                        \n
                                                                      • Identify 9 universities<\/strong> to be termed Provincial Universities, Students from the Province who qualify for university education to get placement in the Provincial This eliminates the present frustration of displacement from their families, home environment , additional payments for food and lodging\u00a0 and psychological issues of being away from family and the safe environment etc.<\/li>\n
                                                                      • The facilities to be upgraded in all 9 Universities , with specialized subject areas and skilled and experienced professors and Lectures and top specialists with experience from the private and public sector to be invited as visiting lecturers<\/li>\n<\/ul>\n
                                                                          \n
                                                                        • identify 9 Technical Colleges<\/strong>\/Schools as well for the 9 Provinces<\/li>\n<\/ul>\n

                                                                          Students who do not obtain the grades to qualify for university\u00a0 education or \u00a0prefer a technical \u00a0\u00a0\u00a0\u00a0\u00a0education option could apply to these colleges. \u00a0They too can study in their home environment.<\/p>\n

                                                                            \n
                                                                          • the technical colleges to have state of the art facilities that prepare the students for the future technology world .<\/li>\n<\/ul>\n
                                                                              \n
                                                                            • Establish 9 Gymnasiums<\/strong> (German model) where 120 job areas are catered to, with both practicum and theory. This system is the best in the world. The selection to be \u00a0based on aptitude tests. Students who prefer to train and qualify in a specific skilled craft can study to be Master (Meister) in the specific trade . One hundred and twenty \u00a0options are available in varied fields \u00a0such \u00a0as carpentry, masonry, welding, electrical, electronics, animal husbandry, hairdressing, weaving, bookkeeping, draugtmanship<\/li>\n<\/ul>\n

                                                                              ,apothecary, computers,\u00a0 among others<\/p>\n

                                                                                \n
                                                                              • Select\/elevate nine top Central Schools<\/strong>\u00a0 as nine model schools for the nine provinces. The 9 schools to be equivalent to the Colombo Royal school model with additional emphasis on Science and technology curriculum. Staff them with first grade teachers who will be paid additional allowances for housing and travel, relocation expenses etc being \u00a0an incentive for them to relocate themselves .install State of the art Science and Technology laboratories, and other necessary learning tools, computers etc<\/li>\n<\/ul>\n

                                                                                Students who excel from other schools grade 5 exam\u00a0 in the provinces to be given placement in the Provincial “Royal Colleges” ( to be named after benefactor*)<\/p>\n

                                                                                How do you find the Finances<\/strong><\/p>\n

                                                                                (i) Billionaires, Millionaires, Philanthropists, Family Foundations, like their names to be written in perpetuity. Develop an enticement program where a contribution of over a specific figure will permit \u00a0them to endow , their family \u00a0name to the institute they financially sponsor, such as,\u00a0 the nine Provincial Technical colleges and the \u00a0top nine Provincial schools apart from a family member being elected to the Board of the school.<\/p>\n

                                                                                Possible \/Probable candidates to source funds<\/strong>(.Names taken from the Sri Lanka Millionaire List)<\/p>\n

                                                                                Messes : Dammika Perera, Sohli and Rusi Captain ,Harry Jayewardene, Ashok Pathirage, M Wegapitiya,\u00a0 Ali Yaseen, HiranCooray, Abbas Akberally, Manik Pereira, H KDharmadasa, Osman Kassim, A R Pandithge, \u00a0Ken Balendra , P wickremasinghe, Ishara Silva, J C and M M Page, SenaYaddehige, RM Nanayakkara, G C Wickremasinghe, Ajith Devasundera, SumalPerera Amaleen Brothers, among another 50 or so likely benefactors<\/p>\n

                                                                                (ii)obtain\u00a0 German aid( GTZ) for the Gymnasiums<\/p>\n

                                                                                (iii) obtain aid from Denmark( DANIDA)\u00a0 Canada (CIDA), Sweden (SIDA) Norway (NORAD), Finland (FINNIDA) for the 9 technical colleges again they can have their country name\u00a0 as the name of the technical college\u00a0 as they all\u00a0 support technical education<\/p>\n

                                                                                (iv) obtain aid from UK (British aid), USA (USAID)\u00a0 for the\u00a0 Nine Provincial schools up gradation system and the English learning initiative<\/p>\n

                                                                                (v) There are over 1000 foundations in the USA and Europe \u00a0who have in their Mission and goals\u00a0 to upgrade social and \u00a0educational welfare \u00a0in developing countries. A concerted effort to be made to tap such avenues.<\/p>\n

                                                                                (vi) There are other foundations and philanthropists in Europe, Japan ( Sasakawa foundation comes to mind) where aid and grants can be tapped if a concerted team effort from a task force is set in place.<\/p>\n

                                                                                (c)Concept to bring English as a language \u00a0of \u00a0education countrywide<\/strong><\/p>\n

                                                                                Background : <\/strong>India at the time of independence kept English as the medium of education initially for a period of 15 years with the proviso Hindi to be introduced as the language of learning. However 60 years and over since independence, English still reigns as the language of learning in India.\u00a0 South Africa has 11 ethnic languages but kept English as the language of learning . The Sinhala only policy left most of the Sinhalese population in the countryside bereft of \u00a0an English education while their town cousins in the middle and upper middle class got the opportunity to learn English. Thus the same class structure of good English speaking, broken English speaking and non English speaking\u00a0 remains to date.\u00a0 Sri Lanka needs to strategize on what should be the best alternative as a medium of learning in educational institutes<\/p>\n

                                                                                The points to ponder are<\/p>\n

                                                                                  \n
                                                                                • The population of Sri Lanka is around 22 million. Most text books, journals reference articles in every field are in English. Today internet access to web sites of learning, such as, sites in humanities, science, technology, engineering, arts, music, literature, architecture and social sciences are available in the English medium. So is access to libraries, knowledge sites on politics, country information, economic and trade data news , specific skills etc<\/li>\n<\/ul>\n

                                                                                  If this is the case why go against the grain and become backward in knowledge access.<\/p>\n

                                                                                    \n
                                                                                  • English can be brought back as the main language of learning, ( not in 24 hours but over a period of ten years) while Sinhalese and Tamil remain as National languages. People may question why a ten year period?\u00a0 The reason is if a child born 5 years ago commences\u00a0 learning English in the first school year, in ten years time ( around the average time they sit for the GCE o level) he\/she will be fluent in English<\/li>\n
                                                                                  • What about their mother tongues?<\/li>\n<\/ul>\n

                                                                                    Sinhalese and Tamil are already classed as National languages they should continue to remain so and students still could study subjects such as history, civics, religion in either Sinhalese or Tamil if they wish to do so.<\/p>\n

                                                                                    However for the future of our country\u2019s youth, living in a global village the subjects mainly in the technical and engineering areas, medicine, science etc should be in English.<\/p>\n

                                                                                      \n
                                                                                    • It has also been proved in many small countries (e.g. Sweden) that young children are taught 3 languages. Their own language (mother tongue) and two others. This could be conveniently introduced here with Sinhala and Tamil and English as the 3 preferred languages.<\/li>\n
                                                                                    • This will make all future Sri Lankans access to each other, bonding at a very early age like we did in the fifties where a class room consisted of Sinhalese, Tamils, Moors, Malays, Burghers, Eurasians\u2019 , Chinese and others, all learning in harmony and bonding for life.<\/li>\n
                                                                                    • Thus in a period of ten years every youth under the age of 15 will have access to English which will open out the whole world to them.<\/li>\n<\/ul>\n
                                                                                        \n
                                                                                      • How do we achieve same<\/strong>?<\/li>\n<\/ul>\n

                                                                                        (i)We begin with a survey of needs to achieve this goal. First the teachers, then the facilities countrywide, finances required and time span for completion ,<\/p>\n

                                                                                        (ii)Once a plan has been drawn, we will be able access aid in terms of teachers from the executive service corps of UK, USA, American field services, retired executives and civil servants, expatriate retirees, social service organizations, other likeminded English speaking citizens<\/p>\n

                                                                                          \n
                                                                                        • prepare a basic step by step curriculum.<\/li>\n
                                                                                        • Establish language labs in every district,<\/li>\n
                                                                                        • Organize TV and Radio programs and distance learning programs<\/li>\n
                                                                                        • Create a English learning culture in the country<\/li>\n
                                                                                        • Dispense with “cockeyed” schemes of learning” Singlish” English, which will automatically create a second class of English speakers, as compared to more middle class children learning in the correct way to speak, write and read English.<\/li>\n<\/ul>\n

                                                                                          ( <\/strong>7)Management of the Public Sector<\/strong><\/p>\n

                                                                                          (i) All State Corporations<\/strong>.<\/p>\n

                                                                                          No business anywhere in the world continues year after year on government grants except in very special cases\u00a0 a few\u00a0 strategic industries\u00a0 .<\/p>\n

                                                                                            \n
                                                                                          • Background<\/li>\n<\/ul>\n

                                                                                            It is important to delve back to recent history why the corporations were established.<\/p>\n

                                                                                            In 1946 on the eve of the dissolution of the state council the executive committee presented a review of industrial policy.<\/p>\n

                                                                                            This report laid down some practical lines of policy for the future, It outlined the framework for an industrial policy to deal with the post war situation Industries \u00a0were demarcated as \u00a0Basic industrial sector under state ownership and a non basic industrial sector under private ownership. Basic industries were to be those of strategic importance for development requiring large capital outlay such as iron and steel, cement ,power, heavy\u00a0 chemicals ,textiles and pharmaceuticals. Their final proposal was that the factories established by the government should be formed into corporations<\/strong> with both government and private capital.<\/p>\n

                                                                                            In 1952 a commission was appointed to examine the usefulness of a number of commercial undertakings run exclusively with state funds. This report recommended that state undertakings especially in the field of industry, if they were to be commercially viable should be transferred to corporate bodies, joint stock companies or to cooperative establishments ( Gunesekera-De Zoysa report Sessional paper XIX of 1953).<\/p>\n

                                                                                            After \u00a063years we are at the same juncture, i.e,\u00a0 looking for options on State Sector Corporations i.e., what to do with the loss making Corporations ?We have to, in providing solutions to wastage of government funds, take due cognizance that Corporations have become a Political issue. Since they became fiefdoms of individual ministers as fund raisers for political campaigns, employment exchanges for their relatives and friends and job banks for their supporters.<\/p>\n

                                                                                            Option one <\/strong>\u00a0is to convert them into joint stock companies. Government sector assets converted to shares and private sector participation with shareholder funding through the stock exchange .The current \u00a0employees being given stock options so that malingering of employees is eliminated.( (no government assets are privatized.<\/strong>)<\/p>\n

                                                                                            The CEO to be a professional with management, planning, administrative, financial and human resource\u00a0 skills. To be contractual on a 3 year basis with automatic three year extensions based on performance. No more \u00a0appointments by the Minister but by a professional \u00a0Recruiting Board specially appointed .Age to be between 45 to 60 years( This age factor will eliminate old retired people put to pasture as Corporation heads\u00a0 to while away their sunshine years doing very little).<\/p>\n

                                                                                            All future\u00a0 staff to be recruited on their experience, qualifications. The present staff to be evaluated on job specifications and those who are unsuitable to be either retained ,given golden handshakes, or put into a excess pool and found alternative employment for example , in their home districts with the introduction of industrial complexes and zones<\/p>\n

                                                                                             <\/p>\n

                                                                                            The Board \u00a0of Directors to comprise of professionals . depending on the corporate mission of the Corporation. Eminent persons such as, retired corporate specialists , accountants ,economists\u00a0 business leaders, architects, engineers educators, HR specialists. medical professionals,\u00a0 and Senior\u00a0 government officials from the Treasury, Central Bank, Commercial banks, and the Administrative service<\/p>\n

                                                                                              \n
                                                                                            • The budget to signpost that initially a professional team will evaluate each cooperation, do a comprehensive management and strategic plan with emphasis \u00a0on its viability. Thereafter activate option one above<\/li>\n<\/ul>\n

                                                                                              Option two <\/strong>would be\u00a0 that all assets and shares belong to the government but the Corporation is managed by professional staff as in option\u00a0 one.<\/p>\n

                                                                                              Option three<\/strong> would be to convert them into Cooperative establishments similar to those in Scandinavian countries<\/p>\n

                                                                                                \n
                                                                                              • Option one is the preferred way to go . Prior to a\u00a0 decision being made it is important to class all cooperation under headings such \u00a0as strategic, public utility, custodial, welfare, commercial etc<\/li>\n<\/ul>\n

                                                                                                Option four<\/strong> to be those that are a burden and cannot be remodeled \u00a0to either be divested or liquidated<\/p>\n

                                                                                                Example:\u00a0 (i)Airline industry<\/strong><\/p>\n

                                                                                                Mihin Air to be liquidated. It was a loss making fiasco from the beginning and as the proverbial” dead turkey hanging onto the high flying \u00a0Eagle”( Srllankan”) bringing it further down.<\/p>\n

                                                                                                  \n
                                                                                                • A study to be carried out prior to liquidation, on displacement of staff, assets and obligations of Mihin Air.<\/li>\n<\/ul>\n

                                                                                                  Sri Lankan thereafter to be restructured and offered as a joint venture to likely investors( presently being considered).<\/p>\n

                                                                                                  (8)\u00a0 Infrastructure Development<\/strong>.<\/strong><\/p>\n

                                                                                                  (a)\u00a0 Toll Roads, Parking high-rises and new traffic systems and possible\u00a0 revenue earning proposals<\/p>\n

                                                                                                  Background :<\/strong>Almost all the vehicle owners have spent anything from a million rupees to 40 million\u00a0 in <\/strong>purchasing vehicles. Additionally they spend on\u00a0 , car detailing, accessories etc.\u00a0 The government is struggling and spending billions in skyways ,access roads etc . The point is if the import of vehicles continue these road also will be clogged. It is like the ” tail chasing the head”. The issue here is\u00a0 wastage of fuel, loss of professional man-hours due to blocked traffic, pollution, road rage and stress and road accident all of which \u00a0cost money and \u00a0considerable waste of resources<\/p>\n

                                                                                                  Solutions<\/strong><\/p>\n

                                                                                                    \n
                                                                                                  • (i) Toll gates<\/strong> .The budgetary planning in the transport area could begin with introducing Toll gates on all major roads. The Toll Gates to be administered by the RDA, private sector organizations such as Chambers of Commerce or private sector companies\u00a0 . The collector will be responsible\u00a0 for maintenance and upkeep .For example 75 % of the toll could be used for road maintenance, while the balance \u00a025% would include administrative costs, salaries for toll keepers and profit to the organization managing the toll.<\/li>\n
                                                                                                  • (ii) Slot parking<\/strong> .Sri Lanka was the first country to introduce parking meters in Asia around 1960s and now we have none.. The issue is free parking on all roads thereby avoiding fees, blocking roads obstructing pedestrians .The \u00a0previous Singapore model of punched cards to be introduced for\u00a0 parking in all the cities and towns. It will bring order, more will find parking as parking will be on a time basis. Employment will be created for parking attendants ( at present numerous self appointed parking attendants with bogus yellow jackets and printed tickets with the municipal logo on the tickets are raking in money.)<\/li>\n<\/ul>\n

                                                                                                     <\/p>\n

                                                                                                      \n
                                                                                                    • (iii) High rise car parks T<\/strong>here is also an urgent need to build high rise car parks in Colombo such as, in Fort, Pettah, Borella, Bambalpitiya,\u00a0 and also in every major City\/ town in the country ( Kandy already boasts of one)..All cars to be parked in these parks\u00a0 apart from limited street parking to be charged by the hour. With fees generated as parking fees, recovery of \u00a0the capital spent on car parks will be guaranteed.<\/li>\n<\/ul>\n
                                                                                                        \n
                                                                                                      • (iv) Gantry gates<\/strong> to record and monitor and charge all vehicles entering the city between 7am in the morning to7pm<\/li>\n
                                                                                                      • (v) Peak hour traffic<\/strong> a law to be enacted that every car that enters the city during peak hours should contain at least 4 passengers, otherwise a penalty to be paid. This will create pooling of car owners on a weekly basis . Another alternative is to charge every vehicle entering the city\u00a0 at peak hours\u00a0 an additional Rs. 100 or more<\/li>\n
                                                                                                      • (vi) Speed cameras<\/strong> to be introduced on every highway and if 12 infringements are made in an year the license to be suspended for a year<\/li>\n
                                                                                                      • (vii)Road works<\/strong> all road work to be done from 8 pm in the evening under lights( this refers to digging, painting, tree lopping, road signs and light repairs, painting of lines and crossings, surfacing among others). There will be considerable saving in blocked traffic and cooler for road units to work at night. the only extra cost would be lighting<\/li>\n
                                                                                                      • (viii) New congestion law t<\/strong>o lessen traffic \u00a0congestion , save time and fuel.\u00a0 \u00a0All container vehicles , goods lorries, construction material equipment carriers, cement, logs ,sand and mettle carriers \u00a0and many more heavy transport to be assigned special hours ,i.e. \u00a0only to take place in cities \u00a0towns between the hours of 8\u00a0 pm to 5AM(9 hours )<\/li>\n<\/ul>\n

                                                                                                        (b) Relocation of Bus Terminals <\/strong><\/p>\n

                                                                                                        Background: At present busses in cities at all hours careening on the roads create considerable chaos and hazards to commuters, pedestrians and other forms of transport.<\/p>\n

                                                                                                        The issues are(i) that the busses are too big for city roads and lock other vehicles \u00a0(ii) race with each other ( being from different companies) to pick passengers.(iii)\u00a0 stop at their will to pick and drop passengers(iv) do not follow any road rules (v) delay other road users’, (vi)\u00a0 cause many accidents (vii) and have become a menace to all despite them doing a yeoman service to all bus commuters<\/strong><\/p>\n

                                                                                                        Solution:<\/strong><\/p>\n

                                                                                                        Plan long term to relocate\u00a0 all bus terminals in the centre of the city to the outskirts of every major’ in- road’ to the city and relocate them at places like Kelaniya .wattala, \u00a0Homagama, kotte \u00a0Ratmalana etc ( at all major inroads), \u00a0All passengers travelling\/coming from outstations to disembark and board specially established \u00a0\u00a0\u00a0Town Bus shuttle Service plying to <\/strong>\u00a0all sectors of the city. This shuttle bus company to be run by the CTB. All shuttle buses to be mini Buses(<\/strong> \u00a0J 11) They will be All standee buses with only seating for pregnant mothers, mothers with infants, differently-able \u00a0people, feeble senior citizens and clergy.<\/p>\n

                                                                                                        Such a relocation will \u00a0eliminate all irregularities mentioned above<\/strong>.<\/p>\n

                                                                                                          \n
                                                                                                        • How to raise Capital<\/strong>, The land thus vacated to be sold at commercial rates to fund this transformation e.g. .these monies be utilized for the bus terminals in the periphery and for setting up the shuttle mini bus service<\/li>\n
                                                                                                        • The outputs <\/strong>The above proposals will have a ripple effect of earning large sums of money to the government, Municipalities and local councils, create more orderly traffic systems while at the same time savings in fuel and man-hours among others<\/li>\n<\/ul>\n

                                                                                                          (c) \u00a0Triple\/Dual carriageways Vs. Super Highways<\/strong><\/p>\n

                                                                                                            \n
                                                                                                          • Background: A cost comparison needs to be done between these two alternatives. The question needs to be asked whether dual carriage ways will perform the same function as super highways.<\/li>\n<\/ul>\n

                                                                                                            The Government is planning a number of super highways similar to the Southern highway.<\/strong><\/p>\n

                                                                                                            \u00a0Is it necessary<\/strong>? Could an alternative suffice?<\/p>\n

                                                                                                            Consider options of a \u00a0triple lane highway (either side) or dual lane highway (either side). There is also another option where a double lane either way\u00a0 expands into \u00a0triple lane every 10 kilometers \u00a0( the extra lane only extends 1 to 2 km in distance for overtaking purposes)) ( examples found in South Africa and Malaysia))<\/p>\n

                                                                                                            I firmly believe that the cost of such a venture will be far less to that of a super highway. This proposed triple lane highways could partly use existing stretches of highway as well with ring roads to avoid towns .The triple \/dual lane highway including \u00a0a centre grass verge\u00a0 of around 3meters width, where trees will be planted. Each stretch of road to be say 30 kilometers and Toll to be charged. Restriction placed on shops, homesteads on either side.<\/p>\n

                                                                                                              \n
                                                                                                            • This proposal will accelerate the road system as it is less time consuming to build and will save enormous amounts of money to the exchequer.<\/li>\n<\/ul>\n

                                                                                                              \u00a0(d) Economic and Social Facility Centers(ESFC)<\/strong><\/p>\n

                                                                                                              Background: All\u00a0 Humans(Homo Sapiens) have a herd instinct and mentality. Hence\u00a0 they prefer to live in communities that support their core wants in the area of Basic. Secondary ,Social and Physiological needs. The Basic would be Food ,clothing and shelter. Secondary would be sense of security, peace of mind, and a good environment with schools, religious, and recreation facilities \u00a0for their family. Social needs would be\u00a0 camaraderie, good communication, understanding, and belonging .Physiological needs would be\u00a0 Recognition, appreciation, love and respect.<\/p>\n

                                                                                                              The reason why ? Many government executives in the specific fields such as legal, police, medical, administrative officers ,teachers among others \u00a0\u00a0\u00a0are reluctant to work outside the main cities due to the non fulfillment of the above needs. For e.g. housing is poor ,live in single rooms or tenements, absence of \u00a0social intercourse, poor hygiene and utilities, and infrastructure. Absence of proper educational and recreational facilities for their children among others. Hence many\u00a0 of them maintain two residences, one in the city so as to educate their children. and the other a room near \u00a0the work place in the countryside.<\/p>\n

                                                                                                              The outcome \u00a0is that most travel down to the city on Fridays and return Sunday night which takes away two working days (Friday and Monday) Hence work efficiency\u00a0 is reduced to three days of the week. This creates \u00a0stress and frustration in their lives.<\/p>\n

                                                                                                              The Solution: There is scant attention paid so far for\u00a0 planned growth of ESFCs. This would comprise of,\u00a0 processing factories( for adding value to agricultural products) Government administrative complex, housing for management and staff(\u00a0 both in the government and privatesector),recreationafacilities(clubhouse,gym,bastetball,volleyball swimming) , primary and secondary schools, daycare centre ,health centre , post office and police post etc. These to be located \u00a0close to a major city or town in each district ( perhaps excluding western province)<\/p>\n

                                                                                                              The advantage of the ESFC scheme is multifaceted<\/p>\n

                                                                                                              (a) Farm produce can be converted into added value products . For e.g.\u00a0 Aseptic packaging centre in the complex can extract\u00a0 juices and hygienically pack same\u00a0 from fruits such as mangoes ,passion fruit, \u00a0tomatoes ,wood apple, pineapple, oranges, among others which would bring an immediate income to the farmer devoid of fruit spoilage, middleman, low prices etc.<\/p>\n

                                                                                                              (b) Drying processor in the complex\u00a0 would enable farmers and growers to get their fruits dried \u00a0models of such facilities are available in countries like\u00a0 Thailand, \u00a0and Philippines\u00a0 This adds value to dried fruits, such as, papaya ,guava ,banana .tamarind, mangoes ,pineapple among others<\/p>\n

                                                                                                              (c) the combinations \u00a0of added value benefits are many, such as, jams and cordials manufacture, milling different types of grains, processing by products from animal husbandry, among many others. The facility would sell processing time to farmers to process their goods(products)<\/p>\n

                                                                                                              (d) Due to availability of pleasant livable facilities as described above management and staff will not hesitate\u00a0 to be transferred to these locations nor will they need to keep two places of residences.<\/p>\n

                                                                                                              (e) In each Province, an\u00a0 ESFC coupled with a Top University, Technical College, Gymnasium career training and a Top School ( as mentioned under Education Policy) will\u00a0 create an enabling environment\u00a0 for both administrative staff as well as the farmers and producers in each district.<\/p>\n

                                                                                                               <\/p>\n

                                                                                                              (9) Policy improvements in the area of trade and Investments<\/strong><\/p>\n

                                                                                                              (i) Relocation of manufacturing units from foreign countries to Sri Lanka<\/strong><\/p>\n

                                                                                                              Background:<\/p>\n

                                                                                                              Planners have been over the years have been trying hard to attract direct foreign investment (DFI)but has not been very successful. What many planners do not realize is that over 150 countries in the world are simultaneously competing with us to attract FDI s. There are certain ground rules that likely investors look for in moving their capital to a third country. Normally this is depicted in a format called the\u2019 competitive diamonds\u2019. What is fed into the model are, data such as, stable environment, \u00a0economic stability, political stability, absence of internal wars, legal protection of investment , ease of doing business, international banks, friendly \u00a0investment climate, existing foreign investments, forward and backward linkages in industry, non-political labor unions, among others,.<\/p>\n

                                                                                                               <\/p>\n

                                                                                                              On the social side, they look for good housing, good restaurants, good healthcare and hospitals, good schools, among others. After the ethnic war ended the position of Sri Lanka has improved but still there is a long way to go. Investors look at the safety of their investment in the long term because any investment to reach their payback\u00a0 period take a couple of years .<\/p>\n

                                                                                                               <\/p>\n

                                                                                                                \n
                                                                                                              • AN Alternative to FDI <\/strong>While attempts are made to improve on the competitive diamonds. One can consider \u00a0other alternatives where unlike FDI the risk to the investor is minimal. This is the concept\u00a0 of Transfer of Technology and Knowhow\u00a0 lock stock and barrel. Many countries look for relocation of manufacturing units to third countries due to higher costs, shortage of labor etc. The best example of success in this sphere is China and few other third world countries \u00a0where American and European firms relocated manufacturing processes which meant they transferred their technology and knowhow as well.<\/li>\n<\/ul>\n

                                                                                                                The risk was minimal to the\u00a0 foreign investor, in terms of capital and the product according to their standards much cheaper to be produced in China or elsewhere. There was no risk as capital invested\u00a0 in the third country was minimal by the US or European\u00a0 relocation company. \u00a0For example , The Chinese entrepreneurs\u00a0 \u00a0raised finances through \u00a0local banks \u00a0based on the 10 to 15 year buy back guarantees of the finished\u00a0 product\u00a0 given by the US and European manufacturers.<\/p>\n

                                                                                                                 <\/p>\n

                                                                                                                (10) Food security and enriched environment<\/strong><\/p>\n

                                                                                                                Background<\/strong>: Sri lanka is blessed with an ideal climate all year round in comparison to many arid and cold countries.\u00a0 However no formal attempt has been planned by the government to maximize this advantage.<\/p>\n

                                                                                                                The concept has been carried out informally and on special occasions like the world Tree planting day<\/p>\n

                                                                                                                The concept as a Government Policy initiative<\/strong>. to inculcate\u00a0 appreciation of the environment, soil conservation, attracting rain, improving air quality, recreation, food security, commercial timber, community harmony, \u00a0among others<\/p>\n

                                                                                                                 <\/p>\n

                                                                                                                We have over 4000 kilometers of type A and Type B roads A directive to be given to every provincial government to organize tree planting on either side of the road at 10 meter intervals and at least 1 to 2 meters away from the edge of the road\u00a0 for road widening etc\u00a0 .It would amount to 800.000 trees. The trees to be chosen based on the premise that they provide a future benefit , e.g Food – \u00a0such as ,Jack, Breadfruit, Coconut, Palmyra. \u00a0Tamarind, Mango.\u00a0 Hardwoods- \u00a0\u00a0such as, Mahogany, Teak, Kumbuk. Ebony etc., Fuel and timber woods- \u00a0such as, cypress, eucalyptus. \u00a0Soft woods- \u00a0such as, loonumidella, albizia \u00a0for wood boxes and ceilings and \u00a0Medicinal – such \u00a0as ,Aralu Bulu\u00a0 Nelly, Khohomba ( neem)etc\u00a0 for \u00a0preparation of \u00a0auyrvedha medicines.<\/p>\n

                                                                                                                  \n
                                                                                                                • The process<\/li>\n<\/ul>\n

                                                                                                                  All schools in the country to be geared to first\u00a0 open plant nurseries ( albeit with the help of government agencies) for chosen plants. Every child be given a \u00a0tree to plant and nurture during its growing years .Each school to be given 10 kilometers of road on either side of their school to be responsible. Outside this limit (the extra mileage of roads) \u00a0to be taken up by, members of Temples ,Churches, Kovils, Mosques, and other civil \u00a0society organizations which \u00a0are to be requested to come forward<\/p>\n

                                                                                                                    \n
                                                                                                                  • The cost<\/strong> will be minimal as plants will be donations maintenance by interested communities<\/li>\n<\/ul>\n

                                                                                                                     <\/p>\n

                                                                                                                      \n
                                                                                                                    • The Impact would be<\/li>\n<\/ul>\n
                                                                                                                        \n
                                                                                                                      1. Improve food security as the plants that bear fruits will be available to the needy community<\/li>\n
                                                                                                                      2. All hard woods and soft woods have a value to the community as timber ,<\/li>\n
                                                                                                                      3. All medicinal trees will help the input to ayurveda drugs<\/li>\n
                                                                                                                      4. Fuel wood help to fire generators<\/li>\n
                                                                                                                      5. Common course will improve ethnic harmony<\/li>\n
                                                                                                                      6. Beautify the environment and the eco system<\/li>\n
                                                                                                                      7. Encourage fauna and flora, a target of the Smithsonian foundation for improvement of the environment<\/li>\n
                                                                                                                      8. Pride and involvement of the citizens in nurturing the environment<\/li>\n
                                                                                                                      9. Create wind belts and contribute to attracting rain<\/li>\n<\/ol>\n

                                                                                                                         <\/p>\n

                                                                                                                        The same concept could be extended around every\u00a0 water reservoir (Tanks,) irrigation channels, rivers,\u00a0\u00a0 among others.<\/p>\n

                                                                                                                         <\/p>\n

                                                                                                                        (11) Housing options<\/strong><\/p>\n

                                                                                                                        NOT SO temporary HOUSING FOR THE homeless, depilated villages and displaced people<\/p>\n

                                                                                                                         <\/p>\n

                                                                                                                        Background: <\/strong>In Sri Lanka and elsewhere housing to the poor and displaced has become a critical and perennial issue. This is especially true in the Sri Lankan situation due to natural disasters such as the Tsunami, the floods, landslides and perennial poverty and displaced people after the ethnic war. \u00a0.<\/p>\n

                                                                                                                        For example the efforts to provide houses after the Tsunami ran into many problems, such as cost escalations, houses built which were unfit for human habitation, financial scandals, etc.<\/p>\n

                                                                                                                        The concept presented here is a permanent solution that is not only at a lesser cost but could be implemented \u00a0speedily (almost immediately) and even building a million houses in a year will not be impossible<\/p>\n

                                                                                                                        It is proposed this concept be tested by building one model village so that time efficiencies, cost benefits, time targets could be evaluated<\/strong><\/p>\n

                                                                                                                        It is scandalous to allow foreign firms to build low cost houses when we have a well established construction industry. The disadvantages are, that large sums of money will leave the country. Based on the economic maxim of ‘circulation of money’ , the local contractors will spend the monies in this country thereby creating a wave of\u00a0 spreading \u00a0wealth within the country.<\/p>\n

                                                                                                                        For example , in South Africa and some Latin American countries large tenders say 1000 units of \u00a0low cost houses\u00a0 were \u00a0broken up \u00a0into 100 house units so that 10 local firms could be contracted based on a tender system. While the Government can provide the specification based on a model house<\/p>\n

                                                                                                                        The Concept<\/strong><\/p>\n

                                                                                                                        If one is to ask the question how many American citizens live in temporary housing or trailer homes? The probable answer is anything between 10 to 15%. If you therefore examine a trailer home it is not much different to a converted 40 foot container converted into a home by opening out windows and doors cut and framed with extruded aluminum doors and windows<\/p>\n

                                                                                                                        \u00a0<\/strong><\/p>\n

                                                                                                                        Container to a House<\/strong><\/p>\n

                                                                                                                        The concept given below is to utilize 40ft containers (used and to be discarded) converted into homes to overcome delays in construction and to reduce costs in building regular homes of bricks and mortar. Further while the proposed container home is 880sq ft in extent a regular home is around 500 sq ft.<\/p>\n

                                                                                                                        A 40 ft container has dimensions of 40 ft (l)) x 8ft (b) x 10 ft (h). The floor area is 320 sqft (40 x 8)<\/p>\n

                                                                                                                        Add a slanting roof with an overhang of 8ft on either side with coconut or Palmyra rafters This gives an additional sq footage of ( 560sq fat ( 7 x40 x 2) Therefore the total\u00a0 floor area increases to 880 sq ft.<\/p>\n

                                                                                                                        The roof is to be thatched with woven coconut or Palmyra fronds. To prevent them from decomposing early the thatch is treated, first by immersing in a bath of wood preservative and thereafter dried and sprayed with a varnish. This will give a life span of over 15 to 20 years <\/em><\/p>\n

                                                                                                                        House Facilities <\/strong><\/p>\n

                                                                                                                          \n
                                                                                                                        1. The front space, an area of (40 x 7 x 280sqft)\u00a0 can be separated into two sections each of (18 x 7 = 126 sqft )\u00a0 with a centre aisle of 4ft\u00a0 4 x7 = 28 sqft . One section to be used as a sitting area and the other part a dining area. A total area of 280 sqft<\/li>\n
                                                                                                                        2. The core container area to be converted into two bed rooms<\/strong> of dimensions of 18 x 8ft =144 sqft) with a centre aisle of 4ft (4 x8 =32sq ft) making a total area of 320 sqft<\/li>\n<\/ol>\n
                                                                                                                            \n
                                                                                                                          • The rear space which is of dimension ( 40 x 7 = 280 sqft ) is to be divided as follows: (a) toilet of dimension 7 x4 = 28 sqft, (b) a kitchen and eating area\u00a0 of (10 x7 = 70 sqft, (c) a bath\/shower room of 7 x4 = 28sq ft, (d)\u00a0\u00a0 a store room of 8 x7 = 56 sqft(g) additional bed room of 10 x7 = 70 sqft, (h) a back corridor space of 28 sqft(4 x7) making a total area of 280 sq ft.<\/li>\n<\/ul>\n

                                                                                                                            The total physical area inclusive of roof awnings amount a total of 1008 sqft of which the house dimensions are 880 sq ft. Ideally the total plot could be 2000 to 4000 sq ft with the area around the house for vegetable and poultry\/beehive and other income generation pursuits<\/p>\n

                                                                                                                            The village<\/strong><\/p>\n

                                                                                                                            A village could be for example anything between 15 to 40 houses ( or any combination)<\/p>\n

                                                                                                                            For example a village of 20 houses could be arranged with a street in the centre with 10 houses on each side of the street. This cuts cost as it facilitates water pipelines, waste water and rain water collection and effluent disposal in specific central tanks\/pits.<\/p>\n

                                                                                                                            Village communal facilities<\/strong><\/p>\n

                                                                                                                              \n
                                                                                                                            • One 40 ft house will be made into a Cr\u00e8che\/nursery with milk feeding centre, preschool and day care center<\/li>\n
                                                                                                                            • Another 40 ft house will be an infirmary( hospice) with a permanent nurse, midwife and a weekly visit by a doctor<\/li>\n
                                                                                                                            • Another 40 ft house will be a library cum reading room and cultural centre<\/li>\n
                                                                                                                            • Another(40ft) house will be a Government administration center with a\u201d gramasevaka\u201d, Sanitary inspector,\u00a0 police post and sub post office or any other administration facility<\/li>\n
                                                                                                                            • Another (40 ft) house will be common facilities centre to be used on social occasions such as weddings and other festivals as well as a recreation centre with board games, with a TV where educational films and social films can be viewed etc.<\/li>\n<\/ul>\n

                                                                                                                              Village shops<\/strong><\/p>\n

                                                                                                                                \n
                                                                                                                              • One 20 ft house will be a dry goods, condiments and food stores<\/li>\n
                                                                                                                              • Another( 20ft) house \u00a0will be caf\u00e9 and eating house<\/li>\n
                                                                                                                              • Another( 20ft) house will be vegetables and fruits shops etc<\/li>\n
                                                                                                                              • Another (20ft) house will be clothes and seamstress\/tailor shop<\/li>\n
                                                                                                                              • Another ( 20ft) house will be stationary\/ school books \u00a0,<\/li>\n
                                                                                                                              • Another (20ft) house will be fish, poultry and meats<\/li>\n
                                                                                                                              • Another (20ft) house will be a haberdashery cum miscellaneous goods<\/li>\n<\/ul>\n

                                                                                                                                 <\/p>\n

                                                                                                                                There could be any number of\u00a0\u00a0\u00a0 20 ft. combinations of goods stores<\/p>\n

                                                                                                                                Village services and facilities<\/strong><\/p>\n

                                                                                                                                (I)One 20 ft container will house an iron monger\/black smith<\/p>\n

                                                                                                                                (ii)Another (20 ft) will be a repair shop for bicycles, tractors<\/p>\n

                                                                                                                                (iii)Another (40ft) will be a cool room to store village produce before being taken to the market (store to be on a payment basis for use of cubicles inside)<\/p>\n

                                                                                                                                  \n
                                                                                                                                • Another( 40 ft) will be a paddy\/rice storage facility<\/li>\n
                                                                                                                                • Depending on religious preferences and requirements a Temple , Kovil ,Mosque and Church could also be added<\/li>\n
                                                                                                                                • all effluent into one containment tank which would produce bio gas for cooking or lighting purposes \u00ad( house and street lights)<\/li>\n
                                                                                                                                • Common deep water well for water to be pumped into a central tank piped to individual houses on meter<\/li>\n
                                                                                                                                • Rainwater harvesting in every household for agricultural purposes<\/li>\n
                                                                                                                                • wastewater or grey water (bath, washing etc to be pumped into holding tanks, neutralized and reused for home gardens<\/li>\n
                                                                                                                                • All green waste, household waste to be converted into fertilizer<\/li>\n<\/ul>\n

                                                                                                                                   <\/p>\n

                                                                                                                                  Issues\/ Questions<\/strong><\/p>\n