STRATEGIC INITIATIVE FRAMEWORK ON
ECONOMIC DEVELOPMENT- NORTHERN PROVINCE
Kanthar Balanathan
General
North, particularly, Jaffna has been dry land for centuries. Farming activities in the North have been quite selective in the sense that agriculture was seasonal. Paddy cultivation was done during winter season, with harvest in January. Historically, prior to the invasion by the Portuguese, Dutch and the British, none of the Kings were motivated to focus on agrarian services but left to the people to depend on rainfall only.
The main natural industrial services materials available in the North are Paddy, Onion, Chillies, Tobacco, Palmyra, and Fishing. People had difficulties in working on farms, sea, Palmyra, etc. The services were not mechanized in the 50 s and 60 s. Young ones wanted to join government services with a pension. This does not mean that they are incapable of productivity, however, had to input significant number of hours instead of a few hours if mechanized, and availability of machinery & services. Lack of development of services and availability of funds in the budget was the main cause.
Root Cause
On independence in 1948, GG Ponnambalam, minister for industries then, somehow managed to work through to establish a cement industry at Kankesanturai (KKS), and chemical industry in Paranthan. The chemical factory was adequate in that it was near the coastal area, and exploitation of the resources was acceptable and satisfactory. However, at KKS, the expansion to a second kiln and subsequently the third phase was carried out without proper studies. Environmentally, the second and the third phase was a disaster, as the life of the factory was shortened. With one kiln and a few staff the industry would have survived for a longer period and environmentally friendly. With two kilns the production totaled approximately 275,000 tons of cement per year. The quarry life was getting short with high risk with the expansion. These are political decisions taken by politicians with a legal background, and improper investigation and studies.
Opportunity Cost and/or Cost-Benefit Analysis
Tamil politicians could have advocated the development of water resources for the region since independence. The Thondaimannar and Vallai lagoon area was an empty area. The sluice gate built in Thondaimannar was with some intent. Tamil politicians could have focussed on agrarian, fishing, Palmyra, and cottage industrial services in the North. Of course with a University, degrees could have been designed to the needs of the province. A reservoir could have been built in the Vali region as the area covers a significantly large catchment area. Of course, right from SJV to Sambanthar, politicians are advocating for power-sharing.
The SriLankan Accountants, engineers and economists should dig deep into various economic and accounting theories and do an analysis of the “Role of Opportunity Cost in Financial Decision Making”.
The analysis should be a qualitative and quantitative study detailing out the costs, benefits (tangible and intangible), plus the risks associated with the project. Quantify the risks associated with the project during and after.
People need to know the qualitative and quantitative benefits of future development.
An example of the west operating pattern: In developed countries, major projects if planned, are placed before the public to study and make comments, either through the City Councils or the MP. The public is allowed to study the proposals, feasibility reports and submit constructive criticism.
It is not sure whether Sri Lanka practices this type of project management. Is the Minister’s decision final? If so, the action cannot be brought under or identified as democratic. GOSL should carry out a feasibility study and apply Leonardo Da Vinci's principle in concluding on this project. It is not a question of India wants.
Alternative Investments
1. The North of SL has a water problem. The farmers depend on rain for rice and paddy agriculture. Rice is only seasonal agriculture during the winter season. The rainfall in the North is significant during the months of Oct-December, April to June and also other seasons.
Even for other vegetable consumption, the province depends on Kilinochi, South and the upcountry.
I would like to draw the attention of GOSL to an article by Engineer Thiru Arumugam, Engineer K. Shanmugarajah and Engineer D. L. O. Mendis on “A River for Jaffna”. The following three links provide substantial evidence that a river for Jaffna is not impossible.
Ancient kings have constructed Waves and Samudra.
The Minneriya Tank was built by the great tank builder, King Mahasen (276-303) who ruled in Anuradhapura. This tank occupied 4670 acres and it’s strong 13-meter tall dam running along a distance of 2 km held over 20 billion gallons of water. The water arrived from Mahaveli River, 48 km away, along the Elahara canal built by King Vasabha (65-109) before his time.
The catchment area covering Thondaimannar and Valli, and the rainwater hence will increase paddy cultivation and other vegetation in the North.
Research has been completed by SriLankan engineers. However, GOSL did not recognize the valuable input by SriLankan engineers, Engineer Thiru Arumugam, Engineer K. Shanmugarajah and Engineer D. L. O. Mendis.
SL was planning to build a bridge at a cost of 5 billion dollars. How much will it cost to build bunds and construct a reservoir in the region of Thondaimannar/Vallai? At approximately 10%-20% of the cost, with local engineers and workers, the benefit is permanent and risk-free. Additional investment in fishing, such as boat docking platforms at various places, and loans to people to purchase small boats would be added advantage.
Build the reservoir in the North and spend the balance on investment in industries in the South. This will alleviate people’s suffering on unemployment and the cost of living on the island.
An old statement: it is better to teach someone to catch fish rather than supplying fish.
What was the motive behind the 5 billion dollar contract? Is there a company in SL to build this bridge? Some corporate body in the west is eager to get a 5 billion dollar contract, to build a bridge in the sea, and subsequent kickbacks to politicians and corporate Officials. Can anyone deny this statement? There has been news on Reserve Bank’s Bond scam and now the 1.75 billion tender scam at SLT. Do we have a scam team now in SL?
There is an adverse and significant amount of risks that prevail if a bridge is constructed.
It is a call for SriLanka to honor and recognize the Sri Lankan engineers and specialists like Dr. D L O Mendis, Engineer Thiru Arumugam, Engineer K. Shanmugarajah and hundreds of thousands of specialists on foreign soil, who are developing foreign countries and not Sri Lanka.