Rule of law, institutional integrity crucial to attract investment

Economic development necessary but not exclusive, LLRC must be implemented, says visiting UK minister

February 3, 2013

Visiting British Parliamentary Under Secretary of State at the Foreign and Commonwealth Office, Alistair Burt (right), at a discussion with Economic Development Minister Basil Rajapaksa last week.

As Sri Lanka celebrates its 65 year of independence from British colonial rule, a visiting UK Minister Alistair Burt says he has encouraged the Sri Lankan government to cut red tape, to address corruption and to set up an effective co-ordinating mechanisms for investment – each of which would make Sri Lanka a more attractive market for investors.

"I have again welcomed the end of the war, and the end of horrific LTTE terrorism in Sri Lanka. But I have also called on all parties to uphold civil and political freedoms, and for the government to set an example. We believe in maintaining independent institutions, in encouraging individuals to speak out and engage constructively in debate. The rule of law is crucial to long-term prosperity. Respect for our legal systems is part of the cultural heritage of both the UK and Sri Lanka. As a lawyer myself it is a principle I feel particularly strongly about," Burt said, delivering a guest lecture last week on "Sri Lanka: 2013 and beyond" at the Lakshman Kadirgamar Institute for International Relations and Strategic Studies.

"For businesses, as well as individuals, knowing that there are fair, transparent and independent mechanisms for resolving disputes is essential. And the concepts found within our legal systems – certainty of contract, non-retroactivity and the equal application of laws – are the foundation for business and growth.

"This is why judicial independence is a core principle in free countries; why justice must not only be done, but also be seen to be done. It is why we and others, such as the International Commission of Jurists and the UN, have expressed deep concern at the recent impeachment and dismissal of Sri Lanka’s Chief Justice. And it is why we are so concerned to make sure individuals are brought to justice. In particular in cases of violent attack, it simply cannot be right for the accused to be walking free. As the LLRC said, the rule of law must prevail regardless of the political links of alleged wrongdoers.

"But the golden thread is not about individual cases or issues; it is about institutions, about embedding cultures of transparency and consistency and fairness into the very way in which we operate.

"And we can all improve on this. Sri Lanka, coming out of 30 years of conflict, has a particularly difficult, and particularly important, job. Re-embedding a culture of peaceful settlement of differences and adherence to due process will strengthen your institutions and your economy for future generations.

"I am frequently reminded – by the government here, by victims of the conflict and independent observers – that war only ended in Sri Lanka in 2009. Less than four years ago this country was in the throes of a hugely violent conflict that claimed thousands of lives on all sides.

" We are, without question, happy to see the end of LTTE terrorism, and the end of war, in Sri Lanka.

" The UK has also suffered at the hands of terrorists. In 1973 alone, over 30 bombs exploded in London as a result of the Irish Republican Army’s campaign of terrorism.

" So we know that dealing with the results of conflict takes time. And we know that Sri Lanka has done much already – not least resettling internally displaced persons, demining huge areas and committing to reforms that allow all citizens to communicate in their preferred language.

" But our experience in Northern Ireland tells us that long-term peace can only be achieved through an inclusive political settlement that addresses the underlying causes of the conflict. We learnt hard lessons from Northern Ireland. Because of the time it took to reach a political settlement, more lives were lost than should have been.

" As I made clear to ministers here earlier today, more work is needed to deliver the path to reconciliation that the President has frequently and sincerely advocated. The Government must ensure that all citizens can benefit more fully from the peace dividend and that peace is embedded for the long term.

" And as I have said before, the LLRC report contains many constructive recommendations for action on post-conflict reconciliation and a political settlement. If the report is implemented in full, we believe it would go a long way to achieving lasting peace. Economic development is a necessary, but not exclusive, answer to these challenges.

"The actions suggested by the LLRC include a national day of remembrance for all victims of the conflict, closure for the families of missing persons through access to detainee lists, returning IDPs back to their homes, a political settlement which protects minority rights. These are sensible recommendations, coming from Sri Lanka’s own reconciliation commission, which will accelerate Sri Lanka’s recovery from conflict.

" The LLRC rightly pointed to the need for political institutions which give all communities a voice, and the need for steps to recognise, remember and reconcile the divisions of war. Part of this must also include accountability before the law for those on all sides accused of human rights abuses during the conflict. And that applies equally to investigating and prosecuting disappearances and abductions that have happened since 2009, as well as answering allegations of crimes committed during the war.

"We applaud the establishment of the Commission. Now is the time for implementation," Burt said.

Development....

"Since my visit to Sri Lanka in 2011, I have indeed been struck by the development that has taken place here. The absence of conflict has brought greater security and opened up opportunities throughout Sri Lanka," Burt said.

"During uncertain economic times your economy has continued to experience high levels of growth – which is something we are seeing across the country. On my visit to the North yesterday I saw firsthand the changes that are taking place there, with much-needed economic development.

" Your infrastructure has developed rapidly, with new roads and bridges opening up the North and East. This is making it easier for businesses to expand throughout the island, and helping to reconnect communities.

"But it is much more than new roads and bridges. You only have to look around Colombo to see quite how much things are changing here – construction work is everywhere you look. There are new homes, offices, hotels, hospitals. The Colombo Lotus Tower, whose foundation stone was laid just over a year ago, will be among the tallest structures in the world when it is completed."

A strong bilateral
relationship…

"I am pleased that the UK continues to play a strong role in supporting Sri Lanka’s development. One crucial element of this is helping Sri Lanka to recover from decades of conflict. The Department for International Development has contributed £3 million for demining work, much of which has been carried out by British charities. The UK has also provided extensive funding through the European Union for the re-housing of those displaced by war, and for the reintegration of former combatants.

" But, of course, our relationship goes still deeper. There are over 100 British companies operating in Sri Lanka, including familiar names such as HSBC, Unilever and Standard Chartered. I understand that British Airways is returning later this year, reflecting the fact that British tourists continue to visit Sri Lanka in large numbers.

" Indeed, over 100,000 UK citizens visited last year, accounting for more than 10 percent of the total number of tourists visiting your country, and they are making a significant contribution to the Sri Lankan economy.

" The UK is your second-largest trading partner after India.

" Our links on education are strong too. Each year, around 8,000 young Sri Lankans choose to study in the UK. In addition, 27 UK colleges and universities offer British-accredited education here in Sri Lanka. And we are excited by plans for one British university to open up the first in-country foreign campus next year.

"Our British Council also plays a key role in ensuring current and future workforces continue to have excellent English language skills. I am delighted that they are planning to open a third branch in Jaffna later this year, to complement those in Colombo and Kandy.

"So Britain and Sri Lanka continue to enjoy a close and mutually-beneficial relationship covering a whole range of areas and built on our long history and mutual interest," Burt said.