Identifier
Created
Classification
Origin
07COLOMBO23
2007-01-08 05:51:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Colombo
Cable title:
NEW ECONOMIC COUNCIL APPOINTED BY PRESIDENT
how-toVZCZCXRO1563 RR RUEHLMC DE RUEHLM #0023 0080551 ZNR UUUUU ZZH R 080551Z JAN 07 FM AMEMBASSY COLOMBO TO RUEHC/SECSTATE WASHDC 5069 INFO RUCPDOC/USDOC WASHDC RUEHNE/AMEMBASSY NEW DELHI 0434 RUEHKA/AMEMBASSY DHAKA 9746 RUEHIL/AMEMBASSY ISLAMABAD 6684 RUEHKT/AMEMBASSY KATHMANDU 4750 RUEHKP/AMCONSUL KARACHI 2097 RUEHCG/AMCONSUL CHENNAI 7248 RUEHGV/USMISSION GENEVA 1660 RUEATRS/DEPT OF TREASURY WASHDC RUEHLMC/MILLENNIUM CHALLENGE CORP
UNCLAS COLOMBO 000023
SIPDIS
SENSITIVE
SIPDIS
DRL/IL FOR LAUREN HOLT
STATE FOR SCA/INS
MCC FOR S GROFF, D NASSIRY AND E BURKE
GENEVA PASS USTR
E.O 12958: N/A
TAGS: ECON EFIN ETRD CE
SUBJECT: NEW ECONOMIC COUNCIL APPOINTED BY PRESIDENT
REF: 2006 COLOMBO 2063
UNCLAS COLOMBO 000023
SIPDIS
SENSITIVE
SIPDIS
DRL/IL FOR LAUREN HOLT
STATE FOR SCA/INS
MCC FOR S GROFF, D NASSIRY AND E BURKE
GENEVA PASS USTR
E.O 12958: N/A
TAGS: ECON EFIN ETRD CE
SUBJECT: NEW ECONOMIC COUNCIL APPOINTED BY PRESIDENT
REF: 2006 COLOMBO 2063
1. (U) SUMMARY: On December 26, 2006, President Mahinda Rajapaksa
chaired the inaugural meeting of Sri Lanka's new Economic Council.
The President appointed this council, comprised of the nation's top
economic experts to advise the Government of Sri Lanka (GSL) on
economic affairs, and to engage the experts on plan implementation.
If the Council is allowed to guide the President (who also wears the
hats of Minister of Finance and Minister of Plan Implementation)
toward a more realistic set of goals, its contributions to Sri
Lanka's national well-being could be immense. There is a risk,
however, that the President's pie-in-the-sky vision for development,
as articulated in his budget speech, could become a strait-jacket
that will impede clear thinking on development issues. End
Summary.
2. (U) In his address to the Council, the President said that the
policies and strategies adopted in the last 50 years have failed to
achieve its development targets. The President therefore created
the council to assist the GSL's plan to implement short, medium and
long-term plans to boost the 10-year development plan envisaged in
Budget 2007 (reftel).
3. (SBU) The members of the new Council hailed the initiative as a
practical and pragmatic approach to create a country-specific
economic policy. With the goal of limiting political influence on
the Council, the President appointed its members primarily from
academia, although some officials from line ministries are also
members. Local business leaders not in the Council support its
non-partisan nature but question whether it will ultimately be able
to influence practical policy implementation.
4. (U) The Economic Council will be chaired by the President, and
will meet twice every month. The next meeting will be held during
the second week of January 2007.
5. (U) The Council includes Central Bank Governor Ajith Nivaard
Cabraal, Director General of National Planning B. Abeygunawardane,
President of Policy Studies Prof. Buddhadasa Hewavitarana, Director
General of National Planning B. Abeygunawardane, as well as
directors from the Institute of Policy Studies, World View
Institute, National Council for Economic Development, Highways
Ministry, and distinguished professors and lawyers.
6. (SBU) COMMENT: The Council's mandate to implement an overly
ambitious set of plans (as envisaged in an unrealistic 2007 budget),
does not bode well for the Council's future success. Some Council
members will diligently work to create logical plans for Sri Lanka's
economic development. We hope they will receive the authority to
advise on realistic development strategies. However, there is a
significant risk that they will feel constrained to implement the
President's vision articulated in his budget speech.
BLAKE
SIPDIS
SENSITIVE
SIPDIS
DRL/IL FOR LAUREN HOLT
STATE FOR SCA/INS
MCC FOR S GROFF, D NASSIRY AND E BURKE
GENEVA PASS USTR
E.O 12958: N/A
TAGS: ECON EFIN ETRD CE
SUBJECT: NEW ECONOMIC COUNCIL APPOINTED BY PRESIDENT
REF: 2006 COLOMBO 2063
1. (U) SUMMARY: On December 26, 2006, President Mahinda Rajapaksa
chaired the inaugural meeting of Sri Lanka's new Economic Council.
The President appointed this council, comprised of the nation's top
economic experts to advise the Government of Sri Lanka (GSL) on
economic affairs, and to engage the experts on plan implementation.
If the Council is allowed to guide the President (who also wears the
hats of Minister of Finance and Minister of Plan Implementation)
toward a more realistic set of goals, its contributions to Sri
Lanka's national well-being could be immense. There is a risk,
however, that the President's pie-in-the-sky vision for development,
as articulated in his budget speech, could become a strait-jacket
that will impede clear thinking on development issues. End
Summary.
2. (U) In his address to the Council, the President said that the
policies and strategies adopted in the last 50 years have failed to
achieve its development targets. The President therefore created
the council to assist the GSL's plan to implement short, medium and
long-term plans to boost the 10-year development plan envisaged in
Budget 2007 (reftel).
3. (SBU) The members of the new Council hailed the initiative as a
practical and pragmatic approach to create a country-specific
economic policy. With the goal of limiting political influence on
the Council, the President appointed its members primarily from
academia, although some officials from line ministries are also
members. Local business leaders not in the Council support its
non-partisan nature but question whether it will ultimately be able
to influence practical policy implementation.
4. (U) The Economic Council will be chaired by the President, and
will meet twice every month. The next meeting will be held during
the second week of January 2007.
5. (U) The Council includes Central Bank Governor Ajith Nivaard
Cabraal, Director General of National Planning B. Abeygunawardane,
President of Policy Studies Prof. Buddhadasa Hewavitarana, Director
General of National Planning B. Abeygunawardane, as well as
directors from the Institute of Policy Studies, World View
Institute, National Council for Economic Development, Highways
Ministry, and distinguished professors and lawyers.
6. (SBU) COMMENT: The Council's mandate to implement an overly
ambitious set of plans (as envisaged in an unrealistic 2007 budget),
does not bode well for the Council's future success. Some Council
members will diligently work to create logical plans for Sri Lanka's
economic development. We hope they will receive the authority to
advise on realistic development strategies. However, there is a
significant risk that they will feel constrained to implement the
President's vision articulated in his budget speech.
BLAKE