President Ranil Wickremesinghe says the number of Sri Lankans leaving the country can be contained by 2026/2027 if the fundamental economic reforms that are necessary are implemented.
The President acknowledged that following Sri Lanka’s bankruptcy, many people decided to leave as the money wasn’t sufficient to look after their children’s education and pay their debts.
Stating that nearly 400,000 Sri Lankans left this country in 2022 and that the number that left in 2023 has been a little less, the President expressed confidence that the numbers will drop by 2026/2027.
“What we have done so far is ensure that the creditors of our nation, both sovereign states and private entities, recognize that we have the capacity to repay their debt after the concessions given to us. But how do we pay off the debt, and where will we find the necessary funds? How can we acquire foreign exchange? These issues require careful attention,” he said giving details on the measures taken by the government thus far to address the economic crisis.
He further said first and foremost, there is no such thing as an import substitution economy and that Sri Lanka has to undertake and commit itself to being a highly competitive, modern, export-oriented economy.
The President emphasized that there was no other way within this framework, other than to look at Sri Lanka’s human capital formation.
“Without financial capital, you can’t develop your human capital. So this is the approach to be taken. We can’t tackle everything at the same time. So first, we have to look at the vocational and technical sector. Many of the people who left this country were not graduates. They are vocationally and technically qualified. So where is it? We have too many agencies, too many departments, and Ministries running these agencies.
“I want to have one single agency for this area, which will look after post-school education and all the training centres. There may be 700-800 in the country, and the government should merge them into about 300 vocational colleges, which can then be updated and modernized,” he said.
President Ranil Wickremesinghe emphasized that efforts are underway to position Sri Lanka as the regional hub for human capital development.
The President stressed the need to re-evaluate the National Vocational Qualification (NVQ) to align with internationally accepted standards, such as those in Australia.
Expressing his intent to seek assistance from Australia to strengthen and modernize Sri Lanka’s education system, he stressed the importance of collective efforts among BIMSTEC countries and seeking support from international partners to build a robust education system.
President Wickremesinghe further underscored the necessity of systemic changes, advocating for reforms and the strengthening of education and training systems.
President Ranil Wickremesinghe made these remarks while addressing the Sri Lanka Human Capital Summit 2024 held yesterday at the Temple Trees focussing on nurturing, harnessing, and amplifying human capital. Chairman of the Board of Investment and Chairman of the Human Capital Summit, Dinesh Weerakkody, and Prime Minister of Australia, Scott Morrison participated in the Summit.
The Sri Lanka Human Capital Summit was inaugurated in 2016 based on a concept introduced by President Ranil Wickremesinghe during his tenure as Prime Minister. The President aimed to establish a platform that would bring all stakeholders together to address the skills challenges facing Sri Lanka. This initiative aims to go beyond mere economic growth and transform Sri Lanka from a lower-middle-income economy to a developed nation.
President Ranil Wickremesinghe’s full statement:
“It was mentioned that nearly 400,000 Sri Lankans left this country in 2022. The number that left in 2023 has been similar, a little less, I would say. Numbers will drop, but we can stem this by about 2026/2027 if we undertake the fundamental economic reforms that are necessary. The bankruptcy of our nation made us realize that we can’t continue as it is. Life is going to be more difficult. They had to look after their children’s education and pay their debts. The money wasn’t sufficient, so they decided to leave. We fixed our salaries when the exchange rate was LKR 185 to a dollar and our prices when the rate was LKR 300 to a dollar. So, can you imagine how a middle-class executive can survive? What we have done so far is ensure that the creditors of our nation, both sovereign states and private entities, recognize that we have the capacity to repay their debt after the concessions given to us. But how do we pay off the debt, and where will we find the necessary funds? How can we acquire foreign exchange? These issues require careful attention.
When I brought the economic transformation bill, one party in Parliament went to court and said it should be rejected because we require an import substitution economy. First and foremost, we must get out of our heads that there is no such thing as an import substitution economy. We have to undertake and commit ourselves to be a highly competitive, modern, export-oriented economy, as Prime Minister Scott said. I agree with him 200%. We have to get the rest of Sri Lanka to agree to it. That’s the small problem.
Nevertheless, I think you have the opportunity now, and most people in our country feel that there has to be a fundamental change in the economy. When you do that, we will realize which sectors require people. We have about three to four hundred thousand acres of land to be cultivated through modern methods. We have land held by villagers where agriculture can be modernized. If we go up to 8 metric tons of rice per hectare, we will only need two-thirds of the land for rice cultivation. They have done this in Murray Darling, even going up to about 10 metric tons, but that’s a small area with water available. So this is one area. There’s big scope for IT and related industries and to train people for automation. There are so many areas, and I am not going to deal with all of them except to refer to economic cooperation with India.
We have decided on an integrated system of power connectivity. But of all the sectors, the most important one will be land connectivity. Then the Tamil Nadu economy, which competes with Maharashtra and Gujarat, together with Andhra and Telangana, can use the ports of Sri Lanka, Trincomalee, and Colombo. That’s going to make a big difference for them and for us. So there are many areas that we have identified which we need to expand. We must be friendly to foreign investment and, more importantly, friendly to local investment. The private sector, big and small, has to expand. There is no other way. Within this framework, yes, we must look at our human capital formation. Without financial capital, you can’t develop your human capital. So this is the approach to be taken. We can’t tackle everything at the same time. So first, we have to look at the vocational and technical sector. Many of the people who left this country were not graduates. They are vocationally and technically qualified. So where is it? We have too many agencies, too many departments, and Ministries running these agencies.
I want to have one single agency for this area, which will look after post-school education and all the training centres. There may be 700-800 in the country, and the government should merge them into about 300 vocational colleges, which can then be updated and modernized. That’s what we have to do. Replace the technical colleges of varying standards with advanced colleges of technology and management and be able to introduce the associate degree in technical and vocational subjects. So these are two of the main issues we have. To begin with, we need to reassess our NVQ qualification. I think we must re-look at the NVQ qualification and bring it in line with the Australian one, which is accepted internationally and makes provision for the associate degree. There is much more we can learn from Australia. This is one of them.
If you look at the countries in Asia that have developed, all of them have relied on a good system of vocational and technical education, higher education, and capital formation. Take Japan, Korea, Hong Kong, and Singapore in the top tier. There’s China, Vietnam, Malaysia, and Thailand in the next tier. The UAE and Qatar are catching up. So these are the systems we should look at. In 1990, we were light years ahead of Vietnam. What we need now is assistance to develop this system. We are so used to asking for aid projects, which mainly consist of buildings and some equipment. We need to move away from that. I will not allow anyone to get money for putting up buildings. The foreign assistance we require, as the central authority will have to decide, will be to strengthen and modernize the system.
In this respect, one of the countries I will reach out to is Australia. We have a lot to learn. We can also be a platform for human capital formation and do that in this whole region. For India, Bangladesh, and Sri Lanka to develop, we have to improve our human capital formation. The whole BIMSTEC region must come together.
But for Sri Lanka, we should seek assistance from these countries to build up our education system. Already, there is a project paper, which I think the Australian High Commission produced somewhere in 2021 or 2022, on educational opportunities. We already have Deakin University, and I think Edith Cowan University and Sydney Technology University have opened up universities recently. So you can see universities coming in. We are also developing some new not-for-profit universities in the government sector, hopefully four focusing on technology. So this is an outline of what we have to do and what we have to consider in our deliberations.
Firstly, the system has to change. You don’t need new technology for import substitution because it basically can’t be done. Secondly, we must pursue reforms followed by strengthening the education and training system. So let’s think anew and move forward.
Former Prime Minister of Australia Scott Morrison’s full statement;
In his address, Former Prime Minister Scott Morrison emphasized the urgent priorities essential for Sri Lanka’s advancement, acknowledging President Ranil Wickremesinghe’s accomplishments during challenging times. Morrison expressed heartfelt concern for the enduring struggles faced by Sri Lankans, ranging from natural disasters to economic crises and conflicts, praising their resilience and perseverance. Highlighting the need to secure a prosperous future for Sri Lanka, Morrison underscored the critical reforms necessary for economic stability. These included fiscal repair, revenue reforms, debt restructuring, and bolstering financial institutions’ independence. He stressed the importance of transparency in governance, anti-corruption measures, and enhancing the social safety net, all initiatives championed by President Wickremesinghe crucial for Sri Lanka’s long-term prospects.
He also mentioned the discussions often focus on the need for a future-ready workforce, but realizing this future requires immediate action. President Wickremesinghe has performed an extraordinary task in stabilizing the country following the economic crisis of two years ago.
Morrison also advocated for Sri Lanka’s active engagement in regional partnerships, particularly through the Quadrilateral Leaders’ Dialogue, where cooperation with India, the United States, Japan, and Australia could strengthen security, sovereignty, and economic success. He concluded by urging a steadfast focus on economic stability as the foundation for building a dynamic, export-oriented economy, enabled by strategic partnerships with international allies committed to Sri Lanka’s sovereignty and independence.
Prime Minister Dinesh Gunawardena, Former President of the Maldives and the International Climate Advisor to the Sri Lankan President Mohamed Nasheed, Minister Bandula Gunawardena, Parliamentarian Harsha De Silva, Secretary to the President Saman Ekanayake, Secretary to the Prime Minister Anura Dissanayake, along with other distinguished national and international guests, attended this event. (Newswire)