As Govt. and NPC don’t see eye to eye
Sunday, 02nd November 2014
By The Nation
The frequent conflicts between the Government and the Northern Provincial Council (NPC) would have an adverse impact by creating a negative environment for investors, Economists and Founder, Point Pedro Institute of Development, Muttukrishna Sarvanantha said.Speaking to The Nation, he stated that that the continuous friction between the NPC and the Government would discourage external businessmen from investing in the region.“Many have invested in the post-war North. But, the frequent clashes between both parties have created an environment where investors have to think twice,” he said.
“This has nothing to do with politics. But it is important that they should reach a common ground on issues pertaining to funding and development,” he told The Nation.The need for outside investors has increased in the peninsula over the past few years as the local businessmen lacked capital to invest.Meanwhile, President of the Chamber of Commerce and Industries of Jaffna, K. Vignesh stated that it was a must for outside investors to be part of the process in the North since local businessmen had limited capacities and resources to expand their businesses.
“There is immense potential in the agricultural, fisheries and industrial sectors. We need investors so that our own businessmen could gain a boost,” he said. Meanwhile, the cost of living in the peninsula is expected to go down following the recommencement of train services. Sarvanantha stated that improved links between the North and the South would improve trade in the North and added that he expected prices of essential commodities to comedown in future.Speaking further he said the recommencement of train services to Jaffna had benefited businessmen in both regions as it would cut down transportation costs to a great extent.“The train service has come as a competition to road and sea transport. Transportation of goods will be quicker and cheaper by train. Therefore, the costs of goods transported to and from the North is likely to come down in future,” he said
From : http://www.nation.lk/edition/biz-news/item/34796-potential-investors-shun-north.html
