Sri Lanka’s SMEs struggle to survive amidst corruption
Sri Lanka’s small and medium scale businesses are struggling to survive in the face of a moderately high risk of corruption including the soliciting of payments to avoid bureaucratic red tape, alleged bribes by government officials, nepotism and cronyism, a report compiled by a SME group in the Southern province has revealed.
One of the main challenges for inves- tors and new businesses was land acquisition, a spokesman of the group who is a leading businessman told the Business Times adding that around 36,000 hectares of land have been acquired illegally in Sri Lanka during the previous regime.
Some of the state institutions were responsible in illegal land acquisition while political affiliations provided opportunities for land grabbing in the private sector, he disclosed.
Many land titles were lost in the South during the subversive activities in 1970s and 1980s while a similar situation has arisen in the North and East due to the ethnic conflict leading to significant land disputes, the report compiled by the group revealed.
According to it, there were many issues in handling investment disputes, and court procedures were also time-consuming.
Political influence in awarding contracts has also affected genuine busi- nesses, he said.
Customs administration was tainted with a high risk of corruption along with irregular payments and bribes when trading across the island.
The efficiency of customs clearance was very poor, he said adding that cumbersome import procedures and corruption at the border were the most problematic factors for importers.
However President Maithripala Sirisena told the Global Expert Group Meeting on the Jakarta Principles on anti-corruption in Colombo on Wednesday that his aim is to place Sri Lanka on the top among the countries in the world fighting against corruption, during his tenure.
He said that the Bribery Commission did not have enough powers to eradicate fraud and bribery even after 25 years of its existence.
He added that the 19th Amendment to the Constitution has enabled to establish a completely independent bribery commission.
The President solicited the cooperation and assistance of other countries to take legal action against the criminals who indulge in corrupt practices and illegal fraudulent deals while hiding in foreign countries.
He said although some corrupt politicians and government officials’ work together to stall the anti- corruption programme, he was determined to carry forward the anti-corruption drive despite any such hurdles.