Around the world and here in Sri Lanka, the existence of significant nexuses between business and politics is undeniable. The CEO and Secretary General of the Ceylon Chamber of Commerce Buwanekabahu Perera explained the many forms of such connections in a recent LMDtv interview.
“One is when a politician belongs to a family business; another is when a child of a politician is involved in business without being in politics; and the third is when a person involved in business enters politics,” he said.
“In any country, we see a combination of any of these,” he added, adding that the implications of these connections depend on the integrity of the person and the personal interest in entering politics.
Perera noted that countries like Palestine, South Korea, China and Vietnam have experienced direct benefits from such collaborations: “It depends on how they’re controlled – and how transparent and accountable they are.”
“Both corporates and politicians have economic interests; and they often find it advantageous to collaborate. By doing so, businesses seek favourable policies, contracts and regulations while politicians may receive financial support or other benefits,” he said.
Yet, these collaborations also bring about many stains.
Perera explained: “Close relations between these two entities can lead to regulatory capture where regulations and policies are shaped to benefit specific industries or companies but not everybody… This can result in preferential treatment for unfair competition and limited market access for small businesses.”
Commenting on how Sri Lanka’s corporate fraternity must contribute to eliminating unfair political patronage by businesspeople, he stressed the importance of promoting ethical business practices.
He elaborated: “Each company should articulate and walk the talk regarding what they’re doing and show that they conduct business with transparency, accountability and a commitment to fair competition.”
“Apart from looking at their own economic interests, companies need to show and strengthen corporate social responsibility,” he said, adding that businesses can focus on “meaningful initiatives and go beyond compliance.”
He cited the example of Singapore to elaborate on how companies can endorse responsible political candidates: “They promote educated people with unblemished records and no vested interests who could take up governance, and are transparent in their actions and have the interest of contributing to the country. They’re also adequately remunerated so that they don’t deviate from the prime objective of serving.”
Perera highlighted the business community’s expectations of the government: “We need to have economic stability and proper infrastructure development, including transportation networks, power supply, telecommunications and digital infrastructure.”
“We also need regular reforms to streamline bureaucracy, reduce red tape and enhance the areas of doing business, by simplifying procedures, improving administrative efficiency and reducing regulatory burdens, which can foster entrepreneurship and attract investment,” he asserted.
And we should bring in transparency and accountability, which is paramount, Perera emphasised, adding that it is not one-sided and should “come from both politicians and the business community.”
He also shed light on the importance of active citizenship and civic engagement: “We all have a responsibility to stay informed, participate in meaningful discussions, and take actions aligned with ethical principles and collective welfare.”
“We can work towards a more inclusive, transparent and accountable society, to foster a culture of empathy, respect and collaboration, seeking common ground and understanding across diverse perspectives,” he urged.
Perera concluded: “Together, we can address challenges, promote social justice, and build a more sustainable and equitable world with good expectations for a better future.”