Dr. Sharmini Coorey

Presidential advisor on multilateral engagement and debt sustainability

Q: How would you define ‘good governance’ – and how does Sri Lanka measure up to it, in your opinion?

A: It is the process by which a country (or company) makes and implements policy decisions. Good governance is when that process has attributes such as accountability, transparency, adherence to the rule of law, responsiveness, effectiveness and efficiency.

Good governance includes but is not limited to avoiding bribery and corruption. The fundamental source of Sri Lanka’s economic problems is poor governance in this broader sense. Last year’s Governance Diagnostic Assessments by civil society and the IMF documented this well.

Q: What are the most critical issues facing our country in the context of governance?

A: We urgently need better governance in tax policy, tax administration, public procurement and state-owned enterprise (SOE) management. We must also shift to an export oriented economy by removing import restrictions, lowering duties and redesigning government regulation, to promote competitive domestic markets and thwart monopolistic practices.

Many people don’t realise that import protection is economically the same as taxing exports. Export orientation encourages good governance as producers must compete in global markets that can’t be manipulated by local politicians.

I would venture to guess that protected domestic producers tend to fund political campaigns in return for protection from domestic and import competition. This not only promotes poor economic and political governance but also comes at the expense of the hapless consumer who is typically not affluent or politically well-connected.

Q: And what mechanisms do you believe are necessary to hold public officials accountable for their actions and decisions?

A: Parliament must enact robust laws holding public officials – including ministers and members of parliament – accountable and when it comes to corruption, criminally liable, for dishonest behaviour.

Sri Lanka doesn’t have such laws in many key economic areas including taxation, public procurement, SOEs and regulation. Even when legislation is passed, it often includes loopholes, affording ministers inappropriate leeway.

We also need an independent public prosecutor with adequate resources to enforce the rule of law in economic matters. Transparency is also essential but without governing frameworks and laws, it is often difficult to interpret published information.