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Viewing cable 07COLOMBO23, NEW ECONOMIC COUNCIL APPOINTED BY PRESIDENT

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Reference ID Created Released Classification Origin
07COLOMBO23 2007-01-08 05:51 2011-08-25 00:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Colombo
VZCZCXRO1563
RR RUEHLMC
DE RUEHLM #0023 0080551
ZNR UUUUU ZZH
R 080551Z JAN 07
FM AMEMBASSY COLOMBO
TO RUEHC/SECSTATE WASHDC 5069
INFO RUCPDOC/USDOC WASHDC
RUEHNE/AMEMBASSY NEW DELHI 0434
RUEHKA/AMEMBASSY DHAKA 9746
RUEHIL/AMEMBASSY ISLAMABAD 6684
RUEHKT/AMEMBASSY KATHMANDU 4750
RUEHKP/AMCONSUL KARACHI 2097
RUEHCG/AMCONSUL CHENNAI 7248
RUEHGV/USMISSION GENEVA 1660
RUEATRS/DEPT OF TREASURY WASHDC
RUEHLMC/MILLENNIUM CHALLENGE CORP
UNCLAS COLOMBO 000023 
 
SIPDIS 
 
SENSITIVE 
 
SIPDIS 
 
DRL/IL FOR LAUREN HOLT 
 
STATE FOR SCA/INS 
 
MCC FOR S GROFF, D NASSIRY AND E BURKE 
 
GENEVA PASS USTR 
 
E.O 12958: N/A 
TAGS: ECON EFIN ETRD CE
SUBJECT:  NEW ECONOMIC COUNCIL APPOINTED BY PRESIDENT 
 
REF:  2006 COLOMBO 2063 
 
1.  (U) SUMMARY:  On December 26, 2006, President Mahinda Rajapaksa 
chaired the inaugural meeting of Sri Lanka's new Economic Council. 
The President appointed this council, comprised of the nation's top 
economic experts to advise the Government of Sri Lanka (GSL) on 
economic affairs, and to engage the experts on plan implementation. 
If the Council is allowed to guide the President (who also wears the 
hats of Minister of Finance and Minister of Plan Implementation) 
toward a more realistic set of goals, its contributions to Sri 
Lanka's national well-being could be immense.  There is a risk, 
however, that the President's pie-in-the-sky vision for development, 
as articulated in his budget speech, could become a strait-jacket 
that will impede clear thinking on development issues.  End 
Summary. 
 
2. (U) In his address to the Council, the President said that the 
policies and strategies adopted in the last 50 years have failed to 
achieve its development targets.  The President therefore created 
the council to assist the GSL's plan to implement short, medium and 
long-term plans to boost the 10-year development plan envisaged in 
Budget 2007 (reftel). 
 
3. (SBU) The members of the new Council hailed the initiative as a 
practical and pragmatic approach to create a country-specific 
economic policy.  With the goal of limiting political influence on 
the Council, the President appointed its members primarily from 
academia, although some officials from line ministries are also 
members.  Local business leaders not in the Council support its 
non-partisan nature but question whether it will ultimately be able 
to influence practical policy implementation. 
 
4.  (U) The Economic Council will be chaired by the President, and 
will meet twice every month.  The next meeting will be held during 
the second week of January 2007. 
 
5.  (U) The Council includes Central Bank Governor Ajith Nivaard 
Cabraal, Director General of National Planning B. Abeygunawardane, 
President of Policy Studies Prof. Buddhadasa Hewavitarana, Director 
General of National Planning B. Abeygunawardane, as well as 
directors from the Institute of Policy Studies, World View 
Institute, National Council for Economic Development, Highways 
Ministry, and distinguished professors and lawyers. 
 
6.  (SBU) COMMENT:  The Council's mandate to implement an overly 
ambitious set of plans (as envisaged in an unrealistic 2007 budget), 
does not bode well for the Council's future success.  Some Council 
members will diligently work to create logical plans for Sri Lanka's 
economic development.  We hope they will receive the authority to 
advise on realistic development strategies.  However, there is a 
significant risk that they will feel constrained to implement the 
President's vision articulated in his budget speech. 
 
BLAKE