RESTRICTED 1– 3 RESTRICTED CHAPTER THREE DATA PRESENTATION AND DATA ANALYSIS NATIONAL DEFENCE AS A PUBLIC GOOD 21. According to business dictionary.com, “public good is an item whose consumption is not decided by the individual consumer but by the society as a whole, and which is financed by taxation. A public good or service may be consumed without reducing the amount available for others and cannot be withheld from those who do not pay for it. Public good and services include economic statistics and other information, law enforcement, National Defence, parks and other things for the use and benefit of all. No market exists for such goods, and they are provided for everyone by governments.” 22. Therefore, it can be assumed that there is a direct link between the national defence and public good. If National Defence is exercised properly then the public will be benefitted. On the other hand National Defence is of pertainingto or maintained by a nation as an organized whole or independent political unit owned preserved, or maintained by the federal government. Defence means resistance against danger, attack, or harm: protection. By providing Defence expenditure, a positive stimulate effect on the economy of Sri Lankacan be achieved for a rapid growth after defeating the LTTE. Moreover, National Defence is a public good even if we consider it is only there to prevent from another attack. That is because everybody can profit of the prevention at the same time. No other citizen can deny the protection offered by the National Defence. 23. Defence expenditure can enhance growth if some of the expenditure is used to provide social infrastructure and maintenance ofsuch as dams, roads, airports, communication networks and also other forms of public good which are benefited by public. Defence expenditure can provide to particular areas such as training, awareness programs and education as well as nutrition, health care to the areas directly affected by the Tamil Ealam war in Sri Lanka. Different Complementary Services of Aspects that National Defence as Public Good Transportation Aspects 24. Transportation is a main section that defence sector can involve. Presently the military involves in crisis situations such as strikes. This should efficiently maintain further with a
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CHAPTER THREE
DATA PRESENTATION AND DATA ANALYSIS
NATIONAL DEFENCE AS A PUBLIC GOOD
21. According to business dictionary.com,
“public good is an item whose consumption is not decided by the individual
consumer but by the society as a whole, and which is financed by taxation. A
public good or service may be consumed without reducing the amount available
for others and cannot be withheld from those who do not pay for it. Public good
and services include economic statistics and other information, law enforcement,
National Defence, parks and other things for the use and benefit of all. No market
exists for such goods, and they are provided for everyone by governments.”
22. Therefore, it can be assumed that there is a direct link between the national defence
and public good. If National Defence is exercised properly then the public will be benefitted.
On the other hand National Defence is of pertainingto or maintained by a nation as an
organized whole or independent political unit owned preserved, or maintained by the federal
government. Defence means resistance against danger, attack, or harm: protection. By
providing Defence expenditure, a positive stimulate effect on the economy of Sri Lankacan
be achieved for a rapid growth after defeating the LTTE. Moreover, National Defence is a
public good even if we consider it is only there to prevent from another attack. That is
because everybody can profit of the prevention at the same time. No other citizen can deny
the protection offered by the National Defence.
23. Defence expenditure can enhance growth if some of the expenditure is used to provide
social infrastructure and maintenance ofsuch as dams, roads, airports, communication
networks and also other forms of public good which are benefited by public. Defence
expenditure can provide to particular areas such as training, awareness programs and
education as well as nutrition, health care to the areas directly affected by the Tamil Ealam
war in Sri Lanka.
Different Complementary Services of Aspects that National Defence as Public Good
Transportation Aspects
24. Transportation is a main section that defence sector can involve. Presently the military
involves in crisis situations such as strikes. This should efficiently maintain further with a
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view to assisting the government to address the crisis situations with perfect solutions and to
ease the pressure on normal civilians.
25. On the other hand, the Navy and the Air Force can perform specific tasks in
transportation sector. The Navy can concentrate on tourist transportation. This will be a much
attractive and interesting new thing to both local and international tourists. The Air force can
also consider on air transportation inside the island. This can be done by either sea planes or
through air ports inside the country. Now theAir Force has started Heli-tour service which
gives opportunity to travel major tourist destination in Sri Lanka by planes.
Medical Aspects
26. Other than these areas, military can be used in many other fields such as medical field.
They can help the government to do the vaccination campaigns and other national level health
operations. Also they can reach places which normal civilian medical professional refuse to
move and do the necessary treatments for those who required medical treatments.
Life Guard Services
27. Life guard service has been done by the military services as social work.
Especially,the Navy has kept their lifeguard teams in and around the country. This service can
be developed further to provide more safety for the people.
Disaster Management
28. Disaster management can also be done by the forces very effectively. Presently, the
forces also give their maximum contributions to national disastrous situations. For example,
it is easy to highlight the work done by the forces during Tsunami disaster in 2004 and
flooding and land sliding in Rathanapura in 2003. In those situations the military forces did
rescue operations, evacuations, supplying of foods, clothes and other required items,
providing medical facilities and many more things to get civilian life back to normal. The
Navy and the Air Force are more vital in these situations than the ground forces. When
challenging the sea disasters role of Navy boats, divers are significant. The Air Force planes
can be used for quick transportation, and get to the location where there are no other means of
transport available.
29. There are side advantages in using military forces in such kind of situations too.
Normally, these people are trained not to be panicked in serious situations; therefore they can
take the required action without any further damages. Using them is more effective and
reliable using than using normal civilians as they have to be given prior training. Other than
that the military forces have a well-organized body and perfect management. Therefore,
bribery and corruption that occur in supplying and providing facilities through other means
can be minimized. Hence, disaster management in a post war scenario can be directly done by
military forces.
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The Post War Scenario and its Importance for the Economy of Sri Lanka
Brief History of the Sri Lankan Economy
30. The war had lasted nearly three decades. During that period it had influenced the Sri
Lankan economy, culture, and day to day life of the common people as well.The war
extensively damaged housing, roads, bridges, commercial and state property, irrigation
system, machinery, communications systems, plantations and fisheries. The total cost of
replacement of assets and houses, and cost of damages and property in the North and East
amount to Rs. 296.5 billion and total cost of property damaged outside the North and East
amounts to Rs. 32.7 billion. (Based on 2001 prices).
Recent Economy of Sri Lanka and Different Factors Affected on the Economy
31. Although suffering a brutal civil war that began in 1983, Sri Lanka saw GDP growth
average 4.5% in the last 10 years with the exception of a recession in 2001.
32. The government spending on development and fighting the LTTE drove GDP growth
to about 7% per year in 2006 to 2007 before the global recession slow growth in 2008, but
high government spending and high oil and commodity prices also raised inflation to around
15% in 2008.
33. Due to war past 30 years Sri Lankan economy faced many numerous problems.
Tourism industry, fisheries industry, agriculture and all other industries in northern and
eastern area were totally destroyed. The LTTE attacked economically important places such
as the airport, Central Bank, fuel storage complex in Kolonnawa. The government had to
spend a considerable amount of money from the National Income to rebuild these places.
Future Sri Lanka and Different Ways to Rebuild the Economy
34. The Finance Ministry Secretary Dr. PB Jayasundara gave an interview to the Daily
News on July 5, 2011. He said that government has managed to reduce the defence
expenditure systematically. Further, he expressed the criticism against spending much for
defence expenditure in a speech given at the Sri Lanka Economic Summit 2011 held at the
Cinnamon Ground Hotel as “Sri Lanka has faced so many criticisms for the high defence
expenditure.” “Defence allocation will further go down to 2.5% of the GDP, provided that
the economic growth rate remains above 6%. And public investment, including education and
rural development grew by 6.5% in 2010, despite 2.5% posted during 2000 and 2002.
35. Professor G.L. Peiris during his speech in KDU symposium expressed that Sri
Lanka‟s Gross Domestic Product (GDP) grew by an impressive 8 % in 2010 over a relatively
low growth of 3.5 per cent in 2009. This was the second highest growth rate witnessed during
the past six decades and the highest growth rate reported during the past three decades. In
2011 Inflation rate control to 6%, foreign reserve increased up to $ 8 billion. All these were
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achieved mainly due to the end of the war. From these data, we can understand importance of
peace in country for economy development.
36. Thus, it is obvious that the end of the war positively affected the national economy
since the excessive expenditure for the military operations have been curtailed and the
allocated funds for military operations could be used for other development projects. This is
achieved due to the end of the war; therefore, what was spent for military operations was not
waste because it has laid the foundation for a better economy for the country.
37. The government policy on the agriculture as envisaged in the “MahindaChinthana
Vision for Future” focuses on several targets. These include achieving food security of the
people, ensuring higher and sustainable income and remunerative prices for farmers,
uninterrupted access to competitive markets both in Sri Lanka and abroad, farm
mechanization, expanding the extent under cultivation, reducing wastage in transit and
ensuring environmental conservation, introducing efficient farm management techniques and
using high yielding seeds and improved water management. Moreover, plans have been made
in order to use the recently liberated North and East area for agriculture, industry, and many
other projects.
38. To achieve all these, the government faces problems in utilizing experts because a
huge demand for professionally qualified experts in various fields has suddenly arisen. On the
other hand the remaining personnel have had the reluctance of executing their duties in these
liberated areas. Then, the tri forces showed their ability to extend their assistance to fill the
dearth of professional requirement for these projects.
Contribution of National Defence to the Economy Development
39. There are many development projects conducted in north and east area with the help
of the try forces. The government are now developing infrastructure facilities in north and
east area because to use these areas to get the maximum contribution to national economy,
the infrastructure such as proper roads, continuous supply of electricity and other facilities
should be developed.
40. On par with the development drive 'UthuruWasanthaya', a series of development
initiatives have been carried out under the guidance of Economic Development Minister Basil
Rajapaksa to provide the basic needs for the people of Jaffna. Development of electricity,
water supply and sanitation, agriculture, irrigation, livestock, inland fisheries, health
facilities, solid waste disposal systems, education, sports, cultural affairs and transportation
are some of the areas that will be covered under this program. Prof.G.L. Peirisin his Key Note
speech at the annual symposium of General Sir John Kotelawala Defence University on 18th
August 2011 emphasized that 95% of schools in northern area have been reconstructed with
the help of armed forces. Further he mentioned that developing infrastructure facilities in war
affected area is one of the major works that the military can be involved in.
41. Projects worth Rs. 1010 million have already been underway in the district. The total
cost of developing the A-9 Highway will be Rs. 710 million. A total of Rs. 380 million will
be spent on the Vavuniya-Horowpathana road and Rs. 360 million on the Medawachchiya-
Mannar road. Meanwhile road construction in relief villages currently housing IDP‟s is
nearing its completion at a cost of Rs. 150 million. Another important project is north railway
line. So far government have completed up to Omanthai. Sri Lanka Army engineering
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regiment doing the most of the construction in this project.Many schools in north and east
area were reconstructed by the armed forces. Regional school in Divulweva was newly
constructed by the Sri Lankan Air force.
42. Another water supply scheme for the people of Point Pedro, who mainly depended on
wells and tube wells, were provided with a massive 1350 m3 capacity elevated water tower.
The project would improve the water supply infrastructure and services in the Northern
region. Chempiyanpattu in Nagarkovil was also provided with electricity through the
UthuruWasanthaya programme. Kokavil tower project is one of the major projects involved
by Sri Lanka Army. This tower helps to develop telecommunication system in north and east
area.Agriculture being the main livelihood of the Jaffna people, more than 15 agrarian centres
have been open within this year to facilitate the farmers in the region. Until, the farmers
establish a proper agriculture, the military forces are involved in developing the abandoned
farms run by the government before the outbreak of the war.
43. The government has taken a decision to allow the largest BOI approved industry to be
located in Achchuveli. Another five major industries would also be set up in the North. The
minister noted that he takes actions to reopened Paranthan chemical factory, Pulmudai
factory and Kakasanthurai cement factory. This would generate more employment
opportunities to the educated youth in the North. These mega projects will be more beneficial
for economy development.After the defeat of LTTE armed forces involved in many
development programs all over the country. Diyagama international stadium, Sooriyawewa
international cricket stadium are a few of them. Government can save a lot of money as all
these construction done by the armed forces.
44. Due to peaceful situation in the country foreign investors have started investing in Sri
Lanka. This is a very good condition to boom the national economy. There is also a project to
develop KKS harbour, which is very important to economy of northern zone.
Development of Tourism and Fisheries Industry
45. Tourism and fisheries industry are two major industries that show tremendous
development after the end of war. Tourism industry had been one of the major industries
which contributed the national economy, and it had been one of the main incomes for then Sri
Lanka. However, due to the war, foreigners were reluctant to tour Sri Lanka. After the
war, an assurance was given to them to visit Sri Lanka. Moreover, there are many tourist
attractive locations in the recently liberated areas such as Nilaweli, Pasikuda, Arugambe etc.
The prevailing peaceful situation is highly essential to utilize those areas as prominent
locations for the tourist industry. Tourist Development Authority has made the arrangements
to establish 13 Tourist Resort in the Pasikudah Tourist area in Trincomalee.
46. Sri Lanka's tourist arrivals gained 32.3% in July from a year earlier to the highest level
since December, as the island nation kept attracting more visitors and tourism-related
investment since the end of a 25-year civil war.
47. Fisheries industry is another industry which can be developed after the war. During
war period, this industry in northern and eastern area was totally collapsed due to security
conditions in that area. But now fishermen can do their job without any obstacles. Hence, the
government should give them facilities to improve the industry. The Navy has special role to
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play regarding fisheries industry. They have to protect our sea line from others and provide
security for Sri Lankan fishermen.
STRENGTH AND THE CAPABILITIES OF NATIONAL DEFENCE
Strategic Role for Armed Forces
48. During past few decades, armed forces had major role to defeat terrorism. Now there
is no more war in country. So role of armed forces now transit from conflict era to peace full
situation.The complementary services referred here are important during the period of
transition.Therefore, the role with respect to role of defence during the period of transition is
important for the future of National Defence. The armed forces have the strength and potential
to take a share of responsibility in regional security arrangements to prevent Sri Lanka from
becoming the hunting ground for external powers. The introduction of Sri Lanka as a new
military factor in the regional security spectrum has to be reckoned in future operational
planning of all powers including India. It will be in the interest of both India and Sri Lanka to
evolve greater strategic convergence between both countries to ensure better coordination of
their security strategies to their mutual advantage. This would enable both nations to keep the
Indian Ocean region sanitized from external forces.
49. When we consider about the defence service directly their involving with the war. But
the problem appears with the post war scenario. What do they have to do? That is the main
question in before Sri Lankan military. As a third world country, we have to do many more
things to develop our culture, security, health, and economy etc. Those defence service
officers and soldiers are undergoing with post war, they can involve with above subjects to
develop our country. Military officers and soldiers are well trained and they can involve to
any matter in correct manner. If they have some knowledge regarding particular subject they
cope upwith it. For achieve this aim we have to give the basic knowledge.
50. Professor G.L.Peiris explained that role of armed forces in post war scenario have two
dimensions. That is internal and external in the country. Internally armed forces can involve
with development programs in country. At the same time they have to face external threats.
51. When the war times there were a number of military bases and camps were situated all
over the country especially in North and Eastern provinces. Therefore, in a post war situation
we do not need such numbers of military establishments. Therefore what we have to do is to
reduce the number of camps and check points. However, that is not such as easy task. First we
have to find out what are the vulnerable places for a sudden internal or external threat. On the
other hand we have to study our national interest and our military strategy.
52. The Army has expanded too fast and the period for new recruits‟ training has become
shorter. As the new army commander Lt General JagathJayasuriya has emphasized the army
needs to be trained with greater discipline and professionalism to make it fit a first rate
fighting force for conventional operations. This is usually an on-going process in the army and
that should take priority.
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Strength and the Current Role of Sri Lanka Army
53. The Sri Lanka Army is the oldest and largest of the Sri LankaArmed Forces and is
responsible for land- based military and humanitarian operations. Established as the Ceylon
Army in 1949, it was renamed when Sri Lanka became a republic in 1972. The government of
Sri Lanka launch a military campaign against the LTTE in mid-2006, which resulted in
eradicating the menace of terrorism/separatism in less than three years from the soil of Sri
Lanka.On 19 May 2009, the Sri Lankan military effectively concluded its 26 year operation
against the LTTE.
54. As of the year 2010, the Army has believed to have approximately 200,000 regular
and reserve personnel approximately between 20,000-40,000 and 18,000 National
Guardsmen and comprises 13 operational divisions, one air-mobile brigade, one commando
brigade, one special forces brigade, one independent armoured brigade, three mechanized
infantry brigades and over 40 infantry brigades. From the 1980s to 2009 the army was
engaged in the Sri Lankan civil war.The army has seven regiments of amour (including one
volunteer regiment), nine regiments of artillery (including two volunteer regiments), seven
engineer regiments (including one volunteer regiment), ten regiments of signals (including
one volunteer regiment), 97 infantry battalions, one mechanized infantry battalion, four
commando regiments and three special forces regiments.
Strength
55. The army needs to be trained with greater discipline and professionalism to make it fit
a first rate fighting force for conventional operations. This is usually an on-going process in
the army and that should take priority.
56. Plans to raise the morale of the Army personnel by imparting knowledge on new
training methods and technological innovations that are much-needed for an Army to be
professionally qualified. On the instructions of the Defence Secretary, new courses covering
tactics, offensive methods and ground operations are to be introduced for the first time in the
history of Sri Lanka Army with a view to sharing our battle experiences with foreign Armies.
The Role of Sri Lanka Army in the Post Conflict Scenario
57. In the post conflict scenario, the army has a tremendously important role to play
especially in assisting the government in post-war development work. The first major task is
the de-mining process.
58. Next sole objective is to march towards development in order to make our country the
„Miracle of Asia‟ while giving maximum support to government efforts. In achieving those
development goals, Sri Lanka Army has a formidable role to play since the Army which won
the appreciation of the nation after defeat of terrorism and its challenges, is capable of
shouldering any such tasks in the future too.
The Soldiers are now in the Development Process of the North
59. The Army is involved in the re-building process in the North and East in a major way.
They are assisting the people at grass root level in animal husbandry and farming. Besides, all
engineering feats of road building are under the purview of the Army. Being trained as goal