POWER AND PROFIT: INVESTIGATING SRI LANKA’S MILITARY BUSINESSES
1. INTRODUCTION
Written by Super User-30 April 2018
The end of the armed conflict in Sri Lanka saw a significantly increased level of military presence in civilian life across the country, with the military actively engaging in a variety of activities. These activities include humanitarian relief and participation in infrastructure projects, as well as engaging in profit generation through businesses and other economic ventures. This foray into economic activities and businesses by the military covers a range of sectors including hotels, restaurants, travel, leisure, and agriculture. These enterprises are spread across the country and have nationwide implications for the economy and rule of law.
This report examines these implications by discussing the following concerns and issues arising from the military’s economic activities: The lack of information regarding the legal and administrative frameworks within which the military engages in businesses;
Potential unfair competition and market distortion by the military's engagement in business resulting in the crowding out of private investors;
Lack of oversight over military businesses by the government, causing several rule of law implications regarding transparency and accountability;
Social and economic consequences particular to the North and East as a result of the military occupying an economic vacuum.
The report concludes that the military's engagement in businesses and economic activities in Sri Lanka has led to serious consequences for the economy and rule of law. Markets are distorted, civilians are deprived of economic opportunities and state-funded or operated businesses are neither transparent nor accountable. The report recommends that these businesses be eventually managed by private or public sector entities, to ensure fair play in the market and greater transparency and accountability.
