Why Sri Lanka Casino Mogul Kulappuarachchige Don Dhammika Perera will be Toxic and UnHealthy for Sri Lanka's Economic Development as a President?

[ThinkTank]

Kulappuarachchige Don Dhammika or in short form Dhammika Perera, one of Sri Lanka's wealthiest businessmen, could pose significant risks to the country's future economy and governance if he were to become president. Here are several reasons why:

1. Conflict of Interest and Monopoly Power:

Dhammika Perera holds controlling stakes in numerous major companies across various sectors, including finance, manufacturing, and logistics. This concentration of ownership creates potential conflicts of interest, particularly if he were to become president. His ability to influence policies that benefit his businesses at the expense of competitors and the broader economy is a major concern. Perera's near-monopolistic control in sectors like ceramics through Royal Ceramics and Lanka Ceramics exemplifies this issue.

2. Economic Inequality and Anti-Competitive Practices:

Perera's business practices could exacerbate economic inequality. Monopolies tend to lead to higher prices and reduced quality of goods and services because of the lack of competition. This would negatively impact consumers, especially the middle class and lower-income groups, making living conditions more difficult. Furthermore, small and medium-sized enterprises (SMEs) would struggle to compete, potentially leading to reduced innovation and job losses.

3. Political Influence and Corruption:

Perera has a history of leveraging his wealth for political influence. His entry into politics, including his brief stint as a Cabinet Minister under President Gotabaya Rajapaksa, and his financial support for political campaigns, highlight the risks of crony capitalism. Such influence can lead to policies that favor business interests over public welfare, undermining democratic processes and governance.

4. Lack of Regulatory Oversight:

In Sri Lanka, regulatory frameworks to manage conflicts of interest and monopolistic practices are weak. Perera's influence and potential presidency could further weaken regulatory institutions, making it easier for his businesses to operate with minimal oversight. This lack of checks and balances is detrimental to economic fairness and transparency.

5. Historical Precedents and Governance Issues:

Sri Lanka has a history of appointing business figures to government positions, often resulting in governance issues due to conflicts of interest. For instance, Perera’s tenure as Chairman of the Board of Investment of Sri Lanka was controversial, with allegations of favoritism and inadequate project approvals. These precedents suggest that his presidency could similarly be marred by governance problems.

6. Economic and Environmental Concerns:

There have been allegations against Perera's businesses regarding environmental and ethical issues, such as the importation of clinical waste. While these allegations were denied, they highlight potential risks associated with prioritizing business interests over environmental and public health concerns.

In summary, Dhammika Perera's vast business empire and history of political involvement suggest that his presidency could lead to increased economic inequality, weakened regulatory frameworks, and governance challenges, ultimately creating difficult living conditions for the average and middle-class populations in Sri Lanka.