Speaking at the 32nd Independence anniversary celebration at Lawson Tama on Wednesday, Dr Sikua said: "We were a proud country and we can be proud again if we do the right things and show our young people good leadership."
"Some of our overseas friends have referred to us as a 'failed state," he said.
However, Dr Sikua said the systems and institutions of governance might have failed, but as a country, Solomon Islands remains standing.
"It has never failed - because our community leaders have held it together naturally and organically.
"Let us continue to be proud of our country and work towards making it a stable, peaceful, and secure home for all of us - both citizens and our guests and visitors alike," he said.
The country will go to the polls on August 4 2010.
This is to elect 50 new leaders to lead the nation in the next four years.
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