WB: thumbs up for Lanka
* Keen to play proactive role
* SL can unleash economic potential to fullest
World Bank Managing Director Sri Mulyani Indrawati said the
multilateral donor was happy with Sri Lanka’s recent progress. “It is
very encouraging to see high growth in Sri Lanka, especially following
the end of the war. However, the challenge for Sri Lanka is to sustain
this impressive performance over the medium to long term and reduce
inequality among provinces and income groups,” the WB Managing Director
said.
“High growth doesn’t mean there are no problems,” she said. “No
country has the luxury to be complacent.”
Continued reforms in the areas of fiscal policy and public sector
leading to a lower Budget deficit,
lower public debt, and improved efficiency as well as a conducive
environment for a greater role for a higher quality and competitive
private sector would help Sri Lanka’s forward march, she told
journalists.
Better productivity and improved quality of human resource and skills
level were also cited as important.
While noting that there has been a good increase in public
investment, she said Sri Lanka must attract greater inflow of foreign
capital if the country is keen to sustain high growth.
A credible framework is important to make Sri Lanka’s economic
potential ‘the pull factor’ given its natural resources, strategic hub
location, and quality of its people, Indrawati said.
“We are encouraged by the fact that the Mahinda Chinthana policy
document addresses these challenges and structural issues. If resolved,
Sri Lanka can unleash the economy’s potential to its fullest,” the World
Bank MD said. The improvement by Sri Lanka in the World
Bank-International Finance Corporation compiled Ease of Doing Business
was commended by Indrawati and further progress will ensure the quality
of the private sector, both local and foreign, being improved, leading
to higher investments.
“Improving quality of the private sector and attracting good foreign
capital have a wider beneficial impact on the economy with better
technology and best practices,” she added. “Having a low tax rate is
good but governments must ensure there is transparency and clarity with
regard to computation,” she said, adding that a regime that ensures
consistency and stability in policies is more favoured by local and
foreign investors.
With regard to infrastructure development thrust by the government
especially in the north, she said: “Well-designed infrastructure will
attract the right investment. This, along with engaging the community in
the area, will ensure new infrastructure has a greater benefit to uplift
the livelihood of the people. Given the resource constrains faced by
governments, opening up infrastructure development for the private
sector under Public-Private Partnerships is also important.”
The World Bank MD said Sri Lanka as a progressive nation could learn
from its own historical experiences as to what policies have worked
right and what haven’t, as well as of other countries, and choose the
best.
“As a partner for future development, the World Bank is keen to play
a proactive role with financing and policy advocacy,” said Indrawati.
Courtesy: priu.gov.lk
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