Archives

By Chandani Jayatilleke

Chamber leaders yesterday reiterated that infrastructure development should be given top priority, with the focus on power and road development.

This follows an IMF approval of a US$ 567 million outlay for Sri Lanka to support the government's economic program for 2003-2006.

The funds will be disbursed over a three-year period under the IMF's Poverty Reduction and Growth Facility (PRGF) and Extended Fund Facility (EFF). Sri Lanka will receive US$ 81 million immediately.

The credit arrangement under the PRGF seeks to increase economic growth and reduce poverty by supporting the Government's economic program based on 'Regaining Sri Lanka' project.

The business leaders said that the Government should consult the chambers of commerce and senior representatives of the private sector to identify and priorotise the projects to be developed within next three years.

The President of the Federation of Chambers of Commerce and Industries in Sri Lanka (FCCISL), Nihal Abeysekera, said that the announcement by the IMF was a very encouraging one. "If we are to develop the economy of the entire country we need to receive such large aid packages. And this will be a 'jump start' for Sri Lanka," he said. "Since we know how much of aid is given for the next three years, it will certainly help us to plan out a development strategy. We need to identify the priority areas and major projects which can be developed through this aid package," he said.

Infrastructure should be the key development area. Power, road development, agriculture and transport should be the main sectors in this strategy plan. "We need to bring down escalating electricity costs in industries and households, and therefore, it is necessary that the government seriously implementing coal power projects.

Many developing and developed countries have successfully implemented coal power projects and even our neigbour - India - has gone for it," he said.Abeysekere said that transport and road network needed an urgent facelift.

"If we are to gain the best results from the new five economic zones concept, we need to get a better road and transport network."

Skill development is another area that has to be looked into. We must stop sending housemaids abroad and get opportunities for skilled workers.

"We will be able to earn more foreign exchange through such workers. In the Agricultural sector, we need to use more research and development in order to get better a harvest. What happens now is that our cost of production is very high and productivity is low due to lack of R and D in the sector," he said.

The President of the Ceylon Chamber of Commerce, Tilak de Soyza, said that the IMF's decision is a victory for the Government and the country. "The IMF has re-assessed Sri Lanka's position and has shown full confidence in the "Regaining Sri Lanka'" concept.

Infrastructure should be the key word in the development process and the PRGF should be implemented properly to achieve the economic goals of the country, de Soyza said.

The President of the Sri Lanka Chamber of Small Industries, Aloy Jayawardene, said that developing infrastructure in the country should be the main focus of the Government. "Power and road development should get the priority. If the Government wants to promote more investments, the highways to Kandy, Katunayake and Galle should be developed soon," he said.

He added that the as a measure to reduce the cost of power, the Government should seriously consider the implementation of coal power projects.

The President of the National Chamber of Commerce in Sri Lanka, Asoka de Z. Gunasekera said that development should not be confined to the North and East. The South had also suffered economically over the last decade.

He added that the projects should focus on developing road network, power and health sectors. Such projects would help increase employment opportunities as well. The country is facing the challenge of providing employment opportunities to over 2 million youth in the next few years.

www.crescat.com

News | Business | Features | Editorial | Security
Politics | World | Letters | Sports | Obituaries |

Produced by Lake House
Copyright 2001 The Associated Newspapers of Ceylon Ltd.
Comments and suggestions to :Web Manager