Economy has to be further diversified - CB Governor

by Shirajiv Sirimane

Sri Lanka has achieved tremendous economic progress in the past few decades where per capita income has increased taking the country to the status of lower middle income country," said the Governor of the Central Bank, Sunil Mendis at the donor conference in Kandy yesterday.

He said that many years of Government focus on meeting the social needs of the people have enabled the country to achieve human development indicators well beyond countries with comparable levels of income, in fact similar to those of more development middle income countries.

The Governor however said that despite these positive trends poverty and unemployment, though declining, still remain a concern. Since productivity is low farmers get a low income and a higher price for consumers.

Fiscal deficit has remained high and essential economic infrastructure remains inadequate. "These concerns have been aggravated by the tsunami and today's challenge is to consider how to achieve a balanced growth with economic and social stability," he said.

The high international price of fuel too is a major concern. The economic growth and peace are interlinked and the peace process has to move on for an accelerated economic growth and structural reforms too have to continue.

He also said that the economy has to be further diversified so that it is better able to withstand internal and external shocks.