Donors commend Government's ten year growth plan

Hiran H. Senewiratne in Galle

GALLE: The Government's draft 10 year development framework, Mahinda Chintana: Vision for a New Sri Lanka, has to be implemented in a proper way to lift the four million rural population out of poverty in Sri Lanka, Vice President World Bank Praful Patel said.

"This would help build on the growth that enabled the Western Province to practically eliminate poverty," Patel told the inaugural ceremony of the Sri Lanka Development Forum 2007 in Galle.

Over 50 countries and more than 200 delegates attended the inaugural ceremony to discuss matters relating to the Mahinda Chintana 10 year development plan.

He said that last year the economy grew at about 7 per cent; the stock market reached an all-time high, tourism rebounded to pre-tsunami levels and more remittances flowed into the country despite many challenges thanks to economic reforms launched in the 1980s.

Patel said they have cautioned that Sri Lanka cannot talk of development without considering the context of conflict, but this 10 year vision has the potential to develop the country.

He said that this cannot be achieved without changes in both the policy and institutional environments like policies to shift agriculture towards high-value production. Villages must be connected to markets not only through roads but also through business networks. Through such steps poverty in rural areas can be dramatically reduced, he said.

Patel also said that rising international competitiveness could be improved if the private sector including foreign investors could see reforms in the labour market, in the investment regime, the power sector and education.

The knowledge economy recognised in the Government's vision cannot be realised without investing in knowledge infrastructure and fast tracking reforms in education, Patel said.

He said these development plans will not be a reality if the Government could not solve the ethnic conflict. The Government should be committed to peace to find a durable solution, he said.

Commending the Government on its 10 year development plan, United Nations Humanitarian/Resident Coordinator Frederick Lyons said the UN system in Sri Lanka is committed to help the Sri Lankan development strategies to make the economic growth equitable for the people.

Calling it a valuable document for the future development of the country, he said that the UN acknowledges this development vision as a positive feature for Sri Lanka to reduce its poverty level.

Lyons said the Government should focus on income disparity levels, Human Resources Development in the public sector and protecting the human rights of the people with the implementation of this strategy. To overcome Sri Lanka's challenges it should consolidate peace and harmony and human rights, for human development, he said.

The Ambassador for the USA in Sri Lanka Robert O' Blake addressing the forum said the USA was helping to enhance economic development in Sri Lanka and the US Government intends to help reach a durable solution for the country's ethnic conflict.

Blake said that The USA also helped Sri Lanka by deploying an X-ray system in the Colombo Port to scan goods and also strengthened military cooperation to combat terrorism. The USAID is assisting people at local level to uplift their living conditions, he said.

Deputy Director General, International Economic Cooperation Bureau Ministry of Foreign Affairs, Government of Japan, Reiichiro Takahashi said they are pro-actively looking at the 10-year-development goal to see a sustainable growth in Sri Lanka.

The international community including Japan is closely watching Sri Lanka's progress despite many challenges. Having peace in the country is essential to achieve this goal, he said.

Vice President, Asian Development Bank, Liqum Jin said the Sri Lankan economy has remarkably proven resilient to many challenges during the last few years. With the escalating violence in the country, the economy suffered dramatically, especially the tourist industry.

The conflict has taken a heavy toll during the last two decades, he said. Additional Secretary (Economic Relations), Ministry of External Affairs, Government of India Shari Dinesh Kumar Jain said India is one of the main emerging markets in the world and by 2050 it will become the second largest economy in the world.

Sri Lanka is the largest beneficiary of the Indian Line of Credit of US$ 250 million and is now in the process of assisting the economic development in the country by endorsing the Mahinda Chintana, he said.

Among the donor countries and agencies represented at this Forum are International Monetary Fund, Asian Development Bank and the European Union.