Economy poised to achieve 8 per cent growth

Uditha Kumarasinghe, Rajmi Manatunga and Irangika Range

KOTTE: Enterprise Development and Investment Promotion Minister Dr. Sarath Amunugama yesterday told Parliament that the Government through 2008 Budget proposals intends achieve eight per cent economic growth.

Minister Amunugama said amidst various challenges, the country during the past six months of this year has been able to achieve a significant economic growth.

Due to proper economic management of the Government, the country in the second quarter of this year has reached to 6.1 per cent economic growth. The Government intends to go for a seven per cent economic growth by the end of this year.

"At present the country has reached to six or seven per cent sustainable economic growth rate. This is a good economic growth achieved by the country," he said. According to the minister, the country's service sector has also shown 6.8 per cent growth during the past six months of this year.

Dr. Amunugama said during the past six months, the industrial sector has achieved 14.9 per cent growth in US dollar terms. During the same period, cement production has gone up by 13.3 per cent while the sale of building materials has increased by 9.7 per cent.

In addition the apparel industry sector has shown six per cent growth while total container handling has been gone up by 13.6 per cent.

The Minister said: "There are accepted criteria to decide on the success or failure by the economies of worldwide countries. According to these criteria Sri Lanka has able manage its economy properly by recording a considerable progress in several key sectors. There are certain setbacks in several sectors."

According to Article 4 L consultation of the IMF, Sri Lanka has been described as a country which has maintained a good economic rate during this year.

Dr. Amunugama said the per capita income has been increased to US$ 1,355. Therefore, Sri Lanka cannot be described as an under-developed country anymore. Now, we have reached the position of a country which maintains a medium level economy. We should go to the world market based on a new economic strategy.

The Government in collaboration with the private sector should go for a new market economy to give more economic benefits to the people. China within its socio-economic system has successfully gone for a new market economy, the Minister added.

Sri Lanka's economy grew 7.4 percent in 2006, the island's highest growth rate since 1978, with telecommunications and industry leading the way.