Promising development in Lanka in 2007 - Minister

Enterprise Development and Investment Promotion Minister Dr. Sarath Amunugama said most macro economic indicators have shown promising development in 2007.

"The economy grew by seven per cent after achieving 7.7 per cent growth in 2006. The average rate of unemployment reached its lowest ever recorded level of 6.0 per cent, while the per capita income rose further to US$1.617. For us trade has proved to be as important as aid.

The developed economies must continue to assist us as the European Union provides us the GSP + facility," he said. The Minister said this year marks the ADB's 41st anniversary.

"Over the past four decades, the Asian region achieved remarkable development, with acceleration of economic growth reduction of unemployment and poverty and with several countries reaching high standards of living. There is no doubt that ADB has made a considerable contribution to this achievement," he said.

Sri Lanka is pleased that the negotiations of ADF X have been successfully concluded. "While we should welcome a significantly higher amount of resources under ADF X, it is of great importance that we make a special effort to obtain the maximum benefits out of these enhanced resources.

ADF X would provide a chance to ADB to make a significant impact towards the achievement of Millennium Development Goals. I do hope that we can improve the living standards of the people in the region, particularly of the poor with a more equitable distribution of the benefits of growth.

Recent events have underscored the need to link infrastructure development with rapid agricultural growth. Agriculture is the mainstay of the poor in the region," Dr. Amunugama said.

ADB has been a continuous supporter of Sri Lanka's development efforts for more than four decades. In 2007, ADB committed loans amounting to $ 445 million for the development of the Port, Education and SME sector. I must thank ADB for providing grant assistance under JFPR facility for improvement of the quality of life of rural poor through a livelihood development program linked to improvement of rural access roads," he said.

"Sri Lanka is now in the third year of the Government's 10 year development programme, with the objective of achieving faster and all-inclusive growth. I am pleased to mention that we have been making steady progress towards this objective, despite unprecedented challenges, i.e. the escalation of oil and food prices and terrorist threats," the Minister said.

"As a newly emerging middle income country, we have recognised the need to tap other sources of funding to obtain resources needed for our accelerated infrastructure development drive. We were able to successfully issue a debut international bond issue of UD$ 500 million in 2007, a landmark deal in a difficult year. We are also strengthening our relationships with regional trading partners, which is in line with ADB's strategy of promoting regional integration.

We have no doubt that ADB would continue to play its prominent role as a key development partner in Sri Lanka throughout the present development decade and beyond."

"The most recent statistical survey results of our Census and Statistics Department have revealed encouraging developments in reducing poverty in the country. The results show a considerable decline in poverty. Head Count ratio to 15.2 per cent in 2006 from 29 per cent in 1995".