NE will contribute heavily to GDP with war ending - CB Governor

Lumbini EDIRISINGHE

With the war ending and the North East opening up it would have a major positive impact on the economy and would be one of the main contributors to the Gross Domestic Production (GDP).

Ajith Nivard Cabraal

Knowing the North East potential the government is paying attention to develop this area, Governor, Central Bank Ajith Nivard Cabraal told a seminar on investment and the private sector at the Hilton Colombo.

“The agriculture, fisheries, livestock, dairy, tourism and manufacturing sectors will be developed in the North and East as the economic potential of this area is unlimited. The availability of over 15,000 square ft. of land for development is also another plus point for the North East,” he said.

“Although the development of the North and East is very challenging due to various global factors we will have to face a difficult time and new ideas should be mooted to face these challenges. Therefore, we should focus on effective economic opportunities with novel products,” he said. “We have to be innovative and one area we should concentrate on is venture capital funds. This is a new attitude in the financial sector”, he said.

“There are certain countries such as the United States, which use joint venture funds successfully. Although some companies do not work under the label of venture capital funds they practise the concepts of venture funds”, he said.

Chairman of the Board of Investment of Sri Lanka Dhammika Perera said, “Through post-conflict investments in the North and East, the private sector will have to consider, identify and implement a course of action that will allow them to not only take advantage of specific pockets of feasible business in today’s current economic climate but also be involved in working credibility with the society to forge a long standing recovery.”

There will be many opportunities for the private sector in post conflict Sri Lanka and this will open vast areas of fertile land, he said.