Post-conflict economic prospects in Sri Lanka:

Country poised for positive outlook in development

Sanjeevi JAYASURIYA

Sri Lanka is poised for a positive outlook in the country’s development process in the next decade. The country would cross the US $ 5,000 per capita income mark in next five to ten years, Finance Ministry Secretary Dr. P.B. Jayasundera said at a meeting on “Post conflict economic prospects in Sri Lanka” organized by the Sri Lanka - Canada Business Council held yesterday in Colombo.

Sri Lanka is ready to take off. The Government is working on targets to be reached by 2020 with a view to re-brand Sri Lanka to become a modern, strong and environmental friendly country. The country needs to look at new products, new markets and new approaches to move forward, he said.

There would be new investment opportunities in food and energy sectors and growth could be anticipated in the sectors of agriculture, tourism, property development, infrastructure, construction and manufacturing. Knowledge economy will be Sri Lanka’s future economic structure, he said.

Agriculture will soon become the favourable sector and Sri Lanka’s focus to develop the sector would pay dividends as the world is concentrating on food security. The country has the most favourable policy environment and is peaceful and resilient, Dr. Jayasundera said.

The global economy is now bouncing back and people place confidence in the recovery process. The development is shifting to Asia and driving the global growth. Larger economies and richer countries are emerging from Asia attracting the world’s attention, he said.

Sri Lanka is no longer a poor country and is a middle income country with a per capita income of over US $ 2, 000. The country has heavily invested in a market policy regime for financial stability. The key growth sectors are tourism, apparel, plantation and construction and these sectors have worked under extremely unfavourable conditions managing to contribute for a better economic performance, he said.

Entire Sri Lanka is placed on a new growth model and the peace dividend is already visible. There have been immediate investment responses. The gains in the stock market and the accumulation of foreign reserves have increased the level of confidence of people.

The country has moved to a low interest rate regime and the low inflation rate would benefit and create more opportunities, he said.