To offset GSP+:

Govt to bring new mechanism

Chaminda PERERA

The Government will put in place a novel mechanism on the advice of President Mahinda Rajapaksa in case of GSP+ being suspended by the European Union, said Central Bank Governor Ajith Nivard Cabraal.

He said Sri Lanka has withstood global economic downturn effectively and the Government has been planning a mechanism to face the situation if the GSP+ is suspended to Sri Lanka for over 18 months.

The Central Bank Governor was speaking at a conference to educate Trade Union activists and members of the working class on the Mahinda Chintana at the Sugathadasa Indoor Stadium yesterday.

The Government has planned a complete development in the country under five sectors. The country has commenced the construction of a new harbour after 700 years, he added.

He said the Colombo harbour which began operation 700 years ago brought tremendous development to the Colombo district.

The Central Bank Governor said a massive development in the country is inevitable as five harbours are being developed around the country. He said the Government has initiated a massive project to develop the IT, Telecommunications, Power and Energy sectors in the country.

“We have focussed on the development of remote areas too,” he said.

He said that the contribution to the Gross National Product from the Western Province has reduced from 52 to 48 per cent. He added that the era in which power cuts were imposed was ended by the Government by implementing novel power generation projects utilizing alternative energy resources.

He said the country would not face power crisis for next 25 years. He said the Government has plans to increase earnings from tea exports to Rs two billion.

Income accrued from garment can be increased to Rs five billion, he said.

“We expect that tourists arrival would also increase to 2.5 million within six years,” he said.