Health, education and infrastructure sectors:

More investments essential

Harshini Perera

There should be more investments towards health, education and infrastructure, former Central Bank of Sri Lanka Governor A S Jayawardena said. There is a need to create infrastructure facilities for the private sector on equitable basis since its contribution to the economy is huge.

The private sector takes the larger portion of responsibility in economic development and therefore the private sector should be given sympathetic incentives.

He was speaking at the Sri Lanka Economic Association annual sessions 2010 on the theme Perspectives for Accelerated Growth and Development.

“The investment on the infrastructure development of the country plays a vital role in growing export and import capacities between urban and rural areas. It will also improve the quality of life of the people which then will result in doubling the per capita income,” Jayawardena said.

The Sri Lankan economy is facing a momentous time in its history where the Government expects to double the per capita income by making a paradigm shift in Government economic policies. Placing trust on the public and private sector for development is another such policy change taken into effect by the Government after the war.

He said that the Government has understood the weakness of the public sector which could be a key to development.

It is appreciable that the Government has decided to strengthen Public-Private Partnerships as the better way to strengthen public sector contribution to the economy.

A set of regional banks has been amalgamated and centralized after the war as a result of the Government’s paradigm shift over the economy.

He also said that there should be a politically neutralized and professional public sector to function their part in the economy well. A country heading towards economic development needs a competition policy.

“The growing dependence on the expatriates’ remittances should be less while Sri Lanka should give a substantial attention towards education.

The best incentives for the private sector come from democracy and equality,” he said.