Lanka has high growth potential - Malaysian economist
Sri Lanka has a high growth potential and a good opportunity to
attract investors with strong infrastructure development and the
challenge is to maintain a higher growth level, RAM Holdings Malaysia
Group Chief Economist Dr Yeah Kim Leng said.
Speaking on “Sustaining the growth and rebuilding momentum” at the
CEO’s Breakfast Forum organized by the Institute of Chartered
Accountants Sri Lanka (ICASL) he said when looking at the forecast the
global financial crisis turning to recession is an opportunity for Sri
Lanka to look at long term investment as rising China and India will
have better confidence.
Referring to favourable short-term growth prospects he said the
country’s economy is poised for a strong rebound in 2010, with its
estimated GDP growth approaching seven percent.
The economy is projected to expand 6.5 percent in 2011 followed by
6.3 percent in 2012.
The optimistic consumer and investor sentiments will contribute to
the robust domestic demand while rising investment activity from the
foreign and domestic private sectors will provide impetus to the growth
forecast.
The services sector will benefit from the healthy domestic demand,
which is expected to sustain a seven percent in both 2011 and 2012 and
the industry sector is projected to expand 6.4 percent per annum over
the next two years.
The medium to long term growth forecasts has been revised upwards
from 5.5 to 6.2 percent per annum for the 2011 to 2015 period.
The revisions are underpinned by several key factors such as a
quicker than expected reduction in the country’s macroeconomic
imbalances, the global financial crisis less severe impact on the
domestic economy and the quick albeit fragile-global recovery and rising
confidence in the post conflict economic rebound.
An improving macroeconomic environment, coupled with fiscal and other
structural reforms will energise the private sector and harness market
forces to raise economic efficiency and productivity. |