Economy poised for growth

Ramani Kangaraarachchi

*Increase in private sector investments

*Poverty, unemployment level down

Sri Lanka’s economy is poised to grow by an encouraging eight percent in the medium term and 10 percent thereafter Central Bank Governor Ajith Nivard Cabraal said. He was speaking about Sri Lanka’s new vision at the Bank Directors Symposium at Cinnamon Grand Hotel yesterday.

“There will be increase in private sector investments from domestic and foreign sources from current levels of nine to 21 percent of the GDP to a range of 26 to 28 percent. The public sector investments will be enhanced to a range of six to seven percent and total investment will increased to a range of 32 to 35 percent” he said

Cabraal said the poverty level in the county will be brought down to less than four percent from the present 7.6 percent and unemployment level will be reduced to around three percent within the next five years. The IT literacy ratio will achieve 75 percent by 2016 which was only 16.6 percent in 2007.

Sri Lanka will become a dynamic global hub comprising a naval hub, aviation hub and energy hub. The commercial hub will envisage banking as a preferred destination for commercial activities while the knowledge hub will adopt new knowledge and technologies. The country’s image has been improving gradually and it is considered as the second fastest growing Asian economy. It was upgraded to a middle income emerging market status.

He said a number of new and large infrastructure development projects such as ports and airports, roads and flyovers, power and water projects, economic zones, hotels and hospitals are under way making a visible change.

Referring to macro economic fundamentals he said the country suffered 12 percent inflation but handled it carefully ensuring the basics were right. “Likewise many things can be corrected by putting the basics right,” he said.