'All key sectors of economy show growth'
Ramani KANGARAARACHCHI
Despite many challenges all key sectors of the country's economy grew
by 7-8 percent compared to the 3 -4 percent growth in 2009, Central
Bank, Economic Research Department Director K.D.Ranasinghe said at the
public seminar held at the Central Bank Training Centre in Rajagiriya on
Wednesday.
Speaking on the "State of the economy as reflected in the Central
Bank report 2010" he said it is the first full year report after the end
of the three decade long conflict.
The outcome of the report include high economic growth, improved
resilience, increased stability and social welfare.
He said that the favourable environment created mainly with peace in
the country, improved investor confidence and the favourable
macroeconomic condition and the gradual recovery of the global economy
had a great impact to achieve this results. Accommodative monetary
policy, fiscal consolidation and strengthened financial sector stability
also added to this outcome. However, highlighting the challenges he said
a gallon of crude oil in the international market increased by US $ 20
in 2010.
Rising commodity prices, natural disasters, geo-political
disturbances in a number of countries, the sovereign debt crisis in
Europe and delayed unwinding of fiscal stimuli provided during the
crisis period were the other challenges.
Ranasinghe said the economic recovery that commenced in mid-2009
continued to 2010 which resulted in seven percent growth in agriculture,
8.4 percent in industry and eight percent growth in the services sector.
Both savings and investment also increased including private,
government and domestic savings.
Meanwhile, the government revenue also increased by 16.9 percent to
Rs 818.2 billion after a long time. The declining trend observed in the
revenue to GDP ratio during the last three years reversed with the
higher mobilization of both tax and non tax revenue. Major reforms to
the tax system were introduced in the budget for 2011 to improve revenue
collection. |
