Lanka in commendable growth strategy - Dr Amunugama

Ramani Kangaraarachchi

Sri Lanka is still standing tall among countries in the Asia Pacific Region despite not having the advantage of science and technology, International Monetary Co-operation Senior Minister Dr Sarath Amunugama said.

Speaking on International Economic cooperation in Asia Pacific Region at the 60th Anniversary of Colombo Plan Dr Amunugama said Asia was not the leader in terms of natural resources unlike Middle East, African and Soviet countries, but Sri Lanka has become the leader with less natural resources.

"People are its asset. The comparative advantages propelled Sri Lanka to fast growth.

China has its population as well as technology and low cost trained labour as comparative advantages," he said.

"There are 1.2 million Sri Lankans working abroad and they bring US$4.5 billion worth of foreign exchange and most of it is spent to develop rural areas. There is a remarkable growth in rural areas today as a result", he said.

The dollar is the global currency upto now but it is going to be a problem in the future. Because USA has a large influx of dollars coming from other countries and those countries are moving to other avenues now. Therefore countries who have large stocks of dollars must put their macro economics right.

He said the aid architecture has also started changing today. India and China emerged as economic giants during the last economic downturn and strong countries showed negative impact. Although China is largely export oriented, western countries were diminishing their purchasing power. Then China started offering monetary facilities and Sri Lanka borrows now at much lower rates for specific development projects.