World hails govt's economic policies - Minister Basil Rajapaksa
Commenting on the recent decision by two major international rating
agencies to upgrade Sri Lanka's sovereign ratings, Minister of Economic
Development Basil Rajapaksa said that Sri Lanka has won the confidence
of the world on its economic development policies and macroeconomic
strategies.
Moody's investors service has changed the outlook on Sri Lanka's B1
foreign currency sovereign rating to positive from stable.
Fitch Ratings has upgraded Sri Lanka's long-term foreign and local
currency Issur Default Ratings (IDRs) to 'BB-' from 'B+'. The outlooks
on both ratings are stable. At the same time, the agency upgraded the
country ceiling to 'BB-' from 'B+' and affirmed the short-term foreign
currency IDR at 'B'.
Minister Rajapaksa said: "Both these world renowned rating agencies
have expressed their confidence on the outlook of Sri Lankan economy.
Giving reasons for upgrading Fitch has said its decision reflects the
stabilization and recovery of the economy and increased efforts to
address the chronic budget deficit position. Moody's view is greater
macroeconomic and financial stability, fiscal reforms and economic
growth, improving external payments position and reduction in political
events risk following the end of the civil war in 2009 prompted it to
revise these ratings. Even some big countries are facing debt problems
these days. But Sri Lanka is well ahead of its targeted goals, growth
rate, inflation budget control and foreign exchange reserves."
"At the time when some disgruntled elements, both local and foreign,
are trying to create a negative picture on the Sri Lankan economy. Fitch
and Moody's decision are welcome. Countries like Japan, Vietnam and
Korea were in a desperate situation when their wars ended. These
countries were able to recover only after 10 to 15 years after the end
of the wars.
The Marshal Plan was implemented after the Second World War to help
war affected Western countries. But Sri Lanka without such help was able
to show strong performance in the economy within a short period of time
after the war," he said.
"Economic management of the Mahinda Rajapaksa government is so
effective, the people reap benefits of peace in such a short period of
time", the minister said.
"Sri Lanka is now experiencing a very strong and stable economic
environment for the first time in the economic history of the country
after independence," Minister Rajapaksa said.
|