Country's economy strengthening - Media Ministry

Rasika SOMARATHNA

Despite the voices of certain elements resonating with opinions from time to time that the country is heading towards an economic collapse, the current indicators suggest that the country's economy is going from strength to strength, the Media Ministry Research Unit said yesterday.

They pointed out that while negative sentiments were expressed by elements with vested interests, the true state of the Sri Lankan economy was portrayed in the economic indicators, which told another story.

The ministry pointed out that the economy had sustained robust growth during the last few years while showing commendable performance in all key sectors, facilitated by a peaceful domestic environment, favorable government policies and improved investor confidence. The improved performance in all key sectors of the economy despite numerous challenges from both within and outside, including a highly damaging global economic recession, shows that the Sri Lankan economy is highly resilient, they added.

Highlighting a list of economic indicators, the ministry said that the strong economic performance had lifted the country's per capita income substantially, enabling Sri Lanka to be graduated to middle- income status.

The ministry pointed out that Sri Lanka had recorded an economic growth of over eight percent in two successive years for the first time in its history during the previous two years. According to them, another notable achievement was the sharp deceleration in inflation and maintaining the rate at a single digit for 36 consecutive months. The opportunities created by the restoration of peace and the development boom facilitated the sustained decline of unemployment and poverty with unemployment rates coming down to 4.2 percent in 2011 and poverty decelerating to 8.9 percent in 20090.

Investments recorded its highest of 29.5 percent since 1982. Enhanced investor confidence in the economy also helped in raising foreign exchange reserves from a low level of US dollars 1.1 billion in March 2009 to a historic high of US dollars 8.2 billion by August 2011.

Meanwhile, state borrowings which stood at 78.2 percent of the GDP recorded its lowest since 1981 .

The telephone usage which remained 6.3 for every 100 persons in 2000 rose to 105.3 per every 100 persons.

The number of houses with electricity which was at a 68.2 percent in 2000 rose to 92 percent in 2011. The number of banks which was 1,411 in 2000 rose to 6,094 in 2011 showing strong productivity and profitability of the economy, the Media Ministry said.