Focus on macro economy - World Bank MD

World Bank Managing Director, Sri Mulyani Indrawati emphasized the importance of increasing the role of the private sector in taking up the growth challenge and helping to make Sri Lanka the Wonder of Asia. She highlighted the importance in focusing on the macro economy as key in the country’s growth process and the significance of bridging regional and income disparities on the road to a sustainable economy.

Indrawati, concluded a three day visit to Sri Lanka.

She met with President Mahinda Rajapaksa to discuss new opportunities and challenges for the country and the World Bank Group’s cooperation. In addition to meeting with key government ministers and officials she also had meetings with the private sector, the opposition, the donors, civil society and media. She visited Jaffna and met with villagers to learn about their experiences as beneficiaries of some projects financed by the World Bank Group. The sustainability of the recent economic success will depend on the capacity of the government to establish the adequate environment that attracts private sector.” I am convinced that, learning from experiences of other Middle Income countries, the country will succeed. The Bank Group stands ready to partner with Sri Lanka in this endeavor, “she said post her meeting with the President. While congratulating the President on the country s emergence from conflict and for the level of growth achieved in 2010 and 2011, she stressed on the need to ensure lasting peace through shared and inclusive growth.

She also highlighted that the kind of investors that will enable growth are those with a good, credible reputation, sustainable capital, access to modern technology, global knowledge and global networking ability. “Attracting high quality private sector will require putting together the right incentive and governance structure in place and providing a transparent playing field. When the story is strong, it s a good time for reforms, she said.

The need to enhance the quality of human capital and matching skills was pointed out by Ms. Indrawati as a must to respond to productivity challenges especially in a country rich with an abundance of natural resources and diversity.