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Global economic slowdown, drought to influence Budget 2013 implementation – PBJ
Drought and the global economic slowdown, which the European markets are experiencing currently, will play a decisive role in the next Budget’s implementation said Finance Ministry Secretary Dr P.B. Jayasundara.
He made this observation during the annual Sujatha Jayawardena Memorial Oration, organised by the Alumni Association of the University of Colombo.
P.B. Jayasundara delivering the oration. Pic by Susantha Liyanawatte
Speaking on the topic, “Challenges in formulating Budget 2013” at the Sri Lanka Foundation Institute on Wednesday, he said that developing and developed countries that have invested in the island, are now in a slump, as their economies have halved, due to the slowdown, so the country has to be cautious.
“The Asian powerhouses are now in steady decline,” he said.“Though the trade deficit which was surging in the last few years, has been brought down to 10%, it should be brought down further to 6% and measures have been taken on account of this, which will be implemented in this Budget,” he added.
Dr Jayasundara said the Middle East turmoil has opened up an oil crisis which makes the market vulnerable, while the drought in the North and East and the crisis in Europe should all be used as opportunities to help the country forge ahead on its own, in the long run.
Harvests have been lost to the drought, while only a few places in the south produced a sufficient harvest for the country to rely on, he said. Measures have been taken to minimise the effect of the drought.
He also spoke of the energy crisis by comparing with other countries where load shedding and power outages exist, and said that the country is now relying on costly methods of power generation to provide uninterrupted power to its citizens.Investments from countries such as India, which was in millions a few years ago, has increased to billions. “Now, we even have the United States joining with other countries to invest in our infrastructure,” he said.
“The ports, airports and irrigation projects are now in various stages of development, which will soon provide us fruition in the coming years. He also said that the A9, which is under construction, will be ready by this time next year. The country should be elevated to such a state that it can overcome any hurdles, and should be done without losing any credibility, in order to become a lead nation,” he added.
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