Predictions of an economic crash in short term proved wrong, says President
View(s):Predictions of falling into a debt trap, uncontrollable fiscal deficit, high level of inflation and the economy crashing within a short period have been proved wrong when the Sri Lanka government has developed the country on a sustained basis with nearly 7.5 per cent average growth, for more than five years,
President Mahinda Rajapaksa made these observations when he addressed the 175th anniversary celebration of Ceylon Chamber of Commerce in Colombo on Tuesday.
“There were many who did not believe that we would have highways of an international standard, carpeted roads linking the whole of Sri Lanka, and thousands of kilometres of concrete roads in the rural areas in our lifetime,” he said.
The government has now established the longest-ever period, of stable and low inflation in post-liberalisation history; a stable exchange rate; decreasing debt ratios; shrinking fiscal deficits; and a large number of new and exciting business opportunities through five hubs strategy, he pointed out.
The President highlighted that in 2005, after 56 years of independence, the GDP was only US$24 billion and per capita income was a mere $1,241.
Twenty years ago, only 46 per cent of people had electricity and the infrastructure was of a very low level. Inflation was an average of nearly 12 per cent per year, and climbing and foreign reserves were only sufficient for about six weeks of imports.Unemployment was about 7 per cent and poverty was over 15 per cent. The debt level was nearly 91 per cent of the GDP. “All in all, it was a gloomy picture,” he said.
“When we built ports, airports, highways, roads, and power plants, we were not thinking only about you and your children, but also about the unborn generations of all Sri Lankans,” he added.
“When we took firm measures, to steer our economic macro-fundamentals to healthy levels, we were not only thinking of making it easier for you to do business now, but also about making our economic growth sustainable, inclusive and long lasting,” he told the large and distinguished gathering.
“In other words, we always took a very long-term view of issues, and did not focus merely the immediate and short-term time horizon,” the President said.
“When we developed the infrastructure of our country we were not thinking of the next five years or the next election, but about the next 100 years and beyond,” he said.
The outstanding successes that the country has been able to achieve over the past several years are a result of the collective efforts of the Government and the private sector.
The private sector ranging from the top chairman of large corporates to the simple farmer or fisherman in rural village have played their role in realising today’s status of the economy. In the same way, each one will need to play an even a more enhanced role in creating the new future, ‘we’ are designing for ourselves, he added.