Financial Times

Sri Lanka on track to achieve 8% growth
Sri Lanka’s economy is well on track to achieve the targeted 8 percent growth this year, said Treasury Secretary Dr P.B. Jayasundera recently. Speaking at a HSBC Power Breakfast meeting, he said that managing sentiment is one of the major economic challenges Sri Lanka faces today.

Commenting on last year’s economic situation in the country, Dr. Jayasundera said that Sri Lanka has recorded a 6% growth rate in all three major economic sectors while adding that the country was well on target towards the projected 8 % growth this year.

He also said that Sri Lanka does not need to compare its rates with that of India, Pakistan or China as Sri Lanka’s 8% medium term growth rate is equivalent to a medium term growth rate of 11% in these countries.

Dr. Jayasundera stressed that Sri Lankan businessmen need to focus more on the competitive advantage “we have” in producing value added goods and services referring to the structural changes already taking place in the tea and apparel industries. He noted that this change should be taken up widely if the country is to reap benefits of the markets open to Sri Lankan exporters adding that Sri Lanka has the capacity to capitalize on its professional resources and provide more value added professional services to the export market.

Dr. Jay asundera said rising oil prices in the market should not be a major setback to the economy as the local market is catching up with it. The terrorist threat and the security threat, he noted, should not be considered a major challenge as it is a common scenario in most countries in the region. Commenting on government’s plans for infrastructure development, Dr. Jayasundera said it is keeping well in line with the target growth rate of 8%. He also added that the government has also focused on infrastructure development in the rural areas as well. (CD)

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