Strong growth in the country

The continuous upgrading of the country's broad infrastructure such as road development, port development, power projects, tourism based projects and airports would greatly benefit the private sector in Sri Lanka to expand and develop their activities. Sri Lanka had to pass through turbulent times but the government had been successful in “making a smooth landing without damages,”said Governor, Central Bank, Ajith Nivard Cabraal who was the guest speaker at the AmCham Luncheon meeting at the Hilton Colombo.

He said the country had seen strong growth, mid single digit inflation, with foreign reserves at a comfortable level and a steady banking and finance sector with sovereign credit ratings, Doing Business Index and FDI on the rise.

Commenting on the future trends of the Sri Lankan economy and what it has to offer the private sector he said that fiscal deficit had been brought down to a manageable level and it was projected that the per capita income would reach the US $ 3,000 mark by end of 2012 whereas it had taken Sri Lanka 56 years to reach the US $ 1,000 mark.

Cabraal said Sri Lanka’s growth rate that has stood at 8 % for the past two years may be consciously cut to 7.2% this year. Unemployment had reached its lowest levels in 2011.

Special focus is being given by the government for poverty reduction and projects such as Gama Neguma, Divi Neguma, Maga Neguma, Kirigammana etc, are being implemented in 144 villages at Rs. one million each. The total cost of the present work in progress is in the region of US $ 7 billion. Risk indicators of Sri Lankan public debt have improved, while global risk has been rising while foreign reserves accumulation has been substantial in the past few years and the views of IMF, rating agencies and international banks have been encouraging.

The governor indicated that the government was very keen in the private sector participation and that whatever development already carried out by the government will have links to provide a great potential to the private sector.

A large gathering of top corporate personalities from among the AmCham membership and special invitees participated in the event.


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