7 p.c. growth projected, unemployment to drop

The Government expects a 7% GDP growth this year with fast-track development projects being launched, Secretary to the Treasury Dr.P.B.Jayasundera said.

Sri Lanka, despite the tsunami devastation which destroyed certain economic nerve centres recorded a 6.2% GDP in 2005.

The work on the Norochcholai power plant commenced last week and the construction of the Colombo- Katunayake highway will commence next week. The Chinese government has already agreed to fund the highway project.

The business sector and economists by and large have hailed the steps taken by the government to develop the economy by launching massive projects that would generate income and employment. In addition, the Kandy -Katunayake road has also been finalised and Malaysia will fund the project.

The 'Mahinda Chinthanaya'envisages more projects and as a result of this development drive. Employment opportunities would be created to address the country's unemployment problem.