Better economic benefits for rural masses - Govt's aim - President

by Lalin Fernandopulle

The Government under its Mahinda Chintana program is determined to develop rural infrastructure to provide better economic opportunities for the neglected rural masses equal to those of their city counterparts, President Mahinda Rajapaksa said in Thulhiriya, Warakapola on Friday.

Addressing a mass rally at the opening of the Thulhiriya Textile Export Complex he said:

Through the Mahinda Chintana Ten-year Vision, we have identified the need to have economic growth exceeding 8 percent. For this purpose we have undertaken the major task of providing the infrastructure development, national security and economic stability. We are also giving priority to take economic development confined to Colombo and its environs to the underdeveloped rural areas.

Two years have elapsed since the introduction of the Mahinda Chinthana Ten-Year Vision. During this period we have been able to reach a 7 percent level of economic growth. This is the highest growth rate our country has seen since 1978. The growth in the export sector is around 12 percent.

In these two years, not only has our Garment Industry been ahead of international competition, it has also shown a 6 percent level of growth. Foreign earnings that stood at US $ 250 million have increased threefold. Foreign reserves have exceeded US $ 2.7 billion. Unemployment has fallen by 6 percent, and we have kept the budget deficit below 8 percent.

Our country now faces a major challenge. At present the price of a barrel of oil exceeds US $ 85. The import of oil to the country costs US $ 2,400 million. At present the prices of food items such as milk powder and wheat flour have gone up rapidly in the international markets. Although such items can be produced in this country, due to the systems and practices adopted through many years we now have to bear an enormous expense for them.

As much as this modern textile complex will contribute to a major development in the garment and textile industries, and larger earnings of foreign exchange, it is important that the example of Thulhiriya is followed in producing our food requirements too, in our own country.

Although we have to set apart considerable assets to ensure national security and meet the enormous costs such as the need for fuel imports, we are not ready to impede the development in the country.

We have given priority to the construction of power stations, highways, ports and airports, housing development, irrigation, rural infrastructure development, as well as education, health and other aspects of economic development. We have taken steps to carry out such development work in all areas, with great investment. We have also prioritised to increase government revenue as well as increasing local and foreign investment. After 10 years government revenue has reached 18% of the national income. That is a measure of our commitment.

We decided to go ahead with the construction of the Norochcholai Coal powered power project that had been delayed by successive governments, as well as the Kotmale Hydro Power Project. By setting up such power stations we have brought about a lasting solution to the crisis in electricity generation. Under the program of "Let's Grow, Let's Build the Land" - the cultivation of rice, vegetables, fruits and grains that we can grow in our country is one of the principal goals in the Mahinda Chinthana Ten-Year Vision. We are now committed to this task. We are also giving new life to rural development through the "Gama Neguma and Maga Neguma" programs.

Chairman MAS Holdings Mahesh Amalean said in launching the MFP, MAS Holdings envisions Sri Lanka becoming an apparel sourcing hub in the region. "The partnership with DOGI will help MAS to support the growing demand for warp knit apparel in the region enhancing Sri Lanka's competitiveness" Amalean said. Amalean said the agreement to set up MAS Holdings Fabric Park in Nelluer in India next year will enable the company to make a strong presence in the region and expand the customer base.