Mega development plans for East

Shirajiv SIRIMANE

The Government under the "Neganahira Navodaya" development drive has invested almost Rs. 75 billion so far and a further Rs. 121 billion is proposed for 2010. In addition, the private sector through the Board of Investment has also pledged to invest almost Rs. 5 billion for various projects.

These projects include the redevelopment of the Salterns in Elephant Pass, construction of two cottage type luxury hotels and also two garment factories. In addition, both Prima Ceylon and Lanka-Indian Oil Company too will reinvest in Trincomalee.

"Several inquiries have also been made by both local and foreign investors on the proposed Trincomalee special BoI zone," an official from the Board of Investment said.

"In addition to two-power generation plants, the Oluvil and Trincomalee harbours too would be developed to international standards," said former President of the Federation of Chamber of Commerce and Industry, Nawaz Rajabdeen.

Plans are under way to construct the new Valaichchenai fisheries harbour that will facilitate multi-day boats with anchoring facilities.

He said that Chambers and donor agencies worked on a multitude of tasks focusing on livelihood opportunities and most importantly providing the technical skills for the youth, envisaging future demand.

As per 2008 Central Bank report the first nine months economic growth was at 6.5 percent but thereafter with the economic meltdown the GDP dropped in the last quarter of 2008 to 4.3%. Whilst agriculture registered a growth rate of 7.5 percent. It contributed only 15 percent to the total economy.

"However, the good news is that GDP is strong in 2008 as the Fisheries sector has revived totally in the East, the Government Peace Secretariat Economic Head, Rohantha Athukorala said.

It is reported that Paddy production increased has to 717,869 MT at a growth rate of 4.1 percent and Maize output went upto 17,655 MT whilst Fruit Villages have increased to almost 26 with 511 beneficiaries and 48,275 plants being issued as per available data under the programme.

"However the negative 12 percent in agriculture which includes all primary output, such as fisheries sector, needs a careful analysis so that we can use this opportunity to see how the agri business alone performed."

The fisheries sector recovered totally in 2007 with an output of 61,000 MT which is encouraging but now the total value chain needs to be developed, he said.