IMF commends economic growth

by Shirajiv SIRIMANE

Sri Lanka received a major global accolade when it was recognised as a Middle Income Emerging Market Status Country by the International Monetary Fund (IMF) last week from the list of Poverty Reduction and Growth Trust (PRGT) eligible countries.Such a graduation is accorded only if a country has enjoyed per capita income well above the International Development Association (IDA) threshold for a number of years and has the capacity for durable and substantial access to international financial markets.

The strong economic performance in the last four years under the leadership of President Mahinda Rajapaksa despite a 30 year old bloody war lifted Sri Lanka's per capita Gross Domestic Product (GDP) to US $ 2,014 by 2008. The per capita Gross National Income (GNI) has not been on a declining trend for the last five years.

The per capita income, a mirror of prosperity in a nation rose sharply due to a series of far reaching steps taken for economic development.

The President in the second part of the Mahinda Chinthana has stated that this would be further increased to US $ 4,000.

"The strong economic performance in recent years assisted in lifting the per capita income well above US $ 2,000 level and helped in graduating Sri Lanka to the category of Middle Income Emerging Market Status from January 11, 2010 by the IMF," said Governor Central Bank Ajith Nivard Cabraal.

According to the Central Bank, the IMF Executive Board has taken into account several specific factors in considering Sri Lanka's graduation.