Economic growth 7.6% in 1H

By Lalin FERNANDOPULLE

Since the conflict came to an end mid last year Sri Lanka has achieved many feats in the Colombo Stock Exchange, investments, export earnings and now a commendable economic growth rate of 7.6 percent for the first half of this year.

The country reached this milestone amidst tough times due to the global and internal shocks of the past years. Many developed countries in the West have not recovered from the crisis and are recording negative growth rates.

Ranjith Siyambalapitiya	Ajith Nivard Cabraal	Nawaz Rajabdeen	Ariyaseela Wickramanayake

Deputy Minister of Economic Development, Ranjith Siyambalapitiya said President Mahinda Rajapaksa has laid the foundation for economic growth and now it is up to everyone to contribute to the development of the country. “The Ministry of Economic Development is focused on making the country a leading economy in Asia and the pride of the region. Investment and tourism have recorded remarkable growth”, Siyambalapitiya said. Central Bank Governor, Ajith Nivard Cabraal said Sri Lanka is on the world map following the high economic growth rates achieved for five consecutive years.

He said a concerted effort was made by all key stakeholders to stabilise the macro economic environment. Political stability, relaxed monetary policies, low inflation rates, high investor confidence and industrial growth have been some of the outstanding achievements in the past.

“Sri Lanka is well poised to reach an economic growth of over eight percent next year”, the Governor said. Immediate Past President, Federation of Chambers of Commerce and Industry of Sri Lanka, Nawaz Rajabdeen said the over seven percent economic growth rate is an indication the country is on the right path to be the investment hub in Asia.

“Stock market growth is a barometer of economic growth.The lack of interest by entrepreneurs in the East to invest in projects is disheartening when large scale foreign investors have shown interest in Sri Lanka”, Rajabdeen said.

Chairman, Maubima Lanka Foundation and Master Divers, Ariyaseela Wickramanayake said that Sri Lanka could achieve 10 percent economic growth if not for the staggering expenditure on import of wheat, milk powder, sugar and canned fish.

“Sri Lanka imports around one million tons of wheat, 60,000 tons of milk powder, 61,000 tons of canned fish and 600,000 tons of sugar a year”, he said.

Wickramanayake said of the1.5 million cows only 250,000 cows are milked. Local production must increase and imports should stop for the economy to grow. Global business giants such as Mahendra and Mahendra and the Shangrila Group of Singapore investing in mega projects in Sri Lanka are commendable achievements for the country. The tourism industry recorded a spectacular growth this year with a 48 percent growth in the number of arrivals for the first half compared to the same period last year. The number of arrivals is expected to reach 600,000 by the end of the year.