Thrust sectors to be developed:

Per Capita Income to double by 2015

By Lalin FERNANDOPULLE

The government will increase the Per Capita Income (PIC) of the country to US$ 4,000 over the next five years under the Mahinda Chintana Idiri Dekma program, said Governor, Central Bank, Ajith Nivard Cabraal.

He was addressing a seminar on “Sri Lanka: Towards the US$ 4,000 Per Capita Income” organised by the Council For Business with Britain (CBB).

He said the government will increase the PIC to US$ 4,000 by around 2015 from the current US$ 2,000 under the plan mapped out in the Idiri Dekma of the Mahinda Chintana development program.

“The government has put in place the strategies to achieve the economic targets envisaged in the development program for the next five years”, Cabraal said.

Sri Lanka had a PIC less than US$ 1,000 for over 50 years and was placed as a least developed country. The individual income doubled since 2005 with potential for growth.

Cabraal said the government plans to reach the per capita target through agriculture, aviation, knowledge, commerce and energy in line with the hub concept to develop the country.

“The country recorded a four percent economic growth rate for the past five years with 2009 being the only exception due to the global financial crisis.

An eight percent GDP growth rate has been targeted for next year”, the governor said.

The country’s GDP growth rate has been sluggish in the past due to lack of sound macro-economic policies which are essential for economic growth and stability in the country.

“Enhancing foreign investments through a better tax administration, increase in foreign remittances, developing a vibrant energy sector, efficient transportation and road infrastructure are key thrust areas of the development program underlined in the Mahinda Chintana future vision”, Cabraal said.

Poor infrastructure has been a major hurdle to expedite development in the country.

The need for infrastructure growth intensified with the conflict coming to an end in the country. Cabraal said that the tourism industry which has revived in the recent months needs sound infrastructure and marketing of attractions.

Visitors should be encouraged to spend more to increase revenue from the industry.

Sri Lanka had less than 500,000 visitors last year while Thailand attracted 13 million tourists during the year.

“Agriculture is a key sector in developing the economy. Sri Lanka ensured food security during the global economic turmoil.The food sector needs to be a major player and increase its export income”, the Governor said. Tea, apparels and gem and jewellery are over US$ 1 billion export industries. Increase in value added exports supported by sound technology and marketing will help increase export income.

“Sri Lanka still imports fish when there is more access to increase harvest in the North and East. Fishing could be made a US$ one billion industry”, Cabraal said.

“Oil exploration in the North is on track and the country will benefit soon”, he said.