Economic growth surpasses inflation

by Lalin FERNANDOPULLE

The benefits of ending the war against terrorism are tremendous considering the growth in the business and investment environment, Secretary to the President, Lalith Weeratunga told the TOP Twenty Business Awards in Colombo on Thursday.

He said economic growth surpassing inflation, the inflow of foreign direct investments, increase in tourist arrivals and growth in IT literacy are the outcome of a peaceful and conducive business environment in the country.

"Economic growth last year surpassed inflation for the first time after 50 years, marking a milestone in the post-war era in the country", Weeratunga said.

The inflation rate dropped to around five percent last year from an all time high of 23 percent in 2008.

The Central Bank aims to curtail inflation at mid-single digit level this year.

"The Government will strive to achieve a higher economic growth rate and soon reach the goal of becoming the Wonder of Asia," Weeratunga said.

The Central Bank has forecast an eight percent GDP growth rate for this year and is optimistic that the country would hit a double digit growth rate soon.

Weeratunga said Sri Lanka reached many milestones in the post-war era which should be commended. Becoming the best performing stock market and elevation to a middle income country status are hallmark achievements of the country.

"Sri Lanka has made great progress in IT literacy and the country is poised to achieve 75 percent IT literacy by 2016. Investments should be made on the man-power sector to enhance professional skills and create an efficient workforce that would drive economic growth in the country," the Secretary to the President said.

He said there is a mismatch between what is produced through the education sector and what is required by industries.

The private sector has a great role to play in training and improving the vocational skills of youth.

"Steps have been taken to improve apprenticeship schemes which have lost orientation since 2000. Brain drain has been a recurring problem in the country. Expanding industry-specific vocational training to enhance workforce skills is vital," Weeratunga said.

John Keells Holdings clinched the top award while the winners included Hatton National Bank, Bukit Darah, Ceylon Tobacco Company, Commercial Bank of Ceylon, Colombo Dockyard, Sri Lanka Telecom, DFCC Bank, Hayleys, Distilleries Company of Sri Lanka, NDB Bank, Sampath Bank, Aitken Spence, Cargills (Ceylon), Lankem Ceylon, Lanka Orix Leasing Company, Chevron Lubricants Lanka, Nestle Lanka, Tokyo Cement Company (Lanka), Diesel and Motor Engineering, Seylan Bank and Lanka Walltiles.