Lanka to achieve $ 4,000 per capita income in five years

Sri Lanka is expected to achieve a $ 4,000 per capita income in five years.

Secretary to the Treasury Dr. P. B. Jayasundera said that this would also help to consolidate Sri Lanka as a middle income country.

Dr. Jayasundera who met the business community at the recently concluded SME Sri Lanka Forum in Colombo organised by the National Chamber of Commerce of Sri Lanka said that the Government made far-reaching changes to the tax system. As a result everybody here will benefit.

Dr. Jayasundera said that the government was making every effort to develop the SME sector as a significant contributor to the country's GDP.

"Our country has achieved 8% growth last year for the first time after 40 years. That growth was not by accident but, by deliberate set of progressive measures.

The 26-year conflict that ended recently brought Sri Lanka to a healthy situation which none of us has ever expected. As a result the Government expenditure has come down tremendously. The private sector has benefited at the same volume as their security related expenses have also come down.

This country has not seen a power crisis during the last 5 years and there will be no power crisis in the next 10 years because the Government has while fighting a difficult struggle against terrorism, launched massive infrastructure development initiatives not only on one or two projects but in almost all the fields ranging from power generation, port development, irrigation, road development, water supply, telecommunications, education and healthcare development and environment, he said.

Country has also seen a new policy from 2005. Sri Lanka has been able to blend good policies of the past and also to correct mistakes of the past.

Instead of blindly pursuing the openness, relevant safeguards have been brought into our economic policies through the new policy regime that the President Rajapaksa introduced through Mahinda Chinthana.

Although there were resistance from our society, international community and financial agencies our policies have given very favourable results now.

Due to the effective policies the government of Sri Lanka has taken, the effect of world financial crisis to the Sri Lankan economy here been minimized.

We have introduced many tax concessions to support the local entrepreneurs while many incentives have been granted at the request of private sector. President has been able to give leadership to a Government that has been able to make sensible and meaningful decisions, regardless of various practices that other countries are perusing. Government has done tremendous work to develop the economy which include its firm stand on the trade related issues such as GSP+ when the country has to stand on such issues.

In that sense we have a bold policy regime, right infrastructure environment and recognition of the necessary policy decisions to bring the country forward and that is what 8% growth all about in 2010.

SS