Govt targets 35 percent GDP investment by 2016

by Uditha KUMARASINGHE

The Government is targeting an annual investment of 33-35 percent of the Gross Domestic Product (GDP) by 2016.

Of this percentage 6-7 percent will be Government investment whereas the private sector, domestic and foreign is expected to invest 27-28 percent of the GDP, a Finance Ministry spokesman told the Sunday Observer.

He said the Government has already taken several initiatives such as lowering interest rates, strengthening banking and non-banking financial institutions, reforming the tax system and various other incentives to boost the investment. Top priority has also been given to identify and overcome barriers to investment.The private sector is expected to invest in tourism, IT/BPO, skills development, urban development, agriculture and manufacturing sectors, he said.

Sri Lanka which is in a strategically advantageous position, has huge potential to be a regional economic hub. The Mahinda Chintana Economic Policy is based on the development of five economic hubs which will integrate the domestic economy with international markets, capitalising on the human and natural resources in the country.