Sri Lanka’s economy needs innovation – Dr. Sarath Amunugama

by Lalin FERNANDOPULLE

Maintaining foreign reserves alone is not adequate for economic development which needs innovation, enhancing productivity and boosting exports, said Senior Minister for International Monetary Cooperation, Ministry of Finance and Planning Dr. Sarath Amunugama.

He was addressing the launch of two volumes on Economic and Social Development Under Market Economy Regime in Sri Lanka, a tribute to Emeritus Professor of the University of Peradeniya and former chairman, Institute of Policy Studies of Sri Lanka (IPS), Prof. Buddhadasa Hewavitharana.

Dr. Amunugama said that foreign reserves will increase if the country develops its resources and promotes a vibrant export sector.

The IMF released $ 426.8 m on Tuesday under the US$ 2.5 b Stand-By-Agreement to boost the country’s foreign reserves which depleted due to the balance of payment crisis in 2008.

Former Central Bank Deputy Governor, W.A. Wijewardena said that policymakers could get into a comfort zone having obtained reserves from the IMF. Economic policy reforms are vital to sustain economic growth.

Dr. Amunugama said that Marxism and free market economic principles have failed and added that it is high time that countries should focus on State capitalism in which the State plays a major role.

Prof. Hewavitharana made an outstanding contribution to the development of university education through an unbroken 44-year-service which helped groom think tanks for the country.

Dr. Amunugama said the country needs such intellectual stalwarts to steer the country towards economic prosperity. Prof. Hewavitharana created great interest and a passion for economics among undergraduates who make a salient contribution to the country today.

Former Minister of Higher Education and Professor of Political Science, University of Peradeniya Prof. Wisva Waranapala said that a unique feature of Prof. Hewavitharana’s academic career is his almost half-a-century unbroken service which is a contrast to academics who leave the country in search of greener pasture.

Many of successive generations taught by Prof. Hewavitharana excelled in gaining eminent positions in academic and professional services here and abroad. They would recall how he would walk into the lecture room on the dot of time without a scrap of paper to deliver a lecture which lasts two hours.

The two volumes were edited by Executive Director IPS Dr. Saman Kelegama and Senior Lecturer, Department of Economics and Statistics, University of Peradeniya Dr. Dileni Gunawardena.