Mega projects will boost economic growth
By Sanjeevi Jayasuriya
There are two aspects of mega investment projects that the country
should be mindful of; economic growth and its sustainability. This
should be supplemented by long-term economic policies, former Industrial
Development Board Chairman, Udayasri Kariyawasam told Sunday Observer
Business.
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Udayasri Kariyawasam |
Explaining the rationale of long-term investments in mega projects,
he said that the country needs a clear vision to achieve set goals in
the long-term.
“Investing in long-term mega projects is capital formation as it will
support eight to 10 percent economic growth on a sustainable basis,” he
said. Unlike the government, the country’s private sector does not have
the capacity to raise huge funds.
Therefore, the government’s role in raising capital is vital for
sustainable development.
The government being the largest single investor in the country
should invest in mega projects. “We need to use our savings and also
borrow to maintain balance in the capital mix.
As the country has an ambitious goal to double its per capita income,
it is necessary to continue development initiatives to reach the next
level of growth,” he said.
Minimising the regional development disparity is vital as regional
economic growth is important for the country to achieve inclusive
growth. As a majority of the population live in rural areas, the
government should concentrate more on narrowing regional disparity.
“We have to invest for the generations to come and the investment
should not be limited to economic infrastructure, but the social
infrastructure too should be looked into. The contribution of skilled,
educated people and the youth to the mainstream economy is essential,”
Kariyawasam said.
Change should be effected where necessary, he said. “We need to
change our traditional vision and framework. More encouragement should
be given to waste minimisation and optimal use of resources. The country
could achieve its goals through allocation of resources correctly and
strengthening civil society services.” |