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.

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.”