'Urban infrastructure development essential'

Sri Lanka will be among the fastest growing countries in the region due to its strategic location and educated workforce, said Chief Economist for India and ASEAN, HSBC Global Research, Singapore, Leif Eskesen at the 174th Annual General Meeting of the Ceylon Chamber of Commerce last week.

He said, however, pick-up in growth will push inflation upwards and added that steps have to be taken to recalibrate monetary policy. In the medium term, Sri Lanka's growth prospects are good with immense scope for growth in the tourism industry which is rapidly growing.

“The educated workforce could enhance value addition to products and boost exports. Sri Lanka being in a strategic location will help build a trading hub and develop transshipment trade with India and China,” Eskesen said.

Sri Lanka is yet too dependent on US and Europe for exports. The country needs to promote private sector investments and boost foreign direct investments which is currently better than many countries in South Asia. Eskesen said that Sri Lanka should do more to improve its business environment. Investments in infrastructure development especially urban infrastructure development is essential.

He said that Sri Lanka should invest more on education, infrastructure development and boost FDIs. Sri Lanka's economy revived after the battle against terrorism, but growth slowed down last year due to weak global economic conditions.

Suresh Shah who was appointed Chairman of the Ceylon Chamber of Commerce, said that the Chamber has been at the forefront of the private sector in Sri Lanka for the past 174 years. “Sustainable economic growth must be led by the private sector. “Sri Lanka is a country of tremendous promise. To our north lies what is potentially one of the world’s most powerful economies. India could be to Sri Lanka what China was to Hong Kong, what ASEAN was to Singapore.”

“A few miles to our south is the world’s busiest sea route; that between Europe and Asia. That must make us a potentially great maritime hub,” he said. Immediate Past Chairman, Susantha Ratnayaka said that there were many issues that were tackled during his tenure as the Chairman of the Chamber. He said in most cases the entire private sector came together as a collective voice.