Growth in services sector will gather momentum

by Uditha Kumarasinghe

The growth in the country's services sector will gather momentum this year, facilitated by rapid infrastructure development projects in key areas.

According to the report on Recent Economic Developments-Highlights of 2013 and prospects for 2014 by the Central Bank of Sri Lanka, earnings on account of freight and other port and airport related activities would increase substantially in 2014 with the expansion of ports such as Colombo South, Galle and Oluvil and the declaration of Colombo and Hambantota ports as "free ports" and the Mattala Mahinda Rajapaksa International Airport as a "bonded area".

Earnings from tourism are also projected to reach US$ 2 billion in 2014 with the anticipated growth of tourist arrivals.

In addition, steps have been taken by the authorities to achieve a target of 2.5 million tourist arrivals in 2016 and a targeted annual income of US$ 3.6 billion from tourism by 2016, the report said.

Anticipated economic expansion would to create new job opportunities, helping to maintain the unemployment rate at low levels in future as well.

The economy would expand as a result of improved investor confidence. With the Government's focus on improving tourism and step taken in this regard, the hospitality sector would further generate multiple effects including job opportunities in the economy.

Sri Lanka's external trade outlook and growth prospects for 2014 are projected to improve with the gradual improvement in the global and domestic economy.

Earnings from exports are expected to record steady growth with the recovery of the global economy, especially with the projected recovery of the US and the euro area, Sri Lanka's major trading partners.