New thinking vital to face challenges - Dr. Jayasundera

by Lalin Fernandopulle

With a sophisticated labour force and a 20 percent aging population in the country we need to think afresh. New business opportunities and challenges must be looked at with new thinking and not with traditional ways. Most countries today have moved away from low to high economic status and prefer to be funding nations than be at the borrowing end of others, said Secretary, Ministry of Finance Dr. P.B.Jayasundera.

Addressing the 12th World Savings Banks Institute (WSBI) Asia-Pacific Regional Group meeting in Colombo Dr. Jayasundera said the theme "Business challenges and opportunities in a competitive market" was very appropriate at a time when financial markets are becoming not only competitive but also ruthless, uncertain and unpredictable.

"We have achieved a Gross Domestic Product (GDP) growth rate of 6.2 percent and are hopeful of reaching the target of eight percent by 2008. Despite the economic setback caused by the devastating tsunami in 2004 by the end of 2005 the economy became resilient and showed a steady growth. If the present economic growth continues, Colombo will be the hub for financial services in the South East Asian region.

The government last year drafted a new political, social and economic agenda for the country. The economic growth was badly affected by the tsunami. It was the worst natural disaster the country had ever faced and caused havoc to the people's livelihood and the economy.

Today Sri Lanka has moved from an inward to an outward looking economy targeting an eight percent GDP growth rate. The development vision of President Mahinda Rajapaksa envisaged in the 'Mahinda Chintana' is a steering force for the present economic growth. The development projects initiated by the President has positioned the country on a solid path for economic growth, Dr. Jayasundera said.

"We are fast integrating with the South East Asian region. The Free Trade Agreements (FTA) signed with India and Pakistan are stepping stones to regional integration. The GSP plus is a boost to the export sector to promote Lankan products with concessions to the European markets. The FTAs and the GSP plus will help the export markets to grow, he said.

The savings culture must be promoted and we should learn lessons from India and Japan who have adopted strategies to save and not waste resources. At a time when global oil prices are surging at staggering rates we need to save power and not haphazardly waste.

Dr. Jayasundera said there is no point of talking about achieving an 8 percent GDP growth unless the benefits of the economy trickle down to the masses. The rural sector should participate in the development programs of the country and have access to the means of production and use of modern technology. Corruption, misuse of resources has led to unjust distribution of wealth and resources across the globe and Sri Lanka is no exception.

WSBI founded in 1924 is the only global representative of savings and retail banks. The central role that savings bank play is providing access to formal financial and retail banking in rural and urban areas alike.

The National Savings Bank (NSB) has been in the forefront of promoting savings among people and by hosting the WSBI Asia-Pacific Regional meeting. The bank has proved its commitment towards the vision of creating a savings culture in the country, WSBI Chairman Chris De Noose said.