Highest GDP rate this year

It was heartening to observe that there is a sound growth of our economy. Sri Lanka has recorded the highest Gross Domestic Product (GDP) rate with a 7.4% performance in the third quarter of 2006. It is a significant increase of 1.7%, in comparison to the 5.7% GDP rate we achieved in the third quarter of 2005.

The Lankan economy is showing an attractive and significant growth in all three sectors - agriculture, industry and services, for the third quarter. We have observed this increasing and encouraging trend during the first nine months of this year.

The increase in total agriculture sector was by 5.7% while the sub sector of total industry grew by 7.9%. In addition, the growth in the total services sub sector went up by 7.6% in the third quarter of 2006.

One of the most notable developments has been the rapid growth in the Information Technology (IT) sector. The development of the IT sector, which includes Business Processing Outsource (BPO), has shown encouraging results. Not only it has accelerated its growth, but also moving faster than ever before. The IT sector accounts for a growth rate of over 15%.

Despite the fact that the country is facing a three-decade-old struggle of wiping out terrorism, the predictions on the growth of Sri Lankan economy have been positive and encouraging. Sri Lanka is showing the capacity to obtain an attractive market share with appropriate infrastructure facilities for the industry.

One such development to support this is the construction of the new Weerawila International Airport. The proposed highways to link several major towns to the capital city Colombo would also shorten transportation time, giving a distinct advantage to industrialists as well as those who are engaged in the agricultural sector. The faster movement of agrarian products would retain their freshness and would also reduce waste. The Department of Census and Statistics has stated that the timely Government move to combat terrorism had no impact on the growth of our economy.

The Director General of Census and Statistics identifies four main reasons for the significant 1.7% increase in the growth rate in the GDP for the third quarter of 2006. They are the introduction of favourable Government economic policies, the prevailed weather conditions during the first three months of 2006 which was a distinct advantage for agricultural sector and the hydropower generation, the supply of uninterrupted power generation and distribution during the same period and the satisfactory economic performance experienced in countries such as the United States, Japan and the European Union. The latter had favourable effects for greater external trade and economic performance during the third quarter of 2006.

All these have been made possible mainly due to the far-reaching political leadership and the right policies adopted by the Government. Several important steps have been taken by President Mahinda Rajapaksa and his Government since November last year.

All possible encouragement have been given to local farmers, including a fertiliser subsidy and a right market place. Reasonable import duty has been levied on certain commodities to protect the local farmer who play a significant role in country's agricultural sector.

At the same time adequate steps have been taken to encourage and promote local small and medium scale entrepreneurs, who are fast becoming a driving force in our economy. Solutions have been given to most of their practical problems through the last two budgets of the Rajapaksa government.

On the other hand, there has been a tremendous boost in the country's Telecommunication sector. The growth in the IT and telecommunication sectors have been a big boost to all sectors. It has also improved efficiency and productivity. Many would have expected a negative impact on the economy with the Government's decision to treat terrorism the way it deserves. But President Rajapaksa and his Government had enough courage to battle terrorism and the 'economic war' in two angles. Majority of our people has kept strong faith on the President to achieve peace in a dignified manner, protecting the sovereignty and territorial integrity of our Mother Lanka. Those people who supported President Rajapaksa do not want to achieve peace at any cost.

At the same time, the people of this country rely on the President to bring economic prosperity to Sri Lanka.

President Rajapaksa is well and truly aware of these facts. That is why he is acting in a highly responsible manner to usher peace as well as economic growth. He wants to meet the aspirations of all communities in the country. The recent views aired as proposals to find a solution to the North East issue are the ideas expressed by the All Party Conference and not by the Government. Hence, there is no need to panic and all political parties should continue to sit together and support with their ideas and support President Rajapaksa to walk towards that much needed 'dignified peace'.