Lanka on track to achieve 7.5 percent growth - CB Governor
by Sanjeevi Jayasuriya
Sri Lanka is firmly on track to achieve 7.5 percent growth by the end
of the year as shown by the first six months performance, which has been
right on target.
“Our plan was to achieve an economic growth of 6 percent for the
first six months of the year, to ensure that the targeted growth will be
met. Many sectors, including power, have performed well, due to the
rains experienced in the recent past and the agriculture sector having a
positive momentum as well. We are confident that we will reach the
target by the end of the year,” Central Bank Governor, Ajith Nivard
Cabraal told Sunday Observer Business.
“Inflation is under check. It is also the 54th month that we have
continuously recorded single digit inflation. We are encouraged by
investments in the port, transport, construction, education and tourism
sectors. These will be the main sectors that would deliver the envisaged
growth,” he said.
With regard to employment, the numbers are steady and job creation is
growing at a steady pace. At the same time there has been a slight
improvement in our export markets particularly, the USA market.
“One of the challenges we are faced with now is that Japanese and
Indian goods are becoming cheap due to their currencies weakening
considerably. As a result we have to watch the situation carefully to
ensure that an imbalance does not occur in the import segment,” he said.
The reduction of interest rates will serve as an important support to
businesses and the Government also enjoys substantial savings in its
interest cost. The private sector will also be encouraged by the low
interest regime, thereby reducing the risk factor in businesses, the
Governor said.
These factors will maintain a sustainable growth momentum which will
ensure that Sri Lanka stays on track, to record approximately 8 percent
growth in the next few years.
“This indicates that we would comfortably achieve the $ 4,000 per
capita income by 2015 and thereby realise one of the key economic goals
as envisioned in the Mahinda Chintana policy document,” he said. |