Avenues for Investment
World Bank Managing Director, Sri Mulyani Indrawati recently visited Sri Lanka and met with President Mahinda Rajapaksa and senior government officials to discuss issues of fiscal growth and private sector in- vestment. Analysts view Indrawati’s rare visit as a window opportunity for creating a sustainable economic climate in Sri Lanka. Lately, debt exposure and the budget deficit has plunged Sri Lanka into a crisis while the ongoing impeachment of the Chief Justice has increased economic insecurity. Indrawati’s visit comes at a time when the country is on the road to economic recovery following the defeat of Tamil forces after a three-decade long civil war, in 2009.
During the meeting, Indrawati stressed the need for Sri Lanka to implement consistent policies to attract foreign direct investment (FDI) and provide assurances that the country could maintain a steady fiscal position with investments flowing in from the private sector. She suggested that Sri Lanka revive its industries and learn from the mistakes of its South Asian neighbors to follow a planned strategy to attract FDI. Moreover, the World Bank director discussed Sri Lanka’s debt portfolio because the country relies heavily on borrowings from China. She was confident that these loans pose no threat to the Sri Lankan economy while it follows transparency in the system.