Sri Lanka should gain 6% growth to become upper middle income group
The National Economic Council of
Sri Lanka (NECSL) has proposed to the government a five year plan to boost exports, buttress domestic industrial and agricultural output, increase the GDP to US$ 6,000 and treble the Direct Foreign Investment by 2025, Secretary General of the NECSL, Chief Economist, Prof. Lalith P Samarakoon said.
The economic growth has remained stagnant in the last four to five years in Sri Lanka and not surpassed the 6% mark which is not satisfactory. The economic growth in 2014 was 1.28%, in 2015 – 4.62%, in 2016 – 5.11%, in 2017 - 3.11% and in 2018 -3.8% which is not fast enough to achieve an upper middle income economic status like most of the other Asian countries, Prof. Samarakoon stressed.
“If Sri Lanka is to become an upper middle income group country with a significant economic progress, our GDP has to grow at least by 7% or 8% from the current 3%. For this we will have to create a National Economic Plan with a 50% development in the industrial, agricultural, garment and apparel and tourism sectors in 5 years. The state policy must not change with the regime change on the plan. The growth must necessarily be export oriented and supported by new technology, value addition and quality control,” Prof. Samarakoon stressed.
Prof. Samarakoon emphasized the need to detach politics from economic management and added the economy has to be handled by professionals and experts who have excelled in respective subjects such as banking, management, finance, accountancy, auditing and business administration etc.
“Under the prevailing economic situation in Sri Lanka, it is extremely difficult to achieve a satisfactory GDP growth. The situation has been further aggravated after the Easter Sunday terrorist attack. Therefore, a complete overhaul in all sectors of the economy is vital to achieve a steady and sustainable growth. That is why the NECSL has proposed a five year plan,” he noted.
If Sri Lanka is to become an upper middle income group country with a significant economic progress, our GDP has to grow at least by 7% or 8% from the current 3%.
Commenting on the Easter Sunday carnage, Prof. Samarakoon said a National Recovery Fund has to be established to pay ample compensation and support victim families to recover from the physical and mental trauma.
“There are friendly countries and global agencies to help us. What we have to do is to pool their assistance that will come in various forms to a common fund managed by the government and use the fund to help victims,’ Prof. Samarakoon noted.