Regional development vital to keep up balanced economy
The GDP domination of the Western Province should be dispersed
equitably among other provinces as well. This will eliminate the crisis
of inequity in poverty level and the development, Governor of Central
Bank, Ajith Nivard Cabraal said at a session organised by the Sri Lanka
Economic Association at the BMICH, on the theme of inequity, poverty and
Over fifty per cent of the National GDP is dominated by the western
province economy. Provincial participation on national GDP varies from
province to province.
From the on-going development projects and projects planned to
implement in the near future a strong economic environment could be
anticipated. 189 countries in the world have adopted millennium
Sri Lanka also had adopted the millennium development goals. The
number of people go abroad have increased and the student population
going abroad had also increased.
Efficient financial management has paved the way to enhance the
banking sector and this can be seen with the opening of more branches.
EPF contributions had also increased proving more employment generation
The country Director, World Bank, Naoko Ishii said that Sri Lanka has
enormous potentials. The objectives of Sri Lanka is to reach the
Western Province, poverty has declined most significantly and
inequality has increased much less, while in other provinces, poverty
reduction has been much stagnant and inequality has increased.
In Uva, Sabaragamuwa, and North- Western, poverty has even increased.
The growth pattern of the Western Province is very pro-poor.
The problem is not that the Western Province has grown too fast, but
that other provinces have grown too slow.
A further analysis of the growth patterns among provinces suggest
that a key factor behind the low growth is the stagnation in the rural
economy’s both the farm and non-farm economy’s over the past decade.
She also said that more attention should be paid to develop rural
areas to maintain a balanced economy.
The president of Sri Lanka Economic Association (SLEA) A. D. V. de S.
Indraratna said that, mostly the poorest sector had not benefited by the
improved economic development.
The richest always accrue the cream of the economy. Today almost all
the development projects are infested with corruptions. Most
infrastructure projects are dominated by contractors and their conduct
is found unsatisfactory.