Sri Lanka at beginning of a new era

Sri Lanka is now at a beginning of a new era-one of leaping forward in transforming the country into a strong and dynamic global economic hub over the next decade, Finance and Planning Deputy Minister Gitanjana Gunawardena said.

The Deputy Minister was addressing Asian Development Bank's Board of Governors 44th Annual Meeting in Hanoi, Vietnam last Friday.

The Minister said: "I am greatly honoured to address the 44th Annual Meeting of the Board of Governors of the Asian Development Bank on behalf of the Government. At the outset, I would like to express my sincere appreciation to the Vietnamese government for hosting this important meeting in this historic city as well as to the people of Vietnam for their warm welcome and the hospitality extended to me and my delegation.

"It was with great sadness and shock that we heard about the earthquake and tsunami in Japan in March with the devastation of parts of Japan and loss of lives, displaced families and affected people.

"We share the grief and convey our deepest sympathy to the families and wish them the blessings of the Triple Gem and the protection of the Buddha, Dhamma and Sangha.

"In the context of Sri Lanka's relations with the ADB. I have to express our thanks and appreciation to the ADB Mission in Sri Lanka for the contribution it has made during the past years towards achieving our development targets and for the high level of cooperation and cordiality that it has developed and maintains in Sri Lanka.

"Support of the ADB for Sri Lanka's development efforts for over more than four decades has been very helpful. We have received USD 5.49 billion since joining the ADB.

In 2010, ADB has approved loans amounting to approximately USD 500 million for fiscal management improvement, development of national and provincial roads and water supply projects, including the conflict affected region emergency assistance. "Now, I would like to share with you the progress of the economy of Sri Lanka since the defeat of terrorism in 2009. This conflict situation that had engulfed our country for over three decades had caused enormous loss of life, colossal damage through the destruction of physical wealth and diversion of a significant amount of resources into rehabilitation and reconstruction in areas affected by the conflict and provide livelihood programmes in the North and East.

The 26 year conflict is now over and the country is unified. With the return of peace and the gradual normalization of economic and social activities in the former conflict areas have provided a significant boost to the country's economy during the past year.

As has been meticulously and strategically worked out and presented in the Mahinda Chinthana Vision for the Future of the government of President Mahinda Rajapaksa, which as the Election Manifesto had the overwhelming endorsement at the Presidential Election - the goal is to achieve a sound economy in a green environment and a stable society with high quality of life for all.

"We are pleased to inform you that Sri Lanka recorded second best post-independence GDP growth in last year registering an 8.0 percent growth rate as against 3.5 percent growth in the previous year.

"The expected economic growth of over 8 percent per annum will pave the way to almost doubling of Sri Lanka's per capita income to above USD 4,000 by 2016 requiring significant increase in private sector investment. It is envisaged that investments will be increase to about 33 percent of the GDP with sustained commitment of public investment of 6-7 percent of GDP to support increased private sector investment.

"Government of Sri Lanka has recently updated the ADB Country Partnership strategy for Sri Lanka for the 3 years from 2012. This new country partnership strategy recognizes improvements to quality of infrastructure as a major need in sustaining rapid economic growth.

"Large infrastructure projects are accordingly planned in roads and transportation, energy, water and sanitation sectors. These will help efforts of the Government to develop the country's transport sector including development of expressway network with well-connected national, provincial and network of rural roads to provide transportation linkages with major growth centres.

"Sri Lanka also needs substantial investment in human resources development for an economy which will have growing demands for an educated and skilled workforce.

"Sri Lanka's literacy rate stands amongst the highest in the region.

"Therefore, a significant portion of the ADB assistance for next three years will be allocated for improving quality of secondary education and to implement new programmes satisfying the requirements of technical skills for emerging new economic sectors.

May I, in conclusion, express my sincere appreciation of the efforts of the President of the ADB and his team in promoting economic development in the region and in that spirit, for the continued support extended to Sri Lanka. I look forward to further strengthening our partnership in future.