‘Plans underway to attract more investment’

Sanjeevi JAYASURIYA

The country’s development drive could be fueled by the high level of investment, and plans are underway to attract investment both locally and internationally. The targeted annual investment level by 2016 is 33 to 35 percent of GDP. Of this, around six to seven percent is expected to be government investments while the private sector, both domestic and foreign is expected to invest around 27 to 28 percent, the recently released statement on Economic Policy Framework and Performance of the Finance and Planning Ministry said.

The government has taken several initiatives such as lowering taxes, strengthening banking and non- banking financial institutions, improving infrastructure to boost investment. Identifying and removing barriers to investment has also been given high priority, the statement said.

Commenting on the release of the 2011 Annual Report, Treasury Secretary Dr. P.B. Jayasundera said that benefiting from the large scale infrastructure investments, the private sector is expected to invest particularly in port related industries and services, tourism, IT/BPO, skills development, urban mixed development, agriculture and manufacturing sectors.

“Special emphasis should be on value added industries particularly industries using domestic raw material and resources. Building a domestic economy and adding value to domestic resources are important aspects of the development strategy,” he said.

The development goals of the government are expected to be achieved by transforming Sri Lanka as a country that has a modern, knowledge based environmentally friendly and well connected rural-urban network to benefit all with equitable access to development.

The policy framework has outlined that effective integration of the rural economy with emerging economic sectors in urban centres and thereby increasing the productivity and competitiveness of SME sector is one of the strategies to achieve a regionally balanced development. The recent initiatives of promoting backyard household economic activities through the Divi Neguma program targeting 2.5 million households has given new dimension to the rural economic base to evolve as an organized family economy.

One of the strategic goals of the government is achieving high production in milk, sugar, fisheries, spices and fruit based industries while reaching self-sufficiency.

“This will enhance farmer income, generate new employment opportunities and cut down the cost of imports. The provision of high quality infrastructureand skilled human resources has been identified as one of the key strategies to develop the industrial sector in the country. As the country elevates to a strong middle income status, there would be a shift from labour intensive, low paid industries to high value added technology and capital intensive industries,” Jayasundera said.

There will be focused attention on industries based on local raw material that would create large value addition. Value added branded tea grown in Sri Lanka, high value garments and rubber based industries would be priority exports. Textile, pharmaceuticals, steel, cement and machinery have been identified as investment areas capable of building local production capacity to reach self-sufficiency, he said.