ADB cautions on volatile capital flows | Daily News

ADB cautions on volatile capital flows

Asian Development Bank  Vice President  Bambang Susantono speaking at Sixth Asian Development Forum  held in Colombo  recently.

 

Weak external environment and volatile capital flows present a challenge to the regions' economies including Sri Lanka, Asian Development Bank Vice President for Knowledge Management and Sustainable Development Bambang Susantono said.

He was speaking at Sixth Asian Development Forum under theme 'The 2030 Agenda for Sustainable Development : Voice From Asia, held in Colombo recently .

According to Susantono, in 2016 , the growth in Industrialized nations is not likely to pick up. China's growth continues to be moderate as a result, even with strong growth in India and South East Asia, ADB expects developing Asia's GDP growth to decelerate moderately this year compared to the last year growth .

"Sri Lanka has witnessed a respectable growth over the last four decades particularly in areas of education, health and poverty reduction initiatives. Sri Lanka today stands at the threshold of the upper -middle income country status and its development can be seen as a success story;however there is a lot more to achieve far down the line," Susantono said.

Economic growth has been driven mainly by public infrastructure investment; but lack of physical space suggests the private investments need to play a larger role, he said adding that sources of growth must also be found as Sri Lanka's exports continue to be dominated by garments and tea and upgrading these products into higher- value products and services will be important to maintain the growth momentum.

"Success depends on proper adjustments of both missions and policies and cross border partnerships. It also requires quality investments in both physical and human capital.The global environment in which we achieve to seek this goal is currently a difficult one," he said.

He emphasised that Sri Lanka and developing Asia don't just need growth."We need an inclusive and sustainable growth. In this regard ADB has been helping and will continue to help its member countries targeting various sectors"

ADB has been supporting Sri Lanka in secondary education, science and information technology among others.

ADB initiated a conceptual study for economic corridor development to identify sectors with development potential and to pinpoint infrastructure and policy reforms required to facilitate the development.

For studies such as this ADB is actively partnering with the government and research institutes including the Institute of Policy Studies in Sri Lanka. ADB also provides many knowledge solutions relating to key infrastructure development investments. ADB in collaboration with other multinational agencies will soon launch a global Public Private Partnerships (PPP) skills accredited programs to profile a benchmark for expertise and knowledge in PPP.

ADB is currently scaling up its financing, Susantono said adding that ADB has increased lending to US$ 16.6 billion in 2015 up from US$ 13.5 billion in 2014.The merging of ADBs general and concessional funds in 2015 will enable ADB to increase its lending further. Susantono added the scaling up will help ADB member countries to achieve their goals of improving physical and human capital to support development. 


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