The coming years will see political stability and macro-policy stability in Sri Lanka, despite the usual day-to-day complexities of coalition government. The government is committed to achieving its promises for growth and employment. The only way to achieve development is to ensure macro-economic stability, increased market access and an improved investor climate, Foreign Affairs Minister Mangala Samaraweera said.
The Foreign Minister was addressing Business Leaders and Parliamentarians in Melbourne, Australia recently.
The minister said the government is negotiating with the IMF for a stand-by facility. The economy has proved its macro-economic resilience. Over the last five years, average GDP growth exceeded six percent, inflation never exceeded 7.5 percent. The government is putting in place a framework with the IMF for fiscal and external sector consolidation that will put the economy on a firm foundation for growth, he said.
"We are leveraging Sri Lanka's unique geo-economic position at the centre of the emerging world - located in the Middle of the Indian Ocean, next to the main East-West Sea Route and at the mouth of the Indian Sub-Continent - by improving market access for Sri Lankan goods and services in the Indian and Pakistani markets, he said. "We are building on existing free trade agreements with India and Pakistan. We are negotiating to sign a free trade agreement with China. As a result, in addition to excellent connectivity to the emerging world, Sri Lanka will have deep concessionary access to the largest emerging markets. We are regaining access to lost markets, such as the EU, by improving our human record which will help us regain GSP+ concessions," the minister said.
"If Sri Lanka is to kick-start her economy, FDI is essential. We are making Sri Lanka an investor's paradise. We are working hard to cut-red tape, ensure investor security and improve Sri Lanka's infrastructure, which is the best in the region, the minister said.
"We are reforming our tax system which is holding back our rank on the Doing Business Index, where we are ranked the easiest place to do business in South Asia. But while we are located in South Asia, we are benchmarking ourselves against South East Asia. We are streamlining the investment process with a one-stop investment shop in the form of the Agency for Development, which will also have significant private sector involvement. We have excellent ports, airports and roadways," Minister Samaraweera said.
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