Good ‘connectivity sector’ will deliver 2 to 3% to GDP | Daily News

Good ‘connectivity sector’ will deliver 2 to 3% to GDP

A well structured and sustainable ‘connectivity sector’ will deliver a direct 2 to 3% contribution to the GDP. However indirect contribution can be much higher, said Axiata Group Executive Vice President /CEO Telecommunication Business Dr. Hans Wijayasuriaya.

This contribution will mainly come from the end user (surplus or consumer surplus) which is the economic multiplier occurring from the increased productivity of individual citizens or business.

Dr. Wijayasuriaya said the nexus between technology and investment on economic development has always been inextricable and this has been the case all the way back from the first industrial revolution.

As an economy, it is important to recognize its combination of the internal social economy on one hand, and the external economy which depends on national competitive advantage. Dr. Wijayasuriya told a virtual CEO forum organized by Sri Lanka Institute of Directors, International Chamber of Commerce and key other partners held under the theme, ‘Making Sri Lanka a Technology Hub’.

“We are at a juncture or the inflection point between the third and fourth industrial revolution, we don’t know what’s behind or ahead of us in the fourth industrial revolution. Affordable connectivity has indeed become a common prerequisite for both the third and fourth industrial revolution. I believe this dependence of an economy on connectivity is increasing exponentially and in the 4IR world, connectivity will be a fundamental element in the national competitive advantage.”

Another fundamental element is inclusion and this inclusion reflects the fundamental belief that the capability delivered by technology should be made affordable and available to everybody.

Second fundamental would be the creation of long- term sustainable business models for investment. For this to happen, he said there should be a national level understanding of underlying technology.

Dr. Wijayasuriya said further that it is the emerging markets who will benefit the most from affordable technology and on the other hand these are the very countries which have the most challenges in terms of availability of capital to implement accelerated technology inclusion and dispersion.

With respect to the connectivity domain in particular, he said Sri Lanka has got its fundamentals right; that is over the last 20 years parallel achievements of inclusion on one hand and economic value creation on the other hand.

Add new comment