SL should move towards growth right now: Cabraal

Thursday, 3 December 2020 00:31 - - {{hitsCtrl.values.hits}}

Ajith Nivard Cabraal

The Government will work to put in place the right policies at the right time, a top official assured this week, calling on the private sector to have clear deliverables companies can work on to boost growth immediately.

State Minister of Money and Capital Market and State Enterprise Reforms Ajith Nivard Cabraal, speaking at the Sri Lanka Economic Summit ‘Roadmap for Takeoff: Driving a People-Centric Economic Revival’ organised by the Ceylon Chamber of Commerce (CCC) on Tuesday, said the Government was dedicated to doing its part to boost the private sector but there was no time to be wasted.

“In my view the move towards growth should be right now, it could have been even yesterday. We need to make sure the right polices are put in place at the right time, all the time. The private sector is the engine of growth and we rely upon you.

“We have given the necessary space for the private sector, we have put in place consistent laws, and tax policies are all directed for you to perform. The Government’s position is to empower and improve ease of doing business indicators. We need to make sure we have clear deliverables and we work towards that,” he told the virtual gathering.

Cabraal pointed out that in the President’s manifesto the goal of 6.5% growth has been highlighted. While acknowledging it was a daunting task he insisted it would nonetheless inspire the growth needed for Sri Lanka. “We have to make sure our GDP rises every year. Unfortunately it has stagnated over the last five years, so we are starting from where we ended in 2014. But this is not a complaint, it’s just an assessment of where we are.”

“We need to be conscious of our macroeconomic fundamentals and debt dynamics. We are presently close to a 100% debt-to-GDP ratio and we need to claw back to about the 75% mark. Inflation needs to be maintained, poverty needs to be dealt with quickly, employment needs to be generated and rupee made stable. How do we get to people centric development?”

Cabraal reiterated that the Government will pursue a balance of focusing on issues that matter to the public such as pipe borne water and resolving the human-elephant conflict but also resolve regulatory bottlenecks for the private sector.

“The economy needs to touch people and the projects we put in place needs to be investor driven. Already the Government has articulated that need to improve investment in our country. The new law for the Port City to provide strategic thrust in that area and protection of investors are designed to ensure that people have the space to make those investments. Efficiency and productivity needs to be improved all the time.”

“Challenges will always be there. We cannot think because of COVID-19 everything should come to a standstill. We have to find new ways. People who innovate will be rewarded. We have to play as a team,” Cabraal added.