Amunugama addresses UNESCAP Session

Mr. Chairman, Executive Secretary of UNESCAP, honourable Ministers, distinguished delegates, ladies and gentlemen, first, I would like to thank the Government of Thailand and the Executive Secretary of UNESCAP and her staff for the excellent arrangements made for this meeting.

Senior Minister of International Monetary Cooperation Dr. Sarath Amunugama addressing the UNESCAP Session

I also greatly appreciate the effective role UNESCAP plays in promoting economic and social development of member countries through regional cooperation and technical assistance.

The efforts of the UNESCP have been helpful to the Sri Lankan Government in its efforts at reconciliation and development after successfully defeating terrorism which hampered our economic growth for three decades.

May I share with you a brief account of Sri Lanka’s recent economic progress. Due to a change in economic and monetary policies in the past few years Sri Lanka’s economy grew by eight percent in 2010 and by 8.3 per cent in 2011, sustaining a growth momentum of over eight per cent in two consecutive years. Inflation has come down from 9.6 per cent to 6.7 per cent during this period.

Value of exports has increased from US$ 5,901 million in 2002 to US$ 10,600 million in 2011. However, our import bill has also increased dramatically largely due to payments for oil. This is a major issue for developing countries which do not produce oil. This matter has to be taken seriously at forums such as ESCAP. Recent developments such as embargos have exacerbated an already difficult situation.

The expansion in economic activity in Sri Lanka has been reflected in the declining unemployment rate. We recorded the lowest unemployment level of 4.2 per cent in 2011 from 8.8 per cent in 2002.

Improved consumer and investor confidence arising from the peace dividend, favourable macroeconomic conditions, increased capacity utilisation, expansion of infrastructure facilities and renewed economic activity in the Northern and Eastern Provinces of the country underpinned growth.

GDP growth is expected to be over eight per cent per annum over the medium term which will pave the way to almost doubling of our per capita income to above US$ 4,000 by 2016. This needs significant increase in private investment.

Investments are to be increased to about 33 per cent of GDP with sustained commitment of public investment of 6-7 per cent of GDP to support private investment. We were able to increase our investment to 29.9 per cent as a percentage of GDP in 2011 from 24.4 per cent in 2009. Even so we welcome the growth of FDI. This is clearly manifest in FDI in the tourism sector. But we need to expand this investment trend to other sectors.

The economic development philosophy of the Sri Lankan Government is that economic growth alone would not bring prosperity to the society but social, cultural religious and environmental aspects of development are equally important.

In order to promote this broad-based policy, strategies such as empowering rural economy, diversification and growth of regional economies, improving urban rural connectivity, revitalising agriculture have been adopted.

In the meantime, Sri Lanka continues to provide a wide range of welfare measures for the vulnerable groups. Special attention has been drawn during this meeting to the MDGs. Sri Lanka, thanks to long history of investment in education, health and social welfare has achieved many of the goals before 2015.

We already have universal education, gender equality, low infant mortality freedom from contagious diseases and high life expectancy. As a recent commentator has said, “Sri Lanka is a Third World country with First World social indices.”  

May I, in conclusion, express my sincere appreciation of the efforts of UNESCAP team to promote socioeconomic development in the region and in that spirit, the continued support extended to Sri Lanka. I look forward to further strengthen our partnership in the future.

Thank you very much for your attention.