Cabraal turns cricketer!

* Likens target of doubling per capita by 2016 to scoring a century in T20



* Plans set to spruce up Sri Lanka’s outlook and livelihood

By Sunimalee Dias

Doubling Sri Lanka’s per capita income by 2016 was compared by Central Bank Governor Ajith Nivard Cabraal yesterday to scoring a century in a 20/20 cricket match.

While the country was used to playing test cricket, he noted that the 50/50 came later and now with the 20/20 matches, “we need to score a century with 60-80 balls”.

In this respect, it was observed that the country’s economy is gearing to move fast “and in doing so we need to take risks and liberalise certain processes,” among other areas of concentration, with the aim of achieving a US$ 4,000 per capita income in the next six years from the current $ 2,000.

In a bid to achieve this target, the Government has drawn up plans to face the challenges of growing economic prosperity and ensuring long-term sustainable development takes place in the country.

The Governor was addressing the Council for Business with Britain (CBB) on the topic ‘Sri Lanka: Towards the US$ 4,000 Per Capita Income’ at the Hilton Colombo Residence.

Cabraal said strong commitment was imperative to move towards the target set out and overcome the challenges. In his address the Central Bank Chief elaborated on the key thrust areas identified by the Government to take the economy forward, namely tourism, food safety, infrastructure development, fast-tracking development in manufacturing, promoting IT and education, increasing remittances and encouraging domestic direct investment.

Cabraal turns...

The Government is currently working on increasing the number of attractions to increase tourist spend per day to US$ 150.

Food safety is being keenly checked by the Government to ensure self-sufficiency, with goals of generating revenue of US$ 750 million by 2015 from the tea industry through value addition.

In addition, plans are underway to ensure the local fishermen’s earnings are in line with those of their counterparts globally, which would allow them to dine at places like the Hilton Colombo Residence.

The Governor questioned why this was not possible, stating that if fishermen of other countries could do so, then this should also happen in Sri Lanka as fish in the sea in other parts of the world were no different to those found on the island’s coastline.

The local fishing industry is gearing up to be worth US$ 1 billion while ensuring that the country would become self-sufficient.

Establishing assembly plants around the Hambantota Port has been proposed, which would create more jobs and add to the country’s GDP.

Improvements are also in the pipeline to make the country more investor-friendly by ensuring 100% electricity for all. Cabraal noted that currently they needed to work on 14% more, which could be achieved within two years, while those areas that are off the grid will be provided with solar energy.

Moreover, the country’s upgrading to the next level will be gained by improving on the IT and education sectors, the Governor pointed out.

The health sector on the other hand will be operating on a commercial basis, with the aim of attracting even overseas patients from countries like the Middle East.

He also noted that remittances from the Tamil Diaspora would add to the increase in the flow of foreign exchange coming into the country.

Cabraal said foreign investors are looking at the amount of local direct investment taking place in Sri Lanka in a bid to put in their money into a country recovering from a recently-concluded war. Against this backdrop, the Government is also polishing up 65,000 houses within Colombo so that it would result in a changed attitude by outsiders about Sri Lanka, pertaining to how it looks after its people.

Another area in which the figures will outshine the country’s performance will be when the Government’s targets of improving on its total lending up to Rs. 4 trillion from the present Rs. 1.7 trillion in the next five years, which is likely to happen, according to the Governor, by improving the local banking system.

Cabraal also said that the fiscal deficit for this year was expected to be at 8%, and slide to 6.8% next year and lower further to 5% in 2012.

TBill rates rise

THE Weighted Average Yield (WAY) of Treasury Bills gained at this week’s auction.

The WAY for 364-day Bills rose to 7.37% from 7.22% at previous auction whilst that of 182-day Bill amounted to 7.25% up from 7.09%. The WAY on 91-day Bill rose from 7.02% to 7.13%.

This week’s primary auction for the re-issue of Rs.12 billion maturing Treasury bills drew bids worth Rs. 19.55 billion. The Central Bank accepted only Rs. 10.52 billion from the auction.

It opted for Rs. 4 billion out of Rs. 6 billion received for 182-day tenure, and Rs. 3.78 billion out of Rs. 8.4 billion bids received for the 364-day Bill auction. The balance Rs. 2.7 billion was sourced out of Rs. 5 billion bids received for the 91-day Bill auction.