Mahinda calls for positivism to leapfrog

•  Describes 6.4% GDP growth last year amidst severe shocks as “commendable” at launch of Central Bank’s 2012 Annual Report

• Says “can do” mindset from all and adjustments to face fresh challenges will help take country rapidly forward

By Nisthar Cassim

President Mahinda Rajapaksa yesterday called for “positivism” from all if Sri Lanka were to leapfrog to greater socioeconomic prosperity amidst serious global and local challenges.

The appeal came during the President’s speech at the ceremonial launch of the Central Bank’s 2012 Annual Report yesterday, when he said Sri Lanka achieving 6.4% economic growth last year was commendable given the unprecedented challenges faced.

“People who are prone to criticise will most likely harp on the fact that GDP growth in 2012 has come down to 6.4% from 8% in the previous year. However they won’t take into consideration the serious challenges within which growth was achieved,” the President said.

“We have often stressed in global fora that economic sanctions on Iran for example will affect small countries such as Sri Lanka, which is dependent on oil. Despite shocks such as these, the fact that Sri Lanka has been able to maintain single digit inflation for 50 months (slightly over four years), along with 6.4% growth last year, are more admirable, reflecting the resilience of the economy,” Rajapaksa emphasised.

Mahinda...

Having highlighted these two salient achievements amongst several others as contained in the Central Bank Annual Report, the President also lamented that some critics ignore a host of several other positives in the country.

For example, he said following the end of the 30-year war, considerable progress has been made in the north and east. “We have supported the north and east with Rs. 214 billion. We have integrated the former LTTE cadres into society, economy and with the armed forces and Police. The economy has begun to benefit from a reviving north and east.”

Noting that post-war development wasn’t confined to the north and east only, the President also said other parts of the country had benefited from rapid investments in infrastructure and rebound in economic activity.

Among those listed by him were the Upper Kotmale Hydro Project, the Norochcholai Coal Power Plant, the Mattala Airport and the Magampura Sea Port as well as large-scale highway and expressway projects, Colombo Port and airport expansion, support to SMEs and revival of banking sector.

“We didn’t succumb to pressure or criticism but persisted with our development agenda. Some people can’t or don’t want to see the progress,” the President said, adding, “I appeal to all that we can take the country forward if think positively as there is nothing we can’t achieve or do. We have to adjust suitable responses to overcome challenges.”

Apart from 6.4% economic growth and single digit inflation, the Government has also managed to contain the budget deficit at 6.4% of GDP, marginally higher in comparison to the original target of 6.2% owing to rationalisation of current expenditure amidst lower revenue. The public debt at Rs. 6 trillion has been contained at below 80% of GDP as well though the share of Government debt has risen. A balance of payment surplus of $ 150 million was also highlighted.

Stressing on the turnaround in the country, the President also recalled that when the new Government took office in 2005, the country was facing instability on many fronts, including security, financial, economic and political. “Those days we used to speed when passing buildings such as the Central Bank as they were targets for LTTE attacks,” he recalled.

“However, we took office with responsibility and resoluteness and we delivered on our promises. We didn’t abandon our election manifesto after coming to power but persisted with it and further refined our vision with progress. We are linking the village with the world via our inclusive growth strategy. We are moving forward and not backward,” the President emphasised.

Given the criticism that the Government was living beyond its means with excessive borrowing, President also said: “Some exaggerate that borrowing is a crime but we took loans for development, not to eat. With progress in per capita income and economic value of the country, our borrowing capacity also improves and we have put such into good use by building infrastructure and ushering development for the future generations.”