By Stéphanie Magalage –
Stéphanie Magalage
Let me introduce you all to our economic theme, by informing you about one major event that took place two years ago:
In January 2010, Sri Lanka was upgraded, from the IMF’s list of Poverty Reduction and Growth Trust, to that of Middle Income Emerging Markets. This represents a major recognition of Sri Lanka’s economic development. In order to be upgraded this way, you need to meet few requirements that evidently Sri Lanka has successfully fulfilled. Here are some examples of the criteria that Sri Lanka met: Sri Lanka’s GDP never stopped increasing, going well above the prevailing International Development Association threshold, projection of optimistic outlooks on the country’s external debt, allowing resilience to shocks (despite of global financial crisis, GDP remained around 8% in 2010 and 2011), presence of fiscal consolidation and the ability to access international capital markets, were among other criteria.
According to the Global Economic Prospects of the World Bank, published in January 2012, when it comes to real GDP growth outlook for 2013, 7.1% is expected for South Asia, and 7,8% for South East Asia, whereas 1,1% is expected for the Euro Zone. This clearly demonstrates that Sri Lanka is in the heart of a very dynamic economic area of the world. With such an opportune framework, it really has to play a key role.
One other factor that supports Sri Lanka’s economic expansion, among many other elements, is the end of its bloody civil war that started in the 1980s, and eventually ended in 2009. This war context did not reassure investors, and it certainly did not help the government to focus on the economic development of the country.
At the end of the war in 2009, the Sri Lankan President Mahinda Rajapaksa promised to have a strong leadership for the country’s economic expansion and so he did. One main sector in which the government decided to invest was the infrastructures, its development being of paramount importance in the country’s reconstruction-phase. Resurfacing roads, improving their conditions and reducing average vehicle operating costs have much more value than simply making every-day life easier: it also is vital for economic growth, and also ultimately reducing poverty. Investments in that area means the spread of economic growth outside the Colombo Metropolitan Area; new conditions and standards of roads more adequate to meet the growing freight and passenger traffic. New highways connected major growth centers. One simple example of how lowering transportation costs and travel times can play a major role in the economy, especially when it comes to exports: the improvements would help farmers to transport their products to markets on time, increase export competitiveness, accelerate export-led growth, and also contribute to sustained economic development.
Speaking of exports: exports of goods and services represented 29% of annual growth in 2011. The benefits of exports for the economy are now well considered by most countries, but they also must remember that in order to maintain their added value, their competitiveness, they always need new incentives and innovative products and ways of doing. This means that Sri Lanka must also invest in the field of Research and Development. Sri Lanka should assist Small and Medium Enterprises to develop, by supporting domestic competition in order to help its businesses. It will help their expansion in the domestic market and also them defend themselves on an international scale.
An example of that would be the presence of a few Sri Lanka businesses at the latest SIAL fair, the biggest fair of innovative global food that took place in Paris a few days ago. This is very positive for Sri Lanka’s businesses, to be present at such events in the Western part of the world: it means they have a certain weight, and are recognized.
Speaking of which, the added value of agriculture in percentage of GDP is up to 14%, whereas it is about 28% for the industry, and 58% for services. The service sector plays a major role in the economic development scheme of Sri Lanka. The strengths of the country are quite diverse; the service sector has the greatest keys to economic development, notably with tourism, but also financial and insurance services. As we noted, the industry, with its investments in infrastructures, is also a leading sector. When it comes to agriculture, it supports with no doubt Sri Lanka’s economic expansion, especially abroad with raw materials. Since the end of the war, the country attracted a lot of Foreign Direct Investments, especially from China and India that supports the tourism industry, education, energy, and information and communications technologies.
However, the government suffers from trade deficit, fiscal deficit and even corruption. There is an evident lack of support from the State to support private incentives and SMEs, that represent about 90% of the 18 000 companies operating in Sri Lanka. Impacts of the global financial crisis remain as Sri Lanka’s main ‘customers’, UE & USA, are lowering their import.
However, Sri Lanka must not forget the opportunities it has: its strategic position in the most dynamic economic region of the world and its strong support of its financial partners – the World Bank, the IMF, but also the Asian Development Bank, the Japan Bank for International Cooperation. Moreover, we must also consider sustainable growth in order to have responsible approaches that can have long-term benefits for Sri Lanka.
*Stéphanie Magalage holds a Master in International Economic Relations from Sorbonne University (Paris).She is currently preparing a Master in Advertising at Weller International Business School. She also works as an international coordinator at the BNP Paribas Personal Finance.
Stéphanie Magalage participated in the French-Sri Lankan Diaspora Youth Workshop “Post-War Reconciliation Dialogue for a Sustainable Peace”, which took place in Paris, on October 27th, 2012, as a panelist on the theme “Towards an effective and sustainable economic development”. The event was organized by What’s Next!, a forum comprising of post-graduates and young professionals of Sri Lankan origin residing in France. What’s Next! seeks to promote a sustainable peace in Sri Lanka through intellectual exchange and multicultural dialogue.
Rama / November 18, 2012
don’t talk a load of cobblers. dynamic economy , poverty alleviation etc. are a long way off. sri lanka will never be able to achieve the above. sri lanka will always remain a poverty stricken third world hell hole.
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Selwyn / November 18, 2012
Nonsense! Have we forgotten that Sri Lanka North, West, Central and East Zones were once very fertile and highly productive in agriculture, fisheries, etc., etc. The people of all communities too were very enterprising, etc., etc.
The thirty year conflict attributed to the present economic crisis and of late, the vicious vindictive wishes of some for a ‘poverty stricken third world hell hole’.
Let us be positive and hope for the best.
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Stéphanie / November 24, 2012
“sri lanka will always remain a poverty stricken third world hell hole.” – such a thinking will certainly not help the country. It’s good to know a lot of people do not see the future the way you do.
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Rama / November 25, 2012
may be they don’t see that way but the indications are such that it will remain a poverty stricken third world hell hole for a long time to come.
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Wuliangguobinjiu / November 24, 2012
Blessed are the meek for they shall…….
struggles develop your strengths. (:)
Mastering Yourself is True Power.
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Lanka Muslim, UK / November 18, 2012
A paradise it would have been more than thirty years before, with all its natural and human resources which no other country in the world can boast of; corrupt, communal and violent political culture seeded, grown and nurtured by the main political stake holders; also taking cover under the of the thirty-years war triggered themselves by the main stake holders, have all retarded the true, balanced and sustainable development. All what one could see now are the high rise concrete structures and smooth carpeted roads when moral standards that are needed to build a strong and developing society are fast crumbling that could soon cause cracks in the foundations of the concrete structures and the carpet roads.
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eureka / November 18, 2012
Madam
You have spoken about one country: One country ruled by the government elected by the people. What about the other ruled by the armed forces, the former a middle-income country and the latter a country with 50% of the population under $1 a day (according to WFP):
”But that truth cannot excuse human rights violations that currently afflict the nation as a whole; or for that matter obscure the looming threat of the cultural and political colonisation of the north by the Sinhala Buddhist majority” – Biased and Prejudiced Collection on Sri Lanka, *Gananath Obeyesekere, Economic & Political Weekly, VOL 47 No. 04, 28 January-03 February 2012 (*a Sinhalese Buddhist and Emeritus Professor of Anthropology, Princeton University), http://www.scribd.com/doc/82525102/Biased-and-Prejudiced-Collection-on-Sri-Lanka
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Stéphanie / November 24, 2012
Trust me, I would have appreciated very much debating on “the latter a country with 50% of the population under $1 a day (according to WFP)”, but to put everything back into context, I had about 7 minutes to deliver a speech about the country’s economy to an audience that knew nothing about it. I would have wanted to talk about the poorest part, but it wasn’t the topic, I would have also loved to talk more precisely about the weaknesses and strengths, but not enough time either. But I am sure there will be space for that some time soon. Thanks for your comment, and your references.
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Samantha / November 18, 2012
A mere patchwork here and there won’t make an economic recovery. Hambantota harbor is built when Colombo harbor is struggling to survive and loosing business. Mattala airport is another money drainer with high overhead expenses. Nelum pokuna another showoff without any returns on investment. This is a fake sho-off, highly publicized with no return economy. With the loss of GSP our free trade went on a free fall.Similarly Tea industry, exports and tourism industry struggling to float.We need a well planned well directed with clear vision, long and short term goal oriented and proper infrastructure developments geared towards fulfilling social and economic developments in order to bring true development in the country. Not mere parch work and ornamental projects that will take us nowhere.
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Rama / November 18, 2012
there are some people who think repairing roads and bridges means reconciliation. sinhala politicians haven’t got a clue how to run a country or how to deal with simmering resentment by tamil minority.
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Stéphanie / November 24, 2012
Samantha, when you say “We need a well planned well directed with clear vision, long and short term goal oriented and proper infrastructure developments geared towards fulfilling social and economic developments in order to bring true development in the country.” I agree with you. But you must know that during a few minutes speech, one cannot make such a plan : the idea of the theme was to present the country’s economic situation to an unaware audience, and to think of what the future may be, with the opportunities and threats for this country. I would have been glad to go much deeper in the topic, so I hope What’s Next will have more dedicated debates, on several topics, such as Economy. It would also be interesting to involve people from Sri Lanka to listen to their points of views and ideas. “Not mere parch work and ornamental projects that will take us nowhere.” > everything starts with ideas, it may look like ornomental projects, but then it goes deeper in the ellaboration of the plans, with the right procedures, motivation, and dedication. I started giving incentives. When an relevant idea is well used, it can take a whole country very far. I hope you do give that power to the people who have the right ideas to support the country’s development.
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SL / November 18, 2012
Hello Stephanie
I am sorry to say that this article does not provide a true analysis on Sri Lankan economy. I am not sure whether you are an economist or just a political writer. You just use numbers and provide a baby type economic analysis on Sri Lanka. Your writing demontrates that you did not study economics in Sri Lanka at least GCE A/L.Your writing also confirm that you do not have any understanding about socio-economic and structural charateristics of Sri Lankan economy. I have few questions for you. If SL is a very (Dynamic) strong economy, why there are following charateristics?
(i) You said SL growth pattern is diverse. This is bullshit. It is completely concentrated on infrastructure development. When infrastructure development complete, the growth will stop. This was happened mid 1980’s in SL after introduction of liberalized policies
(ii) I can not believe your value added number about inductrial sector. Sri Lanka industry mainly concentrates on textile and garmerment it adds a very low value added to economy
(ii) There is huge regional disparity and income inequality in SL. Please read Income and Expenditure Survey 2011/12 published by Dept. of Census and Statistics
(iv) If sri Lanka record such high growth why there is a rapid inflation, huge unemployment, and widening trade deficit.
(v) sorry to say your article is just imagination. You did not provide critical economic analysis.
If you want to be an economic expert about Sri Lanka, please just read articles from Central Bank Staff studies, Sri Lanka Economic Journals, and other indenpendent economic experts in Sri Lanka
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Rama / November 19, 2012
may be she got a phd in home economics. what are all these people doing in france. another one wanted to know whether she is a sri lankan or french. choose as you please. i couldn’t give a monkey whether you are french or sri lankan. i would say to you people is to pack your bags and go back where you came from with one way ticket of course. neither the french nor the british want sinhala kallathonis.
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Stéphanie / November 24, 2012
“These people” as you say, are people who are living between two countries, two cultures, two identities, and instead of choosing to be care ahbout one country’s situation in terms of politcal/economic and social contexts, “these people” chose to gather up and discuss about both countries, without having to choose, precisely because these two countries are both our countries. And they decided to share their conclusions with other people.
Then, you might no be interested in multicultural/humanist/philosophical/social matters/debates, but some are. So as those matters do not seem to interest you, I do not think “these people” are the ones who should pack the bags.
“what are all these people doing in france.” > how about asking for real what it is about, instead of judging without really knowing ?
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Stéphanie / November 24, 2012
* “When infrastructure development complete, the growth will stop” > did you read the part where I mention how Sri Lanka always need to be more innovative ? Also, infrastructure development will not see its end soon, there is so much left to do.
* “I can not believe your value added number about inductrial sector.” then you cannot believe the value added number about industrial sector given by the World Bank. You might not just realize how important industry is for the economy.
* “There is huge regional disparity and income inequality in SL” > have I said the contrary ?
* “If sri Lanka record such high growth why there is a rapid inflation, huge unemployment, and widening trade deficit” > inflation is generally due to a demand that is much more superior to the supply, a laxist monetary policy, overwhelming public expenditure … Employment is not helped with overwhelming taxes, with companies that are not supported in the current econocmic context … High growth does not reduce the trade deficit if the country keeps on buying more than it sells … I never said the country had a perfect economic conditon : none does. But I’m trying to demonstrate that it has tools to make it better, by confronting its weaknesses and threats, without forgeting how opportune the context can be.
*”sorry to say your article is just imagination. You did not provide critical economic analysis. ” – to put things in context, I only had a few minutes to present the economic profile of the country and lay out a few ideas on an optimistic future. Give me more time and I shall provide you a much more critical analysis.
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SL / November 27, 2012
Thanks for responding.
Yes, infrastructure development is important for economic growth. I fully agree upon this notion. My argument is current economic growth in SL higly concentrated on infrastructure development. The similar pattern had been occurred during the period from 1978-83. After the county completed massive development projects Such as Mahaweli, urban development, and integated rural development progam, the growth stopped. Please check Central Bank reports from 1983-2000. My opinion is that similar thing will happen in 2015 to onwards.
I do not agree with your idea about Sri Lankan inflation. Sri Lankan inflation can not be explained by traditional neo-classical monetary economics. SL inflation is an imported inlation. It can be explained by using structural analysis. Please remember SL was a British Colony and it is also under developed country. There are many structural regidities in the economy and you can not directly use neo-classical economics to explain the development in Sri Lanka.
I do not beleive or care about World Bank analysis. I know very well about my motherland than world bank people. I am happy to challenge their policies. Their policies have failed all over the world. I born in SL, studied in SL, worked in SL, did research in SL. So I know about Sri Lanka better than World Bank experts.
Yes, you are correct. Industry is important for economic growth. My argument is that SL industries are highly concentrated on textile and garments. Thus, our industrial value added is at a very low level. We use only domestic labour for this industry. All the other raw materials are imported for textile and garments. So the value added is very low. Actually, there is a huge resource exploitation including labour in this industry. You may know according Karl Marx, capitalists exploit the labour keeping the wage rate at a subsistance level, But textile and garment industry pay wages that are below the subsistance level. To me this is one of the serious labor exploitation under neo-clonialism with the help of world Bank policies (free trade). Please read the international trade literature. it is not an engine of growth in developing countries including SL. My opinion regarding the macro-economic policy in SL, we should carefully developed our own economic policies that are consistent to our socio-economic conditions.
You say high growth does not reduce the trade deficit. Why? If there is a real growth there should be a decrease of imports and an increase in export. If there is no increase in export, what is growth. The very basic National income identity
Y=C+I+G+(X-M), When growth increases X export should be increased. You said that this was never happened. why? The reason is that our growth is concentrated on G government expenditure on infrastructure? Please check Central Bank annual reports No growth exports High increase in imports. Thus huge trade deficit with high economic growth (6%-8%)? Is this consistent with your Neo-Classical economic theory?
To carry out critical economic analysis you may have eloborate these thoughts using both theoretical and empirical findings.
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Rama / November 19, 2012
sl, i note that you have spelt her name incorrectly. you have given an english sounding name for a french person.
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Senguttuvan / November 19, 2012
If the egoistic, non-performing mega projects in Hambantota – the Port, the airport etc., – were focussed where they matter in terms of national reconciliation and economic activity, we would have cause to celebrate. The money wasted in the hopeless Hambantota harbour should have been used to develop the well-known, historic and efficient Colombo harbour. The billions of dollars wasted on the meaningless
Mihin Air should have been used to develop one of the most beloved airlines in the region – Sri Lankan Airlines – now running at a staggering loss (It always gives me great pleasure to travel Sri Lankan – the warm smiles of the cabin crew, the marvellous food etc.,
A few months ago I travelled back to Colombo from North America. It was several mediocre American-Canandian airlines staffed by virtual robots until I reached
Heathrow to the friendly greetings of our lads and lasses at Sri Lankan) Much of the infra-structure development should have gone to the North – to bring back the Tamil Nation into the family fold – if that is the intention of the regime. Hambantota is not the only electorate in Sri Lanka. Even Govt MPs are frothing mad their electorates are ignored at the expense of developing the Hambantota region – merely to assure the survival of the next generation of the Rajapakse clan. This madness must stop.
All electorates – both held by Govt MPs and those in the Opposition – in the country must be developed. The current annual allocation (Rs.50 million?) is totally insufficient.
I hope Ms Magalage will have these in mind when she writes her next
economic study of her country.
Senguttuvan
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Stéphanie / November 24, 2012
Thanks for this constructive comment. My purpose was to give a general idea on Sri Lanka’s economic situation : I had no time to focus on what was precisely working, and what precisely wasn’t. I wish I could right a much deeper analysis.
Your examples are interestiung, and I particularly take into account the part when you say “If the egoistic, non-performing mega projects in Hambantota – the Port, the airport etc., – were focussed where they matter in terms of national reconciliation and economic activity, we would have cause to celebrate. “. Economic sustainable development in Sri Lanka should definetely support reconciliation.
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Wuliangguobinjiu / November 19, 2012
Everything has been figured out, except how to live.
I do not believe in God; his existence has been disproved by Science.
But in the concentration camp, I learned to believe in men.
Jean-Paul Sartre
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gamini / November 19, 2012
*Stéphanie Magalage holds a Master in International Economic Relations from Sorbonne University (Paris). Judging from what she has written I am begining to ponder whether her qualifications are similar to CBK’s. Let alone quoting statistics, any development of a country should be felt by the citizens of the country. If more than one member in a family can find employment to increase the revenue thus open spending ability of the family not only to have a square meal a day, but to buy other goods available in the market will naturally open avenues for many others, in turn to run businesses to be gainfully employed for them to spend for the Economy to be afloat. This is the simple Logic for Economic development of a country. No amount of resurfacing roads, beautifying and landscaping as done in the Parliament area at great cost, utilising Forces labour is going to improve the country’s economy. Further no matter Re-furbishng the old Race Course and opening grandeur shops, will help the Economy, if the citizens can not afford to patronise. These new centres will suffer the same fate as the Malls put up at cost all over the country, where the income is insufficient even to settle the electricity bills and the salaries of the staff, leave alone an income for the investor to repay the loans obtained. It is no wonder when Uneducated Politicians have to depend on this kind of ‘Pothay Guras’ Book Worms. The other day I happen to ask a trishaw driver, of the face lift given to the Water’s Edge area to beautify the area. He was asking me whether the beauty can fill their stomachs? He was saying the MR govt. is building walk paths for the affluent to exercise to reduce weight, whereas the majority are starving in the country. In the same manner I presume the MR govt. has allowed Racing Cars possibly to drive fast for the Country’s Economic Development as the Writer imagine.
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Wuliangguobinjiu / November 24, 2012
Realistically expected “People seen as Active, robust, prudent and persevering, in their mercantile pursuits and quality of life.
Practically as in Sri Lanka.
To be the “top enterprise for decades” Simple Talwar,Ganam C.E.O/Owner St Antony’s Org.Cyntex.
He would take nothing of Stephanie Magalage – codswallop,
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Stéphanie / November 24, 2012
Wuliangguobinjiu, you do not get to talk about me. YOu get to talk about economics, about what I write, but you do not get to talk about me, that way. What you say has not value at all here, you are not that “he” you’re talking about right ? So please, don’t pretend to know what that person might think about me. And don’t bother saying what YOU think about me : you do not know me, so you do not get the chance to have an opinion on me. You may have an opinion on my vision of Sri Lanka’s economics and future though. Thanks for being relevant in your future comments, instead of delivering senseless words.
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Wuliangguobinjiu / November 25, 2012
;) do not talk about me until you have talked to me and maybe I listen.”Oh what an ass!”
Woman gods second mistake, Presumption the other.
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Wuliangguobinjiu / November 25, 2012
Sorry I offended you when I called you codswallop. I had no idea you thought it was a secret.
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Stéphanie / November 24, 2012
Thank you for such a relevant comment. All the money in the world is worthless if it can’t help the populations to have decent living standards. It’s one thing to get the money into the Treasury coffers, it is one other great responsability to redistribute this wealth equitably. I wish I could have went deeper in my speech, in order to tackle the huge problem of inequalites, because as many things can be said about that than when it comes to the specific economic growth.
However, I think that no one can deny that things are way better for the citizens now, than when it was during the civil war. Of course, a large part of the population is not able to feel the benefits of economics. That’s when we arrive to social matters : the government must allocate enough budget to improve the population’s most vulnerable part living standards. A country’s greatness certainly isn’t defined byt the only data of GDP growth, but also with data on the Human Development Index for instance, with data on employment, with data on school enrollment, with data on life expectancy … The unique economic scale is not enough, but I am sorry not to have had enough time to tackle it all.
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gamini / November 19, 2012
I pose this question to all MR supporters. What if RW was the president and he had presented the 2013 Budget, where he had waived off duty of Racing Cars and have increased the Tax on Consumer Imports how they would have felt? Please be frank in your answer.
My assumption is if MR was in the Opposition and if RW as President had presented the 2013 Budget, by now the Country will be burning. The workers would be out on streets on strike demanding the Salary increase of Rs.2500 promised and with the assistance of the Patriotic JVPers, the Busses, Transformers and buildings would be on fire. What Destruction the country would have paid for by now? This is the difference with an Opposition with RW. The transition would be swift without violence.
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Jayantha / November 19, 2012
Gamini, This is just a “clean suit empty pocket show off” budget. Remember how mere 10 rupee coin suddenly jumped to 1,000 rupee coin. How quick it will jump to Rs……coin. I don’t know who’s idea this was, but surely a crazy one. Where are we heading. The other day one minister was telling that our per capita income is going to raise from US $3,500 to $4,000 by 2014. How and where did he get those statistics to prove it. Where is the short and long term social, educational and economic developments addressed in the budget..except the Rs. 1,500 PM salary increase. Where is our developments other than roads and hotel projects with 50% trade deficit.This is truly a sweet Candy “seeni bola” budget. That’s why we need the help of highly qualified, well experienced scholars to direct our future.
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Sivalingam / November 21, 2012
Excellent article.
1. What are the measurables have in Sri Lanka. GNP growth more than 8% in 2010 and 2011 and for this year also about 7.5%
2.100% of the houses will have electricity by 2013.
http://www.fccisl.lk/updates/all-sri-lankan-houses-will-be-light-up-with-electricity-by-2012-assurance-by-power-and-energy-minis/
3. Lowest unemployment after independence
http://www.worldbank.org/en/country/srilanka/overview
4. Export products from tiny little hair pin to ships in 12 free trade zones and 10 industrial zones
http://www.investsrilanka.com/
5. More than $100 b. investments in more than 200 hotels and high rice buildings
http://en.wikipedia.org/wiki/List_of_tallest_structures_in_Sri_Lanka
6. Investments to become a world hub in shipping, aviation, trade, energy and knowledge
http://www.treasury.gov.lk/publications/mahindaChintanaVision-2010full-eng.pdf
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Wuliangguobinjiu / November 25, 2012
Tikiri Tikiri,le le Piensa que tal vez mañana..Rothschild’s, Goldman Sac’s, JP Morgan’s, BNP Paribas “BANKSTERS” can I trust anything no not even the small print??
In the west it’s No nah na..Safer is better.
The best ideas come as jokes.
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Lester / November 25, 2012
Real GDP says nothing about poverty alleviation; it is a merely a measure of production. GDP per capita, on the other hand, says much about the standard of living. Since the article talks about 2010, the following data (Index Mundi) for Sri Lanka is instructive:
GDP – per capita (PPP): $5,700 (2011 est.)
$5,300 (2010 est.)
$5,000 (2009 est.)
According to the GDP per capita figures provided by IndexMundi, Sri Lanka is 144 on the list out of 244 countries. For comparison, Pakistan is 173 and Sudan is 174.
Another way to think of per capita GDP is to divide real GDP (which equals aggregate income) by the total population. So in 2010, the average Sri Lankan would be spending $5,300 in a given year, which wouldn’t last very long in a first-world country.
I also think it’s pertinent to consider the so-called growth in real GDP. If we look at the simple GDP equation, Y = C + I + G + NX, we can see that most of the growth is due to government spending and domestic investment. In the Sri Lankan case, consumption has not increased significantly and NX is negative (since there is a trade deficit due to the fall in exports). Basically, the Sri Lankan government has been borrowing huge amounts of money from the IMF, World Bank, and China at high interest and investing the money in domestic infrastructure projects. Common sense indicates one can only borrow so much; you need to have savings to create new capital. The government has skirted this issue of capital by employing foreign labor to engage in the infrastructure projects. This is another reason why the standard of living in SL has not increased significantly; domestic wages are not increasing. It also proves my earlier assumption that growth in GDP is not due to increased consumption.
By the way, I don’t subscribe to the claim that the Sri Lankan economy is growing at 8%. That is a claim made by the Central Bank, based on data collected by the Central Bank. 8% economic growth is more descriptive of an emerging market economy like China which has seen major foreign investment and a boom in manufacturing, after adopting open market economic policies. In contrast, most of the Sri Lankan economic growth is due to the increase in government spending. China is also a net lender (with very high savings), whereas Sri Lanka is a net borrower .
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Wuliangguobinjiu / November 25, 2012
WHATS UP!!!
Yaman bando X’Mas balanda.!
Ganin bara bage bandinda,
Kolaba nagare mage bando,bajar eke C.T. sando, Press ,press!
Ei bando yamanko do, X’Mas balanda.!
Sudu bando kalu bando, nangino, Maru unoth mage manike,kolaba ganu lassanado.! Yaman bando!
Whats UP Next?
all her good wishes.
Polkatu Hande Mita Wage
NB: wishing you luck. Ladyluck wished me luck.
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Senguttuvan / November 26, 2012
Samantha – Since you appear to be objective in your endeavour to study what is happening (economically) in Sri Lanka, let me share some thoughts with you bringing to play my long years in the private sector as well as about 20 years, intermittently, at the higher tiers of the State sector. If Sri Lanka wishes to put a gradual stop to its non-stop haemorrahage in gobbling up our economic resources, here are some examples where our “patriotic” leaders can play fair by the country.
– In the recent visit of the President to Kazhakastan, the President and his unnecessary large party also visited Maryland in the USA – without the knowledge of Parliament or the people. The supposed to be courtesy call on the ailing PM Jayaratne, it is speculated, is just an excuse. I am not going into the causes of the private visit – whereas visiting Jayaratne took only 30 mts – the stay in expensive Baltimore (and where else?) took much longer. I used to be told by a senior CCS man I knew durings Mrs Bs 1970 Govt she used to go on her necessary
foreign visits accompanied by a few senior ministers and officials travelling Economy. Can the country afford the wastage we see today by our leader and those dregs – our Ministers?
In case you wondered, I might add some of us pay our respects and salutations only to leaders who deserve to be so addressed.
– It is common knowledge most MPs and MPCs pocket much of the funds given annually to develop their electorates. Earlier it used to be 1-2% via Contractors. Now it is said to be over 50% There isn’t a single MP who is not a multiple-millionaire. MPCs are not far behind.
How and when did this outrageous culture begin? Is there a way to ensure such daylight robbery is stopped forthwith?
– One way to stop much of the corruption around us to make the Inland Revenue Dept to be independent and efficient like in the pre-1970s. The higher officials there must be men/women of unquestionable honour and integrity. Their work and functions should be subject to the widest transparency of Parliament and watch-dog institutions. In my talks with some of the seniors there I know these officials are just as keen as we are to make the IRD to be neutral and productive. If the IRD go about their job most of these politicians who steal from the public will go on the guard. If our law and order machinery is free some of them will be in jail – as deterrent to other rogues.
Senguttuvan
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Wuliangguobinjiu / November 26, 2012
Coooooool, getath usai OH! One sets a thief to catch a thief. ;)
Only when we trust it does it become wisdom. :)
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Senguttuvan / November 26, 2012
Stephanie – Forgive me. I addressed you as Samantha in obvious error
Senguttuvan
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shankar / November 29, 2012
One of the biggest hurdles that Sri Lanka faces to become part of the developed world is its size.This is a tiny country, only 65610 sq.km,ranked 122 in the world.
Countries like us that are so small,have to be exceptionally efficient in the governance arena and maximize the contribution of the human resources,which obviously has to compensate for the lack of land and natural resources.
So just ask yourself the question whether we are currently governing the country exceptionally well and optimizing our contribution from our human resources.A country that has done that very successfully is Singapore and also Taiwan.If Srilanka just copies these two contries and does exactly what they are doing as well as them,then it is on the road to prosperity.
However the ego of our people is such that they will never accept the tag of copycat.They will always want to show off to the rest of the world that they are innovators and others should learn from them about homegrown solutions etc. Our ego and the amount of hot air that comes out of our mouths is one of the greatest liabilities.
Even all the east Asian ‘tiger’ economies developed by copying the west and then beating them too.Now we should just copy them too and beat them one day because south Asians are intelligent people,but we do overestimate our abilities.
I suggest to the Srilankan government to keep some good people permanently in small countries such as Singapore and Taiwan and send back feed back on how these countries go about their business,what they do and how they do it,their governance structures and culture and habits etc. This is something like industrial spying.
The blue print for development is there right in front of us,but our ego,culture and habits are in the way as roadblocks to success.
Our current way of governance is like a unscientific,untrained boxer getting into the ring and swinging left and right without landing anything worthwile except just tiring oneself unnecessarily.
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