{"id":60821,"date":"2012-11-18T17:42:31","date_gmt":"2012-11-18T17:42:31","guid":{"rendered":"http:\/\/www.colombotelegraph.com\/?p=60821"},"modified":"2012-11-20T23:39:39","modified_gmt":"2012-11-20T23:39:39","slug":"sri-lankas-potentials-for-a-dynamic-economy","status":"publish","type":"post","link":"https:\/\/www.colombotelegraph.com\/index.php\/sri-lankas-potentials-for-a-dynamic-economy\/","title":{"rendered":"Sri Lanka’s Potentials For A Dynamic Economy"},"content":{"rendered":"

By <\/strong>St\u00e9phanie Magalage<\/a><\/span> –<\/strong><\/p>\n

\"\"<\/a>

St\u00e9phanie Magalage<\/p><\/div>\n

Let me introduce you all to our economic theme, by informing you about one major event that took place two years ago:<\/p>\n

In January 2010, Sri Lanka was upgraded, from the IMF<\/a><\/span>\u2019s list of Poverty Reduction and Growth Trust, to that of Middle Income Emerging Markets. This represents a major recognition of Sri Lanka\u2019s 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\u2019s GDP never stopped increasing, going well above the prevailing International Development Association threshold, projection of optimistic outlooks on the country\u2019s 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.<\/p>\n

According to the Global Economic Prospects of the World Bank<\/a><\/span>, 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.<\/p>\n

One other factor that supports Sri Lanka\u2019s 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.<\/p>\n

At the end of the war in 2009, the Sri Lankan President Mahinda Rajapaksa<\/a><\/span> promised to have a strong leadership for the country\u2019s 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\u2019s 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.\u00a0 New highways connected major growth centers. \u00a0One 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.<\/p>\n

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.<\/p>\n

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\u2019s businesses, to be present at such events in the Western part of the world: it means they have a certain weight, and are recognized.<\/p>\n

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\u2019s 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.<\/p>\n

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\u2019s main \u2018customers\u2019, UE & USA, are lowering their import.<\/p>\n

However, Sri Lanka must not forget the opportunities it has: its strategic position in the most dynamic economic region of the world<\/em> 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.<\/p>\n

*St\u00e9phanie 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.<\/em><\/p>\n

St\u00e9phanie Magalage participated in the French-Sri Lankan Diaspora Youth Workshop \u201cPost-War Reconciliation Dialogue for a Sustainable Peace\u201d, which took place in Paris, on October 27th<\/sup>, 2012, as a panelist on the theme\u00a0\u201cTowards an effective and sustainable economic development\u201d<\/strong>.\u00a0The event was organized by\u00a0What\u2019s Next!<\/a><\/strong><\/span>, a forum comprising of post-graduates and young professionals of Sri Lankan origin residing in France.\u00a0What\u2019s Next!\u00a0seeks to promote a sustainable peace in Sri Lanka through intellectual exchange and multicultural dialogue.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

[…]<\/p>\n","protected":false},"author":22,"featured_media":60822,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3,46,8],"tags":[3152,2863,1932],"class_list":["post-60821","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-colombotelegraph","category-constitutional-reforms","category-editorial","tag-economic-affaires-sri-lanka","tag-sri-lankan-economic-policies","tag-sri-lankan-economy"],"yoast_head":"\nSri Lanka's Potentials For A Dynamic Economy - Colombo Telegraph<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.colombotelegraph.com\/index.php\/sri-lankas-potentials-for-a-dynamic-economy\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Sri Lanka's Potentials For A Dynamic Economy - Colombo Telegraph\" \/>\n<meta property=\"og:description\" content=\"[…]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.colombotelegraph.com\/index.php\/sri-lankas-potentials-for-a-dynamic-economy\/\" \/>\n<meta property=\"og:site_name\" content=\"Colombo Telegraph\" \/>\n<meta property=\"article:published_time\" content=\"2012-11-18T17:42:31+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2012-11-20T23:39:39+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.colombotelegraph.com\/wp-content\/uploads\/2012\/11\/St+\u00aephanie-Magalage-Whats-Next.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"404\" \/>\n\t<meta property=\"og:image:height\" content=\"466\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"COLOMBO TELEGRAPH\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"COLOMBO TELEGRAPH\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"5 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.colombotelegraph.com\/index.php\/sri-lankas-potentials-for-a-dynamic-economy\/\",\"url\":\"https:\/\/www.colombotelegraph.com\/index.php\/sri-lankas-potentials-for-a-dynamic-economy\/\",\"name\":\"Sri Lanka's Potentials For A Dynamic Economy - Colombo Telegraph\",\"isPartOf\":{\"@id\":\"https:\/\/www.colombotelegraph.com\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.colombotelegraph.com\/index.php\/sri-lankas-potentials-for-a-dynamic-economy\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.colombotelegraph.com\/index.php\/sri-lankas-potentials-for-a-dynamic-economy\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.colombotelegraph.com\/wp-content\/uploads\/2012\/11\/St+\u00aephanie-Magalage-Whats-Next.jpg\",\"datePublished\":\"2012-11-18T17:42:31+00:00\",\"dateModified\":\"2012-11-20T23:39:39+00:00\",\"author\":{\"@id\":\"https:\/\/www.colombotelegraph.com\/#\/schema\/person\/9db3d0cfcfa59e1997e3c3524d454cb3\"},\"breadcrumb\":{\"@id\":\"https:\/\/www.colombotelegraph.com\/index.php\/sri-lankas-potentials-for-a-dynamic-economy\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.colombotelegraph.com\/index.php\/sri-lankas-potentials-for-a-dynamic-economy\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.colombotelegraph.com\/index.php\/sri-lankas-potentials-for-a-dynamic-economy\/#primaryimage\",\"url\":\"https:\/\/www.colombotelegraph.com\/wp-content\/uploads\/2012\/11\/St+\u00aephanie-Magalage-Whats-Next.jpg\",\"contentUrl\":\"https:\/\/www.colombotelegraph.com\/wp-content\/uploads\/2012\/11\/St+\u00aephanie-Magalage-Whats-Next.jpg\",\"width\":\"404\",\"height\":\"466\",\"caption\":\"St\u00e9phanie Magalage\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.colombotelegraph.com\/index.php\/sri-lankas-potentials-for-a-dynamic-economy\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/www.colombotelegraph.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Sri Lanka’s Potentials For A Dynamic Economy\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.colombotelegraph.com\/#website\",\"url\":\"https:\/\/www.colombotelegraph.com\/\",\"name\":\"Colombo Telegraph\",\"description\":\"In journalism truth is a process\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.colombotelegraph.com\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.colombotelegraph.com\/#\/schema\/person\/9db3d0cfcfa59e1997e3c3524d454cb3\",\"name\":\"COLOMBO TELEGRAPH\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.colombotelegraph.com\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/920b3181b0bf86b5c339ad9f0963a89f6a8b19c4b971e629987a021ba7a663df?s=96&d=identicon&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/920b3181b0bf86b5c339ad9f0963a89f6a8b19c4b971e629987a021ba7a663df?s=96&d=identicon&r=g\",\"caption\":\"COLOMBO TELEGRAPH\"},\"url\":\"https:\/\/www.colombotelegraph.com\/index.php\/author\/colombo_telegraph\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Sri Lanka's Potentials For A Dynamic Economy - Colombo Telegraph","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.colombotelegraph.com\/index.php\/sri-lankas-potentials-for-a-dynamic-economy\/","og_locale":"en_US","og_type":"article","og_title":"Sri Lanka's Potentials For A Dynamic Economy - Colombo Telegraph","og_description":"[…]","og_url":"https:\/\/www.colombotelegraph.com\/index.php\/sri-lankas-potentials-for-a-dynamic-economy\/","og_site_name":"Colombo Telegraph","article_published_time":"2012-11-18T17:42:31+00:00","article_modified_time":"2012-11-20T23:39:39+00:00","og_image":[{"width":404,"height":466,"url":"https:\/\/www.colombotelegraph.com\/wp-content\/uploads\/2012\/11\/St+\u00aephanie-Magalage-Whats-Next.jpg","type":"image\/jpeg"}],"author":"COLOMBO TELEGRAPH","twitter_card":"summary_large_image","twitter_misc":{"Written by":"COLOMBO TELEGRAPH","Est. reading time":"5 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/www.colombotelegraph.com\/index.php\/sri-lankas-potentials-for-a-dynamic-economy\/","url":"https:\/\/www.colombotelegraph.com\/index.php\/sri-lankas-potentials-for-a-dynamic-economy\/","name":"Sri Lanka's Potentials For A Dynamic Economy - Colombo Telegraph","isPartOf":{"@id":"https:\/\/www.colombotelegraph.com\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.colombotelegraph.com\/index.php\/sri-lankas-potentials-for-a-dynamic-economy\/#primaryimage"},"image":{"@id":"https:\/\/www.colombotelegraph.com\/index.php\/sri-lankas-potentials-for-a-dynamic-economy\/#primaryimage"},"thumbnailUrl":"https:\/\/www.colombotelegraph.com\/wp-content\/uploads\/2012\/11\/St+\u00aephanie-Magalage-Whats-Next.jpg","datePublished":"2012-11-18T17:42:31+00:00","dateModified":"2012-11-20T23:39:39+00:00","author":{"@id":"https:\/\/www.colombotelegraph.com\/#\/schema\/person\/9db3d0cfcfa59e1997e3c3524d454cb3"},"breadcrumb":{"@id":"https:\/\/www.colombotelegraph.com\/index.php\/sri-lankas-potentials-for-a-dynamic-economy\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.colombotelegraph.com\/index.php\/sri-lankas-potentials-for-a-dynamic-economy\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.colombotelegraph.com\/index.php\/sri-lankas-potentials-for-a-dynamic-economy\/#primaryimage","url":"https:\/\/www.colombotelegraph.com\/wp-content\/uploads\/2012\/11\/St+\u00aephanie-Magalage-Whats-Next.jpg","contentUrl":"https:\/\/www.colombotelegraph.com\/wp-content\/uploads\/2012\/11\/St+\u00aephanie-Magalage-Whats-Next.jpg","width":"404","height":"466","caption":"St\u00e9phanie Magalage"},{"@type":"BreadcrumbList","@id":"https:\/\/www.colombotelegraph.com\/index.php\/sri-lankas-potentials-for-a-dynamic-economy\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.colombotelegraph.com\/"},{"@type":"ListItem","position":2,"name":"Sri Lanka’s Potentials For A Dynamic Economy"}]},{"@type":"WebSite","@id":"https:\/\/www.colombotelegraph.com\/#website","url":"https:\/\/www.colombotelegraph.com\/","name":"Colombo Telegraph","description":"In journalism truth is a process","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.colombotelegraph.com\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/www.colombotelegraph.com\/#\/schema\/person\/9db3d0cfcfa59e1997e3c3524d454cb3","name":"COLOMBO TELEGRAPH","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.colombotelegraph.com\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/920b3181b0bf86b5c339ad9f0963a89f6a8b19c4b971e629987a021ba7a663df?s=96&d=identicon&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/920b3181b0bf86b5c339ad9f0963a89f6a8b19c4b971e629987a021ba7a663df?s=96&d=identicon&r=g","caption":"COLOMBO TELEGRAPH"},"url":"https:\/\/www.colombotelegraph.com\/index.php\/author\/colombo_telegraph\/"}]}},"jetpack_featured_media_url":"https:\/\/www.colombotelegraph.com\/wp-content\/uploads\/2012\/11\/St+\u00aephanie-Magalage-Whats-Next.jpg","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/www.colombotelegraph.com\/index.php\/wp-json\/wp\/v2\/posts\/60821","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.colombotelegraph.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.colombotelegraph.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.colombotelegraph.com\/index.php\/wp-json\/wp\/v2\/users\/22"}],"replies":[{"embeddable":true,"href":"https:\/\/www.colombotelegraph.com\/index.php\/wp-json\/wp\/v2\/comments?post=60821"}],"version-history":[{"count":7,"href":"https:\/\/www.colombotelegraph.com\/index.php\/wp-json\/wp\/v2\/posts\/60821\/revisions"}],"predecessor-version":[{"id":61126,"href":"https:\/\/www.colombotelegraph.com\/index.php\/wp-json\/wp\/v2\/posts\/60821\/revisions\/61126"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.colombotelegraph.com\/index.php\/wp-json\/wp\/v2\/media\/60822"}],"wp:attachment":[{"href":"https:\/\/www.colombotelegraph.com\/index.php\/wp-json\/wp\/v2\/media?parent=60821"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.colombotelegraph.com\/index.php\/wp-json\/wp\/v2\/categories?post=60821"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.colombotelegraph.com\/index.php\/wp-json\/wp\/v2\/tags?post=60821"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}