No threat to Sri Lanka economy - Finance Secretary

Secretary to the Ministry of Finance Dr. P.B. Jayasundara speaking to national radio on economy stated that there was no logic behind the argument that the economy would be subjected to a tsunami type situation and collapse by the time of the Sinhala and Tamil New Year that falls in April.


Vehemently denying the arguments of certain sectors, the Finance Secretary pointed out that Sri Lankan economy is in an extremely strong position.

"The Government has embarked upon several development projects valued at many billions of rupees. The number of countries providing aid to Sri Lanka has been expanded since the year 2005. The government has been able to speedily provide relief to those affected by the recent floods in five districts. It has been able to successfully overcome the damages caused to crops and other forms of destructions," said the Secretary participating in a radio interview of Sri Lanka Broadcasting Corporation this morning.

He also pointed out that the per capita income in the country has come near the 2400 dollar target.

Sri Lanka recorded an economic growth rate of 8.5 percent in the second quarter of 2010, the highest ever recorded quarterly GDP growth since 2002. The country is far ahead of its regional peers such as Bangladesh, India, and Pakistan.

The Governor of the Central Bank has predicted an 8.5% GDP growth for 2011 rising to 9.5% by 2013.

However, economists expect the current uprisings in Middle East countries and the devastation in Japan along with rising fuel costs will slow Sri Lanka's economic growth this year below the expected 8.5 percent.

The income from the Sri Lankans employed in foreign countries, mainly in the Middle East, is a major source of the government's revenues. In 2010, Sri Lanka earned US$ 3.8 billion as remittance from foreign employment.