COLOMBO: The government is now in the process of drafting a new policy framework to provide more relief to increase household income, Policy Planning and Economic Affairs Deputy Minister Dr. Harsha de Silva said here the other day.
“Although the previous government focuses on building new ports, expressways and mega projects to achieve 7 percent to 8 percent growth, the household income of the country increased only by 0.5 percent, which led to the downfall of the previous government,” Dr. de Silva told at a seminar organized by EMG Spendition (Pvt) Limited on the theme of 100 days and beyond.
He said the main purpose of creating a competitive economy is to help markets to grow. In order to increase household income of the people in the country we have to establish justice and competition for markets to grow and flourish, he said.
‘If you let markets to grow, lager companies will come and invest in Sri Lanka. For that purpose proper rule of law and good governance should be established to facilitate it.Then only our economy will start developing. Ultimately it will increase the household income of the people, Dr. de Silva said.
He also said that Sri Lanka’s exports to GDP came down drastically during the recent past, which amounted to 15 percent, while in Hong Kong and Singapore exports contribution to the GDP was 300% percent and 200% respectively. “To increase exports we need to have new polices to increase its GDP component significantly.
Therefore, the country has to focus on increasing efficiency and effectiveness in export driven markets,” he said.
The government’s main purpose is to encourage participation of every citizen to the economic growth, which is called inclusive capitalism which enhances equal distribution of wealth in the country, he said. Deputy Investment Promotion Minister Eran Wickramaratne said that the current government’s performance really matters like in the private sector. Therefore, framework of good governance rule of law and independence of judiciary will promote and attract foreign direct investments, he said. Last year Sri Lanka was able to attract US$ one billion worth of foreign direct investments, which is inadequate because other countries in the region like Thailand,Vietnam and Malaysia attracted higher FDIs than Sri Lanka. He also said that EPF fund being the biggest retirement and pension fund of private sector employees in the country has not been audited since 2011and requires auditing, he said.
