By Sanath Nanayakkare
‘In relation to Capital Market operations, there is recognition that the issue of shares is not the only way to raise capital and that a more important role can be played by debt, since issue of listed debt can be even more competitive than issue of shares, Dr. P.B. Jayasundera, Treasury Secretary and Secretary to the Ministry of Finance and Planning said yesterday.
Jayasundera said so while delivering a detailed exposition titled ‘National Vision: Policy Implementation Perspective’, as keynote speaker at the Sri Lanka Economic Summit-2014 organized by the Ceylon Chamber of Commerce (CCC).
The CCC is holding this two-day annual event (August 5 and 6) at the Cinnamon Grand Hotel on the title, ’Sri Lanka 2020: Towards Surpassing the US$ 7,000 Per Capita’.
Jayasundera added: "Let’s not worry too much about the exact figure-US$ 7,000 or a slightly higher per capita by 2020, Jayasundera said. The per capita income target of US$ 4,000 for 2016 is likely to be a reality in 2015.
"The Central bank has done admirable work about securing mid-single digit inflaton, high external reserves and financial system stability targets—well on track.
"What is clear to me, however, from a policy implementation perspective is that the present Sri Lankan economic story is under-told, often distorted and down played.
"So the CCC theme for this year is indeed a good start, since ‘it is better late than never’ for those with prejudiced, politically - biased minds to take a pragmatic approach in the interest of the nation.
"Recent improvements in this direction are encouraging. In relation to financing and credit, investment bankers in this country have admitted that they never thought the pawning market was as large as about Rs. 500 billion and effective in the consumer sector.
"Similarly in relation to growth, some say that Sri Lanka’s growth is below potential and emphasize the need for greater external integration. These views generally reflect that the economy is in a growth mood and everyone is endevouring to find various growth strategies.
"Growth must be demand driven and must take place in demanded sectors to be able to cross boundaries. All these are areas that the government in its policy strategies has focused in a socially feasible and economically sustainable manner.
"In relation to the telecommunication sector, key players have been broken business barriers and facilitated industries to move towards real growth. They have observed that in developed countries, every 10 percent mobile penetration has contributed to 0.6 percent growth in GDP and in developing countries the impact is double."
"IT/BPO sector has gone into niche markets since comparative advantage could be explored by going up in the value chain. In this process they look for a larger workforce, IT parks and IT enabled buildings.
Jayasundera went into detail also on infrastructure development, power generation, manufacturing, logistics services, skills development, labour reforms, etc. which are comprehensively integrated into the government’s economic policy formulation and implementation.
Ajith Nivard Cabraal, Governor, Central Bank of Sri Lanka speaking on the occasion said a paradigm shift is taking place in the economy as traditional features of the economy are being surpassed by new market instruments.
"We have been able to maintain high growth with low-inflation. Exchange rate depreciation which had been a continual recurrence has been successfully controlled over the last eight years. Up to 2005, the exchange depreciation rate was about 9%-10%. It is now down to 3%. Next year there might be a gentle appreciation, he said.
www.island.lk
‘In relation to Capital Market operations, there is recognition that the issue of shares is not the only way to raise capital and that a more important role can be played by debt, since issue of listed debt can be even more competitive than issue of shares, Dr. P.B. Jayasundera, Treasury Secretary and Secretary to the Ministry of Finance and Planning said yesterday.
Jayasundera said so while delivering a detailed exposition titled ‘National Vision: Policy Implementation Perspective’, as keynote speaker at the Sri Lanka Economic Summit-2014 organized by the Ceylon Chamber of Commerce (CCC).
The CCC is holding this two-day annual event (August 5 and 6) at the Cinnamon Grand Hotel on the title, ’Sri Lanka 2020: Towards Surpassing the US$ 7,000 Per Capita’.
Jayasundera added: "Let’s not worry too much about the exact figure-US$ 7,000 or a slightly higher per capita by 2020, Jayasundera said. The per capita income target of US$ 4,000 for 2016 is likely to be a reality in 2015.
"The Central bank has done admirable work about securing mid-single digit inflaton, high external reserves and financial system stability targets—well on track.
"What is clear to me, however, from a policy implementation perspective is that the present Sri Lankan economic story is under-told, often distorted and down played.
"So the CCC theme for this year is indeed a good start, since ‘it is better late than never’ for those with prejudiced, politically - biased minds to take a pragmatic approach in the interest of the nation.
"Recent improvements in this direction are encouraging. In relation to financing and credit, investment bankers in this country have admitted that they never thought the pawning market was as large as about Rs. 500 billion and effective in the consumer sector.
"Similarly in relation to growth, some say that Sri Lanka’s growth is below potential and emphasize the need for greater external integration. These views generally reflect that the economy is in a growth mood and everyone is endevouring to find various growth strategies.
"Growth must be demand driven and must take place in demanded sectors to be able to cross boundaries. All these are areas that the government in its policy strategies has focused in a socially feasible and economically sustainable manner.
"In relation to the telecommunication sector, key players have been broken business barriers and facilitated industries to move towards real growth. They have observed that in developed countries, every 10 percent mobile penetration has contributed to 0.6 percent growth in GDP and in developing countries the impact is double."
"IT/BPO sector has gone into niche markets since comparative advantage could be explored by going up in the value chain. In this process they look for a larger workforce, IT parks and IT enabled buildings.
Jayasundera went into detail also on infrastructure development, power generation, manufacturing, logistics services, skills development, labour reforms, etc. which are comprehensively integrated into the government’s economic policy formulation and implementation.
Ajith Nivard Cabraal, Governor, Central Bank of Sri Lanka speaking on the occasion said a paradigm shift is taking place in the economy as traditional features of the economy are being surpassed by new market instruments.
"We have been able to maintain high growth with low-inflation. Exchange rate depreciation which had been a continual recurrence has been successfully controlled over the last eight years. Up to 2005, the exchange depreciation rate was about 9%-10%. It is now down to 3%. Next year there might be a gentle appreciation, he said.
www.island.lk
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