Every country has to grow if the Sri Lanka economy is stabilised and moving forward but not coming down. A country’s’ economy is measured through the GPD or per capital and other development sectors such infrastructure, education, technology, health and agriculture with agriculture being the backbone of many African countries and technology taking the most part of Asian and American states.
Taking, for instance, the economy of Sri-Lanka a country in the Asian continent, many countries would want to benchmark with it for its gradual and consistent growth economic wise.
The secret behind this is that Sri-Lanka for the past recent years has been focused on long-term challenges brought about by transition to an upper middle-income country as far as structural and strategic development is concerned. Sri Lanka has a Per Capital GDP of $5000 which is a level where many countries are struggling to reach.
Sri Lanka contributes greatly to the foreign exchange in the Middle East because of overseas employment. The combination of all these economic sectors has given Sri Lanka an annual growth of close to seven percent (7%).
Only a small percentage of Sri Lanka’s’ population can be called Middle-Class people, many of them are far beyond the poverty line.
The most dynamic industries in Sri Lanka are textiles, telecommunication, insurance, banking, and food processing. Textile and apparel account for over 50% while food processing contributes about 20% which makes the GDP rise with a consistent margin of 5.5% annually.
Sri Lanka’s investment to GDP ratio for the last two years is 25% consisting of private sector investment 10%, public sector investment 10%, and foreign investment 5%
For an economy to reach sustainable productive education, it should invest highly in the education system. Sri Lanka has not ignored the education sector since it is the only way to boost youth power. The power of a nation belongs to the youth.
A nation fails because of a lack of knowledge which is measured in terms of the level of civilization. It is due to this reason where Sri Lanka has to ensure that almost a quarter of the annual budget goes to developing schools and renovations.
It has ensured that technology is embraced from primary schools to high institutions of learning. This has in turn, enabled the growth of the economy since unemployment reduced.
A healthy nation is a wealthy nation. Sri Lanka has really invested in health facilities to ensure that the nation has a healthy population. Most of the recent developments in health facilities have gone to building maternal houses to minimize child mortality rates.
More improved facilities and machines have been installed to the hospitals to ensure proper treatment. Healthy people work better hence promoting revenue creation which has promoted the economy of Sri Lanka.
TRADE AND RISK
In order to prevent any trade deficit, the government of Sri Lanka has come up with alternative methods of bringing the external economy to equilibrium. It has reduced the trade imports while increasing the export trade in that what goes out is higher than what comes in.
This has reduced the import bill account from 16% to 9% over the past two years. Other alternatives are; allowing the external value of the currency to be determined by fiscal and monetary policies and negotiating longer periods for oil exports.
The Central Bank of Sri Lanka has combined both the fiscal and monetary policies to ensure that there is a sustainable circulation of capital hence bringing deflation and inflation to equilibrium. The Colombo Stock Exchange market in Sri Lanka is the highest ranking in the world.
The government of Sri Lanka has invested highly in highway projects as a way to propel economic growth. Renovation and upgrading the railway transport system has encouraged trade in the country hence boosting the economy.
Provision of energy is also part of development where the ministry of power and energy has planned to build more power station and start reactor projects on the existing hydroelectric power stations to ensure the whole country is lightened.
FOREIGN VS LOCAL INVESTMENT VOLUME
As Sri Lankan Economy, Sri Lanka does not only depend on its power but it also borrows assistance from other doing well countries. Several high profile projects were initiated through the help from Tokyo and other institutions such as the World Bank.
Due to the reduction of illiteracy level, most investments and jobs have been claimed by citizens of the country hence reducing brain drain through the creation of jobs. Though foreign investment has shown to be taking roots in the country, the government is making ways to invest more locally in order to increase revenue returns.
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