Regional development vital to keep up balanced economy

Hathoon SHERIFFDEEN

The GDP domination of the Western Province should be dispersed equitably among other provinces as well. This will eliminate the crisis of inequity in poverty level and the development, Governor of Central Bank, Ajith Nivard Cabraal said at a session organised by the Sri Lanka Economic Association at the BMICH, on the theme of inequity, poverty and development.

Over fifty per cent of the National GDP is dominated by the western province economy. Provincial participation on national GDP varies from province to province.

From the on-going development projects and projects planned to implement in the near future a strong economic environment could be anticipated. 189 countries in the world have adopted millennium development goals.

Sri Lanka also had adopted the millennium development goals. The number of people go abroad have increased and the student population going abroad had also increased.

Efficient financial management has paved the way to enhance the banking sector and this can be seen with the opening of more branches. EPF contributions had also increased proving more employment generation said Cabraal.

The country Director, World Bank, Naoko Ishii said that Sri Lanka has enormous potentials. The objectives of Sri Lanka is to reach the development goals.

Western Province, poverty has declined most significantly and inequality has increased much less, while in other provinces, poverty reduction has been much stagnant and inequality has increased.

In Uva, Sabaragamuwa, and North- Western, poverty has even increased. The growth pattern of the Western Province is very pro-poor.

The problem is not that the Western Province has grown too fast, but that other provinces have grown too slow.

A further analysis of the growth patterns among provinces suggest that a key factor behind the low growth is the stagnation in the rural economy’s both the farm and non-farm economy’s over the past decade.

She also said that more attention should be paid to develop rural areas to maintain a balanced economy.

The president of Sri Lanka Economic Association (SLEA) A. D. V. de S. Indraratna said that, mostly the poorest sector had not benefited by the improved economic development.

The richest always accrue the cream of the economy. Today almost all the development projects are infested with corruptions. Most infrastructure projects are dominated by contractors and their conduct is found unsatisfactory.