Lanka's growth prospects good - UNDP

Lanka told to be more competitive in exports:

Rafik Jalaldeen

Sri Lanka's current four per cent GDP growth is a good achievement taking into account the vagaries of an armed conflict impacting on the country's economy, UNDP Chief of Policies and Programme in Colombo Omar Noman said.

"Neighbouring India also had reached around a four per cent GDP growth as Sri Lanka. This shows that Sri Lanka is well capable of reaching more sustainable economic growth and eradicating poverty if only it can contain inflation and put a quick end to the conflict," Noman said at the Asia Pacific Regional Conference on Local Poverty Reduction and Millennium Development Goals (MDG) yesterday.

Highlighting the Microeconomic Environment and GDP growth in the Asia Pacific region from 1990 to 2004, he said Sri Lanka had made a reasonable economic growth of four per cent per person per year despite the on going conflict and inflation rate as high as 14 per cent.

He emphasised the need for Sri Lanka to be more competitive in the sphere of exports. "Compared to India, Sri Lanka should focus more on exports and compete in the world market."

"The present inflation rate is high. To bring down inflation there should be an increase in foreign investments for a sustainable growth," Noman said. The UNDP regional centre in Colombo organised the Asia Pacific regional conference on Local Poverty Reduction and MDG localisation.

The three day conference was launched yesterday where it was emphasised the importance of local and community initiatives in reducing poverty and achieving MDG in the region.

Around 20 outstanding examples of poverty reduction from 16 countries will be featured at the conference. UNDP Resident Representative in Colombo Neil Buhne said the objective of this gathering is to portray the spirit of the Asia Pacific region on the basis of different strategies of each country on eradicating poverty.

While Asia has grown rapidly at seven per cent a year over the last decade, it still contains a staggering 60 per cent of the world's poor. Asia and the Pacific have exciting examples to learn from and also to show the rest of the world, Noman said.

He noted the importance and objective of the conference was to share experience of regional member countries in tackling poverty MDG, and set targets to deal with gender inequality, maternal and child ill health, HIV, lack of education and environment challenges.

A case study demonstrates how rural communities in Sri Lanka have been able to better manage their own development and improve their livelihood, when provided with skills, information, decision making powers and financial resources.