By Hiran H.Senewiratne
The Government has already put in place several measures to bring down the budget deficit from last year’s from 10 percent to 8 percent, said President Organisation Professional Association of Sri Lanka (OPA) Prof A.V de S Indraratna.
"But real interest rates have remained positive since 2008 with inflation coming down to single digit and this will help to increase domestic savings. However, this could hardly adequate to bridge gap in budget," Prof. Indraratna said at the 23rd Annual Session of the OPA. Theme of the event was "Vision 202: Way Forward".
He said that to reduce the country’s budget deficit y have increased the Foreign Direct Investment (FDI) substantially into the country, which is supposed to be lowest in the whole of Asia., but FDI has paradoxically come down to US$ 200 million in 2010 from US$ 690 in the corresponding year, he added .
"The reason for FDI to come down is due to several issues including good governance, law and order, industrial peace, labour law and several other reasons. Therefore, those are matters the government should address immediately, "Prof. Indraratne said.
Prof Indraratna said that Sri Lanka to register a 8 percent plus growth it has to bridge the wide gap between gross investments and domestic savings. Therefore, decision makers have to consider all aspects such as productivity enhancement, improve physical infrastructure, good governance, law and order and corruption and waste to achieve all economic goals, he said.
source - www.island.lk
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