Sri Lanka can ensure lasting peace through shared and inclusive growth: WB

World Bank Managing Director Sri Mulyani Indrawati emphasised the importance of increasing the role of the private sector in taking up the growth challenge and helping to make Sri Lanka the Wonder of Asia.

She highlighted the importance in focusing on the macro economy as key in the country’s growth process and the significance of bridging regional and income disparities on the road to a sustainable economy.  

Indrawati concluded a three-day visit to Sri Lanka. She met with President Mahinda Rajapaksa to discuss new opportunities and challenges for the country and the World Bank Groups cooperation. In addition to meeting with key Government ministers and officials she also had meetings with the private sector, the Opposition, the donors, civil society and media. She visited Jaffna and met with villagers to learn about their experiences as beneficiaries of some projects financed by the World Bank Group.

“The sustainability of the recent economic success will depend on the capacity of the Government to establish the adequate environment that attracts private sector. I am convinced that, learning from experiences of other Middle Income countries, the country will succeed. The Bank Group stands ready to partner with Sri Lanka in this endeavour,” Indrawati said, post her meeting with the President.

While congratulating the President on the country’s emergence from conflict and for the level of growth achieved in 2010 and 2011, she stressed on the need to  ensure lasting peace through shared and inclusive growth.

She also highlighted that the kind of investors that will enable growth are those with a good, credible reputation, sustainable capital, access to modern technology, global knowledge and global networking ability.  

“Attracting high quality private sector will require putting together the right incentive and governance structure in place and providing a transparent playing field. When the story is strong, it is a good time for reforms,” she said.

The need to enhance the quality of human capital and matching skills was pointed out by Indrawati as a must to respond to productivity challenges especially in a country rich with an abundance of natural resources and diversity.

She said that the World Bank Group will interact with the Government in the future through a partnership with sharing of global best practices and learning and not a prescriptive one and would be happy to assist in inclusive and comprehensive policies that would benefit the country in the long term.

Indrawati is one of the three Managing Directors of the World Bank and is responsible for the institutions operations in all regions. In addition she oversees other administrative vice-presidencies and functions, including the Integrity vice Presidency, Sanctions Board Secretariat and the Office of Evaluation and Suspension.

With her previous experience as Minister of Finance and Coordinating Minister of Economic Development of Indonesia, she brings with her a wealth of knowledge on fiscal policy, structural reforms and combating corruption.