Cabraal confident of V-shaped economic recovery

Government plans for a rapid or V-shaped economic recovery for Sri Lanka after the effects of COVID-19 is becoming a reality, State Minister of Finance, Capital Markets and State Enterprise Reforms Ajith Nivard Cabral told Parliament yesterday. 

State Minister of Finance, Capital Markets and State Enterprise Reforms Ajith Nivard Cabral

“Government plans to enable a V-shaped economic revival is becoming a reality. Our Government stabilised the economy prior to 2015 despite the conflict in the country. We will succeed in doing the same once again,” Cabraal said. 

Participating in the debate on the Vote on Account, the State Minister said the prediction made by some claiming the country would not recover rapidly from the present economic down turn will not come true. 

Cabraal said Sri Lanka managed to maintain an average of 6.4% economic growth from 2006 to 2017 while the average dropped to 3.7% from 2015 to 2019. He said growth was further dropped to 2.3% in 2013. He said the per capita income increased by an average of $ 200 between the years 2006 and 2015 but it has dropped since 2015. 

“We were able to maintain a healthy economy in the past and we will manage it this time as well,” he said. “Government will bring in foreign currency inflows to the country through new tools and proposals. We are aiming for a V-shaped recovery, and it is evident from current developments that we are getting there.”