• Predicts SL has potential to grow by 7.5% from next year, after Govt. stabilised economy since taking office
• Says he took over a country with an economy which could not pay its debts in 2015 
• Stresses turnaround in six months after Easter Sunday bombings shows economy’s resilience 
• MCC agreement to be signed before Presidential Election
  
   

Prime Minister Ranil Wickremesinghe yesterday declared that following much-needed stabilisation since 2015, the economy was now poised to take off from next year.   

“The Chamber of Commerce has said we can go up to 8% growth, but I think with 7.5% growth, we can achieve the targets for the next five years,” he said, while delivering a presentation on the progress of development activities carried out by the Government.

The Prime Minister said that when the Government took over in 2015, it had to stabilise the economy and gain confidence.  He revealed that in 2015, he took over a country with an economy which could not pay its debts. “We could not even borrow from foreign sources to pay off foreign loans,” he added. “We have created stability now, and also achieved a surplus in the primary account in 2018. If not for the Easter Sunday bombings, we would have had an even bigger surplus this year, but we can achieve that next year,” he said.Wickremesinghe emphasised that public revenue had increased substantially due to the Government’s fiscal consolidation efforts, and the groundwork had been laid for rapid growth, with new laws coming in and necessary infrastructure development taking place during the past few years.

“We are on the verge of a take-off, and we are in a region that is going up. But we are also in transition. We are an upper-middle income economy, and we have to become a developed economy, which means more training, more jobs, modernising agriculture, etc.,” he said.

Wickremesinghe said that while the Government had set the ground for the country to progress, there had been obstacles along the way. 

“If you take the Easter Sunday bombings, the economy turned around in six months. Most people thought it would take a year and a half or two, but within six months, we were able to turn things around, which showed that this is a resilient economy. And in the next five years, if you go ahead with this rate of growth, we are looking at 7.5% growth,” he said.

Wickremesinghe also revealed that the $ 480 million grant-linked Compact Agreement with the US’s Millennium Challenge Corporation (MCC), which was approved by Cabinet on Tuesday, would be signed before the elections.

The Prime Minister also gave details on the status of the Hambantota Port. He said that when the decision to enter into a joint venture with China Merchant was made, China was first consulted, as the Sri Lanka Ports Authority (SLPA) wanted to link up with a well-known port operator, as without such a connection, it would have been impossible to repay the loan.

“The request the Chinese investor made was to give the first offer to a Chinese firm, and if we were not satisfied with the Chinese firm, to call for other firms. So we called for offers from Chinese firms, and two applied. Then they found China Merchants Port Holding Company (CMPH) suitable to enter into a partnership with the SLPA.”

He said the new joint venture had provided all the necessary funds, because of which most of the Hambantota Port’s expenses were now covered. 

“The burden is off us, and it will be run by the joint venture. They feel they need up to 10 years to make this a profitable venture. It is to back this up that we are in the process of also taking over 10,000 acres to build one of the largest economic zones in South Asia.”

With regards to the Mattala Airport, the Prime Minister said that the Government was speaking with the Indian Aviation Authority about a joint venture, and also promoting more Indian flights to land there.

He also dismissed reports that even though the Jaffna International Airport (JIA) was opened recently, there were no proper facilities for passengers, and the airport area was inundated with water after the recent monsoons.

“There was demand in Jaffna to start this. No money was wasted on it like with Mattala. The airport can be used anytime. It was made to be used by the Air Force, and it is an all-weather (air) strip. Even the Katunayake Airport was made that way by the British. When I went to Angkor Wat (Cambodia) many years ago, there was only the airstrip and two hangers. It is only Mattala that was built in this manner,” he said.

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