FDI will reach 2% of GDP; Budget deficit within 7% target this year - PB

Tuesday, 5 July 2011 00:56 - - {{hitsCtrl.values.hits}}

Treasury Secretary Dr. Jayasundera yesterday expressed confidence that the Foreign Direct Investment (FDI) will reach a high 2% of GDP this year whilst the Budget deficit target of 7% was also on track.

“We expect FDIs must be at least 2% of the GDP. I’m quite sure that this year, we will realise the 2% FDI mark – it is a reality this year through our actions,” he told the inauguration of the Ceylon Chamber Economic Summit.

Treasury Secretary also said that the 7% Budget deficit target was well on track based on fiscal consolidation and revenue measures.

Elaborating further on higher FDI flow Dr. Jayasundera said that the envisaged 2% of GDP inflow will have a major positive impact. He said FDIs were in to large scale infrastructure projects like ports, basic industries like steel and cement, the apparel industry, the tourism industry, in IT. “This is the strategy and the framework that both the private and public sector will need to manage,” he added.

During his presentation titled “The Government’s vision, plans and implementation for accelerated growth and development” Dr. Jayasundera also declared that Mahinda Chinthan Vision for the Future has created a paradigm shift with Sri Lanka transforming from an unstable economy from 2000 to 2005 to an emerging economy from 2005 to 2010.