Private sector investment priority: PB

• Tells businesses to gear up for the next phase of intense development; wants apparel companies to broaden their outlook and prepare to be the key economic driver

By Uditha Jayasinghe

Treasury Secretary Dr. P.B Jayasundera yesterday issued a clarion call to the private sector to increase investment so that Sri Lanka could reach its goal of US$ 5,000 per capita income by 2016.

Addressing a forum organised by the Joint Apparel Associations Forum (JAAF) titled ‘Policy Changes, Reforms and Modernisation since the Budget 2011,’ Dr. Jayasundera called on the apparel sector to continue its position as the highest foreign exchange earner of the country.



Trotting out the history of the apparel industry as well as the overall economic situation in a long-winded two hour presentation, he reiterated the opportunities that exist for the industry to re-launch itself as a US$ 5 billion industry by 2016 in line with the JAAF plans.

“We talk you deliver, we tax you earn,” he quipped, outlining how the private sector should contribute towards development by promoting private public partnerships.

Dr. Jayasundera compared the progress of the industry to “driving a car at 60mph and accelerating to 80mph” and insisted that investment “must happen in a big way”.

Breaking down the numbers, he pointed out how investment as a ratio of GDP must grow at a minimum of 32% for the country to reach its US$ 5,000 per capita income in the stipulated amount of time.

Admitting that the Government can only provide 6%-7% of investment he called on the private sector to take full advantage of the positive elements that have developed since the end of the war to supply the rest.

“We need you to expand as 33% of GDP investment is needed. Whatever anyone may say, out of the hubs that have been planned, I have faith in the apparel one. Inflation, unemployment and poverty need to be kept at 5% to meet this target and Foreign Direct Investment (FDI) must hit US$ 1 billion per annum for us to reach this goal. I am confident that we will reach this FDI target this year.”

He insisted in such a changed economic environment the industry would have to change their attitude and prepare for fresh challenges. Higher wages, better linkages with small and medium enterprises as well as developing interlinked industries such as packaging, labelling, branding and shipping will have to take place. He pointed out that US$ 1.2 billion worth of food imports are still made along with US$ 3.5 billion in energy imports as well as US$ 800 million in research and development services.

“These are all avenues that the private sector can invest in and make a difference in this country.”