Let’s now win the economic war – Dr. Amunugama

Senior Minister for International Monetary Cooperation Dr. Sarath Amunugama early this week stressed that following the crushing of terrorism it was time for Sri Lanka to win the economic war.

Addressing the Chartered Management Institute (CMI) Sri Lanka’s evening presentation on the recent Budget proposals for its members and guests Dr. Amunugama who spoke on the significance of the Budget proposals indicated that Sri Lanka was now on a sound footing to launch into a period of sustainable growth having comprehensively ended the three-decade-long war and having maintained a steady growth rate, averaging 5% in the face of global economic challenges.

The Senior Minister indicated the fact that Sri Lanka was able to sustain its economy through all the difficulties of the global economic setbacks, the oil price escalation and the world food crisis, etc., enabled it to plan systematically in this budget, which was more of a budget for development than for consumption.

Dr. Amunugama reminded the audience of the many advantages that Sri Lanka had in comparison to other countries in the region – it being the only country in the region which can offer a guaranteed power supply to investors with a supply of electricity to 85% of the population (which he indicated would reach 100% by 2012) and a high literacy rate and gender equality – with Sri Lankan women emerging as a very strong force unlike in the neighbouring countries where their contribution to economic growth is less even though qualified in their chosen fields, mainly due to their social norms.

He indicated that Sri Lanka should now take the crucial step to raise its standard to the next level by intensifying the growth momentum, increasing productivity, clearing the obstacles and simplifying procedures.

Dr. Amunugama described in detail that the simplified tax structure and the low tax regime that had been proposed with lower income tax and corporate tax rates and the more reasonable and friendly tax structure would enhance the tax collections. He indicated that the aim of the Government was to increase the income by growth strategies rather than trying the harder choice of reducing the expenditure to bridge the budget deficit.

Even the borrowings of the Government were for development and growth and not for social welfare and assets are being increased by investing in infrastructure. “We Sri Lankans, having defeated the ruthless terrorists, it is now time for all of us to pool our efforts in winning the economic war to make Sri Lanka a rich country,” said Dr. Amunugama.