Sri Lanka economic parley to mull growth strategies

Oct 07, 2010 (LBO) – Growth strategies needed to improve Sri Lanka’s economic climate and raise living standards by reducing income inequality will be discussed at a conference of economists later this month, a senior economist said The annual sessions of the Sri Lanka Economic Association will cover development of physical and social infrastructure, enhancing productivity and competitiveness and labour and regulatory policies, the association’s president A D Vde Silva Indraratna said.

He said economists at the conference will discuss policies needed to encourage investment and bridge the gap between savings and investment for which a reduction in big budget deficits was needed.

“For growth you need not only investment, but it is more important to enhance productivity which enhances competitiveness which is what we’re lacking, particularly our exporters.”

Growth-friendly labour laws are also needed to achieve the 8-10 percent growth rates targeted by government, as well as policies to bridge the existing big gap between savings and the required investment rate to accelerate growth.

“You need proper good governance, law and order, an efficient public service, strong institutions, and less red tape to create an econ