The government says its top priority will be to increase infrastructure investment as it stated the budget making process for next year. Years of underinvestment by successive governments especially in rural infrastructure have contributed to increasing poverty in some areas.
Government says higher investment in rural infrastructure will boost economic growth to between six to eight percent and drive down poverty.
Infrastructure investment normally opens new markets and creates new opportunities for economic activities.
“There will be significant empathy for regional and infrastructure development to create access to markets and opportunities in those areas. This will include road development programs, small tank development programs and SME programs,” says P.B. Jayasundera, Secretary, Treasury.
Economists say, in addition to deterring investment, weak infrastructure also undermines Sri Lanka’s strategic advantages of being close to main sea routes, high literacy rate and liberal ec