“The resources committed towards safeguarding Sri Lanka’s sovereignty, the safety of her people and the prevention of terrorism, needless to say, did weigh an enormous stress on the nation’s economy. Yet at the macro level, the economy has maintained a remarkable growth in the face of these challenges,” said Chairman /Director General of BOI, Dhammika Perera.

He was speaking at a forum on “Emerging Economies in South Asia: Challenges Faced and Challenges Ahead”, jointly organized by the Oxford University Sri Lanka Society and the Oxford Union at the Oxford Union, UK yesterday (Feb.22).

In order to alleviate poverty, economies need to industrialize. Industrialization in turn leads to emissions. In other words the equation is that a reduction in poverty leads to an increase in emissions, he said.

“Despite the fact that there is a lot of discussion on human rights the world over, the global community has failed to realize that by restricting the developing world from growth, they are engaging in restricting this human right, the right to live now,” Perera said.

From Sri Lanka’s perspective, the impending loss of the GSP+ due to pressures from the European Union will set our nation back in terms of competitiveness of our garments trade, will cause loss of employment and to a degree will destabilize our trade. However, Sri Lanka will regain its ability to balance the external environment merely based on the emphasis, the investments made and the degree of sophistication of our garment industry, the Director General of BOI said.

Sri Lanka has demonstrated economic resilience and has been unique in that her GDP growth rates have over the past four years been consistently in the range of 5 to 6 per cent with the exception of a forecast 3.5 per cent in 2009. Our country has witnessed several additional adverse shocks, including a tsunami, direct effects of the commodity crisis and the pervasive effects of the ongoing financial crisis, he noted.

A pragmatic economic approach has delivered sound returns. Policies that are reflective of an open minded approach and which are contingent to global and local challenges have been the key to Sri Lanka’s ability to sustain economic momentum. Likewise, the nation’s corporate community has rallied around and worked in tandem with national priorities especially over the last four years, he said.

It seems unrealistic that Sri Lanka’s economic progression will be unhindered, however, an open mind, a realistic approach and optimism will, I believe take us there, the BOI Chairman said.