The country envisages a sustained progress towards a US$ 4,000 plus per capita income and a US$ 100 billion economy within the next three years, the Governor of the Central Bank, Ajith Nivard Cabraal said in his presentation of the Bank's Annual Report for 2012.

However, the Governor cautioned to avoid the country falling into a "Middle Income Trap" on the path to achieve the goal of high per capita income.

Explaining further, he said some economies experience a stagnated phase of growth after reaching the US$ 4,000 per capita income as they face an inability to increase their exports to compete against low income and low wage economies, and also highly skilled and innovative advanced economies.

As wages rise with a low unemployment rate, manufacturers, while lagging behind advanced economies, will be unable to compete in export markets with lower-cost producers, leading to a pullback in the economic growth and stagnation, he explained.

While noting that in some countries the higher per capita income has acted as a barrier, the Governor noted that to breakout from a possible economic rut the country has to take certain key steps and the 5-hub concept introduced in Mahinda Chintana, plus tourism would be key to avoiding the middle income trap in Sri Lanka.

Under the Mahinda Chintana Future Vision policy the key five hubs - Maritime Hub, Aviation Hub, Energy Hub, Commercial Hub and Knowledge Hub - will be developed along with the Tourism Hub, Cabraal emphasized.

As the stage is set for a high growth trajectory over the next few years Sri Lanka is targeting an ambitious Medium-term Macroeconomic Framework, the Central Bank Governor said in his presentation.

Sri Lanka will continue to strengthen the strong economic performance while avoiding Middle Income Trap and strengthen the macro-economic stability coupled with sustained investment and real sector growth.

Sustained investor confidence supported by proactive policy measures and improved productivity, and continuous infrastructure development to help enhance capacity will also help Sri Lanka to sustain high economic growth, he noted.