Transport, Highways and Mass Media Minister Dr. Bandula Gunawardhna said that national programmes to strengthen the country economically have been passed into law for the first time, in accordance with international standards.
The Minister said this during a press conference in Kandy on Tuesday evening after observing the development activities taking place in the Kandy city including the construction of the Getambe flyover with the help of the Hungarian government. Hungary government representatives were also present.
The Minister said that the Central Bank Act has suspended the printing of money for price stabilisation and the Debt Control Act passed by the Parliament means that no government can borrow at exorbitant rates of interest.
He emphasised that since the Public Financial Management Act has been passed, the economic policies cannot be changed at will and accordingly the preparation of the Budget is done by the contributions of experts representing the Budget Committee.
The Minister also said that the process of catching the corrupt in the country will be strengthened by the Anti-Corruption Act passed by Parliament.
He said further that recently, Sri Lanka has signed several crucial agreements and has entered into an agreement with the International Monetary Fund on the Comprehensive Loan Agreement. He also emphasised that agreements signed with the Paris Equity Group, China and India regarding debt repayment are in place.
“In order to develop the city of Kandy as a green city, the representatives of the World Bank have come to the country and expressed their interest in providing 200 electric buses under loan basis. Now Sri Lanka is able to discuss this too,” he said.
The Minister said that a promise has been made to the world that by 2032 Sri Lanka’s indebtedness will be reduced to 95 percent as a percentage of GDP.
“Currently, that figure is 128 percent. Under no circumstances can the government’s gross financial requirement exceed 13 percent of the GDP. Loan installments, interest payments cannot exceed 4.5 percent. A surplus of 2.3 percent should be maintained in the primary account when preparing the Budget every year,” he said.
He said that it is not possible to create any deficit in the account balance by carrying out imports and exports at will. “It is not possible to increase the balance of payments deficit by more than one percent of the Gross Domestic Product in a year. The growth rate should be maintained more than five percent every year,” he said.
The Minister said that unemployment should be kept below five percent. Female labour participation should be increased to 40 percent. “By implementing these laws in accordance with international agreements, a programme should be implemented in the country to become a developed country with a per capita income of US$ 20,000 by 2048,” he said.
Investment Promotion State Minister Dilum Amunugama, Transport and Highways Ministry Secretary Ranjith Rubasinghe, and Marton Laszlo, Honorary Consul of Sri Lanka –Hungary (CEO – Betonutepito) were present.
