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Sri Lanka to achieve 7 percent growth with China's help

Staff writer ▼ | February 26, 2016
Sri Lanka would be able to achieve a seven percent economic growth by the end of the year if talks with China succeed, Central Bank Governor Arjun Mahendran said.
Arjun Mahendran
Asia   Obtaining more credit facilities from China
"Sri Lanka would look at obtaining more credit facilities from China and will also look at attracting additional foreign direct investments from China," the Governor said.

Speaking at a press conference at the Central Bank, Mahendran said he had also met key officials of the Chinese Central Bank who said that China was keen to lend more money to Sri Lanka.

"The officials also agreed to allow Sri Lankan bonds and other fund raising financial tools to be marketed in China."

He said Prime Minister Ranil Wickremesinghe would visit China in April and they would also discuss to get more Chinese investments to Sri Lanka.

"We would prefer them getting involved with the Sri Lankan private sector and commence projects similar to the Chinese Port City project where the government would not have to get finally involved. We also prefer future highways and other mega infrastructure projects to be coordinated in this manner as public private sector projects," the Governor said.

He said that next, they would look at Korea and Japan to adopt this model of funding.

Mahendran said the Port City Project too would commence again after several environmental constraints are addressed and remedied.

The Governor said the country will no longer be going to the International Monetary Fund with the begging bowl.

"Sri Lanka is no longer an under development country and what we want from the IMF is some guidance in some areas and also up date them with the current economic performance. These would also help Sri Lanka to be more competitive when global ratings are done by international agencies," he said.

The Governor said the government should look at releasing more land that are idling, for agriculture and other development projects.


 

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