- Published on Friday, 14 September 2012 10:50
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Debilitated by years of conflict, Sri Lanka can count on a period of economic “catching up” in the years to come, states Asia Sentinel in an article on Sri Lanka Rejoining the World.
Asia Sentinel is a web-based Asian regional publication focused on news, business, arts and culture.
According to the report Sri Lanka’s Annual GDP growth rate can be expected to go above 7 percent for 2013, and it’s above continuing global stagnation.
“Two thirds of a coastline featuring world class beaches and half of the country’s highly productive arable land were effectively frozen during the war. The economy has responded positively as these two pillar industries have finally been unshackled by war and boosted by government sponsored infrastructure development over the past several years, including new and desperately needed highway projects connecting the East and West already (and soon the North and South),” the report added.
Referring to the Natural resources of Sri Lanka, the report states, Sri Lanka is potentially sitting on vast deposits of natural gas in nine off-shore fields. Two of three fields tested so far have given positive signatures for gas and phase two development of these fields has begun with roughly US$125 million being spent this year on the projects. Production on active wells could come into play as soon as three years from now.
Hydro represents 70 percent of Sri Lanka's power generation. This is a blessing when the rains are normal, Asia Sentinel adds.
Two thirds of global sea traffic passes by Sri Lanka, representing opportunity. The Government has big plans to inject the country into the pan-Asian supply chain by developing the Hambantota port.
Sri Lanka has been written off as an irrelevancy for decades. Investors now are sniffing around, the report said.
The writer Sam Baker explains that Government must capitalize opportunities to re-build foreign and domestic investor confidence if it wants to continue reaping the peace dividend.
“The ball is in their court,” he added.