5.5% growth rate for 2021 is not an ambition, it’s an achievable goal: Cabraal

by Sanath Nanayakkare

Growth rebounded to 1.5% in 3Q reflecting great recovery of the economy after the economic contraction in 1Q and 2Q of this year signaling a near normalcy, therefore, the predicted robust turnaround of 5.5% growth for next year is not an ambition, it is an achievable goal, State Minister of Money and Capital Market and State Enterprise Reforms said on Wednesday.

“We are quite optimistic about the 4Q recovery consolidating upward growth next year”, he said.

The state minister made these comment while speaking at the 4th Annual Asia Securities Sri Lanka Investment Conference held on a virtual format.

“Throughout the third quarter in 2020, the country experienced the normalisation of business activities and return to new normalcy in the day-to-day life of the people. In fact, Sri Lanka has found the right balance between controlling the spread of the virus, protecting the health of the people and reactivating the economy. The trick here is to adopt health and safety protocols and mechanisms ensuring minimum risks to health and creating maximum favourable space for accelerated economic activity:, he said.

“By and large, the recovery and growth drivers are structurally similar to playing test match cricket. This is why the government sticks to policies that create a firm set of macro conditions in terms of interest rates, exchange rate and enabling investment opportunities. All these need to be monitored like instrumentation and controls on a dashboard of a vehicle. If one turns askew, others might too. So, they have to be carefully monitored constantly. When all these macro conditions are in place, we should be able to persuade and attract foreign investments to the country. If that happens 5.5% growth won’t be an ambition, it will be an achievable goal for 2021.”, minister Cabraal said.