Strategies for Sri Lanka to recover post-Ditwah disaster

India as they were hovering around $380, whilst Vietnam was a mere $120 GDP per capita.

- By Prof. A. Saj U. Mendis, PhD

In 2010, China became the second largest economy surpassing Japan, in terms of GDP and per capita of $4,500. In other words, GDP per capita of China had risen by nearly 15 times or 1500% between 1990 and 2010.

Of course, China was one of the few countries in the world, which recorded double digit growth for nearly a period of three decades. Sri Lanka had a GDP per capita of $2,500 in 2010, which should have doubled based on “RULE of 72” within the next decade (by 2020) if it recorded 6-7% growth, since the grievous and insidious terrorist conflict was over in 2009. In other words, based on conservative calibration of growth of plus or minus 5%, GDP per capita of Sri Lanka, today, should be around $6,000 to $6,500, a little less than Thailand and Azerbaijan and similar to the BRICS member state South Africa. Mathematically and pragmatically, with astute and efficacious policies, Sri Lanka could have reached the said milestone, thus uplifting the standard of living of the populace with a GDP per capita of over $6,500 by 2025. This is stated in the context, Vietnam had a GDP per capita of $1,500 in 2010 and by 2025, it cracked the GDP per capita of $5,000. According to the Nobel Laureate Joseph Stiglitz, the success of China, amongst others, was “investing in people” as well as consistent and competitive policies and unprecedented reforms maximising economic output and growth.