We need more investment for lasting growth

Sri Lanka has restored economic stability, recording steady growth and investor confidence, yet challenges remain, says Deputy Minister for Economic Development Anil Jayantha Fernando in an exclusive interview. Foreign reserves have risen and inflation has eased, while industrial growth has reached nearly 10 per cent. Fernando, however, says lasting prosperity depends on continued reforms, new investments and stronger export markets. Edited excerpts:

- BY LAKSHMI SUBRAMANIAN/Colombo

ANIL JAYANTHA FERNANDO, minister of labour and deputy minister for economic development

Q/Where does Sri Lanka stand in terms of economic development now?

A/ I would not claim that we have achieved major economic development. We continue to face several challenges. The reciprocal tariff issue with the United States remains unresolved. However, we have been able to stabilise the economy in terms of pricing and financial discipline. This has helped build investor confidence and boost investments. Government revenue is on target, and we are aiming for exponential growth. We are working within the IMF framework. There are constraints, but within them, we have achieved GDP growth of 5 per cent compared with the forecast of 3 to 3.5 per cent last year.