The World Bank is highlighting key areas in Sri Lanka and the overall developments in many areas are significant, CeyNews reported.
The
country context has changed dramatically in recent years.
A 26-year
conflict ended in May 2009, and resettlement of internally displaced persons is
largely complete. The macroeconomic situation is much improved. Sri Lanka has
become a middle-income country, and its credit-worthiness has opened its access
to International Bank for Reconstruction and Development (IBRD), allowing for
significantly increased financial support from the World Bank during the coming
years.
A look back
at growth performances of other comparable economies, post-Global Financial
Crisis (GFC), shows Sri Lanka maintaining relatively stronger growth of over 8%
in both 2010 and 2011, largely spurred by private-sector demand. Sri Lanka
posted the fastest growth in South Asia in 2011 and is expected to achieve the
same in 2012. Growth remained strong in the first half of 2012 at 7.2%, but for
the year as a whole it is expected to decline to around 6.5% – largely owing to
the weakening external demand and tighter credit conditions domestically.
Sri Lanka
was able to maintain relatively strong growth (about 5% per year) even during
the war.
Though growth dropped to 3.5% in 2009 during the final military campaign, which coincided with the GFC. The post-conflict rebound helped all sectors both on the supply side and the demand side: Agricultural land in conflict-affected areas could once again be cultivated; double shifts in manufacturing became possible as workers no longer had to worry about security restrictions; domestic consumers’ and investors’ confidence revived; and services related to tourism picked up as tourist arrivals surged after the end of the war.
Though growth dropped to 3.5% in 2009 during the final military campaign, which coincided with the GFC. The post-conflict rebound helped all sectors both on the supply side and the demand side: Agricultural land in conflict-affected areas could once again be cultivated; double shifts in manufacturing became possible as workers no longer had to worry about security restrictions; domestic consumers’ and investors’ confidence revived; and services related to tourism picked up as tourist arrivals surged after the end of the war.
As Sri
Lanka’s economy grew, unemployment and poverty rates fell.
As of the second quarter of 2011, unemployment was only 4.2%, though higher among youth, women, and the more educated. Poverty rates have also fallen, from 15% of the population in 2006-07 to 9% in 2009-10. The most dramatic declines have been in the estate sector (from 32% to 11%) following a major wage increase at the beginning of 2010. Poverty rates in Colombo District are under 4%, though there are pockets of poverty in all other parts of the country
As of the second quarter of 2011, unemployment was only 4.2%, though higher among youth, women, and the more educated. Poverty rates have also fallen, from 15% of the population in 2006-07 to 9% in 2009-10. The most dramatic declines have been in the estate sector (from 32% to 11%) following a major wage increase at the beginning of 2010. Poverty rates in Colombo District are under 4%, though there are pockets of poverty in all other parts of the country
Sri Lanka
is on track to meeting most of the Millennium Development Goals.
UNDP has identified Sri Lanka as an early achiever on 10 of the 21 indicators, including those related to the goals of universal primary education and gender equality. Sri Lanka is also expected to meet the goals of maternal health and HIV/AIDS. However, Sri Lanka is making slower progress on the goals related to malnutrition and child mortality. Indicators are mixed on the environment goal: While Sri Lanka is an early achiever on indicators of protected area, ozone-depleting substance consumption, safe drinking water, and basic sanitation, it has stagnated or is slipping backward on forest cover and CO2 emissions.
UNDP has identified Sri Lanka as an early achiever on 10 of the 21 indicators, including those related to the goals of universal primary education and gender equality. Sri Lanka is also expected to meet the goals of maternal health and HIV/AIDS. However, Sri Lanka is making slower progress on the goals related to malnutrition and child mortality. Indicators are mixed on the environment goal: While Sri Lanka is an early achiever on indicators of protected area, ozone-depleting substance consumption, safe drinking water, and basic sanitation, it has stagnated or is slipping backward on forest cover and CO2 emissions.
As with
all prolonged conflicts, social inclusion has been slow to be established.
A long-lasting solution to the ethnic problem and putting in place effective means of addressing grievances of minority communities is vital for sustained peace. The Lessons Learnt and Reconciliation Commission (appointed by President Rajapaksa to investigate the final phase of the war), presented its final report to Parliament in December 2011.
A long-lasting solution to the ethnic problem and putting in place effective means of addressing grievances of minority communities is vital for sustained peace. The Lessons Learnt and Reconciliation Commission (appointed by President Rajapaksa to investigate the final phase of the war), presented its final report to Parliament in December 2011.
Sri
Lanka’s demographic transition is having dramatic impacts on education and
health as well as the economy.
By 2036, more than 22% of the population will be over 60 and there will be 61 dependents per 100 adults. Unless labour force and employment rates increase, a very small number of employed persons will need to provide for a very large number of non-working people – straining the budgets of families and the government. As the population becomes older and has a higher income, the types of public services required will change. The education system will need to increase emphasis on computer, English, and higher-level cognitive skills. The health system will need to deal (both preventively and curatively) with the growing burden of non-communicable diseases, including injuries and mental health problems, and provide rehabilitation and long-term care, especially for the elderly. Social protection for the elderly will need to be enhanced. Increasing urbanization will require investments in mass transit; expanded water and sewage networks; improved road safety; better control of air pollution, noise pollution, and other environmental hazards; and better town planning to allow for elderly-friendly design aspects.
By 2036, more than 22% of the population will be over 60 and there will be 61 dependents per 100 adults. Unless labour force and employment rates increase, a very small number of employed persons will need to provide for a very large number of non-working people – straining the budgets of families and the government. As the population becomes older and has a higher income, the types of public services required will change. The education system will need to increase emphasis on computer, English, and higher-level cognitive skills. The health system will need to deal (both preventively and curatively) with the growing burden of non-communicable diseases, including injuries and mental health problems, and provide rehabilitation and long-term care, especially for the elderly. Social protection for the elderly will need to be enhanced. Increasing urbanization will require investments in mass transit; expanded water and sewage networks; improved road safety; better control of air pollution, noise pollution, and other environmental hazards; and better town planning to allow for elderly-friendly design aspects.
