Political Economy An Overview

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Political Economy - An Overview

• P B Jayasundera
• Secretary, Ministry of Finance and Planning

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Five Solid Positive Features in 2006

• 1. Continued growth momentum for 3 successive
  years with economic growth reaching near 7.5
  percent in 2006 highest growth since 1978

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2. Sustained growth in government revenue
reaching 17.3 percent of GDP
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3 Public debt/ GDP declined to 90 percent and
debt service / government revenue and overall
debt service to foreign earnings further improved
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4. Strong resilient economy
Fuel Imports
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5. Formulation of a 10 year horizon development
strategy towards a new Sri Lanka, based on
Mahinda Chinthana, through a consultative process

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Task Ahead

• Consolidate the positives in implementing the ten
  year horizon development strategy

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Implementation and Coordination - Medium-term
sectoral approach i.e.

• Randora (large infrastructure projects),
• Jathika Saviya - Gama Naguma (rural development
  initiative), Human Resources Cluster (a
  knowledge economy)

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Political Economy Dynamics and Risk Management

• Maintenance of security, law and order
• Development for peace building
• Human rights, governance issues
• External and Internal shocks and associated costs
• Global market volatility
• Inflationary pressures and fiscal risks
• Middle income country challenges

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Thank You