Performance Report – 2010 - Ministry of Finance and Planning

The economic policy strategy of thegovernment envisages integration of thepositive attributes of a liberal economywith domestic aspirations. Therefore, thegovernment strategy focuses on a highvalue-added, knowledge-based,internationally competitive, diversifiedindustry sector. The proposed paradigm isa shift from the raw and import basedindustries to high value added andknowledge based industries with backwardlinkages. A growing industrial base makesa significant contribution to employmentgeneration and thus, poverty reduction andraising living standards. In addition to that,the SME sector has been identified as animportant strategic sector for promotingregional based growth and socialdevelopment. Currently SMEs account for80-90 percent of the total number ofenterprises in Sri Lanka. Therefore, thegovernment has given highest priority forthe development of this sector.During 2010, the Department of NationalPlanning has appraised 58 ProjectProposals relating to the industry sector,which were submitted by the Ministry ofIndustry & Commerce, Ministry ofCooperatives and Internal Trade, Ministryof Traditional Industries and SmallEnterprise Development, Ministry of StateResources and Enterprise Development.Among the projects, so apparaised in2010, the World Bank funded ongoingSmall and Medium EnterpriseDevelopment Facility Project under whichUS$ 38mn is to be issued to crisis affectedSMEs, UNIDO funded , US$ 8.8 mnEastern Province Development Programare some of the important projects. TheDepartment of National Planning hasclosely worked with the Department ofNational Budget, National Council forEconomic Development and other relevantline ministries in formulating the industryrelated contents of the National Budget.EnvironmentIn order to achieve the objectives of theMahinda Chinthana Policy, theDepartment of National Planning hasgiven high priority to implement certainprojects such as "Pilisaru wastemanagement Project", "Green Villages","Gririthuru Sevana" and "Gaja Mithuro".By appraising the project proposals, andgiving necessary guidance to improve thequality of the environment throughsustainable development the Departmenthas made contributions to the sector. Theassets of the environment sector are asfollows:Forest cover- 1.055 millionhectares (23 percent of total landarea)Number of MultilateralAgreements (MEA's) ratified- 40Percentage of the protected areas ofthe total land area- 14 (951333 ha)Strict Nature Reserves-31,574 haNational Parks -535045 haSanctuaries- 344,266 haTable 49 Land use pattern in Sri LankaType of land Extent %ha mnUsed at present 2.63 40.2Sparsely used and 0.72 11unutilized landForest and catchment 2 30.5areasReservations 0.46 7Inundated by tanks 0.13 2Steep land 0.38 5.8Land above 500ft 0.08 1.2ContourBarren lands 0.08 1.2Marshes and 0.07 1.1mangrovesTotal 6.55 100Source: Sri Lanka Environment Outlook 2009The Mahinda Chinthana Policy hasdirected to respect for fauna and flora and188