Annual Report 2010 - Ministry of Finance and Planning

Ministry of Finance and Planning Sri Lanka > Annual Report 2010Reducing Regional DisparitiesThe government developmentstrategies have been carefullydesigned to make sure thedevelopment benefits are equallydistributed in various regions inthe country. Therefore, regionaldevelopment is an integral part ofthe overall national developmentof the country. Despite its smallsize, Sri Lanka has great diversity;geographically, economically as well asculturally. Even though Sri Lanka hasimplemented large number of regionaldevelopment projects during theseveral decades, the country still hasconsiderable disparities and variationsin regional growth and development.Most of the reforms of the 1970s and1980s benefited the Western Province,which was able to cut its poverty rateby half. Since 2006, Mahinda ChintanaDevelopment Strategies focused onreducing regional economic growthdisparities. As a result, regionaleconomic disparities in Sri Lankahas declined during the last fiveyears although the Western Provincecontinued to dominate by contributinga 45.1 percent share (2009) of grossdomestic product (GDP).Each sub-national region has its ownregional identity. The developmentproblems faced by different regionsas well as their developmentpotentials are also different. Thisdiversity can be used as a positivefactor that can be harnessed fordevelopment in competitive andinnovative ways. Having recognizedthe need for a regionally focuseddevelopment model, regionaldevelopment programmes suchas Rajarata Navodaya, KandurataNawodaya, Pubudamu Wellassa,Sabaragamuwa Arunalokaya, UturuWasanthaya, Negenahira Nawodaya,Wayamba Pubuduwa, Ruhuna Udawaand Ran Aruna, have been designedparticularly to address the regionaleconomic and social disparities. TheBudget Speech - 2010, states that theabove regional development initiativescover 10,000 lagging villagesscattered island-wide with primaryfocus being given to providingdrinking water, access roads,Table 1.52 > Provincial Share of GDP and Mean Household Income2007 2009 2016Province Share of GDP % Mean Household Share of GDP % Mean Household Share of GDP %Income (AverageMonthly)(2006/07) Rs.Income (AverageMonthly)(2009/10) Rs.Western 48.4 34493 45.1 44955 32.0Central 8.9 20507 9.6 35100 10.0Southern 10.5 24730 10.2 31940 14.0Northern 2.9 N/A 3.3 N/A 7.0Eastern 5.0 18876 5.8 19710 7.0North Western 9.6 20631 10.3 32120 11.0North Central 3.9 24548 4.8 35235 6.0Uva 4.5 19757 4.6 27739 6.0Sabaragamuwa 6.3 19698 6.3 33865 7.0Source: Department of Census and Statistics109