Annual Report 2010 - Ministry of Finance and Planning

1 | DEVELOPMENT PERSPECTIVESDecline in Government debt to GDP ratio is significant,which reflects the gradual improvement of the country’sability to repay debt.Chart 1.11 > Government Debt (% of GDP)The marked decline in the number of strikes in theprivate sector industries reflects the improved industrialrelations during the 2005-2010 priod.Chart 1.13 > No. of Strikes in Private Sector Industries110100102.1%12010094Percent908085.5%Number8060403570206020002001200220032004200520062007200820092010020002001200220032004200520062007200820092010providing an overwhelming majority of the people’svotes for the President and People’s Freedom Alliance,led by His Excellency the President. The stability in boththe Executive and the Parliament has created conduciveenvironment to take the economic development forward.All these positive developments paved the way forSri Lanka to consolidate as a ‘Middle Income EmergingMarket’ with annual growth reaching to a 30 year recordhigh level.The long years of human sufferings and the destructionof the country’s resources ended with the completionof the humanitarian operation in May 2009. Since then,the Government commenced relief, rehabilitation andreconstruction programmes in the conflict affected areasto build peace, reconciliation and rapid developmentin the country. Welfare assistance was provided to alldisplaced people who were looked after at several campsfollowed by a resettlement initiative in line with deminingprogramme in the area. Demining programme, led by SriLanka Army and several non-Governmental agencies,cleared 793 km 2 by end March 2011 concentrating farmlands, public places and access roads etc. By end April2011, about 277,351 out of 295,136 displaced peopleduring the final phase of humanitarian operation havebeen resettled with continuous livelihood support.Post conflict boost in both the domestic andinternational investor confidence has increased themarket capitalization and daily turnover.Exports are growing despite various challenges like nonrenewal of GSP+ facility, reflecting the dynamism of localexporters, supported by conducive policies.Chart 1.12 > Market Capitalization (Rs. Bn)Chart 1.14 > ExportsRs. Bn25002000150010005002041,005US Dollars Million90008000700060005000400030005,1867,39602000200120022003200420052006200720082009201020002000200120022003200420052006200720082009201032