Annual Report 2010 - Ministry of Finance and Planning

Ministry of Finance and Planning Sri Lanka > Annual Report 2010Intermediate and investment good imports are increasingshowing the enhanced investments as well as the gradualtransformation of the country’s industrial base.Inward remittances have become the second largestforex earning source, helping to finance the trade deficitto a considerable extent.Chart 1.15 > Intermediate and Investment Good ImportsChart 1.17 > RemittancesUS Dollars Million14000120001000080006000400020005,3449,340US Dollars Million450040003500300025002000150010005001,3162,824020002001200220032004200520062007200820092010020002001200220032004200520062007200820092010The Government also mobilized long term loans to thevalue of about USD 2 billion for the reconstruction oflost infrastructure, including Northern sector railwaylines (Medawachchiya – Thalaimannar section as well asVavuniya – Kankasanthurai section), Northern highways(A-9 & A-15) and provincial roads. Developmentexpenditure has also been channelled to restore all cooperativesociety buildings, storages, schools, hospitalsaccess roads, irrigation systems, local authority facilities,Government offices, court houses, police stations, tocreate an enabling environment for normal life andeconomic development. The expenditure incurred onvarious development programmes totalled to Rs. 32billion in 2010. The Government, with the assistancePrivate investment has been sustained at a higher rateeven in the midst of difficult conditions, and poised torise in the post conflict era.of development partners has taken many measures todevelop and restore life in the areas affected by thedecades-long conflict.With newly established peace, virtually all the cornersof the country are now accessible to the general publicand hence, economic activities have gathered anunprecedented momentum. The positive spill over impactof this achievement is already visible in the growthperformance in 2010 where all the sectors of the economyhave recorded impressive growth rates.The above positive developments have been achievednot by accident but through well planned and focusedIncreased gross official reserves have strengthenedthe country’s external position while helping maintainexchange rate stability.30Chart 1.16 > Private Investment (% of GDP)8000Chart 1.18 > Gross Official ReservesPercent25201510521.121.6US Dollars Million70006000500040003000200010001,7224,00602000200120022003200420052006200720082009201002000200120022003200420052006200720082009201033