Acting Finance Minister Dr Sarath Amunugama  presenting the Budget 2010 to Parliament yesterday (29) stated that the people of Sri Lanka gave a "resounding " mandate to His Excellency President Mahinda Rajapkasa  at the Presidential Election concluded in January 2010  and a  "Landslide victory "for the United People's Freedom Alliance (UPFA) led by His Excellency at the General Election concluded  in April 2010. This victory given by over two thirds of the Island's voting population was a clear endorsement of the Leadership and Policies pursued by His Excellency, the President since  he assumed office in 2005 in the "successful elimination of  LTTE terrorism and restoring peace ...which was also an expression of the wholehearted support  to the Mahinda Chintana - Vision  for the Future... ". 

The Acting Finance Minister  whilst speaking of the "many challenges " of the Government stated that the "26 year conflict  was brought to an end  and the entire country has been unified " and expressed the country's collective gratitude  to the brave soldiers  who made peace and  a unified Sri Lanka , a reality".  He reminded of the "humanitarian operation conducted  .... under the leadership  of our President as the Commander in Chief  that rescued nearly 300,000 hostages  who were under the grips of the LTTE leadership" which was "not only an admirable mission  but also a mission that was conducted  while respecting all international  Conventions  and norms. There is nothing that we need  to hide and cover". 

The Acting Finance Minister said the Government faced "two major internal challenges on assuming office amidst a global recession  with dangers of a  global economic decline in declining fiscal reserves  resulting  in a possible food crisis due to the grave uncertainties  in 2008- 2009. First, the humanitarian operations launched  by the Government in 2006 - to liberate the nation from terrorism and pave the way for peaceful living  to our people in our land - had reached the final phase  and was demanding an uncompromising  commitment of our time , resources  and the strength of unity  to end the conflict . Second , infrastructure initiatives  which we had launched  to address  lagging supplies  in key facilities  such as electricity  had reached a mature stage  of construction , which could not have be suspended".

Despite these ongoing humanitarian operations and the looming global economic crisis,  Sri Lanka has attained a middle income economy status  with per capita  income rising  from US $ 1,062 in 2004 to US $ 2,053 in 2009 ... Unemployment  has been brought down to  around 5% from 8.3 % in 2004....International reserve  which declined to a critical low  level  of US $ 1.2 billion have been raised in excess of US $ 6 billion  providing stability  to the exchange rate regime ... ".  Poverty indicators  although needing further improvement  also drastically declined  to around 15% of the household population as compared  to 23 % few years earlier.

There were   improvements in the sector in  the quality of life despite the serious challenges  resulting  from LTTE terrorism with the wanton  destruction of property and massive loss of life  creating an environment of uncertainty  counter productive to economic, cultural and development in general.  He said  people today  have better access  to electricity, drinking water , a quality road network , telecommunications , transport, primary and secondary education and  facilities  than five years ago. The national integrated rural development strategy "Gama Neguma " of the Government  "provides  rural roads , electricity, drinking water and irrigation, sanitation facilities  and a wide range of livelihood  activities targeting almost all districts  in the country.  According to  Acting Finance Minister, Dr Amunugama , "the economy  has rebound  with a 6.2% growth registering  in the last quarter  of 2009 and a 7.1 % growth  in the first quarter  of 2010". Almost all agricultural sectors as  rice, maize production showed progress but due to inclement  weather the production of low and up - country vegetables did not reach expected improvement. Fish production in the first quarter of 2010 increased 6.2%  but a shortfall in the production of chicken meat and eggs  registered a decrease. Tea production has increased 25% and rubber 12%  during the first four months. According to him, Food, Beverages and the tobacco increased 6.9% while rubber based industry growth was 8.1% due to the external demand  for tires and gloves while textile apparel  and leather goods  increased only marginally. He said that the balance of payments  total external reserves  as at April this year  recorded an increase of 1.7%  which reflected the recovery  in the economy. Inflation declined to 4.6%  by June 2010 and the "overall balance of Payments , total external reserves  as at end April 2010 stood at US$ 6,578 million".

The Acting Minister of Finance also stated  that an environment and realization  of a "mine- threat -free Sri Lanka " was mandatory  for re-settlement and drawing up a "development strategy" for the Internally Displaced Persons(IDP s) was needed . At the time of the liberation of the Northern province in mid May 2009, the LTTE had laid nearly 1.5 million mines in a total area of 1.474 square kilometers of land including  640 villages. The Government invested Rs 7000 million  to purchase de- mining equipment  to establish a de- mining unit as the capacity of NGO support  to undertake the massive task  was  "inadequate". Within an year since  the armed conflict , the Government has resettled  nearly 250,000 IDPs   and a balance of nearly 25,000 remain  to be re-settled is scheduled to be completed by end of 2010. 

The immediate relief and rehabilitation  of the IDP's included  the provision  of family allowances  and dry rations  and opening beneficiary bank accounts " to permit them to develop their own housing program and means of livelihood.  Over 45,000  families have been provided with  roofing sheets  and cement for the construction of houses and build their  own permanent homes . An assessment is also underway  to "identify fully and partially fully damaged  houses, schools , court houses , bus stands, market places  " for an accelerated rehabilitation "program. The offer by the Government of India to  build 50,000 houses  after His Excellency's State visit to India was  greatly appreciated said the Acting Finance Minister. He also stated that arrangement are being made to  bring nearly 40,000 hectares of land under the plough in the Northern and Eastern districts  in time for the "Maha" season. The opening of the A - 9 road and the removal of restrictions on fishing he said has also  boosted the fishing industry and business development in general. A comprehensive  medium and long term reconstruction strategy  is  under way  to rebuild the conflict affected areas   to "create decent living conditions". Amongst the many reasons for the development activities, the  construction of the Northern Railway by rebuilding the existing track from Omanthe to Kankesanturai in the peninsula and the reconstruction of the track to Talaimannaer via Medawachiya will normalize these areas ravaged by LTTE terrorism for nearly 30 years. According to the Acting Finance Minister, funding has been organized to rebuild completely damaged Court houses , roads, electricity schools, hospitals  police posts, police stations,  water schemes for the people and irrigation for cultivation will be  developed in  these areas to increase  the quality of life . Financial assistance for the rebuilding program has been provided by  countries as Australia, India, China, Japan, Switzerland,  the UN, World Bank and the  Asian Development Bank. The "total funds mobilized  for integrated  conflict affected area development  is around  US$ 2 billion in the next two years " he said . 

 Print    E-Mail Article