VISION FOR THE FUTURE 2005 - 2014
The economic strategy from 2005 to 2014 promoted an inclusive growth and laid an underlying macroeconomic foundation for medium term financial and economic stability while spelling out a strategy aimed at elevating the country to a middle income economy status. The strategy proposed ways through which a stable society could be built, ensuring quality living for its people with access to electricity, water, education and health facilities.
Translating this strategy into action was an uphill task in the backdrop of global and domestic challenges that were confronted. The biggest challenge faced by the Sri Lankan economy was the escalation of oil prices globally, commencing in 2003, owing to global disturbances and growing demand from emerging market economies that exerted an unprecedented pressure on commodity prices and Balance of Payments. The volatilities that prevailed in the global financial markets, the exchange rate and the interest rates, vagaries of weather such as droughts, floods etc., experienced from time to time, all created adverse impacts on the economy.
Above all, the protracted conflict also caused a tremendous cost on the economy, the democratic norms and the life of the people. The impact of the conflict was multi-pronged: the defense expenditure, cost associated with the displaced, impact on tourism, shipping and aviation industries, the lack of interest shown by investors, and denial of democratic rights and freedom to name a few. Despite all adversities, the Government ensured that the economy and development progressed, although the speed of which – if not for the odds – would have been greater.