Sri Lanka North calls for private investments

June 30, 2015 (LBO) – Sri Lanka’s Northern Province calls for private investments in water disposal, recycling, construction, health care, hospitality, trade and vocational targeting at increasing household income of the people.

“Some of the fundamental problems faced by the people of the North and the East are their socio-economic problems, the post conflict trauma, livelihood needs, human rights and issues affecting vulnerable groups,” G S Palihakkara, Governor of Northern province said.

“Although some excellent work on infrastructure has been done in the North and East, these projects alone cannot achieve enough in terms of enhancing household incomes,”

“It is an urgent priority, therefore that all stakeholders and here the private sector has a significant role to play, they must inject further investment and value addition enterprises into those areas.”

He said despite the hive of economic activity household incomes in the North have remained significantly below the national averages and paucity of investment in the area has continued.

The Northern Province’s share of national GDP remains low among the Provinces in the Island, being 3.4 percent and 3.6 percent for 2010 and 2013 respectively while GDP per capita income also remains low.

“Apart from some ventures in energy, garment, trading, there has not been extensive private sector investments in the Northern Province, since the conflict ended in May 2009,” Palihakkara said.

“Of about 20 billion rupees in investments in the Northern Province during the past few years, when you discount nearly 13 billion on power plants the total investment has been only about 7 billion rupees in manufacturing and hospitality industry,”

“This is a deficit that has to be filled not only in terms of promoting north – South understanding, but also in terms of prudent exploitation economic opportunities.”

Sri Lanka ended 30 year of Tamil tiger war in year 2009.